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Is it Worth it? Build vs Buy, Pricing, and LOE Analysis

Every organization finds themselves in the difficult position of determining whether to build a capability in house, or buy it from a 3rd party vendor. In this lesson we'll cover the nuances of this decision, and provide some helpful frameworks and thoughts on how to analyze and be objective in making such a decision.

  • Constructing a pricing and LOE analysis is important to help reinforce rational when buying or building 3rd party and 1st party tools.
  • 3rd party vendors often provide a LOE calculator which displays how much effort it would take to build the same technology on your own.
  • Time, employees (FTEs), cost (infrastructure and rate of employees), and on-going maintenance are all things that go into a LOE or Build vs Buy calculator.

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Prioritizing Vendor Selection

Once you've decided to build or buy a marketing capability, you'll need to work with your vendors or internal stakeholders to prioritize. In this lesson, we talk about the importance of prioritization and how it requires sensible give and take.

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