Module 325 minutes
Vendor Selection and Build vs. Buy
Navigate build vs. buy decisions. Select vendors and build the right capabilities internally.
build-vs-buyvendor-selectionprocurement
Learning Objectives
- ✓Evaluate build vs. buy trade-offs
- ✓Select AI vendors effectively
- ✓Negotiate contracts
- ✓Manage vendor relationships
Build, Buy, or Partner?
Strategic decisions on what to own vs. what to outsource.
Build vs. Buy Framework
Build when:
- Core competitive advantage
- Unique requirements
- Long-term capability needed
- Have talent and resources
Buy when:
- Commodity capability
- Speed to market critical
- Lacking internal expertise
- Want to avoid maintenance
Partner when:
- Strategic relationship
- Shared development
- Learning opportunity
Vendor Evaluation Criteria
- Technical capabilities
- Scalability and performance
- Security and compliance
- Pricing and total cost
- Support and SLAs
- Roadmap alignment
- Customer references
Red Flags
- Vague on security practices
- No clear pricing
- Overpromising capabilities
- No production references
- Lock-in concerns
Key Takeaways
- →Build core differentiators, buy commodity capabilities
- →Evaluate vendors on security, scalability, and support
- →Start with POC before committing
- →Negotiate SLAs and exit clauses
- →Plan for vendor failures and transitions
Practice Exercises
Apply what you've learned with these practical exercises:
- 1.Map AI capabilities to build/buy/partner
- 2.Evaluate 3 vendors for key capability
- 3.Create vendor scorecard
- 4.Draft RFP requirements