Module 8 - Outsourcing Innovation

Do you do white box or black box outsourcing? Are you primarily OEM or ODM? Do you have a mix? Do you have a few close captive suppliers, or a number of alternative suppliers? Are your suppliers integrally involved with the internal workings of a product or project, or are they given a set of specifications with a physical envelope and input/output requirements and work at arms length? To what degree do you expect innovation from your suppliers and not just cost reduction? Are you working around the globe in an "offshoring" mode with different languages and cultures, or are you "nearshoring" where your suppliers are more easily in touch with corporate expectations and performance criteria?

Do you and your suppliers brainstorm together at the beginning? Or, is your company fearful of letting suppliers see too much? Does your process and associated "non-disclosure" paperwork help or hinder innovation?

Did you know that some 90% of all outsourcing is for new product design while less than 10% is for sustaining, cost reduction, and maintenance activities?

The goal of this module is to provide Summit attendees with the emerging techniques that appear to foster innovation in environments that are outside of direct corporate control.