In the emerging economy there is a new infrastructure, based on the internet, that is causing us to scrutinies most of our assumptions about the business. As a skin of networks - growing in ubiquity, robustness, bandwidth, and function - covers the skin of the planet, new models of how wealth is created are emerging.

Thursday, April 22, 2010

Packaged, Customized or Semi Customized Software

Packaged, Customized or Semi Customized Software
There are three approached to acquire software depending on its intended use and the cost and the duration of development.

Packaged Software
Large software corporations (such as Microsoft) target their product for a large numbers of end users and for general purpose so they usually design packaged software.

In other words, the software functions available are common and popular to the general public.

This enable a large population to share the development cost and pay a smaller price for well designed software.

However, these programs may not fit every user’s particular needs. Since packaged software is developed to satisfy most end users, the user interface and software documentation are very well prepared. The cost of development is shared by many users and therefore can be dramatically reduced for any individual purchaser.

Customized software
Customized software requires intensive development efforts. It usually takes longer time and more money to develop.

Typically, only a large corporation can afford the development costs. The major reason to acquire customized software is if suitable commercial software is not available, which usually is the situation if the potential user group is so small that it would not be worthwhile for any software company to develop products for it.

Customized software requires more time and efforts to develop, but it can be tailored to customer’s needs.

In other words, the functions available in customized software are more flexible and powerful.

Semi-customized software
Semi-customized software represents a trade-off between customized software and packaged software is to have software. It provides a general structure and customers can modify this software and customize the functions.

For example most of database software provides a general database structure. Based on different individual needs, users can develop different applications for different environment.
Packaged, Customized or Semi Customized Software

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