Executive Summary

Pharmaceutical leaders consistently face the build vs. buy decision when advancing Medical Affairs, digital engagement, and evidence capabilities. Too often, choices are driven by cost or speed alone, leading to vendor dependency and digital pilots that stall before scaling.

Why it matters: By 2030, Medical Affairs will not be measured by how many vendors it coordinates. Success will be defined by the institutional capabilities it controls—scientific content engines, data governance frameworks, and omnichannel orchestration systems that determine scientific trust, regulatory control, and scalability across markets.

The strategic framework: Treat build vs. buy as a power decision, not procurement. Build capabilities central to scientific trust, data leverage, and long-term differentiation. Buy proven, commodity platforms that accelerate scale without defining competitive advantage. Co-build near-core areas where speed matters but intellectual property, validation authority, and data ownership must remain inside the enterprise.

The leadership principle: If it defines your evidence, scientific narrative, or institutional learning loop—build it. If it's commodity infrastructure—buy it. If it's near-core capability—co-build under strict governance.

The Strategic Context

In pharma, every digital initiative eventually comes down to a deceptively simple question: Should we build it ourselves, or buy it from outside?

Historically, the reflex was to buy—outsource to agencies, vendors, or consultants. The logic seemed sound: faster deployment, lower upfront costs, access to specialized expertise. But with AI, omnichannel engagement, and data-driven Medical Affairs now core to competitive advantage, that reflex creates a dangerous weakness.

You're outsourcing your scientific memory.

When vendors own your evidence synthesis logic, your HCP engagement data, or your scientific taxonomy, you've surrendered the very assets that create differentiation. You're buying speed today at the cost of institutional learning tomorrow.

The stronger strategy: Own the assets that matter, buy what doesn't differentiate, and co-build what sits in between.

The Three-Step Decision Framework

Step 1: Clarify Strategic Intent (AQS)

Anchor every decision to explicit intent. Use the AQS framework:

Access (A): Expand healthcare professional reach and engagement breadth across channels and geographies.

Quality (Q): Strengthen accuracy, traceability, scientific rigor, and regulatory compliance in evidence generation and dissemination.

Speed (S): Reduce cycle time from evidence generation through content creation to HCP engagement and measurable impact.

Choose one primary and one secondary intent. Anything more dilutes focus and creates decision paralysis. A capability that tries to optimize for all three simultaneously optimizes for none.

Step 2: Apply the Eight Strategic Lenses

Evaluate every build vs. buy decision through eight lenses designed specifically for pharmaceutical Medical Affairs:

1. Core vs. Context

Core capabilities define competitive advantage and institutional knowledge. Context capabilities enable operations but don't differentiate.

  • Build: Evidence synthesis engines, scientific taxonomies, decision logic that connects evidence to engagement

  • Buy: Email delivery, webinar platforms, standard dashboards

The test: If competitors could replicate value by licensing the same vendor, it's context. If your differentiation depends on how you've built it, it's core.

2. Time-to-Impact vs. Durability

Some capabilities deliver immediate value but depreciate quickly. Others compound advantage over time.

  • Buy for speed: Tactical campaigns, one-time events, experimental channels

  • Build for durability: Data foundations, scientific ontologies, HCP relationship memory

The tradeoff: Buying creates speed but no institutional learning. Building creates compounding returns but requires sustained investment.

3. Total Cost of Ownership vs. Cost of Delay

TCO includes not just licensing fees, but integration costs, customization overhead, ongoing maintenance, and exit costs. Cost of delay measures the competitive impact of slower deployment.

Calculate both honestly: A $2M build with $500K annual run cost may cost less over five years than a $400K annual SaaS license that requires $300K in annual integration work. Meanwhile, a six-month delay in evidence synthesis capability may cost $10M in lost first-mover advantage.

4. Regulatory & Validation Control

Regulatory requirements for transparency, auditability, and change control create asymmetric risk in vendor relationships.

