Our AI writing assistant, WriteUp, can assist you in easily writing any text. Click here to experience its capabilities.

Build Vs. Buy: Why Most Businesses Should Buy Their Next Software Solution

View Original View Raw

Summary

Organizations often have to decide between building or buying software solutions. In most cases, buying a commercial solution is the more efficient option as it saves time, money, and resources. It is important to consider criteria such as configurable templates, intuitive design, single sign-on, security, two-way integration, data lakes, and machine learning when selecting a software solution. Building a custom software solution may be the best choice for organizations with unique intellectual property or if the exact requirements of the software cannot be met with an off-the-shelf solution.

Q&As

What are the benefits of purchasing a commercial software solution rather than building it in-house?
The benefits of purchasing a commercial software solution rather than building it in-house include faster deployment, comprehensive support throughout its life cycle, cost savings due to the vendor's large customer base, input to new features, intuitive and user-friendly design, and access to best practices based on others' experiences.

What criteria should be considered when looking for a commercial software solution?
Criteria to consider when looking for a commercial software solution include configurable templates, intuitive design, single sign-on, security, two-way integration, data lakes and machine learning.

What factors might influence an organization to opt for in-house development instead of a commercial software solution?
Factors that might influence an organization to opt for in-house development instead of a commercial software solution include leveraging unique intellectual property or genuinely novel capabilities, needing a specific fix, having exact requirements that cannot be modified or selected, and implementing partial solutions across several products.

How does a vendor's large customer base contribute to the cost savings of using a commercial solution?
The vendor's large customer base contributes to the cost savings of using a commercial solution by allowing the vendor to gain efficiencies and charge less for implementing and maintaining an established product than it would cost to support a one-off, homegrown application.

Is it possible to implement a partial solution across several products instead of using a commercial software solution?
Yes, it is possible to implement a partial solution across several products instead of using a commercial software solution.

AI Comments

👍 This article provides a great breakdown of the pros and cons of building vs. buying software solutions. It offers detailed criteria to consider and helps readers make informed decisions for their business.

👎 The article does not take into account the potential for customizing commercial software solutions to meet specific requirements. This could be a critical factor when making a decision.

AI Discussion

Me: It's about the pros and cons of building versus buying software solutions. It argues that in most cases, it's better to buy a pre-existing software solution rather than build one from scratch.

Friend: That makes sense. Building a software solution can be very costly and time-consuming. Plus, there are already pre-existing solutions that have been designed to address specific business challenges.

Me: Yeah, that's true. The article points out that commercial products are usually more intuitive and user-friendly since they're designed to accommodate a wide range of users with varying skill levels. Plus, the vendor takes on the burden of product development, quality assurance, maintenance, platform migration, and patch fixes.

Friend: That's definitely a major advantage. It's also important to consider the cost of internal development and the ongoing maintenance required for a homegrown application. In most cases, the vendor can charge less for a commercial solution than it would cost to support a one-off application.

Me: Right. The article also suggests evaluating certain criteria when choosing a software solution, such as configurable templates, intuitive design, single sign-on, security, two-way integration, data lakes and machine learning. So, it's important to consider all of these factors when deciding whether to build or buy a software solution.

Action items

Research and evaluate commercial software solutions that address relevant business challenges.
Estimate the initial internal development costs, as well as ongoing maintenance, required for a custom solution.
Consider the criteria for ease of use, configurable templates, intuitive design, single sign-on, security, two-way integration, data lakes and machine learning when selecting a software solution.

Technical terms

Build: To create a software solution from scratch, using internal resources.
Buy: To purchase a pre-existing software solution from a vendor.
Dynamic Pricing: A pricing strategy that changes prices based on market conditions.
Generative AI: Artificial intelligence that can generate new content based on existing data.
Quantum Computing: A type of computing that uses quantum-mechanical phenomena, such as superposition and entanglement, to perform operations on data.
Fintech: A portmanteau of "financial technology" that refers to the use of technology to improve financial services.
ChatGPT: A natural language processing (NLP) technology that enables chatbots to generate human-like conversations.
Digital Trust: A technology that helps to ensure the security and privacy of digital data.
Configurable Templates: Pre-defined templates that can be customized to meet specific requirements.
Intuitive Design: A user interface that is easy to use and requires minimal training.
Single Sign-On: A system that allows users to access multiple applications with a single set of credentials.
Security: Measures taken to protect digital data from unauthorized access.
Two-Way Integration: The ability to connect two systems so that data can be exchanged between them.
Data Lakes: A type of database that stores large amounts of data in an unstructured format.
Machine Learning: A type of artificial intelligence that enables computers to learn from data without being explicitly programmed.