TweetFollow Us on Twitter

Why Pay More
Volume Number:10
Issue Number:7
Column Tag:Inside Information

Why Pay More?

Making Not-invented-here worth something, and keeping that MBA busy, too!

By Chris Espinosa, Apple Computer, Inc., MacTech Magazine Regular Contributing Author

Many of us have let life pass us by without experiencing the reward and gratification that comes from possessing an MBA degree. Fortunately, people like this are fairly easy to come by, and if you’re in an organization of reasonable size, it’s likely that there’s someone on the payroll who will confess to it.

There’s nothing inherently wrong with advanced secondary education, nor does an MBA degree disqualify someone from working in a technical field. But sometimes engineers or technology managers feel like they’re talking a different language when an MBA offers opinions about how to proceed with product development.

A big gap in communication can come when discussing the “make versus buy” decision. This happens when most everybody agrees that a certain feature, function, or technology needs to be added to a product line, and the engineers are trying to figure out how to do it and how long it will take.

At this point, the MBA might ask whether someone else might already have created the necessary technology, whether you might go looking for such people and simply buy a lump of source code and build it into your product, and whether that will make the product better, more compatible, and quicker to market than designing, building, and testing it yourself.

Different engineers react in different ways to this. Some take great offense at the suggestion, or react with something resembling total denial that it could ever work. Others consider it and are willing to investigate and make a rational decision. Still others will politely ask the MBA-type-person to leave the room (or building, or company).

Oddly enough, it’s sometimes the people who have the most experience with the make-versus-buy decision who take the third option. In companies with an ingrained engineering culture and a mature product or technology, the job of licensing and integrating a foreign technology can be very difficult and time consuming, and more expensive in the long run than simply doing it yourself. Why pay more for somebody else’s technology when you can have better integrated, more maintainable, more “pure” code done by your own people?

The pitfalls of buying are many. First, you should do a diligent evaluation of the state of the code you’re buying. Make sure that the implementation language, development environment, and coding style are acceptable to your engineers (or whoever’s going to be maintaining that code down the road). You don’t want this to become a read-only, never-edit lump of code in your source tree. Make sure that the structure and flow of the code is clear, and preferably documented. In general it’s OK to have higher standards for purchased code than you have for your own engineers, because your organization may have some unspoken stylistic or architectural rules that are taken for granted in your own code, but will not be obeyed in code you license.

Then make sure that the project to integrate the code into your product will be well-managed. Throwing code over the wall increases the odds that it won’t work well. And believing that you should be able to make little or no changes to your existing code is also short-sighted. If you should buy, the make-versus-buy analysis should be so obviously tilted towards “buy” that you can afford to make a good number of changes to what you have and still come out ahead - you will need to make changes. Make sure that you have access to technical support or the original design team during implementation, but don’t expect them to do all the work: if you aren’t willing to make some sacrifices for the mutual success of the partnership, it may not be a good idea to get into it.

Finally, don’t be stingy with royalties or payments to your source, and be open-minded about their form of compensation. If you make this functionality a critical part of your product, and your customers like it, you’ll be dependent on it; if the unit royalty is too large, or your rights too limited, you may have problems a few years down the road when you need to lower prices or expand distribution, but are constrained by the license of a crucial technology. Check to see if you have something the other company wants: technology in exchange, or the right to make accessory products to yours, or even co-marketing. Money isn’t everything. A good deal can be made with a code swap and some press releases, if you both are committed to it and your customers benefit from it.

The warnings above might scare people off from even considering a make versus buy. It’s wise to be wary, but you should also be honest about your own abilities. Could your engineers spend more time on really valuable stuff instead of reinventing common technology? Must you be compatible with some industry standard or file format you have no experience with? Could minor problems hold you up? Will your engineers really write all that code from scratch in the time they claim? Will it be good enough to be worth it to your customers?

A good make versus buy decision is not a business school exercise, and it shouldn’t be done with dollar calculations on a spreadsheet. It takes the analysis and expertise of the people you trust most, and when you make the right decision, it ought to feel good, as well as add up. Don’t throw the MBA out of the room until you really think it through, and if you decide to make the purchase, give the MBA a position of respect and trust: make him or her manage the contract, rather than flit off to make another decision!

