TweetFollow Us on Twitter

Why Pay More
Volume Number:10
Issue Number:7
Column Tag:Inside Information

Why Pay More?

Making Not-invented-here worth something, and keeping that MBA busy, too!

By Chris Espinosa, Apple Computer, Inc., MacTech Magazine Regular Contributing Author

Many of us have let life pass us by without experiencing the reward and gratification that comes from possessing an MBA degree. Fortunately, people like this are fairly easy to come by, and if you’re in an organization of reasonable size, it’s likely that there’s someone on the payroll who will confess to it.

There’s nothing inherently wrong with advanced secondary education, nor does an MBA degree disqualify someone from working in a technical field. But sometimes engineers or technology managers feel like they’re talking a different language when an MBA offers opinions about how to proceed with product development.

A big gap in communication can come when discussing the “make versus buy” decision. This happens when most everybody agrees that a certain feature, function, or technology needs to be added to a product line, and the engineers are trying to figure out how to do it and how long it will take.

At this point, the MBA might ask whether someone else might already have created the necessary technology, whether you might go looking for such people and simply buy a lump of source code and build it into your product, and whether that will make the product better, more compatible, and quicker to market than designing, building, and testing it yourself.

Different engineers react in different ways to this. Some take great offense at the suggestion, or react with something resembling total denial that it could ever work. Others consider it and are willing to investigate and make a rational decision. Still others will politely ask the MBA-type-person to leave the room (or building, or company).

Oddly enough, it’s sometimes the people who have the most experience with the make-versus-buy decision who take the third option. In companies with an ingrained engineering culture and a mature product or technology, the job of licensing and integrating a foreign technology can be very difficult and time consuming, and more expensive in the long run than simply doing it yourself. Why pay more for somebody else’s technology when you can have better integrated, more maintainable, more “pure” code done by your own people?

The pitfalls of buying are many. First, you should do a diligent evaluation of the state of the code you’re buying. Make sure that the implementation language, development environment, and coding style are acceptable to your engineers (or whoever’s going to be maintaining that code down the road). You don’t want this to become a read-only, never-edit lump of code in your source tree. Make sure that the structure and flow of the code is clear, and preferably documented. In general it’s OK to have higher standards for purchased code than you have for your own engineers, because your organization may have some unspoken stylistic or architectural rules that are taken for granted in your own code, but will not be obeyed in code you license.

Then make sure that the project to integrate the code into your product will be well-managed. Throwing code over the wall increases the odds that it won’t work well. And believing that you should be able to make little or no changes to your existing code is also short-sighted. If you should buy, the make-versus-buy analysis should be so obviously tilted towards “buy” that you can afford to make a good number of changes to what you have and still come out ahead - you will need to make changes. Make sure that you have access to technical support or the original design team during implementation, but don’t expect them to do all the work: if you aren’t willing to make some sacrifices for the mutual success of the partnership, it may not be a good idea to get into it.

Finally, don’t be stingy with royalties or payments to your source, and be open-minded about their form of compensation. If you make this functionality a critical part of your product, and your customers like it, you’ll be dependent on it; if the unit royalty is too large, or your rights too limited, you may have problems a few years down the road when you need to lower prices or expand distribution, but are constrained by the license of a crucial technology. Check to see if you have something the other company wants: technology in exchange, or the right to make accessory products to yours, or even co-marketing. Money isn’t everything. A good deal can be made with a code swap and some press releases, if you both are committed to it and your customers benefit from it.

The warnings above might scare people off from even considering a make versus buy. It’s wise to be wary, but you should also be honest about your own abilities. Could your engineers spend more time on really valuable stuff instead of reinventing common technology? Must you be compatible with some industry standard or file format you have no experience with? Could minor problems hold you up? Will your engineers really write all that code from scratch in the time they claim? Will it be good enough to be worth it to your customers?

A good make versus buy decision is not a business school exercise, and it shouldn’t be done with dollar calculations on a spreadsheet. It takes the analysis and expertise of the people you trust most, and when you make the right decision, it ought to feel good, as well as add up. Don’t throw the MBA out of the room until you really think it through, and if you decide to make the purchase, give the MBA a position of respect and trust: make him or her manage the contract, rather than flit off to make another decision!

