If you're in the business world, then you know that data is everything. It can make or break a company and that's why it's so important to have good product analytics. But what do you do when it comes to choosing between build vs buy analytics tools?
This blog post will help you make the best decision for your business by weighing the pros and cons of build vs buy analytics infrastructure.
Build vs Buy Analytics: What Are The Pros and Cons?
There are many factors to consider when it comes to build vs buy analytics tools. Business organizations must first understand the difference between the two in order to make an informed decision.
Building product analytics from scratch requires significant time and resources. Not only do you need to develop the necessary analytics infrastructure, but you also need to hire data scientists who can interpret and make sense of the data. Even then, there’s no guarantee that your analytics solutions will be effective.
Buying product analytics, on the other hand, is a much faster and easier process. You can purchase an off-the-shelf analytics platform that’s been proven to work. Buying software is often less expensive and less risky than building your own analytics solution.
However, there are some drawbacks to buying analytics from third-party software companies. First, you’re limited to the features and functionality of the product you purchase. Second, you may have difficulty integrating the new analytics solutions into your existing systems.
So, which is the best option for your organization?
It depends on your specific resources and needs. If you have the time and money to invest, building your own analytics solution may be the best option. However, if you need a fast and easy solution, buying analytics software may be the better choice.
The Cost of Building vs Buying Analytics
The cost of building vs buying analytics can be a difficult decision for many businesses. There are a few key things to consider when making this decision.
First is the cost of the hardware. If you are buying analytics from software companies, you will need to factor in the cost of the servers, storage, and networking.
Second is the cost of the software solutions. If you are buying analytics, you will also need to factor in the cost of the software licenses, support, and maintenance.
And finally, the cost of hiring the right people. If you are buying analytics, you will need to factor in the cost of the data scientists, analysts, and engineering teams.
The Time Investment of Building vs Buying Analytics
The average person spends about 3 hours a day on their phone. That’s 1,095 hours a year, or 45 full days. We spend more time with our phones than we do with our significant others, our parents, or our children.
And what are we doing with all that time?
We’re checking email, browsing the web, playing games, and yes, using apps. A lot of apps. The average person has 33 apps on their phone and uses 9 of them every day.
But what if there was an app that could help you save time, make you more productive, and help you make better decisions?
The solution is an analytics platform.
There are a lot of analytics software providers out there. Now you're probably thinking, do I really need another app? Well, it depends on how you want to use analytics and how much time you’re willing to invest.
You see, there are two ways to get analytics: you can build it yourself, or you can buy it.
Building analytics solutions take time. A lot of time. You have to collect the data, clean the data, and then analyze the data.
And that’s just the beginning.
You also have to build the analytics infrastructure which can be a challenge if you’re not a technical person. And then there’s the issue of interpretation. Just because you have the data doesn’t mean you know what to do with it.
You have to be able to understand the data, and then make decisions based on data analysis. All of this takes time. And if you’re not careful, it can take a lot of time.
Buying analytics is a lot easier. You don’t have to worry about collecting, cleaning, or analyzing data. You also don’t have to worry about building the infrastructure to support the analytics.
And you don’t have to worry about interpretation because you can buy analytics that comes with interpretation. All you have to do is buy the analytics and then use the analytics. Of course, there are some downsides to buying analytics.
The first is that it can be expensive. If you want to buy good analytics, you have to be willing to pay for it.
The second is that you have to trust the people who are selling you the analytics. You have to trust that they know what they’re doing and that they’re not going to sell you something that’s not useful.
The third is that you have to be careful about who you buy analytics from. There are a lot of people who are selling analytics, and not all of them are created equal.
So, should you build or buy analytics?
It depends on how you want to use analytics, and how much time you’re willing to invest.
If you want to use analytics to save time, and you’re willing to invest the time to learn how to use analytics, then buying analytics is the way to go.
But if you’re not willing to invest the time, or you don’t trust the people selling you the analytics, then you’re better off building it yourself.
The Flexibility of Building vs Buying Analytics
There are many factors to consider when it comes to build vs buy analytics tools. The main factor is flexibility.
When you build your own analytics solution, you have the flexibility to change it as your needs change. However, when you buy an analytics solution, you are stuck with what you have.
Another factor to consider is cost. Building your own analytics solution can be expensive. You need to purchase hardware and software solutions and then hire someone to maintain them.
However, buying an analytics solution can be less expensive in the long run.
Finally, you need to consider your skills. If you are not a technical person, then it may be better to buy an analytics solution. However, if you are comfortable with technology, then you may be able to build your own analytics solution.
In the end, the decision of build vs. buy analytics depends on your needs and skills. If you need a flexible solution that you can change, then you should build your own analytics solution.
However, if you need a cheaper solution, then you should buy an analytics solution.
After weighing the pros and cons of build vs buy analytics tools, you should have a better idea of what's right for your business. If you need more help deciding between analytics vendors, feel free to reach out to us. We're always happy to help businesses make the best decisions for their needs.
No matter what you decide, we wish you the best of luck with your analytics journey!