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The Pros & Cons Of Developing Your Own Business Software

StrategyDriven Managing Your Business Article |Business Software|The Pros & Cons Of Developing Your Own Business SoftwareNo matter what business you run, you will use various software products throughout the day. These could include HR software, accounting software, marketing software, and so on. Some of these things you will use every single day, and form a key role in how your business operates. As a result, you might start to wonder if it’s beneficial to develop your own software. After all, you know what your business needs to do, so doesn’t it make sense for you to develop your own custom software product?

In some cases, this can be a genius idea. In others…not so much. How do you know if this is the right approach for you? It starts by understanding the main pros and cons of developing your own business software:

Pro: Software created for you, by you

In theory, your own software will be perfect for your business. There will be no irrelevant features; everything is built for you and your daily operations. As such, you don’t waste money on software products that might provide you with some of the features you need, along with a host of things you never use. This means a lot of businesses end up paying for multiple software products as Product A provides some of the features they need, then Product B might provide the rest. If you develop your own software, you can eliminate the need for multiple platforms, making it so much easier for everyone in your business.

This would mean you only need to learn how to use one software program, which helps you when training your employees. As mentioned already, you also don’t waste any money on programs with features that are never going to be used.

Con: An expensive process

Software development is not cheap at all. The entire process can set you back thousands of dollars very easily. After all, you have to pay for a lot of different things. For one, who is going to develop your software? If you want it all done in-house, this means creating a load of software development and software QA jobs for people to apply for. Your new hires will need to be paid, so you’re forking out a lot of money on an ongoing salary. The other option is to outsource, but this will also cost a fair bit of money – not to mention the fact you may need to keep paying for support after the app has been developed.

For a business that already has a series of outgoings and expenses, is this a wise idea? On reflection, you might realize that it is way more cost-effective to pay for software that’s already been made.

Pro: Can sell your software

As a counter to the argument about costs, you could sell your software to other businesses. Much like you pay a fee to use someone else’s software, other companies can do the same to you. This could be a genius idea if you develop software and are in a very niche industry where there aren’t many other options available. Fellow businesses might recognize that your software does everything they need to do, so it makes more sense for them to pay for yours.

The only caveat to this is that, if you develop custom software that’s meant for your business, will it be relevant to other businesses? There is a chance that it could be, but if it isn’t then you won’t really be able to sell this product.

Con: It’s a risk

Custom software development can be a big risk. If things don’t go according to plan, you’re left with an expensive software product that doesn’t do its job. A lot of businesses have ended up reverting back to their old software because the custom one ended up being rubbish.

The only way to avoid this is by being patient throughout the development process. Don’t rush things, be clear on what you want your software to do, and test it thoroughly! Ensure that you test your software to iron out any bugs and make it work perfectly for you and your employees. This’ll mean that, when it’s ready to launch, it should be perfect.

On both sides of the argument, there are some pretty strong arguments. It really depends on the type of business you run, and the software you need to use. If you run a business that uses a lot of generic software, it probably isn’t wise to develop your own as there are already great products out there that work for you. If you have a niche business and find that you’re struggling to use multiple products every day, custom software could be a good shout.

Ways that Businesses can benefit from using Human Resource Software

StrategyDriven Talent Management Article |Human Resource Software|Ways that Businesses can benefit from using Human Resource SoftwareAll kinds of businesses can benefit from using integrated human resource software. It helps in managing processes, information, and employees. With the advancement in technology, businesses can boost the efficiency of the workforce and improve productivity. The company can automate its processes and will inevitably realize more profits in the process.

Reasons that Businesses need HR Systems

Management needs systems that make it easy to run and operate a business. Small companies can use the primary forms of human resource management systems to handle employees’ attendance and payroll. Larger corporations will utilize a more complex system inclusive of all the aspects of human resource management. This read will discuss some of the most common software to use and how they are beneficial to the venture. Here are a few reasons to use HR software;

  • Data management: the software eliminates the clumsiness of documentation in business. Officers can store data virtually and retrieve it any time that they need it. Data is easily manageable and accessible to management.
  • Automation: it leads to a reduction in errors since the system automates some of the services. Automation helps to schedule meetings with employees, and the system ensures that you get a reminder before the event.
  • Better Planning: when using HR management software, it is simpler for the management to plan to execute tasks. The system can assist in operational tasks while the management engages in strategic planning.

Types of HR Systems

Developers of software for HR management in companies will consider the needs of the business first. Let us look at popular software in the market and how they differ from each other;

HR Information Systems

The software helps enter data into the system where individuals with rights can edit the information. An employer can see the personal information, remuneration, and performance of an employee. Employees also get a portal where they can apply for leaves and also access other human resource services. They can log into the self-help menu and download payslips. On the other hand, there is a wide array of data that HR managers can store in the system. It includes keeping track of attendance and the benefits that employees are entitled to.

In other forms of the system, HR officers can store files and attach documents to an employee’s profile. It helps to link documents to the relevant individuals for efficient storage. The tool helps to manage documents and provide security against unauthorized access.

HR Management Systems

The software is not different from the information systems that we have discussed above. However, the system allows human resource managers to conduct more data analysis and use the information for decision making. Due to recent technological advancements, management tools are becoming available in all other types of human resource systems.

HR Payroll

It assists the process of paying wages and salaries to employees. Before casual and full-time employees get their payslips, the system will automatically handle any statutory obligations. It helps to generate payments and storing of payment records for the future.

Applicant Systems

The human resource department is responsible for the recruiting and onboarding of new employees. Applicant systems are meant to assist the officers in the process. Since companies receive high numbers of applications for vacancies, it is essential for management to utilize the HR tools. Unlike the management embarking on a manual process, it is easy to filter and sort out applications through the applicant systems.

Benefits of using the HR System

When a company grows, it is difficult for them to operate without professional human resource software. Depending on the business’s size and needs, one can choose the system that works for their company. However, it is advisable to have a system that makes use of all the above HR tools. Let us look at some benefits of using the HR system;

Ensures compliance with the regulations

HR software help in the storage of data and information relating to the employees. Management can ensure that the workforce complies with all labor laws by including their identification documents in the system. Having the information at a centralized location makes it easy to pay out any statutory and personal deductions. The software helps to flag items for the HR officers to act upon.

Assists in the decision-making process

In any organization, reporting becomes difficult whenever there is no organization in data and information. HR software offers cloud options for their storage needs. With enough capacity to hold all kinds of employee data, it is easy to locate the information. HR software offers an authentic representation of the workforce, and it is wise for managers to use the information to improve workers’ productivity. As a result, the process of analyzing data and making a decision becomes simpler.

It is Cost-effective

Purchasing a system for human resource management is a one-time thing. There are no monthly subscriptions unless when organizations are outsourcing storage facilities. With the software, companies can employ a few human resource officers to handle a large workforce. The use of technology in human resource management operations significantly reduces the chances of errors. With an inefficient system, companies might lose money from unwarranted payments. In the long run, human resource systems will save the business a lot of money.

Improves service to employees

Employees can easily access human resource services when the company is using automated processes. They can log into the portal from any place as long as their mobile devices have an internet connection. The system allows personnel to apply and receive approval for their leave days.

Improves efficiency in the Human Resource department

Human resources software offers an immediate impact on the department. It helps to streamline departmental operations and reduce the number of employees making their way to the office. The automated tools offer self-services that improve efficiency and productivity.

Conclusion

Employees are the most critical resource in any business. On the other hand, HR software helps recruit, manage, and remunerate talents for any organization. Small and large companies will benefit from the technology.