Your first post in the discussion needs to answer the questions asked. Then read and respond to other students. These answers should also have research, not just personal opinions. Opinions are great and welcome, but back it up first with research.
“Build or Buy”
A company that is looking to replace a legacy system. The company is evaluating whether it is better to “build” a new replacement or better to “buy” an existing out-of-the-box system. Please research and in paragraph form:
Daniel Jaracz
RE: Build or Buy
The decision on whether to buy or build is a critical decision that will have a big impact on a business. The decision on whether to built or buy varies based on the make up of an organizations as well as the goals of an organization.
For building some of the pros of building is that you can develop features that are specific to unique business model. Some organization/ industry are complex and there not a good solution that can be just brought out of the box. Also with building a system you can also highlight that you system can be advertised as being unique to your company and provide superior over your competitors. Also with building a system you are in control of being able to update when needed, and to add feature when needed as your business changes. Some of the con that are associated with building a system is cost and time. Cost as usually a custom build is more expensive. In addition to the upfront cost, the cost can get past budget if you take in account any mistake that may be made as well as the cost of maintainance and ongoing support. Also in regards to time, it take significantly to build a system compared to buying one.
When we discuss the pro of buying, the two big ones are cost and time. It usually cheaper and quicker to buy rather than build. In additions there also support and maintenance that is provided by a vendor. Also since the vendors business is building system they consitently work on adding new features and improving the software. Cons of buying is te limitation of the customizations that is involved. These out of box solutions are solid to many companies not just yours so being able to fit to your unqiue need does not always work out. Also ongoing servicing and maintance also something incurs a cost.
THe option that i think is better is a tricker question as it is case by case. I think that buyin it is often the better options. There a lot of options that have been already made, and the support and updates alone that they provide often make it a simpler, and more efficent options. Often these out of the box buys have already been customized to your industry and makes for a decent fit riht off the bat. In most case i recommend buying, i only recommend building if the system/ software etc can serve as your Competitive advantage, or if your are building it for a large business that allows you to spread the cost of buuilding across mutiple business units.
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