Build vs Buy — Overview
When advising customers on digital transformation, the central question is: should we build a custom solution or buy an off‑the‑shelf product?
The tradeoff is between customization and control (build) and speed and proven capability (buy).
Build (Custom Solution)
- Pros
- Tailored fit: matches exact business requirements and workflows.
- Control over data, architecture, and tech choices.
- Differentiation potential — enables unique features and innovation.
- Cons
- Longer delivery and higher initial effort.
- Ongoing operational burden: source control, testing, bug fixes, deployments, support.
- Requires sustained investment in people and processes.
Buy (Off‑the‑Shelf Product)
- Pros
- Fast time to value — try and deploy quickly.
- Proven capabilities and vendor-provided maintenance.
- Lower initial project risk for commodity capabilities.
- Cons
- May be rigid as requirements evolve.
- Risk of vendor lock‑in, constrained customization, and potential compliance gaps.
- Might not fully align with unique business processes.
Key Considerations
- Strategic importance — Is this capability core to your business or a commodity?
- Cost vs. value — Evaluate total cost of ownership (licensing, maintenance, custom work).
- Time to market — Do you need immediate results or can you wait for a bespoke solution?
- Long‑term flexibility — How much control over data and architecture do you need?
- Risk factors — Project delays, vendor dependency, compliance, security, operational burden.
- Organizational capacity — Do you have the people, skills, and processes to build and operate a custom system?
Hybrid Approach
Most organizations adopt a hybrid strategy: build the differentiating, strategic components and buy commoditized parts. This balances cost, speed, functionality, and agility.
Takeaway
Use a structured checklist to evaluate each dimension above. I provide an Excel checklist with the questions we use — check the description below to download it. Reach out if you want help applying the checklist to your specific scenario.