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