The Benefits of Custom Software Development for Regulated Industries

Some businesses face greater challenges than others. Among those at the top of the list are the highly regulated industries, such as healthcare, law, and finance. If you work in this field, then you must meet a series of increasingly complex legal obligations on top of your normal operational requirements.

This makes it significantly more difficult to navigate software. Given that you operate within an extremely unique set of circumstances, off-the-shelf solutions will almost certainly fall short of addressing your needs. To solve this problem, many companies are turning to the benefits of custom software development.

But why? Are those benefits actually worth the effort involved?

One-Size-Fits-Nobody: Why DIY Is Becoming the Norm

Off-the-shelf software applications have long presented a cheap, easy option for businesses who are only attempting to meet a generic set of needs. Microsoft 365, for instance, is usually sufficient for document creation and storage. But this approach does not work for everyone. Pre-built solutions come with limitations that, left unchecked, can hinder your productivity and profitability

Limited Customization

Pre-built software is designed for the masses, not your specific business. It is built to address a common challenge or need in the easiest way possible. This means that it will rarely offer the level of customization you require for those more finicky, complex tasks.

To compensate for areas where off-the-shelf applications are lacking, your staff may end up using workarounds. These solve the short-term problem, but are ultimately only a band-aid fix. Staff waste time that could be spent working trying to find ways around the limitations of their software. In the long run, your business will notice inefficiencies and a lack of business-IT alignment.

Integration Challenges

In an attempt to prevent vendor hopping, many modern software developers no longer design solutions with compatibility in mind. They are far more concerned with ensuring that you only use their products, or those of approved partners. This can create major issues when attempting to integrate these applications into the rest of your IT infrastructure.

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Licensing and Feature Restrictions

Pre-built software is difficult to right-size. You are likely to end up either paying for features you don’t need, or requiring functionality that doesn’t exist at your pricing tier. Over time, this drives up costs and prevents you from getting the most out of your technology investments.

Security and Compliance Gaps

Perhaps the biggest concern for highly regulated industries is compliance. Off-the-shelf solutions, with a few notable exceptions, do not typically offer sufficient security measures to address complex legal obligations. This creates dangerous vulnerabilities that increase your risk of audits, fines, and other penalties.

These problems are causing more and more businesses to explore the benefits of customized software.

Built for Security

Tailored Compliance

Each business must adhere to a unique set of data protection laws, depending on factors such as industry and location. If you work in a highly regulated field, such as healthcare or finance, this is particularly complicated due to the existence of additional, specialized laws. One example is the Health Insurance Portability and Accountability Act (HIPAA), which governs healthcare organizations.

One of custom software development’s benefits is the ability to meet these extremely specific compliance requirements. Rather than attempting to retrofit existing software with access controls and data protection measures, you can build these straight into the program. Using this strategy, custom software solutions are innately compliant with any regulation you choose.

Secure Architecture

Another benefit of custom software for businesses is fewer cyber-attacks. Stronger security does not simply prevent your organization from being fined – it also significantly reduces your risk of experiencing a breach. You can design custom software to address your biggest vulnerabilities, protecting your business while saving money.

Traceability

Custom-built solutions can be designed with version control and immutable logs, providing detailed documentation of every action taken. This can be extremely useful in the event of a compliance audit, allowing you to demonstrate your efforts to the authorities and avoid harsh penalties.

Growth and Productivity

Better Workflow Alignment

Workflows are often a pain point for businesses using pre-built applications. Every company has unique processes and procedures, which can result in misalignments that slow down workflows. Custom software development allows you the freedom to design workflows that suit you perfectly. This approach streamlines business processes, improving productivity.

Scalable Infrastructure

As you grow, your business requirements will change. Off-the-shelf software cannot adjust with you. It remains trapped where it was when you first purchased it – or worse still, beneficial features may even be removed.

If you instead build your own software, then you have all the resources available to alter it later. This can prove invaluable during growth periods, giving you the flexibility to quickly address changing needs. You can make this even easier by using a modular software design that actively leaves space for later additions.

Easier Integration

Custom-built software can be designed to integrate with any program you want. Instead of struggling to make disparate (and often hostile) solutions work alongside each other, your own creation will slot perfectly into whatever space you need it to fill. You save the time, money, and frustration that would normally arise during integration.

Competitive Advantages

Clear Differentiation

Instead of being “Just another company who uses Google Workspace”, what if you could brand yourself differently? One benefit of custom software is that you can. A tech stack full of proprietary software looks nicer than a collection of random solutions cobbled together from different vendors.

Immediately, you have clearly differentiated yourself from the competition. Your company is presented as skilled, professional, and organized. When clients are struggling to choose between two very similar businesses, small details like this can push them over the edge.

Cost Efficiency

Consider how much money your business currently spends on subscription fees each year. You likely lose thousands (or even tens of thousands) simply maintaining an existing system that may or may not fully address your needs. Custom software requires a steeper upfront investment, but in exchange you drop many of these long-term costs. All that money you waste on subscriptions can then be dedicated to more strategic investments.

