TiVo - transformational outsourcing as a startup
February 19th, 2008 by 
Chris Harris
In the December 2004 issue of HBR is an article by Jane C. Linder on transformational outsourcing. Linder defines transformational outsourcing as, “partnering with another company to achieve a rapid, substantial, and sustainable improvement in enterprise-level performance.” Moreover, Linder subdivides transformational outsourcing into four categories:
- Rapid start-up: Outsource to rapidly scale up a new business
- Pathway to growth: Outsource to fix a key process that stands in the way of growth
- Change catalyst: Outsource to signal broad change and focus on adding value
- Radical renewal: Outsource to improve core operating capability rapidly.
In the article, TiVo is described as a startup using outsourcing to ramp up to “enterprise-level performance” in no time flat. TiVo partnered with Sony to manufacture one of their DVR designs, many affiliate partnerships to advance sales & marketing, and Metron North America for their CRM operations (which shocked their clients several years later by closing their office with only 48 hours notice!).
They began most of these relationships between 1998 and 1999 and have grown markedly into easily the best DVR offering available. Their business model is suspect, but their time to market and product quality have been undisputed for almost a decade. Outsourcing helped propel them from early stage startup to the top ranks of consumer electronics in just a few short years.
Nice job TiVo.
Posted in Outsourcing, Start-up, Technology | 