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Distributor Scenario 2 - Design Win, Version 1.0 
Status: Pre-Ballot Draft, August 2002

Process Activities

Special Notes:                   

Few companies automate an entire business process all at once.  A Design Win business process may be implemented in multiple steps, as represented by the component business models contained in the scenario.  Some companies may decide not to automate some parts of the process if an ROI analysis indicates that automating that part is not cost-effective.


Activity Diagram (See also Narrative):

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Smaller Print Version of Diagram



Narrative (see also Graphic):

Step Description
A. Start state A occurs when a supplier of electronic components products wants to send out a new or modified list of products eligible for Design Win incentives. The list may be published to several distributors.  The product is eligible for the incentives only for a specified time period, then that product is removed from the eligible products list.  Updated lists are published periodically.
1. Eligible Parts List.  This is usually a separate list but could be incorporated into price catalog.
C. Start state C occurs when distributor's field engineer starts working with a customer on providing components for a new product design.
2. The distributor and its customer begin the process of sourcing components needed for the customer's new product design.
3. As part of the design process, components eligible for Design Win incentives will be reviewed to see if any are suitable candidates for the design of the customer's product.
D At end state D, it is determined that none of the eligible components are suitable or that suitable components are not eligible for Design Win incentives (no Design Win Opportunity).  The distributor may still wish to pursue Ship-from-Stock and Debit authorization for the components designed into the customer's product (Distributor Scenario 1).
E Start state E occurs when the distributor wants to request a change to a Design Win Registration.
4. When a distributor's customer has agreed to design-in a component eligible for Design Win incentives, the distributor sends a Design Win Registration request to the component supplier.  The request may include a request for Ship-from-Stock and Debit Authorization so that the distributor can submit debit claims for stock shipped at non-discounted price as soon as the distributor has met all the criteria for Design Win incentive awards.  The component supplier responds with either an approval or a denial.  The component supplier may deny the registration if another registration for the same product and same end-customer has already been approved.
F At end-state F, distributor may not have been awarded a Design Win, but may have received Ship-from-Stock and Debit authorization. Refer to Distributor Scenario 1.   The distributor and its customer may still continue to work together on the new design even if no win was obtained; the component product in question may still be the best one for the customer's new product.
5. When new products are developed, the process is the same whether or not a Design Win opportunity exists.  However, when there is a Design Win opportunity, there may be a greater urgency to complete the design rapidly so that a market opportunity is not lost.  The design process can take weeks to months, so a significant period of time may elapse between successfully registering a design the first event that qualifies for an incentive award.
6. The distributor processes purchase orders from its customer.  There may be orders for samples, for a prototype run, and eventually, production orders.
7. When processing an order from its customer, the distributor may request that the component supplier provide updated status of Design Win registrations.  The component supplier responds with a status report.
G Start state G indicates that the registration status report may be requested at any time that the distributor wants to do an audit or perform data base synchronization with the supplier.
8. (Optional) The distributor reports point-of-sales transactions to the component supplier, per the appropriate Sales Reporting Scenario.  Sales may be matched to Design Win claims. Timing important to reconcile claims with POS data.  This step is optional because the timing of claims and POS reporting are often different.  For example, claims may be sent weekly and the POS report monthly, or the POS reporting could be daily and the claims done monthly.
9. In the back-end application, the distributor does extensive, iterative analyses of relevant data to see if criteria for Design Win incentives have been met.  This is complicated by the fact that different component suppliers set different criteria for eligibility.  This process is iterative, since there may be more than one level of incentives that the distributor can qualify for.
10. In the back-end application, the component distributor does extensive, iterative analyses of relevant data to see if criteria for incentives are being met and to see if estimates for market performance are up to expectations.
H. At end state H, the distributor has determined that it's not yet eligible for Design Win claims. 

The distributor may not be eligible for discount and/or bonus until a sales quota or other condition has been satisfied within a specified time frame. Other conditions include the achievement of various milestones in the NPI process, including but not limited to: 1) distributor's customer has designed in the supplier's component, 2) customer has placed initial order for prototype, 3) customer is using the supplier's component in production.

The distributor will continue to perform ongoing analyses (step 9) until it is determined that criteria have been met.

I. At end state I, the supplier has performed an iteration of data analysis for Design Win component products.  If sales are meeting expectations, the supplier will wait for the distributor to submit claims for incentives.  If sales are not meeting expectations, the supplier may treat this as an exception requiring follow-up action.  Such action requires complex human interaction and is handled manually.
J At start state J the Debit Claim process may be invoked if distributor's re-evaluation of data indicates that criteria for eligibility have been met.
11. If eligible, the distributor may submit a debit claim upon reselling the component supplier's product.  The component supplier will send a response that confirms or denies the claim.  If the debit claim is approved, the distributor debits the appropriate amount from what the distributor owes the component supplier for other transactions.  See Distributor Scenario 1and component model Debits and Credits Model 5 for details.
K. At end state K, the distributor has determined that it's not yet eligible for Design Win bonus awards/rebate claims.  The distributor will continue to perform ongoing analyses (step 9) until it is determined that criteria have been met.
L. At start state L, Design Win Claim process may be invoked if distributor's re-evaluation of data indicates that criteria for eligibility have been met.
12. If eligible, the distributor may submit a Design claim upon meeting the criteria for Design Win incentives.  The component supplier will send a response that confirms or denies the claim.  See component model Debits and Credits Model 9 for details.
M. The process ends when eligibility period for Design Win incentives has ended.

 

Last updated 24 February 2003