Strategic Make-or-Buy Decision-supporting Process: Adaptability to Sustainable Development Aspects

Strategic Make-or-Buy Decision-supporting Process: Adaptability to Sustainable Development Aspects

GOEHLICH, Robert A.

Real world outsourcing decisions are very seldom based on a sound trade-off of risks, costs that these risks impose and benefits. The present paper attempts to overcome some of these shortcomings by developing an informal process. Dividing the make-or-buy question into many sub-questions based on, in this case, 16 objectives and characteristics, helps decision-makers generate a transparent and strategy-oriented solution with fair attention to all important considerations. By contrast, the less structured intuitive approach allows the decision-maker to weigh only a few arguments/propositions simultaneously – typically those which have current subjective importance for the decider. Due to the modularity of this process, it can be extended easily to additional objectives and characteristics, e.g., those one that representing sustainable development aspects. The process allows one to determine what organizational architecture is best suited to a specified activity

Conference or Workshop Item
PeerReviewed

2009-06

157