  • Build/Co-Build when: Capabilities touch promotional review, labeling claims, adverse event processing, or require detailed audit trails

  • Buy when: The capability sits outside regulatory scope and vendor validation is sufficient

The principle: Never outsource capabilities where you can't fully explain and defend decision logic to regulators.

5. Data Leverage & Interoperability

Data compounds in value when it flows across systems and accumulates institutional knowledge. Vendor silos destroy this compounding.

  • Never outsource: The "brain" of your data—identity resolution, HCP relationship graphs, engagement memory, scientific taxonomy

  • Acceptable to buy: Data transport, storage infrastructure, visualization tools

The litmus test: If the vendor disappeared tomorrow, could you reconstruct your institutional knowledge? If not, you've outsourced a core asset.

6. Talent Reality

Building requires not just initial development capability, but sustained talent to maintain, evolve, and defend the capability over years.

Be brutally honest: Do you have the talent bench to sustain this capability through technology shifts, personnel changes, and evolving requirements? If not, even core capabilities may need to be co-built with partners who provide continuity.

7. Intellectual Property & Competitive Moats

In pharma, proprietary knowledge compounds into competitive advantage. IP considerations determine whether your investment creates defensible differentiation or inadvertently funds competitor capabilities.

Ask five critical IP questions:

  • Algorithm ownership: Who legally owns custom algorithms, analytical frameworks, and decision logic developed during the engagement?

  • Model IP: For AI/ML systems, who owns trained models and can the vendor reuse learnings from your data with other clients?

  • Data derivatives: Can the vendor aggregate or anonymize your data to create "industry insights" sold to competitors?

  • Exit provisions: What happens to custom code, models, and configurations if the partnership ends? Can you extract and deploy them independently?

  • Exclusivity: Are there provisions preventing the vendor from building similar capabilities for competitors in your therapeutic areas?

Critical red flags:

  • Contract states vendor owns all "derivative works" or "improvements"

  • Language like "insights generated may be aggregated across clients"

  • Ambiguous definitions of "background IP" vs. "foreground IP"

  • No mechanism to extract custom logic upon contract termination

  • Vendor reserves rights to create "anonymized benchmark data"

The principle: If the capability encodes therapeutic area expertise, scientific judgment, or strategic insight—you must own the IP or have ironclad protections preventing competitive leakage. This often tips decisions from Buy to Co-Build with explicit IP retention clauses.

8. Vendor Lock-In & Exit Costs

Switching costs create asymmetric power dynamics that erode value over time.

Evaluate lock-in risk across five dimensions:

  • Data portability: Can you extract all data in usable formats without vendor assistance?

  • Integration depth: How many downstream systems depend on this vendor's APIs or data structures?

  • Contract terms: What are termination costs, notice periods, and transition support requirements?

  • Talent dependency: Have your teams lost the capability to operate without this vendor?

  • Switching complexity: What's the realistic timeline and cost to migrate to an alternative?

Buy only when you have genuine exit options. If switching costs approach the original build cost, you're not buying a service—you're selling strategic control.

Step 3: Use the Pharma Build–Buy Scorecard

Quantify the decision by weighting and scoring each lens:

Lens

Weight

Score (1-5)

Weighted Score

Core vs. Context

20%

Time-to-Impact vs. Durability

12%

TCO vs. Cost of Delay

12%

Regulatory & Validation Control

15%

Data Leverage & Interoperability

18%

Talent & Operating Model

8%

Intellectual Property & Competitive Moats

10%

Lock-In & Exit Costs

5%

Scoring guidance:

  • 5: Strongly favors Build

  • 3: Neutral or unclear

  • 1: Strongly favors Buy

Decision thresholds:

  • ≥ 4.0: Build or Co-Build with retained IP and governance

  • 3.0–3.9: Hybrid approach—Buy now with explicit build-later roadmap

  • < 3.0: Buy from established vendor with strong exit terms

Timeframe expectations:

  • Build: 12-24 months to full value realization

  • Co-Build: 6-12 months to working pilot, 18 months to enterprise scale

  • Buy: 3-6 months to initial deployment

The 18-Month Review Principle: Every buy decision should trigger an automatic strategic review at 18 months asking: "Should we now build this internally?" As your organization matures, capabilities you once bought may become strategic enough to bring in-house. Schedule these reviews at contract signing, not at renewal crisis.

