Most organizations leverage some software as a service. QuickBooks, Microsoft 365, Salesforce just to name a few. As a leader of a small organization, you probably don’t have the time or expertise to research all the software options available to best fit your needs. It is also challenging to build a custom solution because the cost and involvement is much higher.
Option #1 – Buy
Pros
- Cheaper
- Easier to implement
- Usually Scalable
Cons
- Doesn’t do exactly what you want (usually the minimal customizations are not good enough)
- Often complicated with features you don’t need
- You don’t own the software (and sometimes your data also)
Option #2 – Build
Pros
- The software is designed to fit your process
- Includes only the features you need but gives you a platform to scale as you grow
- You own the software as an asset (increases the value of your company)
- Minimal maintenance
Cons
- More expensive
- More time consuming to implement
When considering a Build vs. Buy approach, never assume that one option is better than the other. Here are a list of factors that need to be considered:
- Who is the company that is building the software? Or, who is the company that manages the pre-built product?
- How will the company partner with you over time to ensure the software is providing value to your organization?
- What is the long term vs. short term costs?
- What is the ROI?
These decisions are difficult to navigate unless you have a partner with the depth of expertise and experience with the tech landscape and who can understand your particular needs.