Reduce Product Development Costs and Increase Innovation

I know that the headline sounds contradictory. Maybe you’re scratching your head and asking yourself how is that even possible but read on! All will be revealed.

For decades, product development organizations have traditionally used heterogeneous, component-level hardware and software for their designs, depending largely on in-house mechanical and electrical engineering to differentiate their products. However, as the well-known song goes, the times they are a changing. If your organization is involved in product development, you’ve already seen first-hand how the Edge is transforming business model and product functionality goals.

A new product system lifecycle

Remote monitoring, AI and virtualization are transforming the product system lifecycle from design through production and service. Huge volumes of data, the advanced connectivity of 5G plus the adoption of new technologies are all driving digital disruption. Business value is moving from products to the data generated by products, and the business insights they deliver. As a result, workload demands are becoming ever more complex with increasing demand for standards-based, integrated computing platforms.

New customer demands

This all means that new demands are being placed on product developers and solution builders. In addition to delivering on the technical side, you now have to think about supporting your customers to generate new revenue streams, build as-a-service models, create account stickiness, and ensure end user satisfaction. However, ever-changing specifications, schedule and cost overruns continue to present challenges.

Key trends in product development

What impact does all this have on technical decision-making? As part of a global research study in partnership with Intel and Dell Technologies OEM Solutions, VDC Research surveyed over 700 product decision-makers and engineers to gain insights into best practices and key business and technical trends.

Respondents were drawn from a diverse range of industries including automotive, aerospace and defense, healthcare, industrial automation, and transportation. Hot off the press, the report makes for interesting reading. I’ve highlighted some key findings below but we’re looking forward to sharing more with you at our upcoming webinar on February 18th.

Partnership rocks

At a top level, the research reinforces the undisputed power of partnership. By strategically outsourcing more of the integrated compute and related development, test, and management with Tier one partners, VDC Research found that you can bring differentiated solutions to market faster and at lower cost. In particular, there are huge benefits and cost savings associated with leveraging commercial hardware systems instead of relying on traditional in-house, component-based engineering.

Dramatically cut development cost and reduce time to market

The results speak for themselves and will transform how product development is managed. For example, did you know that companies using commercial hardware platforms cut their total development cost by 70%, compared to those sourcing only component-level technology?

In fact, commercial hardware platform users are 2X as likely to complete their projects ahead of schedule than those that rely on component-level technology from third parties. As you can imagine, this speed translates into earlier revenue returns and expanded product profitability. One organization reported that the use of a Tier 1 commercial solution helped improve profitability by over 50%.

More time for innovation

Time is money. The study shows that organizations sourcing complete commercial hardware platforms are able to devote nearly 2X more of their time in developing differentiating IP, such as that focused on analytics and cloud connectivity, instead of spending it on lower-value tasks. In fact, bringing in additional expertise and leveraging third-party services increases the likelihood of beating schedules by a staggering 4X!

Improve scale & service

And that’s not even to focus on the additional benefits associated with scaling up and after-sales services. A Tier 1 technology provider can help you manage supply chains, provide global serviceability, and offer broader ecosystems with supporting technology and expert partners.

A business imperative

You cannot afford to ignore these results. It’s a no-brainer! You have to focus your time where it matters most. It’s time to urgently re-valuate your design choices, review your network. It’s time to refocus your efforts on cutting costs, while simultaneously driving innovation and ROI. You have to select the right technology and the right partner to help you optimize your solutions and keep pace with both market dynamics and the evolving requirements of end users.

Dell Technologies OEM Solutions and its expert partner network are ready to collaborate with you to design solutions to meet current challenges, while focusing on tomorrow’s opportunities. We do this, using either industry-standard or customized hardware, all built around open standards to allow you and your customers to focus on your IP and pivot fast to address new opportunities. 

Source: delltechnologies.com