Build versus Buy Alternative Strategies for Providing Workers Comp Solutions Panel Discussion AASCIF IT Committee Seminar Nashville, TN September 23 & 24, 2010 1
Panelists Glenn Audiffred, Louisiana (Buy) Mike Foerst, Missouri (Buy) John Koenig, Kentucky (Build) Brian Stephens, Maryland (Build) 2
The Bulls Say… Never build. Always buy. • Buy a mature application that has been on the market for at least three years and adapt it to your purpose, running it on equipment you already own • Never buy a 1. 0 or even 2. 0 version if at all possible • The name of the vendor doesn’t matter as long as its been on the market 3 years and has significant market share • If off-the-shelf applications still won’t work, consider outsourcing, especially Web-based applications suites 3
The Bulls Rationale • Only a small percentage of projects succeed • The larger the project, the smaller the chance of success 4
Configure; Don’t Modify Avoid massive customizations to the level of rewriting third-party apps until they are essentially home grown (1) Can end up with maintenance costs equal to or greater than those incurred by in-house developed apps (1) When does a buy approach morph into a hybrid build approach? (1) To build or to buy IT applications; Polly S. Traylor 5
Golden Rule? ? “Buy when you need to automate commodity business processes” (1) “Build when you’re dealing with the core processes that differentiate your company” (1) To build or to buy IT applications; Polly S. Traylor 6
Comparative Model Buy vs. Build Software Applications: The Eternal Dilemma; Bruce F. Webster 7
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