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.

Slides for this lesson embedded below.
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