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Build vs Buy Decision Matrix

Make informed decisions on whether to build, buy, or take a hybrid approach

How to use this tool

Rate strategic factors (core competency, importance, differentiation)
Enter cost and time estimates for both options
Assess technical factors and team capabilities
Review the recommendation and detailed analysis

Strategic Factors

Core Competency: 3/5

Is this a core competency for your business?

Strategic Importance: 3/5

How strategically important is this capability?

Competitive Differentiator: 3/5

Will this differentiate you from competitors?

Cost & Time

Estimated Build Cost

Estimated Buy Cost (Annual)

Annual Maintenance Cost (Build)

Build Time to Market (Weeks)

Buy Time to Market (Weeks)

Technical Factors

Technical Complexity: 3/5

Team Expertise: 3/5

Available Solutions Quality: 3/5

Customization Needs: 3/5

Risk & Operational Factors

Vendor Lock-in Risk: 3/5

Security Concerns: 3/5

Scalability Needs: 3/5

Internal Maintenance Capacity: 3/5

Recommendation

🛒

Buy/Subscribe

85% confidence

Build Score

Buy Score

Key Factors

•Buying is more cost-effective (5-year TCO: $100,000 vs $200,000)
•Significantly faster time to market with buy option (4 vs 12 weeks)

5-Year TCO Comparison

Build$200,000

Buy$300,000

Next Steps

Create vendor evaluation criteria
Request demos and proposals from top vendors
Negotiate contract terms and SLAs
Plan integration and migration strategy

Decision Framework

Consider Building When:

• Core to your business strategy
• Strong competitive differentiator
• Team has deep expertise
• High customization needs
• No suitable solutions exist
• Long-term cost savings
• High security/compliance requirements

Consider Buying When:

• Not a core competency
• Mature market with good options
• Fast time to market needed
• Limited internal resources
• Standard functionality sufficient
• Lower total cost of ownership
• Vendor expertise exceeds internal