Gartner Research

How to Decide Between Building or Buying a Customer Data Platform

Published: 30 April 2018

ID: G00348063

Analyst(s): James Meyers

Summary

Organizations seeking to invest in a customer data platform face a strategic decision: Build a CDP in-house, or buy it? To make an informed choice, marketing leaders should assess their business strategy, available resources, marketing capabilities and time-to-market requirements.

Table Of Contents
  • Key Challenges

Analysis

  • Determine If Your Brand Will Differentiate on CDP Capabilities
    • Question No. 1: What Is Your Brand's Historical Preference Toward Building Versus Buying New Technologies?
    • Question No. 2: Can a Third Party Supply Greater Than 80% of the CDP Capabilities You Need?
    • Question No. 3: Does Your Brand Operate in a Mature Industry?
    • Question No. 4: Does Your Company Push Technical Boundaries at a Rate Where a Third Party Couldn't Match Your Pace of Innovation?
  • Assess Your Resources and Maturity Relative to CDP Development
    • Determine Team Skills and Maturity
    • Evaluate Your Budget Profile
    • Assess the Strength of Internal Partnerships (Especially With IT)
    • Determine the Urgency of Your CDP Deployment
    • Measure Performance Gaps
    • Assess Whether Stopgap Solutions Can Buy You Time to Build

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