Build vs Buy: 5 Factors You Might Not Have Considered

Build vs buy. This is the debate that plagues every organization when deciding on a digital platform.

It’s a big decision that takes a lot of thought, especially now that we live in such uncertain times. Retail and hospitality have been hit hard, and making a big financial decision such as this needs to be very carefully considered.

There are benefits and drawbacks to both building and buying a digital solution, and as every business is different, it’s important to choose the right path for you. But to help you out a little, here are 5 key factors that might help you decide: 

#1 Building is more likely to run over budget

Many organizations opt to build their own task management solution because they don’t want to waste money paying others to create something they could do for themselves in-house. However, this could end up costing you a lot more in the long-run.

Hiring software developers, QA testers and product designers could cost you somewhere in the region of $300,000. Add to that the fact that 45% of large IT projects run over their predicted budget, and you could end up throwing a lot of unexpected funds at a project that was supposed to save you money.

Buying a solution gives you much more control over your spending. You can decide which features you want to pay for and which you don’t need, making it easier to stick to a budget. You’ll also know exactly how much it will cost you before you get started, as the company you buy from will give you a detailed breakdown, including monthly licensing fees and implementation costs.

#2 Building is time-consuming and labor-intensive

As well as costing you a lot more money, building your own solution will take up a lot of your time and energy.

Before you even start the process of actually building the solution, there’s an extensive process of hiring, outsourcing or repurposing internal teams. And once you’ve put your team together, the energy and attention of those employees is diverted away from core revenue-building activities that will grow your business.

Buying a solution means that everything is taken care of for you, saving you time and effort that could be better spent elsewhere.

#3 Buying gives you access to cutting-edge ideas and technology

One of the arguments for building a tailored solution in-house is that it’s completely unique to your organization’s specific use case.

Appealing though that may be, catering only to your existing processes cuts you off from a whole world of new ideas and opportunities.

Since the COVID-19 pandemic began, agility has become the top priority for any business. Entire organizations have been forced to pivot within a matter of days, sometimes several times over the course of the pandemic. Trying to build an in-house solution during such chaos might prove difficult, or even futile.

Buying a solution, on the other hand, will give you access to cutting-edge features that will help your organization stay ahead of the curve, no matter what challenges you may face. Not only that, but you’ll benefit from your solution provider’s expertise in their field, including a whole host of best practices from other companies they have worked with. 

#4 Buying leads to a smoother deployment and higher adoption rate

One of the perceived advantages of building your solution in-house is that the team creating it has an intimate understanding of its unique characteristics and challenges. But unless someone on that team is an expert at implementing new technology across an entire organization, you might struggle to get your employees to adopt the platform that you’ve worked so hard on. 

Attaining a high adoption rate is a huge priority that is often overlooked. No matter how great your solution looks, if employees don’t want to use it, it’s a wasted investment. Adoption rate can make or break the entire project, so having that extra expertise is invaluable. And if your employees are frontline workers, even more special considerations have to be taken into account to ensure successful adoption - for example, they don’t work at a desk, so you have to meet them where they are.

Buying a solution, on the other hand, gives you access to a dedicated customer success manager who will work with you long-term to make the project a success. Working closely with these experts in their field will provide you with a wealth of knowledge and best practices that will ensure the smooth deployment of your solution and a high adoption rate.

#5 Building poses a greater risk

At such a time of uncertainty for the retail and hospitality industries, businesses should be finding innovative ways to improve their situation without taking huge risks.

The time, effort and money involved in building a solution from scratch puts you in a vulnerable position if, for whatever reason, the project fails. When you buy a solution from a trusted provider with a lot of experience, the risk is greatly minimized. You can even try out a solution with a short pilot to see if it’s the right fit for you. 

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