The wait equation, developed by Robert L. Forward and expanded on by Andrew Kennedy, evaluates whether it’s more beneficial to launch a mission immediately or wait for advancements in technology. This concept can be applied to investment in fast-changing fields like AI. To determine whether to invest in a project, factors such as the difference between the time spent on the project and the time saved by integrating with a vendor must be considered, as well as the cost of waiting. Revenue opportunity cost, which measures the revenue potential of a project, is also important. By applying this concept to a real project, a decision can be made whether to build or wait for a solution. The example illustrates that a buy vs. build decision is not simply about comparing costs but also about considering urgency and future market solutions.
https://javednissar.ca/wait-equation