Build vs. Buy – getting ahead Technology Entrepreneurship Class GIMPA March 2007.
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Transcript of Build vs. Buy – getting ahead Technology Entrepreneurship Class GIMPA March 2007.
Build vs. Buy – getting ahead
Technology Entrepreneurship Class
GIMPAMarch 2007
Technology business and the competitive edge
• Things you do which make you unique in the market place , allow your customers to keep coming back and makes it difficult for your competitors to copy you
Build or Buy is about the competitive edge
• What keeps you ahead of the pack ?
• Isolating the business from its supporting services?
• Identifying your competencies
What type of technology business are you ?
• High-Tech innovator creating new markets opportunities ( Rancard)
• Medium technology player providing support to existing industry (Standard Trust)
• Low tech mass market technology company( Areeba)
What type of market are you getting into?
• Mature market with dominant players• Mature market with new opportunities and
applications for technology• New market with few established players
Critical factors for business continuity ?
• Innovation• Market share• Distribution /channels / product
availability• Cost of shift• Products vs. platforms – WEB 2.0
Build when ?
• Building creates new opportunities for the business or strengthens a market position.
• Cost of building is not disruptive to market position.
• Building is necessary for survival.
Buy when ?
• It makes no sense to build.
• You don’t have the time to build.
• You don’t have the competency to build.
• Product area is not important to core of business.
Open source – the middle ground
• Leverage of best of breed.
• Deliver software as service.
• Provide customizations which enhance business value.
Build vs. Buy
Q & A