Great sales people know that when it comes to deploying an enterprise software solution, the value lies not just in what it does, but in how it can dramatically reduce an organisation’s total cost of ownership (TCO) compared to building an in-house solution?

The loyalty, promotions, and personalisation world is rapidly changing, and many organisations are contemplating how to best leverage exciting new technologies and opportunities that are arising in the space.

Deciding whether to build or buy a solution is a common conundrum. From time-to-market to hidden costs and lack of support, what follows are eight reasons technology buyers should deploy a ready-made, fit-for-purpose solution over trying to build it themselves.

The hidden costs of development time and resources

One of the biggest misconceptions people have when it comes to building a solution in-house is that it will be cheaper. The prospect of saving on licensing costs is attractive to businesses and this is often reflected by technology decision-makers.

However, going down the in-house route often means months – sometimes even years – of development time. As teams undertake a solution build, it’s not uncommon for companies to need to invest heavily to shore up their resources: hiring additional developers, training existing staff, and paying for costly software tools and development environments.

The initial build is just the beginning. What follows are the ongoing costs of refining and updating the solution as new technologies and cybersecurity threats emerge. Off-the-shelf solutions come ready to go with the latest features and updates. By choosing an existing product, organisations can leverage the provider’s team of experts who live and breathe the solution.

Maintenance and security: The overlooked giants

Maintaining a homegrown solution is like trying to hit a moving target. It’s not just about keeping things running smoothly, it’s about adapting to a constantly-changing landscape of security threats and technological advancements. Companies often underestimate the sheer volume of work involved in keeping their solution up-to-date and secure.

And it’s not just the work; it’s the specialised knowledge needed to understand and implement the latest security measures. Established and trusted solution providers will have this understanding already.

For example, digital marketing platform Eagle Eye AIR invests 5% of its revenues in improving its platform’s cybersecurity every year. The investment delivers a return on security up to five times higher than the same investment made by an enterprise retailer running a single programme on its own homegrown solution.

Opportunity costs and time to market

The concept of opportunity cost is another conversation that comes up regularly among teams contemplating building their own tools. Building a solution in-house doesn’t just tie up financial resources – it also ties up the time and energy of skilled staff.

Every hour that a team spends on development is an hour not spent on strategic initiatives that could be driving a business forward.

Extended development cycles can be a big trap that cause organisations to miss crucial market opportunities. Technology moves quickly, and the market could potentially move on before the build is complete, blunting an organisation’s competitive edge.

With an out-of-the-box product, organisations get a ready-to-deploy solution that gets them to market faster. That speed translates into immediate benefits, whether it’s staying ahead of competitors or responding to customer needs quickly.

Indirect costs: The intangibles that add up

When organisations build in-house, they are not just paying for development and maintenance. They are also absorbing the costs of project management, internal meetings, testing, and troubleshooting.

There’s also the morale and productivity impact on teams. Nothing drains energy faster than long debugging sessions or development roadmaps that never seem to get shorter. It’s easy for teams to get bogged down in the minutiae of development, losing sight of their core competencies and what truly drives value for their customers.

All indirect costs are minimised when choosing a turnkey solution. Robust, supported platforms allow teams to focus on what they do best – serving customers and growing the business. This not only saves money on development and maintenance; it also preserves team energy and creativity for the tasks that matter most.

The value of expert support and continuous innovation

The value of having access to expert support and continuous innovation can’t be overstated. When building a solution in house, it falls on the development team to handle every challenge. If something breaks or if there’s a need for a new feature, developers are on the hook to figure it out. This often leads to burnout and frustration, especially when resources are stretched thin.

With a professional, prebuilt solution, support teams are there to assist whenever help is needed. Regular updates and new features will also mean the best tools are always available.

Predictable costs and budgeting confidence

One of the most appealing aspects of deploying a market-ready product is the predictability of costs. With an in-house solution, costs can spiral out of control quickly. Unforeseen challenges, feature creep, and the need for additional resources can blow budgets wide open.

Starting with a seemingly reasonable development budget, only to arrive in a financial quagmire months down the line as costs blow out, is a precarious position for solution buyers to be in.

Commercial products offer clear and predictable pricing structure. That not only makes budgeting easier but allows organisations to plan finances with confidence, knowing that the investment will yield a strong return without the risk of unexpected costs.

Focus on core business objectives

The most compelling reason to choose an off-the-shelf solution over building an in-house solution is that the former allows teams to focus on core business objectives. Every business has a unique mission, and time and resources are best spent pursuing that mission, not getting mired in building and maintaining complex solutions.

Freeing up teams to focus on what they do best, whether that’s providing exceptional customer service, innovating new products, or expanding into new markets is often far more preferable for organisations than having teams locked up in long development cycles.

The last 10% takes 90% of the time

According to Melanie Mitchell, computer scientist and Professor of Complexity at the Santa Fe Institute argues that “the first 90 percent of a complex technology project takes 10 percent of the time and the last 10 percent takes 90 percent of the time.”

Teams may have exceptional product owners, product managers, engineers, all of whom capable of building a bespoke solution for loyalty, promotions and personalisation. But having them do so may not be the best use of their time.

However, building that sort of technology is the core focus of a dedicated solution provider. Finding an expert in all the aspects of Melanie Mitchell’s “last 10 percent” is a gamechanger.

The smart choice for reducing TCO

The decision to deploy a ready-made solution versus building an in-house solution can often pose challenges for technology decision makers, but the benefits of doing the former are clear.

Considering all the factors – development time, maintenance, security, opportunity cost, indirect costs, and the ability to focus on core business objectives, choosing a packaged loyalty, promotions and personalisation solution is simple. A pre-built solution reduces total cost of ownership for an organisation and positions it for long-term success.

When it comes to loyalty and personalisation suites, many customers make this choice with solutions like Eagle Eye AIR. The peace of mind, reduced costs, and the ability to stay agile and competitive are all powerful advantages that offer benefits.

It’s not just about saving money; it’s about making a strategic investment in a business’s future.