Many organizations today strive to deliver unique and highly personalized products and services for customers. However, to do so, they often have to invest heavily in their technology stack and create custom solutions to deliver on their promises.
However, when building their own solutions, businesses need to first understand their capabilities and limitations. Although creating a custom technology stack for their business can unlock a number of great opportunities, there are some potential downsides that can occur.
Signs You’re Hitting the Limits of Customization
While creating custom integrations for your organization’s tech stack, it’s important to be aware of the signs that you might be hitting the limits of your customization. Some of these signs include:
Workflow Inefficiencies
If you notice that your marketing teams spend way more time wrestling with automation platforms than actually providing helpful results to sales teams, then the level of customization could be too high.
For example, in real estate firms, if the business is relying on too many disjointed tools – one for listings, one for scheduling buyer tours, and others for actually selling a house, then the redundant processes when working in multiple platforms would result in workflow inefficiencies.
Integration Headaches
While having integrated systems can be beneficial when building custom tech stack solutions, if the business is experiencing constant issues with its APIs or data syncing issues, these solutions may not be as valuable as they appear.
The goal of integrated systems is to reduce the time and resources necessary to navigate between isolated systems. If administrators or employees can’t regularly rely on the accuracy of the data being used in these systems, it’s a good sign the company has outgrown the current setup.
Limited Functionality
Most companies choose to go with a custom technology solution when they cannot access important features when using off-the-shelf tools. Unfortunately, even customization will often have certain limitations when working with various third parties.
For example, a growing e-commerce company might need to have more personalization options available for their customers based on very specific data points. Financial institutions may have a custom loan application process that covers a very niche audience. In any of these types of situations, building new solutions from the ground up might be the better option.
The Benefits of Building Your Own Tools
Although some organizations may think that building their own tools isn’t worth the effort, you’d be surprised by the amount of benefits that can come from the process:
Perfect Workflow Fit
Most businesses are used to having to compromise on certain features or integration capabilities when subscribing to a new tool or solution. However, when you design your own tech solution, there is rarely something you can’t create.
It’s the same concept of doing a complete bathroom remodel vs. just making minor upgrades. While you will pay less just to change a few fixtures, you’ll have much more flexibility and added value when you’re able to design your own space from scratch.
Control Over Your Data
One of the challenges for businesses as they scale and rely on third-party services is relinquishing a certain level of control over their data.
When building your own solution, you’ll be able to decide exactly how your data is collected and stored and have complete control over how it is secured. This can be highly advantageous, especially when working in industries that have strict data compliance standards.
Competitive Advantage
While many businesses rely on the same technology solutions to drive various parts of their business, organizations willing to invest in building their own tech stack can potentially create more unique products or services that help differentiate themselves from their competitors.
When is Building NOT the Right Answer
Even though building a tech solution from scratch can provide a number of benefits, it’s important to remember that this path may not be the best one to take in certain situations.
Below are some common cases when building a custom solution may not be in the best interest of the business:
Lack of In-House Development Expertise
The upfront investments in building custom solutions from scratch can be considerable. Because of this, it’s important that you have the right team in place to ensure that the development project goes without a hitch and you’re able to maximize your return on investment.
In the event that your organization doesn’t have adequate in-house resources or budgets don’t allow for hiring a full-time development team, it may not be wise to start the project.
The Problem Isn’t Unique
When many businesses start experiencing growth challenges, it can be hard to assume that other companies might be going through the exact same issue.
Before investing in a custom-built solution, it’s important to do some research to see if the issues you’re experiencing already have off-the-shelf solutions to help solve them. This will help to reduce the likelihood of spending much more for a resolution to the problem than you need to.
Time and Cost Constraints
It’s important to consider both the known and unknown costs of developing a custom software solution. Just like when renovating a house, unexpected costs can often creep into the scope of a project.
If an organization is not financially prepared for these costs to come up, they can cause a significant drain on critical resources and could potentially cause significant operational issues down the road.
Making the Transition
Transitioning from a customized tech stack to building your own in-house tools doesn’t happen overnight and requires a methodical approach. If you’ve decided that a custom-built solution is in your best interest, there are a few things to keep in mind:
- Start Small: Don’t try to replace your entire tech stack at once. Identify the processes that are causing the most pain or hindering your growth.
- Phased Approach: Gradually integrate your custom tools into your existing infrastructure. This allows you to test, refine, and ensure a seamless transition for your employees.
- Expect an Investment: You’ll need to allocate a budget for development, testing, and ongoing maintenance. However, the long-term payoff in terms of efficiency, data control, and competitive advantage can far outweigh the initial investment.
While developing your own tech stack solutions can take careful planning and execution, done correctly, you’ll be able to successfully transition into a more efficient and productive organization.
Author Information
Author Name: Dalip Jaggi
Author Bio:
Entrepreneur, technologist, and passionate business leader sum up the core of Dalip Jaggi, co-founder of Revive Real Estate, a PropTech company with a goal to democratize house flipping. Since its 2020-inception, Revive has since become the smartest solution for homeowners to maximize their home’s sales value across the nation.
Author Headshot:
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