The Strategic Map: Where to Build, Buy, and Co-Build

Build (Own the Core)

Evidence-to-Impact Engines

The logic connecting scientific evidence to content creation to HCP engagement is your competitive differentiation. Build the taxonomy, provenance tracking, and traceability systems that ensure every HCP interaction is grounded in defensible evidence.

Omnichannel "Brains"

The decision engine that determines which HCP receives which content through which channel at what time—this is institutional intelligence. Buy the delivery infrastructure (email, webinar platforms), but build the orchestration logic that makes engagement strategic rather than random.

HCP Identity Graphs & Data Foundations

Understanding who an HCP is, what they care about, how they prefer to engage, and what your organization has learned from previous interactions—this is irreplaceable institutional memory. Vendors can provide data enrichment, but you must own the graph that connects it all.

Scientific Insight Pipelines

The systems that synthesize real-world evidence, publication trends, congress insights, and field medical intelligence into actionable scientific narratives—these define your ability to lead rather than follow scientific conversations.

Buy (Leverage Commodity Infrastructure)

Standard Communication Platforms

Email delivery, SMS messaging, webinar hosting—these are solved problems with established vendors. Buy best-in-class platforms and integrate them into your orchestration brain.

Analytics & Reporting Infrastructure

Dashboard tools, data visualization platforms, standard reporting capabilities—buy these from vendors who specialize in user experience and maintain them at scale.

Digital Asset Management

Storage, versioning, and distribution of approved content—mature DAM platforms handle this well. Buy the infrastructure, but build the taxonomy and approval workflows that govern what goes into the system.

Translation & Localization Services

Language services are professional specialties. Buy from established providers, but maintain control over scientific terminology and review processes.

Co-Build (Strategic Partnerships with Retained Control)

GenAI Medical Information Assistants

Partner with AI vendors for infrastructure and model training, but retain ownership of scientific taxonomy, validation frameworks, and output review. The vendor provides technology; you provide and own the medical intelligence.

Real-World Data Registries

Collaborate with RWD platform providers for infrastructure and patient recruitment, but own the data, the analysis frameworks, and the evidence generation protocols.

Key Opinion Leader Network Analytics

Work with specialty vendors for data enrichment and analytical tools, but maintain direct KOL relationships and own the strategic insights that drive engagement strategy.

Decision Scenarios in Action

Scenario 1: GenAI Medical Information Assistant

Strategic Intent: Quality (primary), Speed (secondary)

The Decision: Co-Build

Rationale: Medical information requires the highest standards for accuracy, auditability, and regulatory defensibility. A pure buy creates unacceptable black-box risk. A pure build delays deployment beyond acceptable timelines.

Co-Build Structure:

  • Vendor provides: LLM infrastructure, training pipelines, scaling capability

  • You own and control: Scientific taxonomy, evidence sources, validation test libraries, output review workflows, continuous monitoring

  • Governance: Pre-defined accuracy thresholds, regular validation testing, documented escalation protocols

  • Critical contract language:

    • "All foreground IP (created during this engagement) is owned exclusively by [Pharma Company]"

    • "Vendor retains no rights to reuse domain logic, scientific frameworks, or trained models with other clients"

    • "Complete data extraction in standard formats (JSON, CSV, SQL) within 30 days of written request, at no additional cost"

    • "Non-compete provision: Vendor may not develop substantially similar medical information AI capabilities for [Competitor List] during term plus 24 months"

Scenario 2: Omnichannel Orchestration Platform

Strategic Intent: Access (primary), Quality (secondary)

The Decision: Build the brain, buy the pipes

Rationale: Channel delivery is commodity (email, webinar, mobile). But the intelligence that decides which HCP gets what content when—that's strategic differentiation.

