Product Consistency and Specialization Can be the Difference for an ODM

Bigger is Not Always Better

Original Equipment Manufacturers (OEMs) leveraging compute suppliers can be more effective with intelligent lifecycle management by tapping into strategic partners focused on a smarter purchase lifecycle. For example, select suppliers who fall into the Tier-1 category by virtue of their size and established consumer market role, may not have the specialization as a smaller Original Design Manufacturer (ODM). Although, for what Tier-1s lack in specialization to be considered true ODMs, they are top-of-mind enough to draw the attention of the OEM’s sourcing teams. These large suppliers tend to be closely aligned with introductions of new technology, which also means they can be quicker to retire technologies, sometimes in one year or less. They may carve out an embedded line of business to extend technology availability; however, those guarantees extend purchasing availability to just two to three years. This is often insufficient for the OEM’s embedded design and product development, which commonly serves markets that require five to seven years as a minimum and often as many as ten years of technology availability.

Medical design provides further context and demonstrates the critical nature of an extended purchasing lifecycle. Once a set of requirements is defined for a new medical device, development phases for application software and hardware can take OEMs one to two years into the availability cycle, even before the product gets to market. Any design setbacks or changes along the way only exacerbate this challenge.

OEMs, particularly in highly regulated, embedded markets, must better position themselves for success by seeking ODM partnerships that guarantee lifecycle management for five to seven years at minimum. This is critical in protecting the full product lifecycle, easing any changes that may be required during development itself, as well as ensuring service life once deployed. By considering longevity from the outset, OEMs are better prepared to embrace the long-life demands of embedded design.

To begin the conversation with Dedicated Computing about intelligent lifecycle management, connect with us engineer-to-engineer at inquiry@dedicatecomputing.com or 877.833.4848.

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