Construction digitalization: why boxed solutions will not replace insourcing

Most branches of the economy actively passes to "digit". Force majeur circumstances of the present days gave to this process "space acceleration", and development not an exception. The companies developers systematize and automate project management on the basis of end-to-end data, reduce terms of design and construction, increase the level of quality control and efficiency of interaction at all stages of project lifecycle, implement convenient services for clients to support their loyalty to services of management company.

In the course of implementation of a single digital platform of the company face the choice: purchase ready-made "boxed" solutions or form own team which will be engaged in internal development

Difficult choice

In the course of implementation of a single digital platform of the company face the choice: purchase ready-made "boxed" solutions or form own team which will be engaged in internal development. So-called "box" is convenient for the solution of the stable and very standardized tasks. A good example – the system of 1C which will allow to adjust work of accounting, treasuries. Besides, this solution is suitable for those who only began digitalization and has no accurate strategy of transformation and development.

Usually such products allow to solve a part of business challenges and can even help to configure processes. However ready-made products have a number of essential shortcomings.

Cost of "box"

There is an opinion that the cost of the ready-made solution is many times cheaper, than own development. However, in practice everything sometimes develops absolutely differently. It is necessary to pay much and often: for implementation, for licenses and support. Such method of monetization as annual subscriptions, force you annually to pay large sums for use of products. And if for some reason you decided to refuse or cannot prolong at the moment the license, then you threaten important business processes.

Here it is possible to draw an analogy to the rental apartment: you live in it only until are regularly ready to pay. So be ready to include in the budget of costs for prolongation of licenses, differently at some point in advance business processes which are started on this product, will just stop.

For example, for product introduction on quality control of construction works on the platform with a full service package - implementation, training, licenses - to us made out a bill in 70 million rubles and annual prolongation in the amount of 30 million rubles. On development of own solution which functionality exceeds "box" for 70% 5 times less means left. At the same time copyright of own developments belongs to the company.

If your product without annual subscription, then shortly it becomes outdated, the maximum cycle of relevance of a product - 5 years, in realities much less - 2-3 years. So sooner or later "box" should be changed. It will provide new portions of costs which will exceed your previous costs not less, than for 15%. Moreover, you can face risks of loss of a part of data as function of correct data migration is usually not provided in a new system.

Universality vs. value

Ready-made solutions are always aimed at universality, so, deprived of own value. Trying to please all, often such products in an initial type do not suit anybody, and they inevitably should be adapted for the customer. Fast start as it is considered to be, it is impossible and it is necessary to adapt business processes "for a box".

If you want to bring closer the boxed solution to your processes, then there is a need of completion of a system. And here big problems begin. Completions of systems manage, much more expensively. At best you pay the double price for a development man-hour. The term of implementation will be tightened: what could be made in a month to you will be exposed as three. It is not core business of the producer of systems, and the fast money he already received. You have not enough leverage. As a result you become the hostage of solutions, and you should adapt to a product.

Own developments

Creation of own IT department and development of an ecosystem of digital solutions of in-house allows to solve above-mentioned problems. In this case the company itself puts and itself solves problems. It is so simpler to develop the solution under needs of business and to make it many times more functional and more effective than "box". Besides it is easier for you to configure integration between systems and to create a uniform digital ecosystem.

On development of own product less resources, especially if to consider a product in the long term of use leave. If to compare the development and external contractors, then the first to you will cost cheaper at least twice. If to compare to a ready-made product, then the difference is much higher. Also you should not forget that occasionally in the market there is no product with functionality which to you it is necessary. The flexible management system for product development gives the chance to implement necessary functionality for business in short terms.

in-house problems

On the way of the organization of own development there are difficulties and main of them – staff shortage. Find the highly qualified specialists understanding not only directly in development, but also in business processes – really difficult task. The competition in labor market very high, and you can face a staff shortage problem. Therefore, terms of development can increase.

The mistrust or unavailability to changes from management of the company, especially average link can become one more serious obstacle. Often it is not profitable to middle managers to do the work to the most transparent and to pass to accurate quality criterions. If the product is developed by own colleagues from the next department, it is easy to stop their initiatives at the first stages, such as development of hypotheses, solution architectures and data collection, or to sabotage the new systems at a stage of their implementation that will make all work of IT department useless.

To overcome this resistance, it is necessary to have firm support from top management. If the head is not confident in the solution, most likely, the initiative will remain at the level of the idea.

Approaching results, it is possible to note that it makes sense to use boxed solutions on the standardized processes or, on the contrary, very difficult as, for example, design of a CAD of systems. To small, medium business and also beginners on the way of digitalization is more practical to use ready-made solutions.

The large companies should move towards own development. It is approach will help to create more effective ecosystem. Besides, today creation of own development team is a development of the business and possible creation of the new directions. Many large companies understand it and begin to increase own competences of development of IT products.

See Also

Digital technologies in construction