Deciding whether to buy or build software applications involves assessing various factors.

Refer to the below steps on how to use the Buy vs. Build Decision Matrix 

Link: Buy vs. Build Decision Matrix (*make a copy of the document into your drive)

Step-by-step Guide

• Step 1: Define Criteria and Weights
• Step 2: Use the guiding questions
• Step 3: Evaluate Each Option
• Step 4: Calculate Weighted Scores
• Step 5: Compare Total Scores
• Step 6: Review and Validate

Step 1: Define Criteria and Weights

• Identify Criteria: List the criteria that are important for your decision (e.g., Cost, Time to Implement, Customization, Support & Maintenance, etc.). 
• Assign Weights: Assign a weight to each criterion based on its importance to your organization. The weights should add up to 1 (or 100%).

Example:

Step 2: Use the guiding questions  

• Use the guiding questions for each criterion to help in evaluating both options.

Step 3: Evaluate Each Option

• Score Each Criterion: Rate each option (Buy and Build) for each criterion on a scale (e.g., 1-5, where 1 is poor and 5 is excellent).

Example:

Step 4: Calculate Weighted Scores

• Multiply Scores by Weights: For each criterion, multiply the score by the corresponding weight.
•  Sum the Weighted Scores: Add up the weighted scores for each option to get the total score.

Step 5: Compare Total Scores

• Determine Total Scores: Sum the weighted scores for each option to get the final score. 
•  Make a Decision: Compare the total scores. The option with the higher total score is generally the preferred choice.

Example:

• Buy Total Score: 3.70
• Build Total Score: 3.80

In this example, "Build" has a slightly higher total score, suggesting it might be the better choice given the organization's priorities and assessments. 

Step 6: Review and Validate

• Review Scores and Weights: Ensure that the scores and weights accurately reflect your organization's priorities and the specific context.
•  Consult Stakeholders: Get input from key stakeholders to validate the decision-making process and ensure alignment with business goals. 
• Consider Intangibles: Take into account any intangible factors or strategic considerations that might influence the decision beyond the numerical scores.