Systems engineering approach in make-or-buy technology

The importance of technology as a strategic factor in an enterprise has been widely recognised. To be able to survive and grow in the era of global competition, an enterprise must develop and maintain a sustainable competitive advantage. It is therefore imperative for an enterprise to have the necessary technological capability and its technology strategy must include the acquisition of technology. An enterprise can acquire technology either through 'making' (the pursuit of new technology development though internal R&D) or 'buying' (acquisition from external sources). This is known as the "make-or-buy" or "sourcing" problem. This paper discusses how and what role systems engineering approach can play in solving this problem.