We are debating whether to build an in house proprietary middleware layer to connect our legacy ERP to modern LLMs, or just license an enterprise workflow builder. How do we run this through our IDS process to prevent our development team from hijacking our strategic focus?

Question

Tyler Smith · Accepted Answer

This is a classic trap where your technical team wants to build a monument to their own skills instead of solving a business problem. You must evaluate this decision using a strategic real options framework inside your IDS process. Building custom middleware requires massive upfront development capital and introduces ongoing maintenance liabilities, while licensing a workflow builder gives you immediate market learning with a low flow cost.

Start by assessing your current product development stage. If your primary goal is to quickly test how LLMs can improve your internal workflow efficiency, your priority is speed to market, not proprietary code. Under a real options model, the value of waiting and learning is high when technology is changing rapidly. Licensing an enterprise tool is your low cost option. It allows you to experiment, learn what your workflows actually require, and defer the massive, lump sum cost of custom development until your processes are stable.

Take this to your leadership team during your next weekly Level 10 Meeting. Use the GWC tool on your technical director. Do they truly understand the operational and financial trade offs of building software versus configuring existing tools? If they cannot look past the code, you must reframe the discussion around core business outcomes. Set a quarterly Rock to prototype the integration using the licensed tool first. Only build proprietary code when you have proven that standard tools cannot handle the unique data structures that define your competitive advantage.