OEM Partnership in the Digital Economy: Driving Business ValueOEM Partnership in the Digital...
Transcript of OEM Partnership in the Digital Economy: Driving Business ValueOEM Partnership in the Digital...
In our digitally-enabled world, technology and consumer demands are shifting faster than ever. This leaves organizations searching for ways to not only stay relevant, but ways to leverage digital transformation to disrupt their industry, gain a competitive advantage and deliver enhanced end-user experiences that exceed consumer expectations. Strategic OEM partnerships serve as a critical enabler for organizations seeking to accomplish all of these objectives and more. The "Change Makers" embrace the power of OEM partnerships.
But what are the key drivers that drive adoption, innovation and business value for enterprises across the globe? Here is a glimpse into the �ndings of Futurum Research's "Change Makers" study commissioned by Dell EMC and Intel that shows the critical role of OEM solutions in accelerating transformation.
OEM's play a critical role in helping market facing companies around the world achieve their business objectives through enabling innovation, reducing time to market and enhancing operational capabilities.
"For purposes of this study, an OEM (original equipment manufacturer) or Third-Party Provider was de�ned as a company that provides information technology, products, parts or equipment that would be used, bundled or marketed by your company or organization as part of your product and/or service o�erings.”
organizations agree that OEM partnerships help enterprises embrace emerging technologies for an innovation-ready future.
Emerging technologies such as AI, multi-cloud, IoT, and AR/VR are all fast-paced technologies, that require a high level of technical sophistication, agile development, and deployment.
EnhancingBusiness Valuethrough OEMPartnerships
Accleratinginnovation
Drivingtechnologyadoption
Reducing timeto market
Adopting acustomer-�rst
approach
75%Enterprises expect use of OEM partnerships to increase
Enterprises anticipate a dramatic increase in OEM adoption
25%
Key decision drivers
88%
Help overcome barriers to Innovation
Bene�ts of OEM Partnerships
Top growing regions
Greater China Asia Paci�c Latin America
Top growing sectors
Banking & Finance
Media &Technology
Consumer Products: Retail,
E-Tailers, etc.
The use of OEM Partners to meet critical product and services needs is on the rise, a trend we expect to increase dramatically over the coming 3 to 5 years.
Contractual �exibility is expected to increase in importance over time as emerging technologies become more commonplace or commoditized and companies have (or desire) greater like-product choices with shorter contracts to allow for business agility.
OEM Partnership in the Digital Economy:Driving Business Value
A Futurum Research study commissionedby Dell Technologies and Intel
93%
Help accelerate product & services innovation
34%
Have taken new ideas to market over 30% faster, while more than 50% of all respondents cited improvements in the range of 10%-30%.
OEMs accelerate the speed of innovation in translating ideas to value and improve time to market for new products.
AI (including machine learning, smart bots and cognitive applications) is the single largest focus of OEM partnerships at this point. IoT, AR/VR, and Blockchain are anticipated to garner more attention over the coming 1-3 years.
When it comes to dealing with emerging and complex technologies, industries across all sectors are �nding bene�t in partnering with OEM manufacturers to enhance and push the boundaries of technology .
What drives OEM partnership?Assessing OEM Adoption
Enabling innovationthat disrupts industries
Accelerating business valuethrough OEM partnership
Insights
Insights
Insights
OEM Partnerships have been importantin driving transformational initiatives
And enabled thecompanies to achieve
87%
Driving Cost Reductions –A Budget Outlook
41%
41% of respondents from China cite that OEM partnerships are
critically important to reduce customer churn
46%
46% of respondents from Latin America say that
OEMs critically important to improving CX
20%
20% of respondents from EMEA cite that OEM partnerships are critically important to reduce
customer churn
Companies are looking for OEMs to not just �ll gaps in product o�erings but to meet strategic initiatives and targeted business goals.
OEM Partnerships help drive increased business value for oragnizations, particularly for increasing sales/revenue, improving customer experience (CX), and gaining a competitive advantage.
Insights
What the future holds?
OEM Partnerships can yield signi�cant cost savings, particularly in the areas of R&D and manufacturing.
The challenge many organizations face is of budget allocation, rather than speci�c budget scarcity.
The close alignment of the overall technology budget and OEM-focused budget indicates a high level of OEM product integration.
OEM and technology budgets are closely aligned.
The increasing adoption of OEM has helped 34% of companies achieve a minimum of 40% cost savings in the areas of:
Customer Service | Distribution & Logistics | ManufacturingResearch & Development | Sales & Marketing
of companies expect a dramatic increase in OEM budgets over the
coming 18 Months
expect a decrease in the
OEM budget
expect a slight
increase
Customer Service Distribution & Logistics Manufacturing
Distribution & Logistics Manufacturing
Defense Industries
Banking & Finance
50% 39%
Defense Industries
Banking & Finance
41% 39%
Energy & Utilities
Banking & Finance
38% 37%
Banking & Finance
Healthcare & Pharma
47% 36%
Defense Industries
Banking & Finance
44% 43%
4%
52%
24%
28%
37%
41%
43%
Adoption of OEM partnerships could grow by a CAGR of
20 to 25% over the coming decade. Driving factors:
By 2025, up to 50% of current businesses will cease to exist in their current competitive state owing to new state of technology and consumer evolution.
Companies that do not leverage the advantages of OEM partnerships, and build proper collaborative ecosystems, will eventually fail.
Increasing market for technology products and services
Increased demand for OEM Partnerships to meet customer and business demands
By 2025, companies engaged in above-average levels of OEM Partnerships will accelerate sales growth and cost reductions.
Sales growth by
35%Cost reductions
45%
About the Study:
A global look at the ability of OEM and third-party partnerships to drive innovation, improve time to market, and increase competitive business value.
Sample pro�le
1K - Executive, Business & Tech Professionals Surveyed during June/July 201892% - Percent Respondents with a High to Very High Level of Responsibility • 61% - Very High Level of Involvement. Primary Decision Maker. • 31% - High Level of Involvement. In�uencing or Making Decisions
8% - Moderate Level of Involvement. In�uencing but Not Making Decisions.44% - Percent of Respondents at Senior or Executive Levels86% - Percent of Respondent’s Orgs with 1,000 + Global Sta�
86% 80% 74%
Performance& Features
CostReduction
Scalability
BlockchainMulti-Cloud (A mix of or multiple public,
private, or hybrid cloud solutions)
AI (Including machine learning)
IoT(Internet of Things)
31% 20% 17% 12%
Security Transformation
IT Transformation
Digital Transformation
Workforce Transformation
28%
37%
37%
42%Increased
sales/revenue
Improved customer
experiences
Gain competitive advantage
Loweroperational
costs