A low licence fee does not mean low software costs
Off-the-shelf software is attractive mainly because of its price. A company pays a monthly subscription and can start using it almost immediately. But as the number of users, requirements or volume of data grows, the software bill usually grows with it. The licence itself is often only part of the total cost.
- Higher-tier plans to access the features you need
- Additional licences for employees or branches
- Implementation and customisation to fit internal processes
- Integrations with ERP, CRM, accounting and other systems
- Additional applications to cover missing functionality
- Manual work when data still has to move between systems
The licence fee therefore does not reflect the true cost of the software. What matters more is how much the solution costs over time and how much additional work your company has to do around it.
When software starts slowing the business down
Off-the-shelf solutions need to work for hundreds or thousands of customers. That means they are built around generic workflows. But every company may approve orders differently, manage production differently or handle customer service in its own way.
The problem begins when employees start working around the system. They export something to Excel, re-enter other data manually and complete the next step in another application. The software technically works, but it creates extra work around it.
And that extra work is often expensive. The most expensive features are the ones the system does not have. Companies may not pay for them through the licence, but they pay for them every month with their employees’ time. At the same time, they may only use a fraction of what the standard software offers.
When does custom software make sense?
A custom application is not the right solution for everything. Email, video calls or standard accounting are usually better handled by ready-made tools.
The situation is different when software directly affects production, sales or customer service. In these cases, it makes sense to consider whether custom software may be more cost-effective in the long term than an off-the-shelf solution.
- A single process relies on several different systems
- Employees manually transfer data between systems
- Standard software requires expensive customisation or integrations
- The company has its own workflow that sets it apart from competitors
A custom application can connect ERP, CRM, warehouse, production and other internal systems into one process. A higher initial investment does not automatically mean a more expensive solution. What matters is how much manual work, how many licences and how many additional tools it can replace over several years.
AI has changed the rules of the game
Just a few years ago, custom software development meant lengthy analysis, weeks of prototyping and development starting from the first line of code. AI has significantly accelerated parts of this process. Developers now use it for prototyping, writing routine code, testing and creating documentation.
Clients can see a working example much earlier instead of reading through pages of specifications. They can quickly validate whether the idea works, what needs to change and whether it makes sense to invest in the full solution at all.
But AI has not made developers unnecessary. They still need to understand the business logic, design the architecture, ensure security and assess whether AI-generated code actually makes sense.
From clicking through screens to automation
AI is not only changing how custom software is built. It is also changing how people use it. In a custom system, AI can work directly with company data, processes and applications, and take over part of the routine workload.
What can AI help with?
- Analysing invoices and contracts
- Searching internal documents
- Working with customer history
- Processing ERP and CRM data
- Text and voice control of the system
- Automating routine processes
- Suggesting next steps based on company data
Instead of clicking through several screens, a simple instruction can be enough. The system finds the relevant data, processes it and either performs or prepares the next step. In a custom solution, automation can also follow the workflows your company already knows and uses.
Test your own solution for free
MEMOS Software develops custom software for companies that have outgrown standard off-the-shelf solutions. If you are looking for a custom system, an integration or opportunities to automate processes with AI, you can start without making a major commitment.
MEMOS Software will prepare a working prototype for you free of charge, so you can see how the solution could work with your own processes before moving into full development.
