{"id":1006,"date":"2016-02-09T16:54:20","date_gmt":"2016-02-09T15:54:20","guid":{"rendered":"http:pikon-staging-int.rolfkempf.de\/?p=257"},"modified":"2023-04-18T11:50:33","modified_gmt":"2023-04-18T09:50:33","slug":"custom-software-organisation-competitive","status":"publish","type":"post","link":"https:\/\/www.pikon.com\/en\/blog\/custom-software-organisation-competitive\/","title":{"rendered":"How Custom Software makes you more competitive"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1006\" class=\"elementor elementor-1006\" data-elementor-settings=\"{&quot;element_pack_global_tooltip_width&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_padding&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true}}\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6ede4cca elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6ede4cca\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-293254c5\" data-id=\"293254c5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-76c3625f elementor-widget elementor-widget-text-editor\" data-id=\"76c3625f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\">Whereas standard software, such as SAP ERP, is the backbone for implementing standard business processes, customised software helps implementing and managing specific, business-critical functions and processes. Find out in this article how to define when to opt for which kind of software.<\/p><h2 style=\"text-align: left;\"><strong>Which Business Process in which IT System? &#8211; The Gartner Model<\/strong><\/h2><p style=\"text-align: justify;\">According to <a href=\"http:\/\/45.gs\/Pace-Layered_Application_Strategy\" target=\"_blank\" rel=\"noopener noreferrer\">Gartner\u2019s Pace-Layered Application Strategy<\/a>, IT systems are to be divided into three categories:<\/p><ul style=\"text-align: justify;\"><li><strong>Systems of Record<\/strong><\/li><\/ul><p style=\"padding-left: 30px; text-align: justify;\">Standard software or own legacy systems that support core transaction processing and manage critical master data.<\/p><ul style=\"text-align: justify;\"><li><strong>Systems of Differentiation<\/strong><\/li><\/ul><p style=\"padding-left: 30px; text-align: justify;\">Industry- or business process-specific applications that enable unique capabilities, used by the organisation to raise competitiveness.<\/p><ul style=\"text-align: justify;\"><li><strong>Systems of Innovation<\/strong><\/li><\/ul><p style=\"padding-left: 30px; text-align: justify;\">Ad-hoc applications, built to address new requirements or new opportunities.<\/p><p style=\"text-align: left;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-951 size-large\" src=\"https:\/\/www.pikon.com\/wp-content\/uploads\/2016\/02\/Pace-Layered-Application-Strategy-Gartner-New-CI-1024x702.png\" alt=\"pace-layered-application-strategy-gartner\" width=\"1024\" height=\"702\" \/><\/p><p style=\"text-align: justify;\">ERP systems, such as SAP ERP, belong to the first category, Systems of Record, because they are used to implement standard business processes, not helping the organisation to stand out from its competition. In case of doubt, I recommend to adapt the business processes in question to the standard software because process adjusting generally helps keeping down the total costs (<strong>Total Cost of Ownership<\/strong>).<\/p><p style=\"text-align: justify;\">Business-critical processes, however, are a key factor for an organisation to <em>differentiate<\/em> from competitors. Because of that, they are managed in the so-called Systems of Differentiation.<\/p><h2 style=\"text-align: left;\">How IT technology raises your organisation\u2019s competitiveness<\/h2><p style=\"text-align: justify;\">An organisation can differentiate its business from competitors by closing process gaps within its ERP system, for instance by implementing additional software features, or by improving its ERP system\u2019s user-friendliness and performance. Identifying these system adjustments makes up a solid business case and value proposition for the Business Departments.<\/p><p style=\"text-align: justify;\">It depends from organisation to organisation whether a business process is called critical or not. In some cases, critical business processes can be defined on industry level, e.g. in the machinery industry, the offer process is a critical factor for competition because at that stage, organisations differentiate from each other in terms of flexibility and response speed to the customer requirements.<\/p><h2 style=\"text-align: left;\"><strong>How to manage your Critical Business Processes<\/strong><\/h2><p style=\"text-align: justify;\">In order to manage so-called \u201cValue Adding Processes\u201d (= Critical Business Processes), I recommend implementing <a href=\"https:\/\/www.pikon.com\/en\/services\/custom-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">Integrated Custom Software Solutions<\/a>. These are software solutions that are custom developed according to a product-based concept as it were a standard product with an own software Release Strategy Management.<\/p><p style=\"text-align: justify;\">According to <a href=\"http:\/\/45.gs\/Pace-Layered_Application_Strategy\" target=\"_blank\" rel=\"noopener noreferrer\">Gartner\u2019s Pace-Layered Application Strategy Modell<\/a>, these solutions belong to the <strong>Systems of Differentiation<\/strong>\u00a0category. In case a <a href=\"https:\/\/www.pikon.com\/en\/services\/custom-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">custom software solution<\/a> also makes it possible to design an entirely new process (for instance by integrating social media in the sales process), this can also be called a Solution of Innovation.<\/p><p style=\"text-align: justify;\">In <a href=\"http:\/\/45.gs\/blog_post_2_custom_software\" target=\"_blank\" rel=\"noopener noreferrer\">my following blog post (Successfactors for Implementing Custom Software)<\/a>, you will learn how to implement Custom Software successfully in your existing IT landscape.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Custom Software \u2013 find out in this article how to define when to opt for which kind of software.<\/p>\n","protected":false},"author":12,"featured_media":2722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[80,117,102],"class_list":["post-1006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","tag-process-optimisation","tag-sap-add-on","tag-software-development","no-featured-image-padding"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Custom Software makes you more competitive<\/title>\n<meta name=\"description\" content=\"Learn how to define whether a business process is standard or critical and how Custom Software helps becoming more competitive.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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