What are OEM Partners?
OEM (Original Equipment Manufacturer) Partners offer companies third-party personalized software that can be embedded within their own proprietary products. OEM Partners operate similarly to white label software though they differ in the level of customization offered.
White Label Software’s cosmetic solution only lets companies adapt software to the look and feel of their brand, while OEM Partners allow companies to make integral changes to the core software itself based on their specific needs.
OEM Partnerships are a cross-industry practice that empowers companies to design and incorporate the software they need without investing in specialized, costly IT experts.
The third-party software that OEM Partnerships generate comes with a number of distinct benefits: companies that enter into OEM Partnerships have access to ongoing customer support, while the OEM takes responsibility for any cybersecurity measures the software might entail.
Moreover, companies that choose to acquire software through OEM Partnerships receive highly individualized software components that add value to their own products while minimizing any maintenance issues the software may incur.
How Can I Use OEM Partners?
The benefits that companies derive from OEM Partnerships can be divided into two types: process improvement or product completion. A classic example of an OEM Partnership that impacts company strategies and practices is embedded analytics. Companies use OEMs to provide cloud, on-premise, or hybrid analytics to company data culled from different areas of the organization.
The high level of customization that OEM Partnerships offers means that whatever their IT capabilities, companies can glean the maximal amount of actionable insights from their disparate datasets.
See it in action:
With tailored prescriptive analytic technology embedded directly into their software or hardware, critical vectors such as employee agility, marketing tactics, inventory maintenance and more receive data-based recommendations to improve ROIs. As a third-party integration, embedded analytics are able to organically scale as companies grow.
OEM Partnerships also offer specific software components that complete proprietary offerings. One industry that’s typically associated with OEM Partnerships is smartphones. Technology companies that produce smartphones often approach third-party software providers to design their phone’s pre-installed software.
Though this software company may build software for a variety of smartphones, each technology company that partners with them will receive a unique software product or products that are licensed to them, which they then bundle, brand, and sell as their own.