To build or to buy, a question that often comes up - while quantifying the value of a product!
A simple framework to make this choice boils down to thinking about a two questions and having a clarity on the answer that comes up.
- Is this component a necessary aspect of your business?
- Is this component strategic to your business?
When to Build?
- Build what is both necessary and strategic.
- Build what you must do better than anyone else.
When to Buy?
- Buy what is necessary and not strategic, ignore everything else.
- Buy what you believe someone else will compound faster than you can.