I don’t hide that I like to build things. The satisfaction that comes with building something that solves a particular problem does feel nice. However, people ask me why you don’t simply go to the store and buy something ready-made. The truth is, it’s not always that simple. In some cases, building a solution yourself can result in a better, more customised product that lasts longer. However, it’s also important to strike a balance as you can’t build everything.
The same principles apply in business, where off-the-shelf products and custom solutions both have their pros and cons. To help determine the best course of action, it’s important to analyse what you are trying to solve and consider a number of key factors. This is my list of 10 questions to help you weigh the options and decide whether to build or buy your next project.
What Is Your Why?
It is important to identify your why before setting any primary goals and objectives for the solution. This is the problem that you are trying to solve and you want to make it a statement. A why statement is a brief statement that outlines the purpose or reason behind an action, decision, or project. It’s essentially a concise explanation of why something is being done, and helps to provide context and focus to the effort.
For example, consider a business that needs software to manage its sales and customer relationships. The why statement for this situation might be:
“Our business needs software to manage sales and customer relationships in order to streamline processes, improve customer satisfaction, and increase overall efficiency and profitability.”
Next we can break it down to what is actually needed.
What are the technical requirements?
Now we have our why, we need to define the specific problems we are trying to solve. These points will be helpful when we are researching off the shelf products or building a custom solution. This includes identifying pain points in the current processes, and understanding what potential solutions will address them. I like to follow agile and make these into user stories, so following from the previous example;
- As a sales representative, I want to be able to efficiently track and manage customer interactions and follow-up tasks, so that I can increase my sales and improve customer satisfaction.
- As a customer support manager, I want to be able to easily access and manage customer information and feedback, so that I can respond to inquiries and resolve issues in a timely manner.
- As a marketing manager, I want to be able to track and analyse customer behaviour and preferences, so that I can improve my campaigns and increase customer engagement.
- As a finance manager, I want to be able to accurately track and report on sales performance and customer engagement, so that I can make informed business decisions and increase profitability.
- As an operations manager, I want to be able to streamline processes and eliminate manual data entry, so that I can save time and increase efficiency.
Now we can’t just go with these technical requirements and make the decision. In either case of building or buying a product, it’s essential to consider the technical requirements to determine the resources, including people needed to build the solution.
What are the capabilities of your team?
The decision to build a product from scratch or buy a pre-built solution is also influenced by the technical requirements and capabilities of your team. It’s important to assess the current skills and knowledge gaps within your organisation.
While building a product from scratch demands considerable technical expertise, you might discover alternative solutions that leverage your team’s strengths. If your team lacks the necessary technical capabilities, purchasing a pre-built solution may be a more viable option.
What is the “true” cost?
It is important to carefully consider the costs involved in both building and buying.
A custom solution can often provide more value for your investment. By taking the time to carefully consider the specific requirements and design a solution that fits your needs, you can save costs in the long run by avoiding the need for frequent updates, replacements or additional purchases. However the cost of building a solution may seem more economical based solely on the expenses of materials and labour. It’s important to consider the ongoing costs of maintenance, expertise, tools, and unexpected expenses that come with building a solution. These costs can quickly add up and significantly impact the total cost of ownership over time.
Buying an off-the-shelf product has the benefits of a proven solution, lower initial costs, access to support and upgrades, and reduced technical expertise required, making it a convenient and cost-effective solution for many businesses. However buying an off-the-shelf solution may seem like an easy and straightforward option, it can also come with hidden costs. For example, sometimes multiple products are needed to solve a specific problem, which can add up to a significant expense. Additionally, some off-the-shelf solutions require ongoing subscription services, which can add to the cost of ownership over time. Finally, there is always the possibility that the purchased solution may fail to perform as expected, leading to additional costs for fixing or replacing the solution.
So how do you pick? The key difference is proper planning and execution. This requires a good understanding of the process to make the solution, as well as the expertise of your team. You need to research the true cost to make an informed decision. Whether building or buying, it’s important to weigh the potential risks of each option to ensure that you make the best decision for your business.
What Are The Risks?
Risk is an inherent factor in any project, but building a product from scratch can often involve a higher level of risk compared to purchasing a pre-built solution.
