Buy or Make - Financial Analytics

Today, I had a consulting assignment with a company focussing on Server Virtualization. The objective was to narrate the factors influencing a Make vs Buy (mVb) decision and their risk quotients for a Financial Analytics Solution.

Some of them are :

1. What is the business requirement and is the requirement very unique?
2. How urgent is the application?
3. What is the technology Strategy of the Organization?
4. Does the off-the-shelf product address most of the requirements and does it have flexibility to customize it?
5. How does the present make-buy decision relate to the strategy?
6. Are their right people and support systems to support the application, in case of a build?
7. Does the financial tool address internationalization needs?
8. Are their security measures in-built in the tool, because it hosts sensitive data?
9. Can the Integration of the Packaged Solution into the process control system be done seamlessly?
10. What is the underlying technology? In this case, what is the ERP system? It would make sense to buy the analytical solution from the same vendor of the ERP system, if it addresses your requirements
11. Will the TCO be reduced because of the Buy approach?
12. Are their right people and support systems to support the application, in case of a build?
13. Does it reduce cost?

After these questions were answered, the following matrices were prepared which summed up the decision.

1. High Level Requirement x Priority x Effort Estimation Matrix
2. Benefit Comparison Matrix
3. Risk Comparison Matrix