About the model

Introduction Black Box

In Black Box, the OEM outsources product development and manufacturing based on a set of product requirements. The supplier will do the development independently, without involvement of the OEM. The supplier will demonstrate that the developed product meets the requirements. The responsibility for production and Life-Cycle Management of the product is also outsourced to the supplier. In this model, the product documentation becomes the property of the OEM.

Characteristics of the model

Time to market

If an OEM itself does not have sufficient competencies or people to develop a product, this model can help launch a product into the market faster. The alternative of building your own competencies can often take years.

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Quality

Quality – Using experienced developers from the supplier helps to develop a product that meets the desired quality standards.

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Total Cost of Ownership

Total Cost of Ownership – relative to the Build to Requirements model, the transaction costs between OEM and supplier will be able to be lower because the supplier can work more independently. 

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Organization

Organization – the collaboration in this model is simpler than in the Build to Requirements model because the supplier takes more responsibility for development, production and life-cycle management. Depending on the situation, the collaboration can be structured as an alliance or more transactional.

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When is the Black Box model suitable?