Archive for April 12th, 2007

Buy vs Build

Thursday, April 12th, 2007

The old argument for buying packaged software, I was reminded by Alan Inglis, is to benefit from industry best practice.  In other words, to benefit from the software author’s experience of solving your problem for other organisations, the benefits of which they have (undoubtedly) built into the package.

The theory goes that you can standardise your back office and equalise your cost per transaction (or whatever the key measure is) with your competitors, then your organisational strategy becomes one of marketing, i.e. differentiate your products with better R & D, advertise them and sell them better, always secure that your cost of delivery/administration etc is no higher than your rivals’.

Hang on a minute?  That doesn’t sound very ambitious!  It also means your costs are no lower than your rivals…