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Build strategy

As explained in Think Like a CTO

A build strategy is an approach for deciding which capabilities an organization should develop internally, especially those that provide unique competitive value.

A build strategy decides which capabilities an organization should develop internally and which it should obtain externally. Build where the organization’s intellectual property, secret sauce, or distinctive integration creates competitive value; buy or reuse solved commodity capabilities elsewhere. section 8.2

Evaluate each capability against its business context:

  • Build when customization, control, rapid response, or ownership of the complete solution’s intellectual property matters. section 8.2.2
  • Buy or reuse off-the-shelf services and open-source components when the capability is already solved and does not differentiate the business. section 8.2
  • Account for development infrastructure, staffing, planning effort, time to build, testing, and the need for in-house support. section 8.2.2
  • Treat hybrid platforms cautiously: assess customization, portability, vendor lock-in, downtime exposure, and dependence on the provider. section 8.2.3

From restaurant software to enterprise systems

An average restaurant can use online services and integrations, while a global franchise such as McDonald’s may require a custom solution. Even a custom system can use third-party email delivery and business-intelligence services for commodity functions. section 8.2 section 8.2.2

A practical enterprise starting point

Start by assuming each problem will be built, then divide the enterprise into manageable spaces. As requirements become clearer, identify buy candidates and commodity components without treating the decision as binary. section 8.2.3

Figure 8.1 Build vs. buy

Use the build-versus-buy figure to compare the two approaches before selecting a mixed strategy. section 8.2

How Think Like a CTO covers it

How deep it goes
Defines build-versus-buy trade-offs and decision criteria, but stops short of a formal scoring model.
Examples
Uses restaurant software, McDonald’s custom systems, third-party services, business intelligence, low-code tools, and Salesforce.
What it assumes
Assumes organizational technology judgment but teaches the distinction between differentiated capabilities and solved commodity problems.
What you can do after
Evaluate build-versus-buy choices by mapping requirements, differentiation, resources, flexibility, and provider dependence.
How it connects
Connects intellectual property, customization, open-source software, cloud solutions, platform strategy, and vendor lock-in.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Think Like a CTO. The section links point to the parts of the book it draws on.