Unveiling the Dynamic Shift in the Build vs. Buy
With technology serving as a key building block for business success, investment management firms large and small must carefully evaluate decisions around building vs. buying software. In the past, many companies developed home-grown solutions to address their business needs. However, many companies have faced challenges keeping up with the scaling of the organization and expanding needs of the business. Technology innovations are coming faster and faster they have made a tremendous impact on businesses today.
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- Do we need a Cloud strategy? If not, why not?
- How do we integrate AI and Machine Learning?
- How can we automate more processes to save time and money?
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The old principle of defining a project by time, scope, and quality remains a pillar of software development, but these are just a few of the factors that play into the build vs. buy decision.
Business and Technology Strategy
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- Ensure that the Strategy is well-defined. Do you want to keep up with the competitors or differentiate with technology innovations? How much proprietary logic is needed to deliver the solution? The more your strategy involves differentiation and proprietary logic, the more that a build solution may best suit your needs unless you have a buy solution that offers customization.
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Cost
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- Do you have a fixed budget? Does it consider ongoing maintenance and support costs? While some may assume that build is cheaper, that may not always be the case when you consider a holistic plan including maintenance and support, training, etc.
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Timelines
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- Do you need it tomorrow? So many companies struggle with building in-house solutions. Development may be optimistic in defining a schedule. Starting with a product that is built and ready for you off-the-shelf or with some level of customization typically will get you where you need to be faster.
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In-House Resources
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- Do you have the commitment to secure resources for the project or are they already assigned to another top priority need? Do they have the right skill sets? If the answer to either of these questions is no, you will need to look outside your organization.
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Third-Party Thought Capital
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- Is a new way of looking at requirements lacking in-house? Leveraging the intellectual wealth of third-party software companies can bring invaluable improvements to your business processes.
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Security
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- Security is vital to today’s organizations. Building a security plan takes time and money. Build options may have the solution in place so that you can ensure that security is addressed. Not every company may address your security requirements and knowing what you need and expect upfront is key. This should be a top factor in evaluating build options.
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Low Code/No Code Options
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- Today’s Low Code or No Code options open up a new way to get things done quickly and with the in-house expertise. This build option may be the right balance if you want to keep some of your development in-house.
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What problem am I trying to solve?
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- Make sure that you are clear on your requirements and have full buy-in from your stakeholders across the organization before you make a decision. Ensuring that you are building the right thing and have the best solution to deliver it remains at the heart of it all.
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Here at Scientific Financial Systems, we know that the build vs. buy decision can be difficult. We offer a quantitative analytics core product as well as customization options to meet your business needs. Together we can ensure that you are delivering a solution that solves your business problems. Contact Us to learn more about our Quotient analytics tool kit and our Consulting Services.