Enterprise resource planning

The Targeted Integration of Standard and Custom Software

Individuality as the Best Standard

The triumph of standard software continues unabated—but custom software is also experiencing a renaissance. As an alternative to the often complex customization of standard software, projects today increasingly result in tailored solutions that may even be more cost-effective. The targeted integration of standard and custom software is becoming the gold standard for needs-based, adaptable, and integrated installations.

The Center for Quality Engineering at SGS Germany GmbH in Munich uses modern test tools and methods to examine products such as phones, toasters, and tractors for everyday usability, electromagnetic compatibility, and product safety. The SAP ERP system used across the SGS Group serves only marginally as a working tool for the engineers, who test, verify, and certify on a 5,500 square meter campus.

For over ten years, around 120 employees have been using a custom-developed lab management system to support project management, equipment tracking, report generation, and other workflows. Site manager Philipp Zinnkann emphasizes the software's flexible and rapid adaptability as “an unbeatable advantage.” For the system’s continuous development and alignment with new challenges, the engineers work closely with Dacore Datenbanksysteme AG, a company specialized in lab software based in Heroldsberg near Nuremberg.

Dacore exemplifies the evolution of custom software development. In its early years after its founding in 1998, every customer received a fully tailored lab software. Today, customers can start with a “starter package” called TestLabPlus 025, which supports core processes in a technical-physical testing lab. Though not standard software, the starter package comes with a fixed license fee and is described by the vendor as “flexible and significantly more affordable than standard systems using conventional licensing models.”

Dacore has also developed around 200 modules, such as the “Room Booking Manager”, that can be combined or custom-developed for specific needs and integrated with standard software. Many custom software providers now offer programs, modules, or components that are not standard products but promote reusability and cost-efficiency in custom development.


Advances in Software Engineering

Once deemed expensive, risky, and incompatible, custom software is making a comeback. Lengthy and costly projects with uncertain outcomes are increasingly a thing of the past. Today, both new and experienced developers leverage the latest advances in software engineering.

Christoph Bröker, managing director of Cobitec Business Solutions GmbH in Harsewinkel, highlights modern development tools that accelerate custom programming and simplify database access. Previously, developers painstakingly wrote SQL queries by hand; now, object-relational mappers in a middleware layer make connecting GUIs to databases much easier.

Bröker warns mid-sized companies, who skip neutral consultants due to cost concerns, against overly optimistic promises made in software sales pitches: “We can easily model your processes. No problem.” Without a detailed requirements specification or contract, escalations and cost overruns are likely, as customizing standard software often proves more difficult than expected. In many cases, custom programming can actually be cheaper, he notes.

Ulf Klarmann, managing director of ERPwerk GmbH in Oldenburg, sees advantages in a “modular building block” approach to custom software. There is now a wide range of pre-built components available, such as PDF modules, OCR tools, and document management features like “storage,” “sorting,” or “replication.” He reports that free ERP software proved too slow to develop with and that success lies in expert selection of optimal ready-made parts.

His team programs primarily in Delphi due to its broad and mature component ecosystem, although .NET is catching up. In contrast, Java still lacks comparable component variety and convenience.


Modern Custom Software: Where It Thrives

Today’s custom software thrives especially in the following areas:

  • Large, mature installations at corporations (e.g., telcos, utilities) and public institutions

  • Industry-specific solutions with highly specialized requirements

  • Departmental software for businesses with unique demands that outgrow simple tools like Excel

  • Online solutions for portals, shops, campaigns, catalogs, and brochures

  • Custom CRM, document management, and other specialized applications—even in areas with standard software options


Standard Software with Minimal Customization

Despite the resurgence of custom software, the decades-long trend toward standard software continues. According to a PAC 2012 forecast for the global software and IT services market, the trend has even intensified. Companies, especially those in crisis-hit southern Europe, are seeking to reduce IT costs. They do so by replacing old applications with affordable software: “Companies are increasingly opting for standard solutions with limited customization to save costs.”

Oliver von Grün, president of the German IT SME Association (BITMi), supports the use of modern standard software. He notes that many SMEs now offer standard solutions, and that the boundaries between custom and standard software are increasingly blurred. Custom projects often evolve into commercial standard products.

According to von Grün: “It's no longer a problem to use standard software and attach custom projects to it.” He stresses that companies shouldn’t feel compelled to buy everything from a single vendor due to interface concerns. With today’s technology, the old debate of “standard vs. custom software” is obsolete. Instead of an either-or choice, seamless integration of both has become the ideal solution.


“Engineering Effort is Growing!”

Uwe Dumslaff, CTO of IT consultancy Capgemini, observes that CIOs no longer distinguish between custom and standard software. He highlights the increasing interoperability of components from different origins, allowing companies to use an industry solution as a flexible framework. Today’s systems might combine 70% standard and 30% custom software.

While there's still a risk of ending up with a “zoo of technologies,” this can be mitigated with careful engineering: selection, integration, and reuse of components. “Engineering effort is growing significantly,” Dumslaff adds.

A major enabler is the rise of Service-Oriented Architectures (SOA). However, Dumslaff points to a broader concept: SOPS – Service-Oriented Package-Based Solutions, which aim to improve integration beyond what SOA alone can achieve.


Software and Vendor Selection

Customizing or Custom Programming?

Today, it's a mistake to limit software selection to standard products. IT consultants must analyze the starting point and user goals, and then quantify whether custom solutions could be a better alternative than customizing standard software.

Modular Standard Software

Users should retain flexibility for the future. Modularity and adaptability, alongside service-oriented architecture, are critical factors.

Vendors with Expertise

A good vendor should not only offer customization for their standard software but also be capable of developing and integrating custom components. Experience in similar projects is a valuable asset.

Investment Protection and Integration

Replacing entire legacy systems is often unnecessary. In many cases, custom-developed components can extend or optimize existing systems.

Free Software

Anything that is already available and free should not be charged to the customer. Users should insist that providers only bill for actual development effort, not for using free components.

Source: www.m.itmittelstand.de