As project managers we are often confronted with this dilemma.
How are these decisions being reached in your organization ? Who makes the call ? On what basis ? At what time ? Saving Changes...
In my most recent company, the trend was to buy over make unless there was a significant benefit to doing so. If a solution owner felt that a make decision was required they needed to provide sufficient financial justification for doing so considering both one-time and ongoing costs over a five year period as well as the rationale from a solution or technology perspective.
Usually, such decisions were made once project scope was well understood, but (very) occasionally there was a predetermination of a solution...
Kiron
Kiron
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1 reply by Nenad Pesic
Jan 23, 2018 2:27 PM
Nenad Pesic
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Thank you Kiron , that is very useful.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
As project manager you must not confront this dilemma. This dilemma belongs to strategy and if we talk about the role in charge of this is the business analyst. The business analyst will not take the decision but she/he will help the organization in all needed to take the decision. But, just in case you are in charge of that, you have to understand the organizational strategy. You have three types of strategies. On top, the organizational strategy, from it the business strategy is derivate and from business strategy the functional strategy is derivate. So, is not a trivial decision but there are tools that help on that. I have responsability to participate on this type of process in my actual work place.
In my most recent company, the trend was to buy over make unless there was a significant benefit to doing so. If a solution owner felt that a make decision was required they needed to provide sufficient financial justification for doing so considering both one-time and ongoing costs over a five year period as well as the rationale from a solution or technology perspective.
Usually, such decisions were made once project scope was well understood, but (very) occasionally there was a predetermination of a solution...
Kiron
Kiron
Thank you Kiron , that is very useful. Saving Changes...
As project manager you must not confront this dilemma. This dilemma belongs to strategy and if we talk about the role in charge of this is the business analyst. The business analyst will not take the decision but she/he will help the organization in all needed to take the decision. But, just in case you are in charge of that, you have to understand the organizational strategy. You have three types of strategies. On top, the organizational strategy, from it the business strategy is derivate and from business strategy the functional strategy is derivate. So, is not a trivial decision but there are tools that help on that. I have responsability to participate on this type of process in my actual work place.
Thank you Sergio for sharing your experience. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
In my organization we evaluate things rationally and before we do a buy or make decision we do put many factors on the table such as: Cost, Long Term Use, Added Value and so on.
In my organization we evaluate things rationally and before we do a buy or make decision we do put many factors on the table such as: Cost, Long Term Use, Added Value and so on.
It is sometimes decided by the client if the project is external to your organization. In either case, there are a number of factors when deciding: cost, time, expertise, regulations, existing contracts are some that come to mind.
It is sometimes decided by the client if the project is external to your organization. In either case, there are a number of factors when deciding: cost, time, expertise, regulations, existing contracts are some that come to mind.
This choice of project approach is not always down to the PM, but where it is necessary to choose or advise, for instance for part of a project, you must evaluate each option against their deliverability within the existing project timeline and alignment with its objectives.
I have found that where these deliverables are IT systems, the bought options have better functionality than anything that can be made, and with the added benefit that they have already been proven elsewhere so do actually work. However, maybe your organisation has many many developers and testers who can commit to the project. Saving Changes...
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