Focus on hiring character and train to learn and develop the skills. Many/most people have transferable skills - pay attention to those when hiring. If you only hire people who know your industry and your specific software systems you may loose out on the top talent you are seeking and you end up with a vanilla team rather than a diverse, innovative, creative ones. People thrive on learning and growth.
"The hiring process is broken" For many companies it is sad but true...as a recruiter, my job is more often helping candidates navigate the hiring process than "finding the candidates." I would offer this simple suggestion - We can't be so fixated on "following the rules" that we sacrifice common sense. Just because someone has 4 years experience instead of 5...has an Associates instead of a Bachelors...etc. etc. etc... Does not mean they can't do the job