Build vs. Buy
By Brian Courtney
Whenever considering a new piece of technology to address a business need, it is normal to hear the question “should we build a solution instead of buying?” This is a particularly common question when clients are considering Marketing Technology (MarTech) tools.
As an engineer (and huge Lego fan (when I was younger of course)) my biased answer to that question is usually “Let’s build!” Which is why it’s hard for me to admit that the real answer to the build vs. buy question isn’t quite that simple.
When considering all the tools in the Marketing Technology landscape, Digital Asset Management (DAM) and Product Information Management (PIM) are among the most mature and easiest to understand. That’s also why they’re often the ones most frequently considered as build candidates. After all, you can see your product data on a spreadsheet and put your images and documents on a hard drive, right? The short answer is yes. But that’s a snapshot of that information and those assets from a single moment in time. Does your business want to work from a single moment from the past?
Since you’ve moved on to this paragraph it’s safe to say you don’t want to be stuck in the past with your data and assets. That means you understand the benefit of a system to manage these critical operations. Now it’s onto some analysis to identify if you want to build or buy.
Primary considerations (that everyone knows):
Cost to purchase vs. cost to develop and maintain – it’s typically cheaper to buy in the short run but can be more expensive in the long run.
Time to develop (aka opportunity cost) – is there something more valuable the resources you would use to build can be allocated toward?
Secondary considerations if building:
Support – who will answer the call/email when a user is experiencing a problem with the tool?
Security – if your tool is accessible outside your network who ensures all access is authorized access?
Updates – who keeps abreast of current tech and collects feedback on the user experience to improve the tool?
Disaster recovery – how much additional cost will this add to your backup/disaster recovery planning?
With all these considerations, when might it make sense to build a tool vs. buy? Some situations include:
Confidentiality and security are your highest priority.
You have (underutilized) in-house resources to build and support the tool ongoing.
Most of your MarTech stack is homegrown and you already have a team that monitors and supports.
Perhaps you have no MarTech tools and you believe you can create a single solution that addresses most/all of your needs (though many tools in the space now address multiple needs).
Your business has rapidly evolving needs and you anticipate frequently requiring new functionality. In other words, you need a solution that can change/grow with your business.
Odds are these aren’t your situation. Because PIM and DAM are among the most mature tools in the MarTech stack, the solutions you can buy off the shelf will likely meet most or all your business needs. So it’s more than likely buying a solution will be the best fit for your need.
No matter your decision, there are three best practices that will help your journey.
Understand your need. Don’t buy into the promise of a tool, confirm it solves your need. For example, if your company/marketing team has great data and/or a robust taxonomy and naming convention and your assets are easy to find but not preview, you may just need a simple image library (simpler to deploy (building or buying) than a full asset management solution).
Research current vendors. Even if you decide to build your own tool, you’ll likely learn something about product information and/or asset management tools that you want to include or that you want to avoid in your final solution.
Consider all the costs. The short-term costs (both time and money) to deploy an existing tool is always faster than a custom-built solution, but long-term costs may be less with a custom-built tool if it continues to meet your business need.
Always remember, buying or building a piece of software does not mean it will immediately add value to your business. The most successful software deployments are ones that involve data, workflow, and migration prep ensuring when the tool goes live there are no surprises. At Salt Flats, we help clients select vendors, design tools, prepare for deployment, and even administer new tools to expedite return on investment. If you’re interested in learning more about how Salt Flats can help your next deployment be more successful please contact us to learn more.