From SaaS to In-House Development: The New Trend in Business System Building Enabled by AI

The Limits of SaaS and the New Choice Brought by AI

SaaS is essential for improving business efficiency. However, its limitations are becoming apparent.

The complexity of data integration, customization constraints, and accumulating costs. Many executives are grappling with these challenges.

Amidst this, a new trend is emerging: in-house system development utilizing AI. This involves canceling existing SaaS subscriptions and building systems optimized for one’s own company.

This article details the reality of this new approach and the impact it brings to management.

Why the Shift from SaaS to In-House Development is Happening Now

1. Data Integration Challenges

For companies using multiple SaaS products, data silos have become a serious problem.

Data integration between services involves API limitations and additional costs, resulting in operational inefficiencies.

With an in-house developed system, you can design from the start with data integration in mind. This enables seamless business workflows.

2. Customization Limits

Because SaaS prioritizes versatility, it’s difficult to make it perfectly fit a company’s unique workflows.

There are many cases where forcing business processes to fit a SaaS solution actually reduces efficiency.

3. Accumulating Costs

The monthly subscription model of SaaS becomes a significant cost burden in the long term.

Costs increase proportionally with user growth. This problem becomes more severe for growing companies.

Practical Examples of In-House System Development Using AI

Automated Manual Generation via API

One company retrieves configuration information via APIs from existing systems. AI analyzes this and automatically generates manuals.

Knowledge that was previously held by individuals is now documented and can be shared across the organization. New employee training time has also been drastically reduced.

Marketing Process Automation

The marketing process from awareness to closing deals. It’s now possible to automate a large portion of this with AI.

Lead management, email distribution, scoring. These functions can be implemented according to your company’s specific needs.

Creating video content still requires significant effort. However, for companies skilled in AI technology, this can be an opportunity to showcase their technical capabilities.

Key Points for a Successful Transition to In-House Development

1. Start Small

You don’t need to replace all your SaaS at once. Start with one business area.

A realistic approach is to build on successes and expand gradually.

2. Reference Existing SaaS Features

Analyze the good points of the SaaS you currently use and incorporate them into your in-house system.

At the same time, omit unnecessary features. By focusing only on what’s truly needed, development efficiency also improves.

3. Maximize the Use of AI Tools

AI tools that support development, such as ChatGPT, Claude, and GitHub Copilot, are now abundant.

By leveraging these, even without specialized development knowledge, you can build basic systems.

The Impact on Management

Cost Reduction Effect

While initial investment is required, significant long-term cost reduction can be expected.

This includes not only reduced monthly fees but also optimized personnel costs through improved operational efficiency.

Establishing Competitive Advantage

A system optimized for your company becomes a strength that competitors cannot easily replicate.

As a foundation supporting unique business processes, it creates a sustainable competitive edge.

Improving Organizational Technical Capability

The process of in-house development deepens the company’s technical understanding.

It also contributes to developing digital talent, forming a foundation for future DX initiatives.

Conclusion: The First Step You Can Take Right Now

The shift from SaaS to in-house development is no longer a pipe dream. Thanks to AI advancements, it has become a realistic option.

Start by taking inventory of the SaaS you currently use. Consider which services are truly necessary and whether they can be replaced with in-house development.

Next, attempt to develop the simplest function in-house. By leveraging AI tools, you’ll likely find it easier than you imagined.

This small step has the potential to significantly change a company’s competitiveness. Now is the time to begin this new challenge.