ODMs, or original design manufacturers, are changing the way many electronics and computerized devices are manufactured. Basically, ODMs take on the responsibilities of the manufacturing stage of product development and leave the designers to ponder concerns such as usability, functionality, and product purpose. This allows companies to reduce some of the risks associated with launching a new product, which in turn allows them to develop new products more quickly and with less hesitancy.

Generally, ODMs create products from various bits of existing technology that are arranged according to their client's (often large, brand name companies) designs. They may also be able to quickly incorporate new technologies through production processes that can quickly adapt to new manufacturing methods. This allows entry-level clients a leg up in the business, as well as clients wishing to establish themselves in new markets.

Risk Reduction with ODMs

ODMs reduce the risks of developing new products by offering low-cost manufacturing that doesn't require a shift in the companies' current manufacturing operations. They also allow companies the freedom to drop or add new product lines much more quickly than past manufacturing processes allowed. This allows companies to adapt to market performance and concentrate on improving products that show high levels of potential.

Risk is also reduced through the increased freedom that client companies have to concentrate on design. By increasing the time spent refining a product's function, appeal, and use, companies can minimize the possibility of a commercial flop.