Build vs. Buy Decision Framework

You are an engineering manager evaluating whether to build a custom solution or buy/integrate an existing platform. Generate a comprehensive build vs. buy analysis:

**Decision Context:**
- Need/Problem: [What problem are you solving?]
- Requirements: [Key requirements]
- Timeline: [When do you need this?]
- Budget: [Available budget]
- Team: [Available engineering resources]

**Generate a build vs. buy analysis:**

## Decision Framework

**Build:** Custom development using internal team
**Buy:** Purchase/license existing platform/service
**Hybrid:** Buy core platform, customize/extend

## Step 1: Requirements Assessment

**Core Requirements:**
- [ ] Must-have feature #1
- [ ] Must-have feature #2
- [ ] Must-have feature #3

**Nice-to-Have Features:**
- [ ] Feature #1
- [ ] Feature #2

**Constraints:**
- [ ] Technical constraints (e.g., must run on-premise)
- [ ] Compliance constraints (e.g., SOC2, HIPAA)
- [ ] Integration constraints (e.g., must work with existing systems)
- [ ] Budget constraints
- [ ] Timeline constraints

**Scale Requirements:**
- Current: [Users, transactions, data volume]
- Future (1 year): [Projected growth]
- Future (3 years): [Long-term projection]

## Step 2: Build Analysis

### Build Pros
✅ **Custom Fit**
- Exactly what you need
- No paying for unused features
- Aligned with your workflow

✅ **Control**
- Full control over roadmap
- No vendor lock-in
- Can optimize for your use case

✅ **Competitive Advantage**
- Unique capabilities
- Differentiates your product
- Intellectual property

✅ **Cost at Scale**
- No per-user licensing fees
- No vendor margin
- Lower long-term cost

### Build Cons
❌ **High Initial Cost**
- Development time (person-months)
- Opportunity cost
- Ongoing maintenance

❌ **Risk**
- Technical risk
- Timeline risk
- Unknown complexity

❌ **Maintenance Burden**
- Ongoing engineering time
- Bug fixes
- Updates and improvements
- Security patches

❌ **Time to Market**
- Slower than buying
- Delay in value delivery

### Build Cost Estimate (3-Year TCO)

**Year 1:**
- Initial development: [X] person-months × [cost/person-month] = $[amount]
- Testing & QA: [X] person-months = $[amount]
- Infrastructure: $[amount]/month × 12 = $[amount]
- **Total Year 1: $[amount]**

**Year 2:**
- Maintenance: [X] person-months/year = $[amount]
- Infrastructure: $[amount]/month × 12 = $[amount]
- Updates/improvements: [X] person-months = $[amount]
- **Total Year 2: $[amount]**

**Year 3:**
- Maintenance: [X] person-months/year = $[amount]
- Infrastructure: $[amount]/month × 12 = $[amount]
- Updates/improvements: [X] person-months = $[amount]
- **Total Year 3: $[amount]**

**3-Year TCO: $[total]**

## Step 3: Buy Analysis

### Buy Pros
✅ **Faster Time to Market**
- Available immediately
- Start using today
- Faster value delivery

✅ **Lower Initial Cost**
- No development cost
- Pay as you go
- Lower upfront investment

✅ **Proven Solution**
- Battle-tested
- Less risk
- Vendor handles maintenance

✅ **Rich Feature Set**
- More features than you'd build
- Regular updates
- Community/ecosystem

### Buy Cons
❌ **Vendor Lock-In**
- Hard to switch later
- Dependent on vendor
- Data portability concerns

❌ **Cost at Scale**
- Per-user licensing
- Usage-based pricing
- Can be expensive at scale

❌ **Less Control**
- Vendor controls roadmap
- May not fit perfectly
- Customization limitations

❌ **Security/Compliance**
- Shared responsibility
- Vendor security incidents
- Compliance challenges

### Buy Cost Estimate (3-Year TCO)

**Year 1:**
- Setup/implementation: [X] person-months = $[amount]
- Licensing: $[amount]/month × 12 = $[amount]
- Integration: [X] person-months = $[amount]
- **Total Year 1: $[amount]**

**Year 2:**
- Licensing: $[amount]/month × 12 = $[amount]
- Maintenance/support: $[amount]/year = $[amount]
- Integration updates: [X] person-months = $[amount]
- **Total Year 2: $[amount]**

**Year 3:**
- Licensing: $[amount]/month × 12 = $[amount]
- Maintenance/support: $[amount]/year = $[amount]
- Integration updates: [X] person-months = $[amount]
- **Total Year 3: $[amount]**

**3-Year TCO: $[total]**

## Step 4: Hybrid Option

**Hybrid Approach:**
- Buy core platform
- Customize for your needs
- Extend with custom features

**When Hybrid Makes Sense:**
- Core platform meets 70-80% of needs
- Customization handles gaps
- Lower cost than full build
- Faster than full build

**Hybrid Cost Estimate:**
- Core platform: [Buy cost]
- Customization: [X] person-months = $[amount]
- **Total: $[amount]**

## Step 5: Risk Assessment

**Build Risks:**
- [ ] Technical risk: [Low/Medium/High] - [Why]
- [ ] Timeline risk: [Low/Medium/High] - [Why]
- [ ] Resource risk: [Low/Medium/High] - [Why]
- [ ] Maintenance risk: [Low/Medium/High] - [Why]

**Buy Risks:**
- [ ] Vendor risk: [Low/Medium/High] - [Why]
- [ ] Lock-in risk: [Low/Medium/High] - [Why]
- [ ] Cost escalation risk: [Low/Medium/High] - [Why]
- [ ] Feature gap risk: [Low/Medium/High] - [Why]

**Mitigation Strategies:**
- [Strategy for each risk]

## Step 6: Decision Matrix

| Criteria | Weight | Build Score | Buy Score | Notes |
|----------|--------|-------------|-----------|-------|
| Cost (3-year TCO) | 20% | [X]/10 | [X]/10 | Build: $[X], Buy: $[Y] |
| Time to Market | 25% | [X]/10 | [X]/10 | Build: [X] months, Buy: [X] weeks |
| Feature Fit | 20% | [X]/10 | [X]/10 | Build: Custom, Buy: [X]% fit |
| Risk | 15% | [X]/10 | [X]/10 | [Assessment] |
| Control | 10% | [X]/10 | [X]/10 | Build: Full, Buy: Limited |
| Maintenance Burden | 10% | [X]/10 | [X]/10 | Build: High, Buy: Low |
| **Weighted Score** | 100% | **[X]/10** | **[X]/10** | **Winner: [Build/Buy/Hybrid]** |

## Recommendation

**Recommendation: [Build / Buy / Hybrid]**

**Rationale:**
- [Key reason #1]
- [Key reason #2]
- [Key reason #3]

**Next Steps:**
1. [Immediate action #1]
2. [Immediate action #2]
3. [Immediate action #3]

**Decision Review Date:** [When to revisit this decision]

## Communication Plan

**To Leadership:**
"We evaluated [solution] using build vs. buy framework. Recommendation: [Build/Buy/Hybrid]. 3-year TCO: $[X] vs $[Y]. Key factors: [reasons]."

**To Team:**
"We're [building/buying] [solution]. Here's why: [rationale]. Timeline: [timeline]. Impact: [how it affects team]."

**To Stakeholders:**
"Decision: [Build/Buy/Hybrid]. Expected value: [benefits]. Timeline: [when available]. Cost: $[amount]."