2. Build vs. Buy – getting ahead Technology Entrepreneurship Class GIMPA March 2007

3. 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

4. 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

5. 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)

6. 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

7. Critical factors for business continuity ? Innovation Market share Distribution /channels / product availability Cost of shift Products vs. platforms – WEB 2.0

8. 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.

9. 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.

10. Open source – the middle ground Leverage of best of breed. Deliver software as service. Provide customizations which enhance business value.

11. Build vs. Buy Q & A