Build vs. buy in the AI era: a fresh framework

The build-versus-buy framework most owners use was internalized in the 2010s and hasn't been updated. It says: buy unless you're huge or weird. Default to SaaS. Don't reinvent the wheel.

That advice was correct for its era. It is no longer correct as a default. What we use today is a more nuanced four-question test, and we'd encourage you to use it on every renewal that crosses your desk.

Question one: is this category strategic to my business? Strategic means it directly shapes how customers experience your product or service — your CRM, your scheduling, your customer-facing tools. Non-strategic means commodity infrastructure — accounting, payments, file storage. Strategic categories now lean build. Non-strategic still lean buy.

Question two: does my actual workflow differ meaningfully from the average customer's? If you're running a workflow that's more or less standard, SaaS is fine. If you're working around your tool every day — exporting to spreadsheets, doing manual reconciliations, creating custom fields nobody else uses — that's a signal that the tool is wrong-shaped for your business.

Question three: how much of the tool am I actually using? If you're paying for an enterprise platform and using under 20% of its feature surface, you're paying a tax on capabilities you don't need. Custom can replace that 20% precisely.

Question four: would I want to own this in five years? Custom comes with maintenance — though far less than people expect. SaaS comes with no ownership and an escalating bill. Whichever you choose, the long-term cost shape is part of the decision. Most owners answer this question differently than they would have in 2018.