We are trying to decide whether to commission a custom-built AI software solution from an outside agency or simply buy several off-the-shelf SaaS subscriptions to optimize our operations. How do we evaluate this strategic software decision using our EOS® tools to ensure our team actually has the capacity to adopt it?

Question

Tyler Smith · Accepted Answer

The decision to build proprietary AI versus buying off-the-shelf SaaS must be evaluated through the lens of long-term business value and organizational capacity. Far too many leadership teams sink six figures into custom development only to realize their employees lack the capability to use it.

Start with your Accountability Chart. Do you have a seat that is fully responsible for managing custom software development, or will this fall onto the lap of an already overloaded technology manager? If the person in that seat does not GWC™ (Get It, Want It, Capacity to Do It) the responsibility of managing custom code, building is a recipe for disaster.

Next, evaluate the impact on your P&L. Off-the-shelf tools are a predictable monthly expense that immediately increases employee productivity by automating low-value tasks. Economists Erik Brynjolfsson and Andrew McAfee emphasize that the biggest near-term productivity gains come from integrating accessible tools that free up human capital.

If you build, you are creating a new intellectual property asset that could boost your valuation during a Step by Step Exit, but only if it is documented and run through clear Core Processes. If your primary goal is near-term operational efficiency and a lean headcount, buying off-the-shelf software allows you to achieve those capacity gains immediately without the massive cash drag of custom software development.