Implementation:

  • Build: Decision engine with HCP preference learning, content matching algorithms, engagement memory, and optimization logic

  • Buy: Email delivery (SendGrid, Mailchimp), webinar platforms (Zoom, ON24), SMS (Twilio)

  • Integration: Your orchestration brain makes decisions; vendor platforms execute delivery

Warning Signs: When You're Over-Buying

Recognize these red flags that indicate vendor dependency has replaced strategic capability:

🚩 Coordination Overhead Exceeds Strategic Work

Your team spends more time in monthly vendor alignment meetings than in strategic planning sessions. If "managing vendors" has become the job instead of "building capability," you've outsourced too much.

🚩 Insights Require Manual Assembly

Answering basic strategic questions—"Which HCPs are most engaged?" "What scientific content drives behavior change?"—requires pulling data from five different dashboards and manual Excel reconciliation. You're paying for "insights" but doing the synthesis work yourself.

🚩 Feature Bloat Drives Costs

You're paying for enterprise feature sets you'll never use just to access the core 20% of functionality you actually need. This typically signals commodity capability you should have bought more narrowly or built more precisely.

🚩 No Institutional Memory

When a vendor relationship ends, you lose 3+ years of learning because all the intelligence lives in their system. If you can't answer "What did we learn?" independent of vendor access, you've outsourced your memory.

🚩 The Integration Tax

Every new capability requires expensive custom integration work because vendors don't share common data models. Integration costs now exceed licensing fees—a clear signal you need to own more of the architecture.

Common Pitfalls to Avoid

The "Best of Breed" Trap

Buying 20 "best-in-class" point solutions creates an integration nightmare. Each vendor optimizes for their narrow domain but together they create data silos, workflow friction, and compounding integration costs.

The fix: Build or own the integration layer (the "brain") and buy channel execution as commodity infrastructure.

The "Custom Everything" Trap

Over-building commodity features because "our requirements are unique." Email delivery, calendar scheduling, basic reporting—these are solved problems. Building them internally is wasteful pride.

The fix: Apply the core vs. context lens ruthlessly. If competitors using the same vendor would achieve similar value, it's context—buy it.

The "Pilot Purgatory" Trap

Running 18-month pilots with no clear decision framework for scale or kill. Pilots become permanent because no one has authority or criteria to decide.

The fix: Use the scorecard and define success criteria upfront. At month 6, you decide: scale, pivot, or terminate.

The "Contract Amnesia" Trap

Not reviewing IP ownership, data extraction rights, and exit costs until you want to leave. By then, switching costs are prohibitive and you're locked in.

The fix: Negotiate exit terms at contract signing. Conduct annual "what would it cost to leave?" assessments while you still have leverage.

Governance Guardrails for Co-Build Partnerships

When co-building with vendors, establish five non-negotiable governance mechanisms:

1. Validation Playbooks

Pre-approved test libraries that define acceptable accuracy, bias, and safety thresholds. Testing protocols execute automatically before any model update goes live.

2. Model Risk Management

Document data lineage, training procedures, and decision logic for every AI model. Monitor outputs continuously for drift, bias, or accuracy degradation. Enforce transparency requirements that let you explain any output to regulators.

3. Exit-Ready Contracting

  • Full data portability in standard formats

  • IP ownership clearly defined (generally: you own domain logic, vendor owns infrastructure)

  • Transition support requirements specified (typically 6-12 months)

  • No financial penalties for migration to alternative platforms

4. Capability Transfer Provisions

For critical co-built systems, contract for knowledge transfer that lets you internalize capability over time. The vendor relationship should build your capability, not create permanent dependency.

5. Performance SLAs Tied to Outcomes

Move beyond uptime metrics. SLAs should measure scientific accuracy, regulatory compliance, and business impact—not just system availability.

