Our leadership team is stuck in a debate over whether to buy commercial AI platforms that our competitors also use, or build custom integrations that require massive R&D. How do we resolve this during our annual planning to ensure our differentiation is reflected in our budget?

Question

Tyler Smith · Accepted Answer

To resolve this buy vs build dilemma, you must evaluate the decision against your Core Processes and your budget. Do not let technology drive your strategy. Start by looking at the Core Processes on your V/TO®. If the process you want to automate is not part of your unique secret sauce that drives your competitive advantage, buy off the shelf software immediately. There is no strategic value in building a custom CRM integration or basic customer support bot.

If the workflow directly touches your Three Uniques, then a custom build or integration might be justified. In your annual planning session, calculate the total cost of ownership including development, maintenance, and internal distraction. Many leadership teams enter development hell because they underestimate the drag of custom software on their focus.

Instead of committing to a massive R&D project, set a quarterly Rock to build a minimum viable prototype using low-code tools. This keeps the investment small and measurable. Track the progress on your weekly Scorecard. If the prototype proves it can dramatically lower your transaction costs or improve client retention, you can budget for a full build in your next planning cycle. The goal is to maximize your enterprise value by keeping your capital aligned with your strategic differentiators, not building custom tools that others can buy for a fraction of the price.