OEM is short for Original Equipment Manufacture. If the company resell another company’s product under their company and branding, it is called OEM, such as automobile industry and aeronautical industry. This business model is the same with VAR (value added reseller). The company can add some values before their market the products.
Oppositely , ODM is Original Design Manufacture. The business model of ODM is different from OEM because it allow the company to have its own product design. ODM can have some advantages, especially when the company wants to do the international trade. This kind of business will allow the company to have its own patent and intellectual property.
As you know the differences between OEM and ODM, what do you think which one can easily become an innovative organization?