This white paper attempts to look at the various aspects of Demo/Eval programs that are commonly used by manufacturers to test the usability of their product and also understand some of the basic user requirements that should be offered to enhance saleability.

1. The case for
Outsourced Demo/Eval
Program Management
An Extron Whitepaper
©2009 Extron Logstics. All Rights reserved
No part of this publication may be reproduced without prior
written permission from Extron Logistics

2. Table of Contents
I Executive Summary
1. Introduction
2. Widespread Use of Demo/Eval Programs
2.1 Examples of Demo/Eval Programs
2.2 Major Industries that use Demo/Eval Programs
3. Challenges with Demo/Eval Programs
3.1 Asset Loss
4. Finding a Solution
4.1 Finding a Packaged Demo/Eval Program Management Solution
4.2 Benefits of a Packaged Solution
5. Conclusion
II About Extron
The Case for Outsourced Demo/Eval Program Management 2

3. Executive Summary
As new products are developed and introduced in the market, it becomes important for manufacturers to know
the saleability of these products to further explore the marketing possibilities in the niche user segment.
This white paper attempts to look at the various aspects of Demo/Eval programs that are commonly used by
manufacturers to test the usability of their product and also understand some of the basic user requirements
that should be offered to enhance saleability.
The white paper covers certain specific examples of these programs, the challenges posed by these programs
and how a packaged Demo/Eval program offered by an external provider can enhance its effectiveness.
Read on to know how experienced players in the supply chain space can offer their expertise in increasing
your product's visibility and reach.
The Case for Outsourced Demo/Eval Program Management 3

4. 1. Introduction 1. Introduction
Today's product choices reflect increasing
sophistication and integration of varied technologies -
networking, audio/video integration, computing, and
more. The long-stated “convergence” of computers
and communication is actually happening all around us,
only it is going further than many expected. To deal
with this, and to familiarize buyers, both individuals
and corporate, with these new products, Sales and
Marketing organizations today are devising new and
innovative ways to put spotlight on their products and
its benefits. This is especially true of revolutionary
products where users might not understand the true
value of the product until they actually experience it.
Evaluation Programs (also known as Demo or simply, “Try
Before You Buy” Programs) are one such way since statistics
show that people would rather opt to try something at no cost
rather than buy products as soon as they are released. These
Demo units are offered for trial for a limited period and
sometimes with limited functionality. This way companies can
ensure that more potential customers can experience their
products. Similarly, demonstrating products at various consumer
forums can also help companies to market their products in the
best possible light. One very visible success story, for example,
was the launch of the Wii Fit from Nintendo, which was
promoted at retail outlets, shopping malls, County fairs and
umpteen other sites. This revolutionary product line's
significant consumer adoption was enhanced by many 'try
before you buy' programs. Another example, in the technology
sector, has been Barracuda Networks' “free eval unit” program.
By all indications, this program has been wildly successful and
helped supercharge Barracuda's sales effort.
Similar programs are being used in video conferencing, storage,
graphics, email archiving and many other sectors. This reflects
the true breadth of the convergence of communications,
computing and multimedia.
The Case for Outsourced Demo/Eval Program Management 4

5. 2. Widespread use of Demo/Eval
Programs
Demo/Eval programs are not new concepts to the consumer. Just
like a trial ride on a bike or a test drive on a new car, these
programs target the end-user directly, encouraging her to gain
familiarity with the product even if she is not considering buying
the product. This experience-based sale enhances the 'trust
factor' in the potential customers mind. These programs are used
by world's most successful OEMs (Original Equipment
Manufacturers) to promote and showcase their products.
Figure 1 below shows typical workflow of a well architected
Marketers of Revolutionary Products
Demo/Eval program.
ignore the Demo/Eval Channel at
their peril. Figure 2 below shows approximate percentage of industries
actively using these programs.
Demo/Eval Program Management
Figure 1
The Case for Outsourced Demo/Eval Program Management 5

6. 40%
35%
30% 40%
Percentage Users
25%
20%
30%
15%
10%
20%
10%
5%
0%
IT Product Assistive Laboratory Others
Companies Technology Equipment
Percentage Users
Figure 2
2.1 Examples of Demo/Eval Programs
What started off as a simple 'try before you buy' program by
Diba, a set-top software manufacturer for the set-top Internet
access boxes, has now become a stepping stone for building
deals with the top three Internet Service Providers in the US.
Similarly the IBM PSSC Center had allowed scientists, to test
and benchmark their high-performing applications over mixed
hardware and software environments, before they purchase these
expensive solutions. Here, the strategy adopted was to offer the
products to potential customers for evaluation before they
purchase it.
Even Cisco, one of the largest IT hardware producers offered a
'trial offer buy' for some of their products through TechData, a
couple of years ago. Cisco still offers such programs. Another
classes evaluation program is the one offered by Intel
Corporation. Intel offers registered customers with debug and
validation tools for certain platforms, on a 30 day trial. In both
these cases, the companies offered to choose only their existing
customers or partners for their trial run.
The Case for Outsourced Demo/Eval Program Management 6

