When to Build or Buy Enterprise Software

It’s no secret that fast-moving consumer goods (FMCG) companies are trying to keep up with the complexities of constantly changing consumer demands and fast-paced evolving technology—especially for the fashion & apparel, multi-category retail, cosmetics & personal care items and food & beverage product categories.

Many companies know they need certain enterprise solutions but struggle to find a vendor partner that meets their needs. Hence, the build vs. buy software dilemma many companies experience when trying to find the solution that solves their business problems.

When weighing new technology investments, particularly for product lifecycle management (PLM), retail planning, competitive market intelligence benchmarking or pricing—is building a homegrown software solution smarter than buying one that is commercially available?

This snapshot article discusses the pros and cons of building an in-house enterprise software solution versus purchasing one. Be sure to download the full eBook “Build vs. Buy” to learn about the known and hidden costs and risks, the average lifecycle of a homegrown solution, how to build a case for purchasing a solution and how to find the right strategy that fits your business needs.

Companies might consider building their own systems in-house for time savings since their existing resources can get started right away. They are also driven to find cost savings upfront by building instead of paying an outside vendor to accomplish the same goals.

Additionally, companies consider themselves in the best position to know what their teams and businesses need. This is because they are most familiar with how they work, and building systems in-house gives companies full control.

However, buying a platform has its advantages too. What should companies look for when evaluating an enterprise software solution vs building their own?

• Look at known and/or hidden costs that can happen in the long term.
• Consider the risks of developing an in-house solution, for example, not benefiting from the collective expertise of the industry as a whole.
• Assess if the platform has the flexibility to grow with your company as users, categories, products, brands, etc., start to increase.
• Determine if the solution integrates with current and future third-party enterprise software.

Keeping up with shifting trends and evolving tech can sound daunting, but the right partner and strategy can alleviate that stress and let teams focus on delivering unique consumer experiences and quality product innovations instead.