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Systems of Differentiation should employ a build-first strategy. These are the systems that differentiate you from your competitors, they are your competitive e

Systems of Differentiation should employ a build-first strategy. These are the systems that differentiate you from your competitors, they are your competitive edge. As such you typically need tight control over these systems and don't want to rely on 3rd parties - either vendors or contractors. Systems of Engagement & Systems of Record should employ a buy-first strategy. These are typically more operations-focused systems and as such you're usually better off buying them, but not always (see below). It's possible that some of these systems may also be Systems of Differentiation. What is a buy-first strategy? It means consider buying first. How much would your operations be impacted by the necessary changes to your workflow? How much customization will be required in order for it to be usable and how are those customizations maintained throughout product upgrades? How much integration is required with existing systems? Buying software is rarely a buy, deploy, and done proposition! Usually the TCO is lower if you buy, but not always - depending on how much customization and integration is required.

bdcravens 6y ago
The phrase AWS came up with for this, "Undifferentiated Heavy Lifting", is quite apt.
taylodl 6y ago
I should have pointed out this is the strategy that should be employed by an established company. If your company is just starting out then buy everything if possible - your competitive edge is the fact you're small and nimble. You can respond to market changes faster than the established companies can. Over time you'll recognize what are to become your Systems of Differentiation and then and only then should you consider building that yourself. When you're starting out you typically don't have the time or capital to wait and build the software you may need. For such companies doing business and generating revenue now is more important than having a perfect application portfolio. And yes, this is why systems are never as perfect and pristine as developers would hope.
doonesbury 6y ago
Like the post, and use of definitional concepts. Useful. Thank you.

bdcravens 6y ago

The phrase AWS came up with for this, "Undifferentiated Heavy Lifting", is quite apt.

taylodl 6y ago

I should have pointed out this is the strategy that should be employed by an established company. If your company is just starting out then buy everything if possible - your competitive edge is the fact you're small and nimble. You can respond to market changes faster than the established companies can. Over time you'll recognize what are to become your Systems of Differentiation and then and only then should you consider building that yourself. When you're starting out you typically don't have the time or capital to wait and build the software you may need. For such companies doing business and generating revenue now is more important than having a perfect application portfolio. And yes, this is why systems are never as perfect and pristine as developers would hope.

doonesbury 6y ago

Like the post, and use of definitional concepts. Useful. Thank you.