The Leader's 10-Point Decision Checklist

Before committing to any build vs. buy decision, leadership should answer ten critical questions:

  1. What's the primary AQS intent? (Access, Quality, or Speed)

  2. Is this capability core to scientific trust or competitive differentiation?

  3. What's the cost of delay vs. total cost of build over 5 years?

  4. Who will own the ontology, taxonomy, decision logic, and trained models?

  5. Do we control identity resolution and HCP relationship memory?

  6. Is there a clean exit path with full data portability at no additional cost?

  7. Do we have sustaining talent for ongoing maintenance and evolution?

  8. Can we validate and audit this capability at the rigor regulators will demand?

  9. Does this capability scale across brands, therapeutic areas, and geographies?

  10. Have we scheduled the 18-month strategic review to reassess build vs. buy?

If you can't answer all ten confidently, the decision framework needs deeper analysis before commitment.

Frequently Asked Questions

What's the #1 factor in build vs. buy for Medical Affairs?

Whether the capability defines scientific trust and data leverage. If the answer is yes, build or co-build with retained control. Scientific credibility and institutional learning are the only sustainable competitive advantages in Medical Affairs—never outsource them.

When should we default to buy?

When three conditions align: the capability is non-differentiating commodity infrastructure, speed outweighs long-term learning, and you have genuine exit options with full data portability. Email delivery and webinar platforms typically meet these criteria.

What's the biggest risk of over-building?

Without sustained talent and operating model, internal builds become technical debt. Be brutally honest about your organization's capability to maintain, evolve, and defend custom systems over 5-10 years. If that capability doesn't exist, even core systems may need to be co-built with partners who provide continuity.

How should co-build partnerships be structured?

As strategic partnerships, not vendor contracts. Essential provisions include:

  • IP ownership: "All foreground IP created during engagement owned exclusively by [Pharma]. Vendor retains infrastructure IP only."

  • Data rights: "Complete data extraction in standard formats within 30 days, at no cost"

  • Validation authority: Medical Affairs retains final approval on all scientific outputs

  • Non-compete: Consider exclusivity provisions for your therapeutic areas during term plus 12-24 months

  • Transition support: 6-12 months of support if partnership ends

How do regulatory requirements affect the choice?

Any capability tied to promotional review, labeling claims, adverse event processing, or audit trail requirements leans strongly toward build or co-build—even when external vendors provide supporting technology. The principle: never outsource capabilities where you can't fully explain and defend decision logic to regulators.

Conclusion: Building Strategic Power

Your competitors will buy speed and inherit fragility. They will outsource their scientific memory, depend on vendors for strategic decisions, and celebrate pilots that never scale into institutional capability.

Leaders who build or co-build the assets that matter—the brain, the taxonomy, the provenance chain, the relationship memory—will own the future of Medical Affairs.

The decision framework is clear. The scorecard is quantifiable. The governance mechanisms are proven.

What remains is leadership conviction: the willingness to invest in capabilities that compound over years, not quarters. The discipline to own what matters and buy what doesn't. The strategic clarity to know the difference.

If it defines your evidence, scientific narrative, or institutional learning loop: build it.

If it's commodity infrastructure that doesn't differentiate: buy it.

If it's near-core capability where speed and control both matter: co-build it under governance that protects your strategic power.

The organizations that make these calls correctly will define Medical Affairs in 2030. The ones that don't will be coordinating vendors while competitors build sustainable advantage.

References

  1. Koen, P., Sheth, A., DiPaola, M., Hill, L.A. "Scaling Up Transformational Innovations." Harvard Business Review, November–December 2024.

  2. Tabrizi, B., Lam, E., Girard, K., Irvin, V. "Digital Transformation Is Not About Technology." Harvard Business Review, March 13, 2019.

  3. Davenport, T.H., Ronanki, R. "Artificial Intelligence for the Real World." Harvard Business Review, January–February 2018.

  4. Ross, J.W., Beath, C.M., Quaadgras, A. "You May Not Need Big Data After All." Harvard Business Review, December 2013.

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