7. The evaluation program created by Motorola was a unique case,
where, mobile application developers were allowed to test
application compatibility and performance on Motorola handsets.
This has helped Motorola identify high speed, compatible and
user friendly applications that can be used with their models.
Or, some of them simply offered to get a feedback on their new
product line - like how EVGA did. They choose a selected few
from their registered members to try out their new systems for a
two week period.
2.2 Other Major Industries that use Demo/
Eval Programs
Assistive technology products for people with certain
hearing/vision or learning needs are also offered as Demo kits.
Even educational kits and programs are sent as samples to test
drive classroom products in schools and colleges. Products like
calculators, equipments like overhead projectors, lab equipment
etc., are offered this way to different user segments.
3. Challenges with Demo/Eval Programs
There are, however, many OEMs that have not adopted
Poorly executed Demo/Eval programs
Demo/Eval programs. In many cases this is largely because there
can showcase your product in a
are certain inherent pitfalls in Demo/Eval programs that need to
negative shade while a well executed
be addressed with industry specific parameters . Sectors like
Demo/Eval program can showcase
your products in a positive light. medical, test and measurement, computing, audio-visual assets,
data management, etc. are still lagging behind in the Demo/Eval
programs because they lack certain logistics infrastructure
capabilities and product tracking capabilities.
Demo/Eval programs can offer large selling advantage to
manufacturer's by providing them a first mover advantage over
less visionary marketers. However, in order to effectively utilize
Demo/Eval programs, there are several prerequisites. Most
important among these is the effective management of the
program. Thus, the need for a reliable operation to manage this
program is paramount.
The Case for Outsourced Demo/Eval Program Management 7

8. Figure 3 below shows how users responded to the demo of an
SCM software (taken from a study conducted on the automotive
industry).A large number of people have collectively stated that
major software and hardware customizations are required for the
SCM software.
5%
Demo/Eval program management is
12%
not part of the core skill set of most Software Customizations
29%
operations of the organizations. Required
Hardware Alterations Required
Both Required
None
7%
No response
47%
Figure 2
Demo/Eval programs however have certain in-built deficiencies
that need to be tackled to fully utilize them as an effective
market penetrating strategy.
3.1 Asset Loss
a) Asset Loss & Product Availability Issues
Pitfalls of Demo/Eval program
Asset loss is touted as the biggest drawback for OEMs. This is a
- Asset Loss common problem even when the software or hardware is shipped
to the chosen group of registered users. This is because most
- Poor Asset Utilization OEMs transfer the return shipment responsibility to the test user.
- Sales Person's mobility/data loss Additionally, some customers may forget or otherwise neglect to
return Demo units because it is a hassle.
- No Data Management Platform
When the new product line is manufactured in limited volumes,
- Lack of operational infrastructure the cost of the asset loss can be significant, reducing the
incentive for the OEM to adopt this very worthwhile sales
- Insufficient Testing/Evaluation in
simulated Environment channel.
The Case for Outsourced Demo/Eval Program Management 8

9. b) Measuring Asset Utilization
Most companies, due to sufficient asset management
measurement tools/mechanism, under utilize their assets leading
to poor financial results that may threaten the existence of the
business. Well managed asset utilization avoids additional capital
expenditures and still maintain current or better levels of
production and quality.
c) Salesperson mobility
While Eval programs are aimed at procuring valuable feedback
from probable clients, most organizations have failed to address
the problem of salesperson availability/mobility for sudden
problems or issues that crop up with product usage. There is no
well-managed infrastructure that could possibly manage these
programs and attend to service issues during the trial period.
What happens in such scenarios is that most test users abandon
their programs half-way, thereby causing an investment loss and
time-loss for the OEMs.
Salesperson mobility is a significant issue because many
Demo/Eval program are actually managed as 'trunk stock'
programs. The problem with this approach is that when a
salesperson leaves an organization, they may not return this
Demo 'trunk stock' (further increasing asset loss) or simply
neglect to pass on details as to which customers have Demo
units. This makes it very difficult for the replacement
salesperson to follow up on.
Intel offers a wide range of tools for its Demo/Eval programs.
Every tool is accompanied with a detailed user guide, ensuring
that there are no hiccups during the testing/evaluation phase.
d) Insufficient Testing/Evaluation in simulated environment
A common problem with hardware and software trial buys is the
lack of testing simulation in customer environment. The demo
programs, software updates or testing solutions need to be
customized to individual needs of the user or user organizations
The Case for Outsourced Demo/Eval Program Management 9

