Building ODM Capability through Vertical and Virtual Integration

Based on literature reviews and an ODM (original development manufacturing) case study, this paper presents influences on ODM capabilities from vertical integration (VEI) and virtual integration (VII) decisions. A new concept for extended vertical integration and a three-dimension model for virtual integration are discussed. Extended vertical integration can offer ODM manufacturers an advantage with agility. Virtual integration through physical, information and relationship factors can help manufacturers improve reliability of quality and delivery.