Bespoke IT systems are your own creation

I recently looked at how you can extract competitive advantage from off-the-shelf products (SJ 158/29). Another method of gaining competitive advantage through technology is to build systems to suit a specific purpose.

This may sound a little odd when there is so much software out there, but in reality, firms that gain a significant advantage over rivals often do so by leveraging
a bespoke system. This may be more obvious outside of the world of legal where innumerable bespoke systems exist, but in a time when the legal world is undergoing so much change, should also makes sense
for those wanting to harness
the opportunity that change
can bring.

Competitive advantage

There are plenty of reasons to consider a bespoke system, but in general it comes down to either a lack of fit-for-purpose systems for your type of work, or the want to gain an advantage over competitors either by doing something new, or improving what is currently being done.

Mostly it will be the latter, but recently I have undertaken a bespoke build for a firm that runs a niche type of work for which existing software could not provide the correct functionality.

Whatever the reason for building a bespoke system, there are a few broad issues that will need to be grappled with, starting with the firm’s strategy. Remember, technology is an enabler, not a panacea. If you have a vision, technology can help you achieve that vision, but it is no substitute for it.

Scope document

In setting out down the road of the bespoke build, you need to understand inside out what you are trying to achieve. You also need to be able to draft a project scope document that will make
at least some sense to those contracted to build the eventual solution.

In practice, most software houses will be able to help you define the scope, but on larger projects, it is always prudent to invoke professional help with this part. Most bespoke software builds go awry because the scope changes along the way. This is generally due to insufficient scoping initially, or too many interested parties adding to the scope as the project progresses.

A lack of control over and/or a want of clear objectives for the project, or ‘scope creep’ as it is known, can become extremely expensive at many times the cost of a professional scoping exercise at the start of a project. In the course of scoping a system project, it also pays to take a somewhat harsh view of what is required, what is useful to have and what is nice to have. This will help with the budgeting process, and with managing expectations.

Along with assistance in scoping exercises, consider bringing in professional help
with the project management
of a bespoke system build.
It is not likely that anyone in the organisation has the requisite experience, and the cost of trying to undertake this internally in terms of lost fees, for example, is disproportionately high; if you charge £200 per hour, and a project manager charges £100 per hour, you will make a loss of £100 per hour if you undertake the work yourself.

When it comes to budgeting for a bespoke build, there are no hard and fast rules. A well-defined scope will help to obtain reasonably realistic quotes from suppliers. However, almost every project suffers scope creep and change issues along the way, so make sure your budgeting has some flex in it, and spend good money on the scope element.

The final point on bespoke system building is that you should, as far as it is practical
to achieve, stay within the boundaries of the original scope as the project progresses. Once a system build is underway, it becomes easier to spot omissions, additional possibilities and other variations. Being able to resist these, while working with the developer to make sure they understand that additional work will be required in a second or third phase, will help deliver the project within reasonable cost and time boundaries.

Deciding to build a bespoke system is a big decision, so invoke professional help and get the underlying basics sorted, but don’t be put off if you believe in your vision.

POCKET NOTES

Consider bespoke builds where standard solutions don’t fit; or where it is more cost effective to build than buy. Bring in professional help for scoping and project management. Budget for more. Understand what is required to see it through. Don’t vary the scope unless something is dramatically wrong with it. Understand the difference between must have and nice to have. Don’t let personal preference get in the way.

SJ

Damian Blackburn is director of legal IT consultancy firm SLFtech