Build vs. Buy: What To Know Before Deciding
By Centric Software Inc. (Sponsored Content)
Let’s face it. There is no shortage of vendors offering sleek tech solutions tailored to nearly every industry. However, with so many options to research, demo, or customize, building a tailored solution in-house may seem like a smart, resourceful option. While there are certainly advantages to both, there are some key considerations for brands currently in the build vs. buy dilemma — and some of them might come as a surprise.
For retailers, deciding whether to procure an outside solution or build one using internal resources poses a lot of unique opportunities as well as challenges.
But before starting down either path, industry thought leaders suggest brands be clear on two things:
What are we trying to achieve?
What infrastructure do we need in place to support a new solution, built or bought?
Over 2400 CIOs and tech executives shared in a 2024 Gartner study that digital technology is a priority investment for what they believe to be the most critical outcomes for their business:
Generating revenue
Improving operating margins
Excelling in customer experience
With 91% of the respondents also saying AI, low or no-code development platforms and Environmental Social Governance (ESG) platforms are the most likely type of technology to be implemented by 2026, it’s clear that brands are searching for the smartest solutions.
In retail, achieving these business objectives calls for a platform that follows the product journey from concept to replenishment. While brands may have in-house experts specializing in market intelligence, pricing, planning, and every other stage of the product lifecycle, they need to consider if they have the software development and support expertise needed internally to consider building a solution that meets both executive — and customer — demands.
For the teams tasked with finding the right solution for their company, here’s what to consider.
Costs: What to expect
Budget is one of if not the most common determining factors in a brand’s investment in technology. Cost savings is often the first “pro” that comes to mind for retailers considering an end-to-end product lifecycle management (PLM) platform.
However, build vs. buy should be a longer-term, strategic decision, taking into consideration the fickle nature of the market and consumer demands.
Brands know to anticipate development costs such as Research and Development (R&D), consultants, hiring, and building the infrastructure. They’re also considering how long it can take to gather requirements and develop, deploy and customize an in-house system.
What they might not be expecting are the hidden costs that come with the ongoing development and maintenance for customization. This makes it challenging to keep pace and respond quickly to the demands of the market.
Additionally, while brands may be hiring the best and the brightest, many candidates are intrigued by employers that are modern, innovative, and efficient, especially when it comes to their technology. The challenge of attracting talent with clunky platforms — or not having a PLM platform at all —may accrue unexpected talent expenses as searches and retention are measured.
Risks: What to consider
Keeping pace with the market, monitoring competitors, reporting on product performance, and meeting customer expectations are mission-critical for all brands. However, for some, each of these responsibilities is supported by different areas of the business.
Leaner teams may find it challenging to sustain the day-to-day while also allocating time to building a platform. Looking to outsource these responsibilities may seem like the way to go.
Often talented subject matter experts or individual contributors, partnering with external vendors to support a custom build can expose companies to additional security and privacy risks. Not to mention, the process of getting them up to speed with the product offerings and business requirements can take up a lot of several teams’ time. This can quickly throw off an internal project timeline and rack up unexpected fees.
Brands that prioritize sustainability and eco-friendly initiatives are likely also tracking certifications and evolving standards. The risks of manual error and version control across multiple spreadsheets should also be a consideration to ensure ongoing compliance with industry regulations.
Teams must have access to IT support and platform best practices at their fingertips. Leaders should consider whether their internal IT and development teams can manage the intake and resolution of software bugs, inquiries, or FAQs.
Think about the long-term investment
For companies doing their research on the best path forward, they’re likely uncovering lots of pros and cons, risks, and rewards of both building and buying a PLM platform. But the biggest pro of a procured solution is that it scales with both the industry and the organization.
Having a long-term, strategic partner like Centric Software® presents an opportunity to keep strategic business objectives and executive priorities at the forefront, and offers a return on investment that far exceeds the shorter-term contract costs.
Leveraging this AI-powered, award-winning platform, retailers are backed by industry experts so they can focus their time and resources on the areas where they’re the experts: their products and their customers.
Consistently monitoring market trends and innovating platforms to enhance the product journey, Centric PLM™ offers its customers:
Improved gross margins up to 15%
Increased revenue by up to 18%
Improved productivity by up to 50%
Reduced time to market by up to 60%
Curious to explore the costs, risks and rewards of each option?