Platforms
Build or buy? A practical test for custom software
· 5 min read · LT Lab
Custom platforms are not always the answer. Here is a simple framework for deciding when bespoke software is worth the investment.
Off-the-shelf software is usually the right starting point. It is faster to adopt, cheaper to begin with and maintained by someone else. But there are clear situations where building your own platform is the better long-term decision.
Signals that building makes sense
- The process is central to how you create value or differentiate
- Existing products require heavy customization and still do not fit
- Teams maintain spreadsheets alongside the software to fill gaps
- You need to offer clients or partners a tailored digital experience
- The capability could become a product for others
Signals that buying is better
If the process is common across industries — payroll, general accounting, email — and a mature product fits most of your needs, configure and integrate rather than build.
The hybrid path
Many organizations get the best of both: standard platforms for common functions, and a focused custom application for the workflow that makes them distinctive, integrated with everything else. This limits custom code to where it creates the most value.