Make-or-Buy Consulting

Make-or-Buy consulting clarifies independently whether off-the-shelf software, an in-house build or which product holds up over its lifetime. This decision ties up budget for years, so a neutral choice without a vested interest in any particular solution matters. Vendor promises, a growing number of SaaS subscriptions and time pressure easily obscure the true costs and dependencies. Here the category is still open: first the fundamental question of buy or build, only then which concrete system.

Typical starting points

  • sprawling licences and subscriptions: a licence and SaaS inventory makes duplication, unused seats and negotiation leverage visible
  • three line-of-business applications that do not talk to each other and call for an integration decision rather than a purchase: the technical decision matrix separates integration need, vendor maturity and API openness
  • the decision to keep or replace a stable but inflexible legacy ERP: the status quo is weighed against replacement, exit path and lock-in risk
  • an organisation on a tight budget that has to clarify which systems it really needs: commodity, core processes and essential systems are separated in a weighted requirements catalogue

Outcomes

A decision basis on two levels emerges:

  • the procurement and investment decision, including lock-in risk and exit path
  • the technical decision matrix with a TCO model, weighted requirements catalogue and an assessed vendor shortlist

The decision can thus be justified transparently and documented robustly.

Scope of work

The fundamental question follows a clear logic: only a competitively decisive process justifies an in-house build, everything else is bought and cleanly integrated.

flowchart TD
    accTitle: Make-or-Buy decision tree
    accDescr: A process is assessed: a commodity is bought; a competitively decisive process is bought and integrated when the market offers a suitable product, otherwise built in-house.
    A["Process or system"] --> B{"Competitively<br/>decisive?"}
    B -->|no, commodity| C["Buy<br/>purchase standard"]
    B -->|yes, differentiating| D{"Market offers<br/>a suitable product?"}
    D -->|yes| E["Buy and integrate<br/>assess vendor"]
    D -->|no| F["Build<br/>in-house development"]

TCO modelling over 5 to 10 years Not the purchase decides, but the total cost over the lifetime:

  • licences, maintenance, hosting, integration and internal effort
  • buy versus build versus status quo

Differentiation check It is assessed whether a process is an interchangeable commodity (such as accounting) or a competitively decisive core process. Only core processes justify an in-house development.

Vendor due diligence and shortlist Potential vendors are assessed rather than a sales presentation being believed:

  • technological maturity, API openness and financial stability
  • exit paths and local compliance

Licence and SaaS inventory (software asset management) Where subscriptions and licences sprawl, a SAM inventory creates an overview: duplication, unused seats and negotiation leverage become visible.

Scope boundaries

This consulting clarifies the upstream fundamental question (buy, build, which category) and stays independent of later implementation revenue; what fits is recommended, not what le dot delivers itself. When it comes specifically to selecting a central business application, the Independent Software Evaluation goes deeper. When the step-by-step replacement of a legacy system is on the table instead of a new purchase, Legacy Modernisation frames it.

Key data

The effort depends on the number of categories and stakeholders:

  • how many make-or-buy decisions are pending in parallel
  • how deep the TCO modelling and vendor due diligence reach
  • how broad the existing licence and SaaS inventory is

A single category is assessed quickly, a broad portfolio across many areas calls for more depth. What the consulting costs in a concrete case depends on exactly these factors. The price range gives the frame for your own portfolio.

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Further information