The “I am going to build it” fallacy
Okay, for many years now, those of you who have read our content know that we are ardent proponents of NOT building solutions if it is not material to your competitive advantage. One might charge us with proselytizing the business strategy of “ You build what gives you competitive advantages, you buy everywhere else”. For that, we would submit that we are “guilty as charged! But this isn’t heresy. This is good, sound business principles that EVERY Company in EVERY industry should adhere to as part of the strategies.
And yet, we are still confronted by companies who are seriously considering building their own tool sets when there is a readily available marketplace of viable, proven, solutions that are easily purchased and implemented. So, why is it that, in 2019, this is happening?
We are calling it the “I am going to build it” fallacy. And just like the “sunk cost fallacy” that prevents businesses from recognizing the mistakes of previous investments, it’s time to finally put this notion of “I am going to build it”, where it belongs, in the land of dead end business strategies never to be pursued…with all the other fallacies!
For those who might need a reminder of the logical conclusion that, building something should only be pursued if:
It is brand new and never existed before
It contributes to your competitive advantage
There are no existing solutions available that address your need for you to purchase
In all other cases: BUY!
One more time… IN ALL OTHER CASES, BUY! DON’T FALL FOR THE “I CAN BUILD IT” FALLACY!