Choosing software is like buying a car
In an era of rapid digital transformation, choosing the right software is more crucial than ever. Software can give organizations a competitive edge, but the abundance of options can make the choice overwhelming. It’s like buying a car: what do you choose, where do you invest, and how do you ensure a sustainable choice?
In this blog, we’ll use the metaphor of cars to clarify the three main software options: custom-built software, standard software packages, and no-code/low-code solutions. Just like choosing a car, there are various factors to consider, such as cost, maintenance, and ownership. Let’s walk through these choices and discover what best suits your organization’s needs.
Buying a car: Custom-built software
Imagine buying a new car. This is a big investment, and you carefully select the brand, model, and features that fit you best. You might choose specific extras, like built-in navigation or leather seats. Everything can be customized to perfectly match your needs.
The software version of “buying a car”: With custom-built software, the same principle applies. You build a solution from the ground up that fully aligns with your organization’s needs and workflows. This means everything works exactly how you want, without compromise. It gives you maximum control, flexibility, and the opportunity to innovate and grow with your software solution.
Advantages of custom-built software:
- Complete ownership and flexibility: Like a car you own, the software is 100% yours. You can make changes whenever you want.
- Scalable and tailored: The software can be fully customized to your organization and grow with it.
- Long-term investment: Since you own it, you don’t need to worry about licensing or renewal costs.
Disadvantages of custom-built software:
- High initial costs: Startup costs are often much higher than with standard solutions.
- Longer implementation time: Developing custom software takes time. Just like building a car, you have to wait until everything is delivered.
- Responsible for maintenance and updates: You’re responsible for keeping up with updates and legal requirements.
Leasing a car: Standard software packages
Leasing a car is a popular option for those who want the benefits of driving without the responsibility of full ownership. You have some freedom of choice, but you’re bound by what the leasing company offers. You pay monthly for use, and at the end of the contract, you return the car.
The software version of “leasing”: Standard software packages work in a similar way. You choose a package that meets your needs, possibly with add-ons or plugins, but you’re limited by what the vendor offers. It’s ideal for organizations that want a quick start and don’t need a complex custom solution.
Advantages of standard software packages:
- Lower startup costs: Instead of a large upfront investment, you pay periodically for software usage.
- Quick implementation: The software is readily available and can be implemented quickly.
- Maintenance and support included: You don’t have to worry about technical issues; the vendor handles updates and support.
Disadvantages of standard software packages:
- Limited customization options: You have less control and flexibility than with custom software. The software may not meet all specific needs.
- Bound by license terms: At the end of the contract, your access to the software “expires” unless you renew. Investments in custom add-ons may not be transferable.
- Long-term costs: Although initial costs are lower, monthly licensing fees can add up over time.
Renting a car: No-code/low-code solutions
When renting a car, you can usually choose a category, but details like make and model are predetermined. This option offers short-term flexibility without long-term obligations, ideal for temporary or quickly changing needs.
The software version of “renting”: No-code/low-code platforms are similar to renting a car. They provide fast, flexible solutions without complex implementation processes. Ideal for short-term or rapidly evolving projects, but in the long term, more robust options may be better for large organizations.
Advantages of no-code/low-code solutions:
- Super-fast implementation: No development cycle, immediately available.
- Short-term cost savings: Without investing in development, you can start right away without high costs.
- Ease of use: No-code solutions are designed for users without programming knowledge, allowing for quicker action.
Disadvantages of no-code/low-code solutions:
- Limited customization options: For more specific requirements and integrations, you may quickly hit limitations.
- Higher long-term costs: Licensing fees can accumulate, and the software isn’t your property.
- Limited scalability: For complex, growing organizations, no-code/low-code often lacks sufficient flexibility and capabilities.
What fits your organization?
Each organization has unique needs, and the right software choice depends on various factors like budget, future vision, and required flexibility. We recommend focusing on three essential elements: configuration, influence, and innovation.
- Configuration: Do you need a solution that is highly adaptable, or will a standard package suffice?
- Influence: How important is it for your organization to have a say in future developments and upgrades?
- Innovation: Do you want to stay in step with technological advancements and continuously improve your software?
If your organization seeks more control and customization, a custom-built solution offers the most advantages. For a standardized, quickly available solution, a licensed software package could be a perfect fit. And if short-term speed and flexibility are essential, a no-code/low-code platform is a valuable choice.
Whether you “buy,” “lease,” or “rent,” the right software solution is one that aligns with your organization’s goals and strategy. At Finalist, we’re here to help you make the right choice. Our experts in healthcare, education, housing, and non-profit have extensive experience translating complex challenges into smart, efficient solutions.