Buy or Build
(or customize or outsource)?
The answer is yes!
Marianne Colgrove – Reed College
Dave Smallen – Hamilton College
The resource question:
Do we?
B
Buy
A
Build
C
Outsource
Déjà vu all over again?
Dave’s oversimplified
characteristics of web and ERP
applications
Web
ERP
Form
Function
Presentation (reporting)
Transaction processing
Integration
Data integrity/ security
Single institutional image
Non-redundancy
Universal interface
Proprietary
Process elimination
Process automation
Key Decision Factors
High
Buy/
Outsource
Market
Maturity
??
Other factors
Functionality
relative to
need
Buy and
don’t modify
or Build
Build
(resource issue)
Low
Low
Strategic Value
High
Other Decision Factors








Resource requirements ($$ and personnel)
Cost of integration (ERP, LDAP)
Time pressure
Institutional standards (e.g. LDAP, SQL)
Personnel talent
Level of risk
Technical complexity (e.g. modular vs. integrative)
Uniqueness of policies & practices
Drivers
1974 – 2004…
-Efficiency
-Lack of
time
pressure
-Automation
-Maturity of
technology
-Functionality
-Time pressure
-Resources
-Process
improvement
-Predictable
costs/
Delivery??
Outsource
Buy
Build
Process elimination
Integration
Functionality
Strategic direction
Time pressure
Competition
Predictable costs/ delivery?
Resource Scheduling
??
Portal
Web site (external focus)
Alumni Community
CMS (Blackboard)
Other Info Systems
(Datatel)
HR
HR/Payroll
HR/Payroll
??
Payroll
1974
1990
2000
2001
2002
2003
2004
2005
Strategic Efforts
Admission
Alumni / Development
Portal Demo
Themes
1980 – 2005
-Integration
-Standard
database
Build
The Web era
Getting data out --> interaction
Decentralization --> self service
A/D web & datamart
Alumni Directory
Admission search web
Course Registration
Student Information Gateway
Web site (external focus)
Banner (finance, student, A/D)
HR
Payroll
1980
Buy
??
-Computing out
of the cellar
-Modules from
various sources
-Customization
necessary
Admin modules
Outsource
1992
2000
2001
2002
2003
2004
2005
Reed Examples

Build
– Student Information Gateway & Course
Registration (collaboration with Oxy)
– Alumni Directory

Acquire
– Banner Web for Alumni/Development
– and A/D Datamart
Student Gateway






Faculty & registrar priorities
Little convergence with Banner products
No interest in changing practices
Highly modular
Grant-funded
Opportunity to trade with Oxy
Alumni Directory
(ReedLink)






Bad experience outsourcing survey
Facilitate data update
Not about fund-raising
Highly modular, expandable
Shares some services with Gateway
(e.g. Career Services, email forwarding)
Now reconsidering some outsourcing
Alumni/Development







Executive reporting for development
Highly ad-hoc queries, on the road
Timeline - “yesterday”
Complex table structure
Highly integrative
Web for Alumni/Development
Alumni/Development datamart
Alumni/Development





Two-year implementation
Dedicated new staff line
Server with second Oracle instance
Not necessarily faster, but feels better
Both staff and infrastructure bring other
benefits
Build

Pros
– Close match with
needs
– Easier integration
– Maintain standards
– Expertise for other
projects

Cons
– Vulnerable to staff
changes
– Vulnerable to
changes in
technology
– Needed project
management
Buy

Pros
– Community of users
– Ability to interface
with existing
systems
– Big jump in
functionality
– Sustainability

Cons
– Cost
– Difficulty of customizing
– Uncertainty of continuing
costs (or certainty of
increase)
– Viability of
company/product
– Planning still required
Outsource

Pros
– Focused expertise
Faster
implementation
– Predictable
implementation
costs

Cons
– Integration with
other systems
– Lack of features
– Unpredictable
continuing costs
– Collaborative
relationship a must
"When you come to a
fork in the road....take it ”
-- Yogi Berra