CHALLENGE
Fix product launch delays related to independent hardware vendors (IHVs). A large OEM’s system launches were delayed because IHVs were late in developing and sending product (key server communication cards) to production or were delivering non-conforming product to the OEM. This caused delays for multiple product lines and tens of millions of dollars in lost revenue opportunities due to the OEM being late to market.
DIAGNOSIS
- Disparate and confusing requirements for key components were being communicated to IHVs from multiple engineering development teams that caused IHVs to react to their PERCEIVED idea of what was really important to the OEM as a whole.
- When one product group’s efforts were hurt, it also hurt the IHV’s standing with other groups on the next go-round. This was highly inefficient and costly to both the vendors and the OEM.
KEY CHANGES
Developed a framework for collaboration with the hardware and software architects and key engineering leaders by institutionalizing an annual IHV Summit where cross-business unit coordination and collaboration became the norm.
IMPACT
- Pushing these key players into a collaborative forum resulted in consistent requirements from the OEM for the IHVs
- Time-to-market improved by 3-6 months; estimated impact was $400-$500M in earlier revenue for each generation of OEM server product portfolio