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!

 
AAPL
$524.94
Apple Inc.
+5.93
MSFT
$40.01
Microsoft Corpora
-0.39
GOOG
$536.10
Google Inc.
-20.44

MacTech Search:
Community Search:

Software Updates via MacUpdate

VMware Fusion 6.0.3 - Run Windows apps a...
VMware Fusion allows you to create a Virtual Machine on your Mac and run Windows (including Windows 8.1) and Windows software on your Mac. Run your favorite Windows applications alongside Mac... Read more
Tweetbot 1.5.1 - Popular iOS twitter cli...
Tweetbot is a full-featured OS X Twitter client with a lot of personality. Whether it's the meticulously-crafted interface, sounds and animation, or features like multiple timelines and column views... Read more
Mac DVDRipper Pro 4.1.7 - Copy, backup,...
Mac DVDRipper Pro is the DVD backup solution that lets you protect your DVDs from scratches, save your batteries by reading your movies from your hard disk, manage your collection with just a few... Read more
PDFpenPro 6.2 - Advanced PDF toolkit for...
PDFpenPro allows users to edit PDF's easily. Add text, images and signatures. Fill out PDF forms. Merge or split PDF documents. Reorder and delete pages. Even correct text and edit graphics! Create... Read more
PDFpen 6.2 - Edit and annotate PDFs with...
PDFpen allows users to easily edit PDF's. Add text, images and signatures. Fill out PDF forms. Merge or split PDF documents. Reorder and delete pages. Even correct text and edit graphics! Features... Read more
Monolingual 1.5.9 - Remove unwanted OS X...
Monolingual is a program for removing unnecesary language resources from OS X, in order to reclaim several hundred megabytes of disk space. It requires a 64-bit capable Intel-based Mac and at least... Read more
Maya 2015 - Professional 3D modeling and...
Maya is an award-winning software and powerful, integrated 3D modeling, animation, visual effects, and rendering solution. Because Maya is based on an open architecture, all your work can be scripted... Read more
Starcraft II: Wings of Liberty 1.1.1.180...
Download the patch by launching the Starcraft II game and downloading it through the Battle.net connection within the app. Starcraft II: Wings of Liberty is a strategy game played in real-time. You... Read more
Sibelius 7.5.0 - Music notation solution...
Sibelius is the world's best-selling music notation software for Mac. It is as intuitive to use as a pen, yet so powerful that it does most things in less than the blink of an eye. The demo includes... Read more
Typinator 5.9 - Speedy and reliable text...
Typinator turbo-charges your typing productivity. Type a little. Typinator does the rest. We've all faced projects that require repetitive typing tasks. With Typinator, you can store commonly used... Read more

Latest Forum Discussions

See All

Have a Special Dead Trigger 2 Easter Bas...
Have a Special Dead Trigger 2 Easter Basket Full of Goodies, Courtesy of Madfinger Games Posted by Rob Rich on April 18th, 2014 [ permalink ] Dead Trigger 2 | Read more »
Almost All of Playdek’s Library is on Sa...
Almost All of Playdek’s Library is on Sale Right Now, and You Should Check it Out Posted by Rob Rich on April 18th, 2014 [ permalink ] Playdek has released quite a few great iOS ports of board and card games over the years, and now most of them... | Read more »
Zynga Launches Brand New Farmville Exper...
Zynga Launches Brand New Farmville Experience with Farmville 2: Country Escape Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »
David. Review
David. Review By Cata Modorcea on April 18th, 2014 Our Rating: :: MINIMALISTIC IN A DIFFERENT WAYUniversal App - Designed for iPhone and iPad David is a minimalistic game wrapped inside of a soothing atmosphere in which the hero... | Read more »
Eyefi Unveils New Eyefi Cloud Service Th...
Eyefi Unveils New Eyefi Cloud Service That Allows Users to Share Media Across Personal Devices Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »
Tales from the Dragon Mountain: The Lair...
Tales from the Dragon Mountain: The Lair Review By Jennifer Allen on April 18th, 2014 Our Rating: :: STEADY ADVENTURINGiPad Only App - Designed for the iPad Treading a safe path, Tales from the Dragon Mountain: The Lair is a... | Read more »
Yahoo Updates Flickr App with Advanced E...
Yahoo Updates Flickr App with Advanced Editing Features and More Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »
My Incredible Body - A Kid's App to...
My Incredible Body - A Kid's App to Learn about the Human Body 1.1.00 Device: iOS Universal Category: Education Price: $2.99, Version: 1.1.00 (iTunes) Description: Wouldn’t it be cool to look inside yourself and see what was going on... | Read more »
Trials Frontier Review
Trials Frontier Review By Carter Dotson on April 18th, 2014 Our Rating: :: A ROUGH LANDINGUniversal App - Designed for iPhone and iPad Trials Frontier finally brings the famed stunt racing franchise to mobile, but how much does its... | Read more »
Evernote Business Notebook by Moleskin I...
Evernote Business Notebook by Moleskin Introduced – Support Available in Evernote for iOS Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »

Price Scanner via MacPrices.net

Deal Alert! 13-inch MacBook Pro on sale for $...
Best Buy has the 13″ 2.5GHz MacBook Pro on sale for $999.99 on their online store. Choose free shipping or free instant local store pickup (if available). Their price is $200 off MSRP. Price is valid... Read more
Free HopTo 2.2 Helps Enhance Your Productivit...
The HopTo app helps you do more on your iPad by providing more and easier adaccess to files and documents. Version 2.2 adds Egnyte and HopTo’s Mac OSX File Connector. If you already have the hopTo... Read more
National Distracted Driving Awareness Month:...
As the country recognizes National Distracted Driving Awareness Month, Sprint is reminding wireless consumers to focus on driving while behind the wheel, to not text or email while driving, and to... Read more
13-inch 2.4GHz Retina MacBook Pro available f...
Abt has the 13″ 2.4GHz 128GB Retina MacBook Pro available for $1229 including free shipping. Their price is $70 off MSRP. Read more
iMacs on sale for up to $160 off MSRP this we...
Best Buy has iMacs on sale for up to $160 off MSRP for a limited time. Choose free home shipping or free instant local store pickup (if available). Prices are valid for online orders only, in-store... Read more
iPad Airs on sale this weekend for up to $100...
Best Buy has WiFi iPad Airs on sale for $50 off MSRP and WiFi + Cellular iPad Airs on sale for $100 off MSRP on their online store for a limited time, with prices now starting at $449. Choose free... Read more
Apple restocks refurbished Mac minis starting...
The Apple Store has restocked Apple Certified Refurbished Mac minis for up to $150 off the cost of new models. Apple’s one-year warranty is included with each mini, and shipping is free: - 2.5GHz Mac... Read more
Hyundai Brings Apple CarPlay To The 2015 Sona...
Hyundai Motor America has announced it will bring Apple CarPlay functionality to the 2015 Sonata. CarPlay is pitched as a smarter, safer and easier way to use iPhone in the car and gives iPhone users... Read more
Updated iPads Coming Sooner Than We Had Thoug...
MacRumors, cites KGI securities analyst Ming Chi Kuo, well-respected as an Apple product prognisticator, saying that Apple will introduce an upgraded iPad Air and iPad mini in 2014/Q3, meaning the... Read more
Toshiba Unveils New High And Low End Laptop M...
Toshiba has announced new laptop models covering both the high-end and low-end of the notebook computer spectrum. Toshiba 4K Ultra HD Laptop Toshiba’s new Satellite P55t features one of the world’s... Read more

Jobs Board

*Apple* Inc. Research Data Specialist - Appl...
…of Worldwide Market Research & Intelligence. The team is responsible for conducting Apple branded consumer market research. It is also responsible for analyzing data Read more
*Apple* Automotive Parts Department position...
Apple Automotive is one of the fastest growing dealer…and it shows. Consider making the switch to the Apple Automotive Group today! At Apple Automotive, we Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Retail - Manager - Holyoke - Apple I...
Job Summary Keeping an Apple Store thriving requires a diverse set of leadership skills, and as a Manager, you’re a master of them all. In the store’s fast-paced, Read more
*Apple* Retail - Manager - Apple (United Sta...
Job SummaryKeeping an Apple Store thriving requires a diverse set of leadership skills, and as a Manager, you're a master of them all. In the store's fast-paced, dynamic Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.