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Money and software – cost savings with standard software

Money and software – cost savings with standard software

Technology & Innovation

Money has always played a peculiar role in the software sector. The industry was shaped by the hacker culture with its far-left political orientation, which did not see the concept of ‘ownership’ as a necessary part of the digital future. Well into the 2000s, large parts of the population still believed that software was not something you should have to pay for. This heightened the popularity of illegal file-sharing networks for trading computer programs and other intellectual property. Ethical issues around ownership in the IT sector continue to dominate political discourse – from intellectual property right through to user privacy and cyber sovereignty.

The main problem inherent in computer-based programs is their lack of tangibility. The content is purely digital and can be reproduced ad infinitum – and the work that goes on behind the scenes is not immediately visible. Another factor is that many software products are developed for a broad customer market – this is what’s meant by standard software. The term implies that while the product conforms to a standard or a minimum benchmark, it hasn't attained the highest level of development. Custom-built software has got to be more expensive to produce, right?

Is standard software cheaper?

The notion that custom-made products are inevitably more expensive than mass production goes back to the age of industrial manufacturing. There's a belief that assembly line products manufactured in large quantities are bound to be cheaper than custom-made products – there's a quantity discount on the materials, the work steps are simplified and standardised. It's less expensive to bring the finished product to market. The idea that a product is ever 'finished' is outdated in the field of standard software nowadays. All kinds of programs in the past were faulty or unfinished, and patches were used to fix or ‘patch’ the code. As software companies turned more professional and marketing departments gained greater traction, the terminology evolved to avoid the implication of reworking and bug fixing. Although patch days still exist, the more common term nowadays is ‘update day’, suggesting that the product or release is being adapted to a changing environment and lending it the appeal of a something totally new.

Working software is never finished

A look back at the history of software development shows why comparisons with conventional haptic products are a thing of the past.
It's widely accepted within the industry that working software is never actually ’finished’. Because in order to guarantee functional reliability, programs need to remain state-of-the-art. Release upgradability is a central component of standard software and requires a great deal of time, effort and expertise in multiple different areas. Developers need to ensure that the software reflects the latest developments in the relevant sector. These are some of the questions WMS software providers need to ask themselves: Can my system handle carousel picking technology? What about batch tracking? And automatic replenishment?
Programmers also require an in-depth knowledge of the latest software security needs. Security gaps often arise in conjunction with interface programs and need to be identified and fixed in a timely manner. To ensure that systems remain constantly up-to-date, they need to be continually enhanced with a complex and consistent testing strategy in place.

Continuous enhancement as a cost factor

Standard software clearly requires a high level of manpower – one or more teams are needed to work continuously on the system in order to fulfil all the requirements. Basically, the more complex the software parametrisation, the greater the need for extra manpower and the more expensive the product. There's certainly room for improvement in terms of the conditions for developing standard software. A number of years ago, we switched to agile methodologies at CIM with the objective of consistent and reliable delivery of software goals across multiple projects. This means we have a standard system which is being constantly enhanced.

Continuous enhancement of a standard system is finally a move away from the idea of individually produced software.
The problems associated with custom-built programs are too diverse: Each individualisation requires specially programmed updates and standardised testing is not effective, making it impossible to guarantee the same level of stability and operability as with standard software.
Individual software is often sold as a ‘finished’ product, but an isolated solution is no longer practicable in today’s highly networked world. At the latest when it comes to updating your individual software after a few years, you’ll be faced with the question of who’s going to do the programming.

Reliability saves costs

So what we can conclude is that standard software is not cheaper than individual software. The need for system stability and sustainability requires a higher development effort. An up-to-date and stable system can only be guaranteed by continuous support and constant enhancement. This is simultaneously the greatest strength of standard software: While individual software focuses on the current state or ‘as is’, standard software provides the tools for changing requirements in the future. It enables a high level of investment security which can only be achieved through long-term development strategies. Opting for a well-known and reliable provider like CIM can help customers to rein in costs. In other words, standard software actually saves money in the long run despite a higher upfront investment.

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