By Patrick O’Neill
Build or buy? When it comes to adopting a risk management information system (RMIS), this is no simple question to answer. Everyone needs a technology solution that fits seamlessly into its work processes and addresses all its needs.
Good news! Today\’s RMIS platforms are so highly configurable that most organizations can simply buy one and use it to meet your specific needs. For many other reasons, some businesses will opt to build their own. In reality you no longer buy software in most instances, Software-as-a-Service (SaaS) typically use a subscription model.
Consider the following scenarios:
Scenario 1: Your organization has a strong IT department, with experienced programmers who can develop bespoke solutions from the ground up, provide support to get those solutions off the ground – and maintain them. Because of this, you develop your RMIS from scratch, and rely on your team to tailor a solution to your specific requirements and needs.
Scenario 2: Your organization expects a lot from a RMIS, but you don\’t have in-house IT specialists to keep up with the latests technology trends, or the compliance specialists to monitor changes and updates to dozens of jurisdictions around the country. Your organization adopts an off-the-shelf RMIS, understanding that by outsourcing the technology and compliance, your team can focus on other matters.
Which one are you?
5 factors to considerations when deciding to build or buy
When deciding whether it makes sense to buy or build your organization’s RMIS solution, keep the following 5 factors in mind:
- Cost.
This may be the biggest, most important factor to consider, but it is often calculated
incorrectly. Building your own RMIS doesn’t just mean developing a simple piece of
technology. It must include account maintenance, customer support and continuous
technical upgrades, as well as ongoing upgrades to match new requirements. These
projects take away from other high priority projects, such as those that support the core
business.
Statistics show that 1 in 6 IT projects have a cost overrun of 200%. 1 SaaS solutions may
have high implementation and subscription fees, but the costs are fixed and known.
Additionally, SaaS providers spend a significant amount on R&D since they can spread
those costs across their entire customer base.
2. Control.
You have the greatest control when you build your own solution to meet your exact
requirements. Ultimately, you decide what to include and what to leave out. That solution
can also minimize security risks, since your organization won’t be exposed to additional
security threats.
Adopting an existing product may expose you to additional security threats that are not
under your control. However, with so many customizable options in the RMIS market,
the commercially available options will likely meet your needs. When considering a buy
option, determine how much of the commercially available options meet your needs.
You may not need to recreate the wheel.
3. Maintenance.
Whoever builds the solution holds the short stick. If you buy an existing product, that
responsibility belongs to the SaaS vendor. On the other hand, if you develop your own
you are in charge of the initial launch, maintenance, upgrades, training and building new
functionality going forward.
4. Expertise.
It’s always best to rely on the experts. When you buy an existing product, the technology is their business. SaaS solutions are committed to providing regular upgrades and keeping up with emerging technology trends. They follow best practices based on their experience. Your organization isn’t a technology company, so maintaining and upgrading the RMIS you develop will always be secondary to your core business.
5. Speed to Market.
If you need a RMIS now, you may not have time to wait a year (or more) until your
bespoke solution is developed. And remember: That initial release will likely include a
subset of the required functionality in order to launch. Buying an existing product allows
you to go-live quicker with more robust functionality. This allows you to reap the
benefits of the RMIS sooner.
Years ago, build vs. buy was a tough decision to make. Off-the-shelf platforms were not as flexible, and too pricey to serve as the baseline for building something else. It was often worth it to invest in your own build to get what you want.
Today, the opposite is true. Platforms are highly configurable and less expensive. There are limited reasons to build a bespoke solution, but it may make sense for your organization under certain circumstances.
Remember this short list of reasons organizations choose to buy or build a RMIS:
When to Buy
- Building software is not a core part of your business.
- Off-the-shelf solutions that meet your needs are available.
- Internal resources are limited.
- Speed to go-live is a high priority.
When to Build
- Exact requirements are required.
- Complete control is preferred.
- Internal intellectual property can be leveraged.
- Significant enhancements and market changes are not expected.
- In-house development resources are strong.
Schedule a meeting to see how Redhand Advisors can help you determine the best RMIS for
your organization.
- SAAS List, “The State of Project Management in 2020,” July 9, 2020.