Build or Buy? 6 Criteria to Consider for Lab Information Systems

Achieving and maintaining operational efficiency and effectiveness is an important criterion to ensure success for today’s diagnostic companies. Laboratory Information Systems (LIS) are the backbone of the day-to-day workings of a lab. Lab leaders will undoubtedly need to make decisions about developing a custom system to address their specific needs (Build) or buying a commercially available system (Buy).

There are advantages and disadvantages to both approaches and specific situations where the advantages of one approach tend to outweigh the advantages of the other. In reality, as with most health technology decisions, it isn’t a binary equation. At its most simplified, there are three key factors that influence the buy versus build decision: time, cost, and control.

It is difficult to make a thoughtful and calculated decision based on these 3 factors alone since there are subfactors under each that really get to the core pros and cons. The following success criteria can serve as a guide in your decision making.

1. Functionality: Can the desired functionality (now and in the future) be achieved and is it comparable with commercial solutions?
2. Quality: Will the solution meet the desired Quality Assurance metrics? Will users be satisfied with the system performance?
3. User & System Documentation: Will the technology solution be delivered complete with appropriate end-user documentation and training? Will the system architecture be well-documented such that if persons involved in development “move on” it can be supported by new resources?
4. Maintenance & Support: Is there budget and staff allocated for ongoing maintenance, support, and updates?
5. Time to Market & Budget: Can the project be completed in the desired timeframe and within the budget parameters?
6. Facilities, Security & Business Continuity: Where will the solution be hosted? Will the system support the needs of the business with regard to security, disaster recovery and business continuity? Is there a succession plan if the key development leader leaves the organization? 

Given that a lab’s laboratory information system is critical for day-to-day operations, all of these criteria should be planned for and resourced appropriately regardless of if it is through a commercial solution provider and custom built in-house. To learn more details about the advantages and trade-offs of choosing one approach versus the other, download the XiFin white paper “The Buy or Build Conundrum of Laboratory Information Systems”.