Digital Capability Can Move the Make-or-Buy Boundary
Digital transformation can change which services an enterprise should build, buy or co-develop by altering cost, knowledge, control and supplier dependence.
Professional knowledge and strategic perspectives across strategy, projects, operations, engineering, transformation and business performance.
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Digital transformation can change which services an enterprise should build, buy or co-develop by altering cost, knowledge, control and supplier dependence.
Make-or-buy is not a simple cost comparison. It determines where capability, knowledge, risk, control and future strategic options will reside.
Why leaders should break complex projects into capabilities and interfaces before deciding what to make, buy, outsource, partner or multi-source.
Contracting a function out does not free senior capacity. It converts execution attention into governance attention at a rate no business case states, rarely at par.
Make-or-buy is usually argued on unit cost. The margin most firms think they gain by making is conditional on scale they may not have.
Procurement negotiates price. Strategy maps where margin is captured along the chain — and tests whether the analysis behind the decision would survive scrutiny.
A decision framework for make-versus-buy choices that considers strategic capability, total cost, resilience, learning and long-term competitive position.