Build vs Buy
CPG Analytics

Making Informed Choices in Retail Data Analytics: A Build vs. Buy Approach


In the ever-evolving landscape of retail and consumer goods, leveraging cutting-edge technologies like CPG Retail Analytics has become imperative. The decision to build or buy analytics services can significantly impact the efficiency and effectiveness of your data-led solutions.

You are tasked with solving a specific problem; one that your company may be facing or pain points that your customers are looking to overcome. And you have decided to solve that problem by using a data-led solution and with the exponential growth in computing technology many specialized software vendors are rising and many innovative products are available on the market which leads to the question.

In this article, we delve into a comprehensive framework to help you navigate the complexities of the “Build/Buy” dilemma in the context of AI in Retail and CPG.

| The art of decision-making is crucial. To build or buy is not a science; it’s an art that requires careful consideration of various factors.|

1. Core Competencies: The Pillars of Decision-Making

The core competencies of analytics vendors play a pivotal role in deciding whether to build or buy. As companies embark on analytics projects, understanding the vendor’s strengths becomes crucial. Investing time and resources in building software provides control but comes with a longer timeline. On the other hand, buying software might seem expensive initially, but it offers quick access to specialized solutions without the hassle of development.

2. Maintenance & Support: Balancing Control and Convenience

The perceived service level of internal analytics teams often leads to the misconception that building in-house ensures better maintenance and support. However, contractual services can offer insights and flexibility, enabling faster adaptations to a dynamic business environment. This highlights the importance of considering both sides when evaluating the trade-off between control and convenience

Costing: ROI at the Heart of the Decision

ROI is the bottom line in the “Build vs. Buy” decision. While the implementation cost of a customized solution is high, the total cost of ownership over time tends to be lower, resulting in better ROI. Comparing the price gap between building and buying provides clarity on which option is more cost-effective in the long run.

Time: Speeding Up Solutions

The time required to build in-house software can be significantly longer than opting for a ready-made solution. If quick implementation is crucial for your organization, purchasing an existing solution becomes the preferred choice. This consideration is vital for businesses looking to address immediate challenges or capitalize on emerging opportunities swiftly.

Advantages of buying based Solution

  • Lower costs: Third-party solutions eliminate maintenance, operational, and R&D costs, offering a more budget-friendly alternative.
  • Faster time-to-market: With pre-built solutions, there’s no need to invest time in building, upgrading, or maintaining, accelerating the testing phase.
  • Access Mobile Devices with No Maintenance: Purchasing from reputable vendors provides access to industry experts, ensuring effective problem-solving and meeting customer expectations.
  • Access to better support: A third-party solution worth the money will give users access to dedicated industry experts who are accustomed to solving complicated problems and figuring out how to cater to customers’ expectations.
  • More Features:  External vendors regularly update their solutions, incorporating new features to stay competitive and aligned with industry developments.

|”The biggest misconception for today’s retailers is that you have to go big. There’s a plethora of providers, some of whom can drive better, faster, and cheaper results”- Deborah Weinswig|

The retail and consumer goods industry, fueled by the rapid evolution of artificial intelligence, faces intricate challenges in scaling AI solutions. A year after ChatGPT’s debut, the AI Summit in New York shed light on critical considerations for businesses venturing into the AI landscape.

  • Responsible AI: A Non-Negotiable Priority

Ethical considerations and responsible AI practices are paramount for sustainable success. Building trust from top to bottom, including governance boards and mechanisms for fairness and transparency, is essential. Without ethical considerations, scalable AI dreams may remain elusive.

  •   Technical Debt: A Hurdle in Generative AI Adoption

The speed of innovation in generative AI brings forth technical debt challenges. Issues related to feeding clean data, privacy concerns, and the use of synthetic data in fine-tuning models create complexities. The lack of best practices contributes to the buildup of technical debt, demanding constant evaluation and adaptation.

  • AI Literacy: Transforming Roles and Responsibilities

Generative AI’s potential to drive efficiencies transforms roles across industries. Increased AI literacy enables employees to adapt to accessible technology, blurring the lines between tech and non-tech roles. AI technologies empower individuals to become full-stack engineers, emphasizing the transformative impact on job responsibilities.

  • Sandbox for Innovation: Balancing Exploration and Execution

The need for experimentation and sandboxes is crucial in the AI landscape. Providing early access to new tools encourages curiosity and innovation among data scientists. Balancing exploration in the sandbox with practical problem-solving ensures a dynamic and adaptive approach to AI integration.


The decision to build or buy in the realm of Retail data analytics is a nuanced process. Considering factors such as core competencies, maintenance, costing, time, and ethical considerations are crucial steps in making an informed decision. While the “Build vs. Buy” dilemma may not have a definitive answer, a thoughtful evaluation based on your organization’s specific needs is the key to unlocking the potential of AI in retail and CPG.

Check out our various data analytics solutions on how Transorg analytics build a customer service model for its clients.

For further insights and solutions, explore TransOrg’s value proposition by reaching out to us at


What factors would you consider for making a build vs buy decision?

Factors for Making a Build vs Buy Decision:

1. Cost: Compare the expenses associated with building a solution in-house versus purchasing an existing one.

2. Time to Market: Assess the time required to develop a solution internally versus the time it takes to implement a purchased solution.

3. Expertise: Evaluate whether your team possesses the necessary skills and expertise to develop the solution internally.

4. Customization: Consider the level of customization required for the solution and whether an off-the-shelf product can meet your needs.

5. Integration: Determine how easily the solution can integrate with existing systems and processes.

6.Long-term Maintenance: Assess the long-term maintenance and support requirements for both build and buy options.

What is make-or-buy analysis?

Make-or-buy analysis is a strategic decision-making process used to determine whether to develop a product or service in-house (make) or purchase it from an external source (buy). This analysis involves evaluating various factors such as cost, time, expertise, and strategic alignment to determine the most cost-effective and efficient approach.

How do you make a build or buy decision?

Evaluate Requirements: Clearly define the requirements and objectives of the project.
Analyze Options: Conduct a thorough analysis of both build and buy options, considering factors such as cost, time, expertise, and strategic alignment.
Consider Alternatives: Explore alternative solutions, such as outsourcing or partnerships, that may offer additional benefits.
Decision Criteria: Establish decision criteria to weigh the pros and cons of each option and determine the most suitable approach.
Stakeholder Input: Seek input from key stakeholders, including decision-makers, project teams, and end-users, to ensure alignment with organizational goals and objectives.

What are the disadvantages of make-or-buy decisions?


Cost Overruns: Development projects may exceed budget due to unforeseen challenges or changes in requirements.
Time Constraints: Building a solution internally may take longer than anticipated, delaying time to market.
Resource Intensive: Requires significant investment of time, money, and resources, including hiring and training personnel.


Lack of Customization: Purchased solutions may not fully meet the organization’s unique requirements, necessitating workarounds or compromises.
Vendor Dependency: Dependency on external vendors for ongoing support, updates, and maintenance.
Integration Challenges: Integration with existing systems and processes may present technical challenges and require additional effort.