What is the Build Buy Partner Framework?
The “Build Buy Partner Framework” is a methodology that helps companies make strategic decisions about whether to build a new capability in-house, buy it through acquisitions, or partner with another company that already has that capability.
Here’s how it works, with examples:
- If you decide to build, you’re choosing to develop a needed product, service, or capability internally. For example, a cybersecurity company might decide to create a new threat detection tool in-house.
- The buy option involves acquiring another company to gain access to its products, services, or technology. Think of a large financial institution acquiring a smaller startup to leverage its new automated accounting technology.
- Choosing to partner means collaborating with another company to leverage their capabilities alongside your own. A retail technology company, for instance, might form a partnership with a cloud provider instead of building its own cloud-based infrastructure.
The choice to build, buy, or partner will depend on many factors like your company’s resources, market conditions, time constraints, employee expertise, support infrastructure, and overall strategic objectives. Each will come with their own benefits and challenges, such as:
- Building in-house allows your team full control, but requires time and resources
- Buying can offer quick access to capabilities and markets, but may involve higher costs and integration challenges
- Partnering can reduce costs and speed up go-to-market, but it requires trust and effective collaboration
The Build Buy Partner framework offers a structured way for business professionals to evaluate and pursue growth opportunities.