MENTAL MODEL · M1038

Build vs. Buy

DecideHigh supportDecision Science

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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

A classic decision-making model. Should you spend time developing in-house (controllable, customizable, but slow and expensive) or buy an off-the-shelf solution (fast, cheap, but dependent on others)?

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

Define core capabilities. Only "build" your core competencies (moat). For everything else non-core (e.g., office cleaning, invoice systems, code for non-main business), always "buy". Don't build non-core capabilities just to save money; that's tactical diligence but strategic laziness.

anchor

Anchor fast decisions

This is a classic resource allocation decision: building means control and customization, but it's slow, expensive, and requires long-term maintenance; buying (including outsourcing/SaaS) means speed and cost-effectiveness, but you're dependent on others and customization is difficult. The key is to draw the line based on "whether it's a core competency (moat)" — build core components to maintain differentiation, and buy everything non-core to save resources.

MINIMUM ACTION

In progress 0/2

Practice this model in one real situation:

First define the boundaries of core capabilities
only build aspects related to your moat, and buy or outsource everything else (cleaning, invoice systems, non-main business code). Use TCO (Total Cost of Ownership) and strategic controllability to weigh decisions, avoiding building non-core items just to "save money" or for a "sense of control".

Check to track your progress (stored locally)

Learning progress0%

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Source support: Explicit

link
baike.baidu.comhttps://baike.baidu.com/item/%E8%87%AA%E5%88%B6%E6%88%96%E5%A4%96%E8%B4%AD%E5%86%B3%E7%AD%96/50958369ZH · Explicit
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