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Make the passage of time your plaything...
While some of us are still waiting for a chance to get our hands on Ash Prime - yes, don’t remind me I could currently buy him this month I’m barely hanging on - Digital Extremes has announced its next anticipated Prime Form for Warframe. Starting... | Read more »
If you can find it and fit through the d...
The holy trinity of amazing company names have come together, to release their equally amazing and adorable mobile game, Hamster Inn. Published by HyperBeard Games, and co-developed by Mum Not Proud and Little Sasquatch Studios, it's time to... | Read more »
Amikin Survival opens for pre-orders on...
Join me on the wonderful trip down the inspiration rabbit hole; much as Palworld seemingly “borrowed” many aspects from the hit Pokemon franchise, it is time for the heavily armed animal survival to also spawn some illegitimate children as Helio... | Read more »
PUBG Mobile teams up with global phenome...
Since launching in 2019, SpyxFamily has exploded to damn near catastrophic popularity, so it was only a matter of time before a mobile game snapped up a collaboration. Enter PUBG Mobile. Until May 12th, players will be able to collect a host of... | Read more »
Embark into the frozen tundra of certain...
Chucklefish, developers of hit action-adventure sandbox game Starbound and owner of one of the cutest logos in gaming, has released their roguelike deck-builder Wildfrost. Created alongside developers Gaziter and Deadpan Games, Wildfrost will... | Read more »
MoreFun Studios has announced Season 4,...
Tension has escalated in the ever-volatile world of Arena Breakout, as your old pal Randall Fisher and bosses Fred and Perrero continue to lob insults and explosives at each other, bringing us to a new phase of warfare. Season 4, Into The Fog of... | Read more »
Top Mobile Game Discounts
Every day, we pick out a curated list of the best mobile discounts on the App Store and post them here. This list won't be comprehensive, but it every game on it is recommended. Feel free to check out the coverage we did on them in the links below... | Read more »
Marvel Future Fight celebrates nine year...
Announced alongside an advertising image I can only assume was aimed squarely at myself with the prominent Deadpool and Odin featured on it, Netmarble has revealed their celebrations for the 9th anniversary of Marvel Future Fight. The Countdown... | Read more »
HoYoFair 2024 prepares to showcase over...
To say Genshin Impact took the world by storm when it was released would be an understatement. However, I think the most surprising part of the launch was just how much further it went than gaming. There have been concerts, art shows, massive... | Read more »
Explore some of BBCs' most iconic s...
Despite your personal opinion on the BBC at a managerial level, it is undeniable that it has overseen some fantastic British shows in the past, and now thanks to a partnership with Roblox, players will be able to interact with some of these... | Read more »

Price Scanner via MacPrices.net

You can save $300-$480 on a 14-inch M3 Pro/Ma...
Apple has 14″ M3 Pro and M3 Max MacBook Pros in stock today and available, Certified Refurbished, starting at $1699 and ranging up to $480 off MSRP. Each model features a new outer case, shipping is... Read more
24-inch M1 iMacs available at Apple starting...
Apple has clearance M1 iMacs available in their Certified Refurbished store starting at $1049 and ranging up to $300 off original MSRP. Each iMac is in like-new condition and comes with Apple’s... Read more
Walmart continues to offer $699 13-inch M1 Ma...
Walmart continues to offer new Apple 13″ M1 MacBook Airs (8GB RAM, 256GB SSD) online for $699, $300 off original MSRP, in Space Gray, Silver, and Gold colors. These are new MacBook for sale by... Read more
B&H has 13-inch M2 MacBook Airs with 16GB...
B&H Photo has 13″ MacBook Airs with M2 CPUs, 16GB of memory, and 256GB of storage in stock and on sale for $1099, $100 off Apple’s MSRP for this configuration. Free 1-2 day delivery is available... Read more
14-inch M3 MacBook Pro with 16GB of RAM avail...
Apple has the 14″ M3 MacBook Pro with 16GB of RAM and 1TB of storage, Certified Refurbished, available for $300 off MSRP. Each MacBook Pro features a new outer case, shipping is free, and an Apple 1-... Read more
Apple M2 Mac minis on sale for up to $150 off...
Amazon has Apple’s M2-powered Mac minis in stock and on sale for $100-$150 off MSRP, each including free delivery: – Mac mini M2/256GB SSD: $499, save $100 – Mac mini M2/512GB SSD: $699, save $100 –... Read more
Amazon is offering a $200 discount on 14-inch...
Amazon has 14-inch M3 MacBook Pros in stock and on sale for $200 off MSRP. Shipping is free. Note that Amazon’s stock tends to come and go: – 14″ M3 MacBook Pro (8GB RAM/512GB SSD): $1399.99, $200... Read more
Sunday Sale: 13-inch M3 MacBook Air for $999,...
Several Apple retailers have the new 13″ MacBook Air with an M3 CPU in stock and on sale today for only $999 in Midnight. These are the lowest prices currently available for new 13″ M3 MacBook Airs... Read more
Multiple Apple retailers are offering 13-inch...
Several Apple retailers have 13″ MacBook Airs with M2 CPUs in stock and on sale this weekend starting at only $849 in Space Gray, Silver, Starlight, and Midnight colors. These are the lowest prices... Read more
Roundup of Verizon’s April Apple iPhone Promo...
Verizon is offering a number of iPhone deals for the month of April. Switch, and open a new of service, and you can qualify for a free iPhone 15 or heavy monthly discounts on other models: – 128GB... Read more

Jobs Board

Relationship Banker - *Apple* Valley Financ...
Relationship Banker - Apple Valley Financial Center APPLE VALLEY, Minnesota **Job Description:** At Bank of America, we are guided by a common purpose to help Read more
IN6728 Optometrist- *Apple* Valley, CA- Tar...
Date: Apr 9, 2024 Brand: Target Optical Location: Apple Valley, CA, US, 92308 **Requisition ID:** 824398 At Target Optical, we help people see and look great - and Read more
Medical Assistant - Orthopedics *Apple* Hil...
Medical Assistant - Orthopedics Apple Hill York Location: WellSpan Medical Group, York, PA Schedule: Full Time Sign-On Bonus Eligible Remote/Hybrid Regular Apply Now Read more
*Apple* Systems Administrator - JAMF - Activ...
…**Public Trust/Other Required:** None **Job Family:** Systems Administration **Skills:** Apple Platforms,Computer Servers,Jamf Pro **Experience:** 3 + years of Read more
Liquor Stock Clerk - S. *Apple* St. - Idaho...
Liquor Stock Clerk - S. Apple St. Boise Posting Begin Date: 2023/10/10 Posting End Date: 2024/10/14 Category: Retail Sub Category: Customer Service Work Type: Part Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.