Product research and development on innovation capability.
Some hope can be in OEM customers under the help of the development of its own r&d competence. This desire not reality, the customer not philanthropist, they didn't have the obligation to help you. OEM the first to have its own r&d team, design the innovation ability, developed with the market value of the products, seize the customer's eyes, just have the possibility of further cooperation. Might as well look flextronics practices.
It has come into money form high level design team, Japan Kyocera company (Kyocera) a cell phone, come from its design. Last year it also spend $80 million bought design company mike cernet (Group), the latter have Microcell 300 r&d engineers.
Understand customer needs ability.
Although some OEM boast, in satisfying the needs of customers, but has peaked with production quality, cost, delivery date and other mandatory measure of different, on the design of standard often are difficult to quantify, sometimes even appear "I want a looks very beautiful product" such customer requirements, at this time will need to ODM manufacturer to help customers to find market positioning, again carries on the design.
Flextronics is the chief technical officer Nicholas Brathwaite had said "from according to the contract production expands to more product development is a major challenge," flextronics will "take measures to improve the design and manufacturing department and customer communication between".
Who knows, do a point a point money products, make brand a dollar a dollar money, when the company was not capable unary unary making money, may wish to "money" -- from some part OEM to ODM can improve our ability to make a profit, estimates, flextronics within one year from the initial scale of ODM can business received one billion dollars income.
Just before any company in transition, don't forget to weigh yourself in manufacturing and operates outside of the third abilities - design capacity in quantity.