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Warcher Defenders (Games)
Warcher Defenders 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Warcher Defenders is a tiny castle defense action RPG with a very unique and challenging gameplay! Join this epic archery... | Read more »
The best value players on UEFA EURO 2016...
With Euro 2016 kicking off on June 10th, time's running out to pick your 15-man fantasy squad in UEFA EURO 2016 Fantasy. [Read more] | Read more »
How to become the ultimate robot warrior...
Chrono Strike is a delightfully immersive beat ‘em up with a sense of humor (any game with a good Sims reference gets points in my book). [Read more] | Read more »
Tips and tricks to get a higher score in...
Snow Roll is a devilish endless runner very much in the vein of Flappy Bird. It revels in its dastardly level of difficulty, and doesn’t really care how angry you get at it as it knows you’ll keep coming back for more. [Read more] | Read more »
How to win big in Slots Deluxe
Cheating while gambling is illegal and morally wrong, and in some parts of the world it leads to men with names like Vinnie "Six Knuckles" Manchenzo beating you to a pulp in a dark alley. [Read more] | Read more »
How to take over the world in Dictator 2
Running a country isn't easy - especially when you're a dictator who wants to take over the world and crush everyone in your path while you do it. [Read more] | Read more »
Tips and tricks to get a higher score in...
Tank.iois - you guessed it! - another multiplayer arena battler likeAgar.io and Slither.io. It does differentiate itself by putting you in a tiny tank though, so it's not exactly the same. To help you get that all-important high score, we've got a... | Read more »
How to unlock characters in One Tap Tenn...
As the title suggests, One Tap Tennis requires only a single tap to play its particular brand of tennis, and rewards you with a ton of unlockable characters if you perform well. Fortunately for you, we at 148Apps have got a few tips and tricks to... | Read more »
Grab it now: Game Craft’s Legend of War...
The real time strategy game is now available for you to sink your teeth into, through the App Store and Google Play. Combining elements of skill, strategy and empire building, Legend of War is a real gamers’ game. [Read more] | Read more »
Skateboard Party 3 ft. Greg Lutzka (Gam...
Skateboard Party 3 ft. Greg Lutzka 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Skateboard Party is back! This third edition of the popular sports franchise features professional skater... | Read more »

Price Scanner via MacPrices.net

Dell Launches World’s First 17-inch Convertib...
Apple and other laptop makers have stepped away from the 17-inch display laptop form factor, frustrating users who liked the vast expanse of screen real estate. Having used a 17-inch PowerBook for... Read more
12-inch 1.2GHz Space Gray Retina MacBook avai...
Amazon has the new 12″ 1.2GHz/512GB Space Gray Retina MacBook (Apple model #MLH82LL/A) available for $1549 including free shipping. Their price is $50 off MSRP. B&H has the 12″ 1.2GHz/512GB Space... Read more
Apple refurbished Mac Pros available for up t...
Apple has Certified Refurbished Mac Pros available for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The following... Read more
Enterprise Workers Pick Technology Over Perks...
New Adobe study shows surprising attitudes about office jobs and where the future of work is heading. Adobe has released survey findings revealing that a surprising 70 percent of U.S. office workers... Read more
Memorial Day Weekend Sale: $50-$100 off 11-in...
B&H Photo has 13″ and 11″ MacBook Airs with 256GB SSDs on sale for $50-$100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 11″ 1.6GHz/256GB MacBook Air: $999 $100 off MSRP... Read more
Memorial Day Weekend Sales: Apple MacBook Pro...
B&H Photo has 13″ and 15″ Retina MacBook Pros on sale for up to $210 off MSRP. Shipping is free, and B&H charges NY tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799 $200 off MSRP - 15″ 2.5GHz... Read more
Memorial Day Weekend Sales: Apple iMacs and M...
Take up to $150 off the price of a new iMac or Mac mini at the following Apple resellers this Memorial Day weekend: iMacs: B&H Photo has 21″ and 27″ iMacs on sale for up to $150 off MSRP... Read more
Apple refurbished Retina MacBook Pros availab...
Apple has Certified Refurbished 2015 13″ and 15″ Retina MacBook Pros available for up to $380 off the cost of new models. An Apple one-year warranty is included with each model, and shipping is free... Read more
Apple refurbished 11-inch MacBook Airs availa...
Apple has Certified Refurbished 11″ MacBook Airs (the latest models), available for up to $170 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is... Read more
Goal Zero and OtterBox Partner to Expand iPh...
Goal Zero, specialists in portable power, have announced a partnership with OtterBox, brand smartphone case protection, to offer the Slide and Slide Plus Batteries as modules compatible with the new... Read more

Jobs Board

*Apple* Architect - AECOM (United States)
**Requisition/Vacancy No.** 132759BR **Position Title** Apple Architect **Job Category** Information Technology **Business Line** Government **Country** United Read more
*Apple* Project Engineer - Smart Source Inc...
SmartSource is in need of an Apple Project Engineer for a 12 month contract opportunity in Pittsburg, PA. Role: Apple Project Engineer Location: Pittsburg, PA Read more
Senior *Apple* Engineer - Signature Technol...
One-year contract for an Apple consultant. The resource should be an Apple Certified Technical Coordinator or get the certification within 60 days of starting Read more
Senior *Apple* Engineer - Signature Technol...
One-year contract for an Apple consultant. The resource should be an Apple Certified Technical Coordinator or get the certification within 60 days of starting Read more
*Apple* Architect - AECOM (United States)
**Requisition/Vacancy No.** 132759BR **Position Title** Apple Architect **Job Category** Information Technology **Business Line** Government **Country** United Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.