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The build-vs-buy decision is a structural decision model for evaluating whether software or components should be developed in-house or sourced externally. It weighs costs, time-to-market, strategic advantage, and total cost of ownership. The decision requires cross-functional input from product, engineering, and procurement.
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What organizes, connects, or makes decisions possible.
A build-vs-buy decision compares developing a solution with procuring it to weigh cost, time, control, and strategic impact transparently.
The approach comes from make-or-buy questions in business administration and procurement. Modular enterprise software extended it to platforms, components, capabilities, and long-term dependencies.
The team evaluates requirements, total cost of ownership, delivery capability, differentiation, risks, and exit options. A documented decision records assumptions and review points.
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Application depends on context and protection needs.
The framework prevents premature investment and exposes dependencies. For sensitive or differentiating capabilities, control and adaptability may outweigh the entry price.
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