Time value of Money for Software Deployments in Heavy Industry

 

 

We have all heard it before from our engineering teams "but we can build this ourselves!" - I know this because I was one of those engineers. The problem with this statement is the inability to see the forest for the trees. As a large heavy industrial organization (aka oil and gas) the primary focus of the business is to move/process/extract oil and gas safely and efficiently, that is the forest. Individual engineers on a team are the trees. As a tree it may seem like a great idea to build complex software in house, well, because it would be a fun challenge! However, when you zoom out, there is so much more to be considered for a commercial grade enterprise software product for industrial automation, than just weather the technical competency exists within an organization. This vblog discusses specifically the time value of money consideration for in-house software projects and why, despite my best efforts when I was working in industry, I was blocked from building a team in-house to build commercial grade enterprise software for industrial automation (what we now call RIPA), and why that was the correct business decision for that organization (despite my sad feelings at the time!). A software organization is best set up to build commercial grade enterprise software with high quality software talent.

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