EI-301d · Module 3
Build-vs-Buy Portfolio Review
3 min read
Individual build-vs-buy decisions are correct in isolation but may produce a suboptimal portfolio. An organization that builds everything accumulates technical debt and engineering capacity constraints. An organization that buys everything accumulates vendor dependencies and integration complexity. The semi-annual portfolio review evaluates the full inventory of build and buy decisions as a portfolio — looking for concentration risk, capacity constraints, and decisions that should be revisited based on ecosystem changes.
- Inventory All Build and Buy Components Create a complete inventory: every internal system, vendor subscription, and API dependency. For each, record: original decision date, current annual cost, strategic classification (differentiating vs. table stakes), and vendor dependency risk level. The inventory is the portfolio view that individual decision records cannot provide.
- Identify Portfolio Imbalances Analyze the portfolio for concentration risk (too many critical dependencies on a single vendor), capacity constraints (too many build components competing for limited engineering time), and strategic misalignment (differentiating capabilities being bought, table-stakes capabilities being built). Each imbalance produces a specific recommendation.
- Trigger Re-Evaluations Review the re-evaluation triggers from each decision record. Have any triggered based on ecosystem changes? If a trigger has fired, schedule the re-evaluation with the relevant stakeholders and provide updated ecosystem intelligence to inform the review. The portfolio review is where decision records become living governance documents.