10. to ensure they are successfully tested or evaluated to avoid poor
out-of-box quality of the product that could be embarrassing and
also to save Field Sales Engineers time who would demo the
product.
When EVGA offered their motherboards for trial usages, many
users faced problems with installation and other usage
procedures. Although the product quality was very high it went
unnoticed by the customers because it was “masked” by
installation issues. Many customers made note of this in their in
their online response to the manufacturer.
e) Lack of Operational Infrastructure
Underlying almost all the above pitfalls is the overarching truth
that most organizations are simply not set up to manage
Demo/Eval programs.
They lack tracking tools, processes, flexible technical resources,
ability to distinguish between Demo/Eval and Brand New Units
and more….. The result is that all the above pitfalls: asset
management, loss of customer data, poor out-of-box
performance may actually serve as operational negatives to what
might be a positive product experience, if the operational
aspects of Demo/Eval deployment had been handled properly.
4. Finding a Solution
Logistics and Asset Management organizations have responded
with solutions, but typically these solutions fall short and do not
offer a transparent asset management platform as a starting
point. This is where organizations owe it to themselves to find
solid providers with the tools, processes and proven experience
to manage Demo/Eval programs.
Some of the key aspects that OEMs need to look for in a
Demo/Eval Solution Provider include prior Demo/Eval Program
Management experience, logistics experience, technical
resources (capable to testing and refurbishing assets), a well-
developed software platform (software is indispensible in
managing eval programs), “light” manufacturing expertise,
Engineering Data controls (BOMs).
This boils down to selecting a provider with the appropriate
'Experience and Infrastructure'.
The Case for Outsourced Demo/Eval Program Management 10

11. 4.1 Finding a “Packaged” Demo/Eval
Program Management Solution
Since an Eval program or a Demo program relies on factors such
as product excellence, device demonstration, customer intimacy
and short-term effectiveness, as well as high asset utilization, it
is important to select a provider with the expertise and
infrastructure required to support all these needs. For example,
the ability to move goods alone is not enough, nor is technical
expertise.
The ideal provider will combine multiple disciplines and
provide solid infrastructure and experience:
- Process discipline and control
- Software skills
- Technical skill
- Logistics expertise
This infrastructure consists of:
- Program Management software infrastructure
(Preferably web-based)
- Test labs with trained technicians
- Call center support
- Solid Business Processes Reporting
The Case for Outsourced Demo/Eval Program Management 11

12. Benefits of a “Packaged” Solution
A packaged solution that an ideal provider provides
combines many benefits:
a) Prevention of Asset Loss
b) Leveraging Logistics Skills
c) Customized Programs to Suit Client Needs
Allows business to focus on core
competency/ reduces assets loss/ d) Speed
and increases rapid time to market
significantly. e) Cost (Absolute and variable)
f) Capacity
g) Data Management
h) Performance
5. Conclusion
Demo/Eval programs can be much more beneficial by
Choose a sophisticated vendor to
partnering with a qualified provider. The experience and
manage your Demo/Eval program
efficiency in managing the supply chain process will ensure that
and experience the value it can bring
to your organization. these programs lay a strong foundation in building the much
needed market segment for your product.
The Case for Outsourced Demo/Eval Program Management 12
9

13. About Extron
Extron has been a pioneer in providing supply chain and retail
chain solutions for many of its clients across the globe. Being an
Extron client gives the unique advantage of efficiently
managing the complete supply chain process of the complex
Demo/Eval programs offered by your organization. Extron's
state-of-the-art Demo/Eval capabilities are aimed at providing
the best service to safeguard your valued assets and
investments, eventually. Extron has developed a multi-million
dollar infrastructure to manage Demo/Eval programs for
technology companies (medical, test and measurement,
computing, audio-visual assets, data management, etc).
For more details on Extron's Demo/Eval programs, click
Or email us at sales@extronlogstics.com
This whitepaper has been written by Extron:
http://www.extronlogistics.com/
The Case for Outsourced Demo/Eval Program Management 13