To Build In-House or Outsource …That Is the Question!
April 26, 2015
I sat in on a most interesting session at the SISO CEO Summit in USA last week. The “Big Guns” were on stage - Mike Rusbridge Chairman Reed Exhibitions, Joe Loggia CEO UBM / Advanstar, David Kieselstein CEO Penton - all discussing their strategies to increase attendance at their events.
Not surprisingly, they are investing heavily developing in-house technology to assist in this strategy. What shocked me was the amount of money they admitted to investing – on average 5% of revenue – annually!
That’s the problem with technology. You can’t just develop a tool and let it sit. You have to keep maintaining it, upgrading it and enhancing it otherwise it is out-of-date from the day you finish the project. Although in-house developed software may work well for a while, it will become defunct in a few years unless you continue to spend more money on developing it.
Commercial software has the benefit of being extensively tested and used by other businesses. This can make for a quicker and smoother integration. In a fast-paced business world, this can save valuable time so you can get back to what’s important…running your shows!
Not every exhibition organiser has the financial means of a company like these big international giants to invest in software development, and even if you do, do you really want to jump down that rabbit hole?
Ray Kurzweil, inventor & futurist: An analysis of the history of technology shows that technological change is exponential…So we won't experience 100 years of progress in the 21st century—it will be more like 20,000 years of progress (at today's rate).
So how do you figure out how much it is going to cost you to develop something in-house or license to a third party? A company called ComponentOne Studio put together a simple free ROI calculator that helps determine whether you should build or buy.
Technology is currently changing faster than ever before with transformations happening exponentially. Third party event technology vendors are devoting time and money in keeping their platforms relevant so that you don’t have to. And as Mike Rusbridge said, “If you’re not digitally enabled it will soon be game over.”
How much are you spending on developing technology in-house?
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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