Neogen Corporation
10/28/2024 | Press release | Archived content
Food Safety Automation Software: Build or Buy
As the need for automation and digitization increases for food manufacturers, the demand for specialized solutions has increased. Faced with the challenge, food manufacturers are taking one of two avenues toward adopting food safety automation technology: buying an existing solution or building a customized one, also known as "buy vs. build." Which one is the right choice?
The buy versus build approach in software development presents several compelling advantages, particularly when considering aspects like initial cost, time to implement, and maintenance. Buying cloud-based software typically offers:
- Lower upfront cost through subscription-based pricing, making it financially accessible for many organizations.
- Fast deployment, as ready-made solutions can be integrated into operations almost immediately.
- Automatic updates and maintenance provided by the vendor alleviate the burden on internal teams, enabling businesses to focus on their core objectives rather than managing software upkeep.
This combination of lower costs and quicker implementation can significantly enhance overall productivity.
Purchasing an "off the shelf" software solution does have its limitations. Developing specialized customizations and integrations can be more challenging as these updates must be managed by the software provider and development priorities may not align with your organization's priorities. Additionally, building your own software package ensures that you maintain full control over the security of the platform and the data contained within. On the other hand, while building custom software offers the appeal of complete customization and control over security, it requires substantial investment in time and expertise. Organizations must allocate resources for development, maintenance, and scaling, which can lead to higher total costs of ownership in the long term. Additionally, custom solutions often come with higher risks associated with potential development issues and a lack of established user feedback. By opting to buy, companies not only mitigate these risks but also benefit from the innovations and features continuously rolled out by vendors, ensuring they stay competitive in a fast-evolving market.
| Aspect | Buying Cloud-Based Software | Building Your Own Software |
|---|---|---|
| Initial Cost | Lower upfront cost (subscription-based pricing) | Higher upfront development cost |
| Time to Implementation | Fast deployment (ready-made solutions) | Longer development time |
| Customization | Limited customization (depends on vendor offerings) | Fully customizable to your specific needs |
| Maintenance & Updates | Automatic updates and maintenance provided by the vendor | You are responsible for maintenance, updates, and bug fixes |
| Scalability | Easily scalable as per demand | Custom scaling requires significant time and resources |
| Security | Managed security (vendor ensures compliance with standards) | Full control over security but requires dedicated resources |
| Total Cost of Ownership (TCO) | Typically lower over the long term (subscription model) | Potentially higher long-term costs (development, maintenance, scaling) |
| Expertise Required | Minimal (doesn't require an in-house development team) | High expertise required (developers, architects, security experts) |
| Integration | Prebuilt integrations with popular tools and platforms | Custom integrations can be built but takes time and effort |
| Vendor Dependence | Dependent on the vendor for updates, pricing changes, and data portability | No vendor dependence, reliant on internal resources |
| Flexibility | Limited by the vendor's features and roadmap | High flexibility to adapt to changing business needs |
| Innovation & Features | Access to new features and innovations provided by the vendor | Requires in-house innovation and R&D |
| Risk | Lower risk (tried and tested by many users) | Higher risk due to potential issues with custom development |
In recent years, the food safety testing industry has increasingly leaned towards automation with a significant focus on the buy vs. build approach. Research indicates that the global food safety testing market was valued at approximately $17.1 billion in 2020 and is projected to reach $30.9 billion by 2026, growing at a CAGR of around 10.4%. This surge highlights the demand for efficient solutions, where buying established automation software can provide immediate access to advanced technologies that are updated continuously for compliance with food safety regulations. For example, a report by MarketsandMarkets1 found that adopting automated solutions can reduce testing time by up to 50%, allowing companies to respond more swiftly to safety issues, which is critical in maintaining consumer trust and minimizing risks.
Conversely, developing custom food safety testing software requires significant investment and resources. A study published in 2022 indicated that the average cost of developing a bespoke software solution can range from $50,000 to over $250,000, depending on the complexity and features desired. Additionally, maintenance and updates can consume 15-20% of the initial development cost annually. Companies that choose to buy automation solutions not only avoid these high upfront and ongoing expenses but also mitigate risks associated with software development. With vendors providing managed security and compliance updates, organizations can ensure that their testing processes align with the latest industry standards, significantly reducing the risk of costly recalls and legal issues. This strategic choice not only enhances operational efficiency but also positions companies to better adapt to the evolving landscape of food safety regulations.
Ultimately, an organization needs to decide what is most critical to them as they look to adopt food safety automation. Building a software solution might be the right choice for an organization looking to maintain control on all customizations, enhancements, and integrations, but before embarking on a full custom build, explore the food safety automation solution adopted by hundreds of food manufacturers all over the world to reduce risk and increase testing efficiency. Sign up for a demonstration of Neogen Analytics today to see Neogen's approach to food safety automation.
Notes
1 Automation Testing Market, MarketsandMarkets Research Private Ltd.