With a custom-built product, there is always the possibility that the final product may not meet the desired specifications, or may not be well-received. This can result in wasted resources and potentially significant financial losses.
On the other hand, buying an off-the-shelf product reduces the risk associated with the development process, as the vendor has already tested and validated the product. This can provide a certain level of assurance that the solution will meet your expectations and perform as intended.
Of course, it’s important to thoroughly research and evaluate the vendor and the product before making a purchase, using a SWOT analysis can help identify risks. But in general, buying a pre-built solution can help to minimise risk and increase the chances of a successful outcome.
What is your deadline?
The time frame for delivery is a critical consideration when deciding whether to build or buy.
Custom-built solutions can take a significant amount of time to develop, and this can be a major drawback for businesses that need a solution quickly. In contrast, purchasing an off-the-shelf product can be a much faster option, as the solution is already developed and ready for implementation.
This can be especially important for businesses facing a pressing need or an urgent deadline. If time is of the essence, purchasing an off-the-shelf product may be the more practical choice. However, it’s important to weigh the potential trade-offs, such as the need for customization, before making a final decision.
Ultimately, the right choice will depend on the specific requirements and priorities of your business.
What level of customisability is required?
It’s important to consider the level of customization required for the solution to meet your specific needs. If you need a solution that is highly tailored to your business processes, building a custom product may be the only option. This will give you the flexibility to design and develop the product exactly as you need it.
On the other hand, if you can work with a pre-built solution that can be configured to meet your needs, buying may be a more efficient and cost-effective option. In this case, you can take advantage of the features and capabilities that have already been developed and tested, and simply customise them to fit your requirements.
Weighing the trade-offs between customization and cost helps in making your decision, as each option has its own set of benefits and drawbacks. Ultimately, the right choice will depend on the specific needs and priorities of your business.
What level of control you need over the product?
You need to consider the level of control you want to have over the solution. Building a product from scratch gives you full control over the design and development process, and the ability to make changes and updates as needed. This can be particularly beneficial if you need a highly tailored solution or want to be able to adjust the product as your business evolves.
On the other hand, purchasing a pre-built solution means that you are relying on the vendor for support and maintenance. In this case, you will need to trust that the vendor will be responsive to your needs and be able to provide the level of support you require. Sometimes a product’s life cycle ends and you will need to go back to market to find a solution to replace a dead product.
When deciding whether to build or buy, it’s important to weigh the trade-offs between control and convenience, and to choose the option that best fits your needs and priorities.
What is the impact?
We are doing this to make a good impact on the organisation right? However it is crucial to consider the impact on your existing infrastructure and resources.
Building a product from scratch may require significant changes to your systems and processes, as well as resource reallocations during the project. On the other hand, purchasing a pre-built solution may offer a more seamless integration into your existing infrastructure, but it is still important to evaluate the impact it may have on your resources.
It is important to consider the impact as the implementation of the solution can lead to changes in existing processes, infrastructure, and roles. This must be taken into account, planned and supported for changing behaviours with the new solution.
What do we need long term?
Last but not least, we need to consider the long-term potential for growth and scalability of our solution.
Building a product may offer more opportunities for growth and scalability, but it may also require significant resources and investment. In contrast, purchasing a pre-built solution may be a more cost-effective option, but it may not offer as much potential for growth and scalability in the future.
It is crucial to carefully assess the potential for future growth and scalability of the solution, in alignment with the organisational roadmap and taking into account future projections of available resources and budget. This will help ensure that the chosen solution aligns with your long-term goals and objectives.
The best solution is often a mix of both
This is because we can get the best of both worlds.
Building a product from scratch can be costly, time-consuming, and carry a high level of risk. While purchasing a pre-built solution may not meet all of your requirements, lack customization, and be limited in its potential for growth and scalability. Building a product from scratch offers more control and customization, while buying a pre-built solution offers a lower risk and quicker implementation.
The best solution often lies in finding a balance between the two options that fits your budget, timeline, requirements, and goals. By carefully considering all of these factors, you can make an informed decision about not just to build or to buy;
The goal is to create the best solution that will drive success and growth for your business.
