Build, Buy, or Extend?

The Wrong Question

"Should we build or buy?" is a question that may not have a useful answer, because it mixes two different decisions: how specific the problem is, and how critical it is to the business.

The Two Questions That Actually Help

A problem can be very specific and unimportant. Another can be generic and critical. Each combination calls for a different answer.

Does this differentiate us from our competitors? If the answer is no, building it may mean investing in something that doesn't create any clear differentiation.

Does the standard product force us to change how we work, and does that change hurt us? If the standard product imposes a way of working that's better than the current one, adapting is an improvement, not a concession. If it destroys a real advantage, that's a hidden cost.

The Framework

The framework: if the standard fits and doesn't differentiate, buy. If the standard fits and differentiates, buy and extend. If the standard doesn't fit and doesn't differentiate, buy and adapt the process. If the standard doesn't fit and differentiates, build or develop custom.

In this framework, only one quadrant justifies building.

A company can believe it's in that quadrant without actually being there.

The Cost Everyone Forgets

Building can carry a cost that never shows up in the quote: ongoing maintenance. A system you build in-house may require someone to understand it even years after it was built. If that person leaves without leaving documentation behind, the system can turn into a liability.

The final question isn't how much it costs to build — it's who is going to maintain it, and with what budget.