120 likes | 217 Views
Build vs. Buy – getting ahead Technology Entrepreneurship Class GIMPA March 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.
E N D
Buildvs.Buy – getting aheadTechnologyEntrepreneurship 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