Risk Management

Independence

Have you ever been caught off-guard by a software vendor suddenly announcing end-of-life for one of their most useful products? This creates an enormous amount of fear and uncertainty. The replacement may be significantly worse than the original product. Even worse, the vendor may see no need to replace it at all. Your options are to continue using a vulnerable, out-of-date program, or struggle to find a new one.

This is not a concern when developing your own software from scratch. You may continue to maintain and update it for as long as you have people to work on it. Rather than being beholden to the whims of a third party who may not have your best interests at heart, your business is fully independent.

Reduced Operational Disruption

Commercial software often breaks down, either due to updates or random glitches. You may also experience periods of downtime during the sunset process for solutions reaching end-of-life. Custom applications reduce this risk. Problems can be fixed faster, as you have a direct line to the people who created the software in the first place. Downtime is rarer and shorter, resulting in stronger continuity.

The User Experience (UX)

Stronger UX

Generic user interfaces are often confusing and difficult to navigate. They may also not be ADA (Americans with Disabilities Act) compliant, creating problems for staff or clients who have additional needs. When building a custom application, you decide what the user experience will look like. Your software will be simple, intuitive, and fully accessible.

Efficient Training

Training staff to use a new system is difficult when you don’t fully understand it yourself. Bespoke software eliminates this challenge. You built the platform, so you know it inside and out. Staff can be taught to use it in a matter of days, rather than weeks or months. This is especially useful if you experience particularly high turnover rates.

Continuous Feedback Loops

When designing your own applications, your team becomes the beta testers. This is perhaps the strongest of bespoke software’s advantages. You can collect feedback on the program in real time, using it to continuously improve. Instead of aging and losing its effectiveness, your software will only get better as time passes.

The Challenges of Custom Software Development

Despite the many advantages, custom software development is not perfect. It comes with plenty of its own challenges, all of which can potentially hinder your ability to leverage it effectively. The good news is that they can be addressed with the right plan.

Here are some strategies you can use to address common pitfalls:

Higher Upfront Costs

Custom software requires a much larger initial investment than off-the-shelf solutions. If your organization is smaller or working on a particularly tight budget, this may seem cost-prohibitive.

Development Timelines

Tailored solutions are excellent – once they’re off the ground. But before reaching that point, you must tolerate a long development process that includes design, coding, testing, and bug fixes. This may not be time you can afford to lose.

Lack of Development Experience

Designing custom software is impossible without access to experienced developers. Unfortunately, this relatively niche expertise can be difficult to find. Businesses on a budget are even less likely to acquire talented developers, as they generally demand higher salaries in exchange for their additional skills.

Maintenance and Support

Deployment is only the beginning. Maintenance and support are your responsibility, and you will be held accountable for any problems. This can be stressful and – if you are not able to keep up – potentially lead to reputational damage.

Implementing and Supporting Custom Software Effectively

1. Start with a Clear Roadmap

Before a single line of code is written, establish a detailed plan. Include:

Every single stage of the development cycle, and each feature your application contains, should be plotted out in advance. If you will need to add extra functionality later, include a post-release roadmap. The more planning you do now, the smoother the rest of the process will be.

2. Plan for the Worst

Software development can go wrong very easily, and if you are unprepared the consequences could be devastating. You may experience extended delays, financial waste, or even trust erosion.

To prevent this, develop a strategy for how your team will handle emergencies. Delegate responsibilities to each person, and ensure that everyone understands their role.

3. Build the Software

Begin the development cycle. Now is a good time to begin preparing the rest of your IT infrastructure for integration, and briefly introduce the new software to users. Monitor development closely for any issues that might result in delays.

4. Provide Support for Employees

Even the most well-designed software will fail if no one understands how to use it. Provide additional training and support for employees during this time. Create space for them to approach you with questions or concerns, and remember that there will be hiccups as they learn the new system.

5. Collect Feedback

Post-deployment feedback is invaluable. Perform check-ins or surveys to identify potential areas for improvement. If users approach you on their own with suggestions, take them seriously. The ability to improve your application over time is one of the best things about custom development. Do not waste it.

FAQs

The advantages of custom software development can be well worth the cost. It depends on your unique needs. If you require highly specialized, flexible solutions, this can be a very good option.

Small businesses can definitely invest in custom software. Just prioritize your needs carefully, and avoid feature creep. Remember that additional functionality can always be added post-release.

Agile software development principles help ensure that your solutions are fast, adaptable, and effective across a long period of time.

You can keep custom software aligned with regulatory requirements even as they change by releasing regular patches. A modular design will make this easier.

If you are considering custom software, start by deciding what kind of application you would like. Then, figure out whether you want to develop it in-house or hire an expert.

Unlock Custom Software Benefits Now

The benefits of custom software for small businesses cannot be overstated. Leveraged correctly, it provides a cost-effective solution that improves operational efficiency, seamlessly integrates with the rest of your infrastructure, and suits your unique requirements perfectly. But it also comes with challenges. Thorough planning and the right support will allow you to avoid problems and ensure success.

Do you need more information? ION247 specializes in software solutions designed to fit your business like a glove. Discover our latest custom application insights now, and learn everything you need to know.