Why individually developed software is becoming increasingly important

Looking at the development of new, successful business models shows that software is now a key factor for innovative and competitive companies. Regardless of whether it is in retail, manufacturing, financial services, media or other sectors, the importance of software-supported processes is obvious. Studies and surveys underpin this development, which will be discussed in more detail later in the text.

Historical Development

In the early stages of IT usage, companies focused on internal data storage. Typical applications were finance and accounting, payroll, materials management, quotation preparation and customer relationship management. From the 1950s to the 1990s, large companies often developed these systems internally. But from the 1990s onwards, standard software became increasingly popular.

However, the more specific an application area is, the less suitable standardized solutions are. For cost reasons, companies often resort to them even if they do not fully meet the requirements. This often leads to inefficient processes and hinders further development and transformation.

Advances in Custom Software Development

Thanks to open source components and improved software engineering methods, the development of individual software is now much more efficient. Many work steps are automated, the methods are standardized, and powerful development tools with integrated artificial intelligence support the developers.

The spread of broadband Internet access and mobile devices has taken business software to a new level. Consumers and business customers are directly connected to the company's systems, which means that software plays a crucial role in how the company is perceived. Today, companies use software not only to optimize internal processes, but also increasingly to differentiate themselves through new services and an optimal user experience (UX).

Limits of Standard Software

Standard software can hardly serve as a distinguishing feature. Unique products or services are difficult to implement convincingly using standard solutions. Instead, user-friendliness, range of functions and innovations are the decisive criteria that convince consumers or corporate customers.

results from practice

A study by techconsult on behalf of Eckart & Partner (see: Eckart & Partner, techconsult study) shows the relevance of individual software development:

• 74 % IT managers see customized software as a key factor for company success.

• 77 % view customized software as a tool for gaining competitive advantages.

• 53 % opt for individual solutions because standard software does not cover their requirements.

• 40 % are willing to bear higher costs for the quality and accuracy of customized software.

• 73 % value the faster implementation of new business ideas through individual software as a strategic advantage.

Conclusion

Individual software development is becoming increasingly important in an increasingly digitalized world. It enables companies to stand out from the competition, meet specific requirements and implement innovative services more quickly. Companies that rely on individual solutions not only invest in their IT, but also secure their long-term competitiveness and innovative strength.