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    Buy Vs Build - 2022

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    pri soum
    The document discusses whether companies should build or buy software applications. It notes that while building internally used to be more common, the rise of cloud computing has made buying more attractive due to faster innovation cycles. The document outlines factors to consider, like problem scope, available expertise, and time sensitivity. It then lists pros and cons of both buying off-the-shelf software and building custom applications to help companies evaluate the best option.

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    Buy Vs Build - 2022

    Uploaded by

    pri soum
    28 views12 pages
    The document discusses whether companies should build or buy software applications. It notes that while building internally used to be more common, the rise of cloud computing has made buying more attractive due to faster innovation cycles. The document outlines factors to consider, like problem scope, available expertise, and time sensitivity. It then lists pros and cons of both buying off-the-shelf software and building custom applications to help companies evaluate the best option.

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    Buy vs Build -2022

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    The document discusses whether companies should build or buy software applications. It notes that while building internally used to be more common, the rise of cloud computing has made buying more attractive due to faster innovation cycles. The document outlines factors to consider, like problem scope, available expertise, and time sensitivity. It then lists pros and cons of both buying off-the-shelf software and building custom applications to help companies evaluate the best option.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views12 pages

    Buy Vs Build - 2022

    Uploaded by

    pri soum
    The document discusses whether companies should build or buy software applications. It notes that while building internally used to be more common, the rise of cloud computing has made buying more attractive due to faster innovation cycles. The document outlines factors to consider, like problem scope, available expertise, and time sensitivity. It then lists pros and cons of both buying off-the-shelf software and building custom applications to help companies evaluate the best option.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    Build or Buy?

    Comparing off-the-shelf and


    homegrown software
    applications

    KaiNexus
    Table of Contents
    Executive Summary ............................................................................. 3

    The Influence of the Cloud .................................................................. 4

    When Should You Build? ..................................................................... 5

    When Should You Buy? ...................................................................... 6

    The Pros of Buying .............................................................................. 7

    The Cons of Buying ............................................................................. 8

    The Pros of Building ............................................................................ 9

    The Cons of Building ........................................................................... 10

    Conclusion ........................................................................................... 11
    Executive Summary
    For many years, leaders have questioned whether it is better to make or buy software
    solutions to the many business problems they face. Pros and cons are weighed as they try
    their best to do what most cost effective and efficient for their businesses. It proves difficult,
    though, to accurately estimate the long-term consequences of that decision, which often
    leaves those on the front lines struggling to pick up the slack.

    When deciding whether to buy or build, you need to


    think about three key points:
    1. What is the scope of the problem are you trying to address with this software, and
    how complex does your solution need to be to fit your business size and needs?

    2. Does your organization currently have (or can you hire) experts capable of building,
    maintaining, and supporting the solution?

    3. Is using the software critical to your business operations, or can you afford to wait
    while the solution is developed?
    The Influence of the Cloud
    The question to buy software or build it internally to solve business needs is becoming
    increasingly prevalent in today's world. Building software has frequently won out in this
    debate in the past, but with the introduction of cloud computing, the tables are turning.

    This is due in part to the fact that the pace of technology innovation is accelerating at an
    almost exponential rate, making it difficult for the average internal IT groups to cope with
    the pace of change. The struggle commonly lies in the fact that they not only they have
    to create the software internally - they must also maintain and upgrade it indefinitely.

    Now, even large global enterprises in both public and private sectors that have invested
    tens of millions of dollars in internal IT infrastructure are beginning to migrate to cloud
    applications. In fact, the Gartner Group sees the public cloud for the hosting of enterprise
    applications as the fastest growing IT market in the next ten years. The largest enterprise
    software companies in the world (IBM, Oracle, SAP, etc.) see their future delivery platform
    as the cloud, so their customers are rapidly retiring in-house IT environments, dramatically
    reducing their IT operational costs as well as their historical reliance on internal IT staff for
    software development and support.
    When Should You
    Build?
    1 For ad hoc applications specific to a single business process.

    2 You have a problem that is unique to your organization, and no available


    software adequately addresses it.

    3 To solve a siloed problem that doesn’t affect other areas of your business

    If you have a strong IT department that will remain with the company for a
    4 long time with the resources to build, maintain and support the application
    long term.
    When Should You
    Buy?
    1 Use of the software package is critical to your business operations

    2 You have a common problem that available software is adequately


    developed and customizable to address.

    3 The software would be used throughout your organization, and interact with
    other applications

    4 Your IT department is not equipped to build the application, or maintain


    and support it long-term.
    Thinking About Buying Off-The-Shelf Software?

    Ready-made solution, available when you need it

    Greater flexibility / adaptability


    Pros
    Thousands of hours of research and development have gone into
    creating the product already

    Expert support and training are available to existing and future staff with
    no additional burden on your HR or IT teams. Off-the-shelf software
    typically includes additional resources like support documentation and
    training

    Functionality is continuously enhanced through customer input,


    anticipating your changing business needs rather than reacting to them.
    This allows you to benefit from the best practices, ideas, and
    experiences of people with similar business needs

    You can more easily trial the software and change your mind later if you
    decide it isn't meeting your needs

    Often, you can hire people who already know how to use the software
    Thinking About Buying Off-The-Shelf Software?

    Developer retains rights to the code

    Product functionality is determined by vendor, and may not exactly fit


    Cons your specific needs (though many vendors are willing to work with you
    to adapt the product as needed)

    Rely on vendor’s support to resolve issues

    Sometimes difficult to get budgetary approval for external software


    Thinking About Building Custom Software Internally?

    Total control over development and features

    Software is specific to your needs, including reporting capabilities


    Pros
    Ownership of the software code

    If your competitors don’t have a similar application, developing your


    own could give you an advantage

    No dependency on vendors to solve problems with the software or


    schedule training for your staff - all can be managed internally
    Thinking About Building Custom Software Internally?

    Time required to determine exact business needs, configure/write code,


    integrate with other business systems, and adapt to user requests after
    deployment
    Cons
    Training and support required from your IT and/or HR staff indefinitely

    Staying current is challenging when business needs rapidly change and


    the applications integrated with your software release new versions that
    necessitate adaptation of your software

    Lower functionality than software vendor’s applications

    Developing software to solve your business problems is likely not one


    of your organization's core competancies

    Developing and maintaining software will compete with the existing


    priorities of your IT staff

    Typically results in higher long-term costs


    Conclusion
    The decision to build custom software applications internally or purchase off-the-shelf
    solutions is becoming increasingly important in today's world, as the changing demands of
    businesses in all industries require a balance of convenience, customization, and
    adaptability. In making this decision, the pros and cons of buying and building must be
    weighed, with particularly close attention to:

    1. The scope of the problem the software application is intended to solve

    2. The resources available within the organization for developing and maintaining the
    application

    3. The amount of time before the software needs to be active


    The best way to improve your organization is by leveraging the collective
    knowledge of every employee. KaiNexus is a cloud-based software platform
    that unites your team around opportunities for improvement and facilitates their
    progress from inception to ROI.

    Email: [email protected]
    Corporate Headquarters
    1511 Nickerson St.
    Austin TX 78704
    Phone: (512) 522-5940

    KaiNexus Dallas
    600 E. John Carpenter Fwy #105
    Irving, TX 75062
    Phone: (469) 454-8055

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