The Alchemist’s Strategy: Transforming a Component into Platform Magic

Dragons are often depicted as fearsome creatures in myth and folklore due to their combination of powerful physical attributes, magical abilities, and a reputation for being territorial and destructive. Key factors contributing to their ferocity include their immense size and strength, their ability to breathe fire and fly, and their tough, protective scales.

Packages (or bundles or platforms depending on the industry you are in) to a component manufacturer seem like dragons because they possess the same intimidating combination of attributes that make them nearly impossible to fight directly.

  • Their immense size and strength translates to the bundle’s massive market presence and financial resources. Platform companies or powerful integrators can outspend, out-market, and out-negotiate any individual component manufacturer. They have the scalability (no pun intended) to offer pricing that single-component companies simply cannot match.
  • A dragon’s ability to breathe fire and fly mirrors the package’s reach and destructive capability. They can swoop into any market segment, leverage their integrated platforms to undercut pricing on individual components, and essentially “burn down” the traditional component business model. Their mobility across multiple product categories gives them strategic advantages that ground-bound specialists cannot counter.
  • And finally, the dragon’s tough, protective scales represent the bundle’s defenses – customer switching costs, integrated workflows, single-vendor relationships, and unified support contracts. Once customers are locked into a platform’s ecosystem, these protective layers make it extremely difficult for component manufacturers to penetrate and win back business.

Just like mythical dragons hoarding treasure in their lairs, bundle platforms jealously guard their customer relationships and use their integrated ecosystems to keep competitors and component manufacturers at bay. In other words, the component manufacturer faces the same dilemma as the medieval knight: direct confrontation is likely suicide (read Beowulf), so victory requires cunning, speed, and finding the few vulnerable spots in an otherwise impenetrable defense.

And some magic.

But before any conversation about platform partnerships, integrator strategies, or fighting dragon bundles can take place, a component manufacturer must answer one essential question:

Where does your component fit in the system?

In other words, are you inside someone else’s product—or are you inside someone else’s project of bundle? This single distinction will define your go-to-market strategy, your visibility, and your value and how you fight your dragon.

If your component is buried inside another manufacturer’s product—sold as part of a flush valve, a wall panel, a speaker assembly—you’re in what might be called the “invisible tier.” Your customer is the manufacturer, not an integrator. Your focus is on OEM performance, cost targets, supply chain efficiencies, and silence. You win by being the best thing no one ever sees for that manufactured product. So you are really not fighting a dragon; you’re fighting a mindset, a procurement officer, a performance issue.

But if your component is installed independently as part of a broader system—selected by engineers, specified by consultants, or installed by integrators—you are in the “visible tier.” Your brand, your reliability, and your compatibility matter. You are subject to substitution and evaluation, and you must earn your place continually. And that is where bundle dragons live and breathe.

Tier Product Role Customer Strategy
Invisible Inside someone else’s product OEMs, assemblers Price, reliability, anonymity
Visible Specified in projects Integrators, consultants Brand, performance, visibility

This white paper is written for those in the visible tier: manufacturers of components such as audio devices, sensors, flush valves, lighting controls, mixing valves, occupancy detectors, or HVAC field devices—products that are selected as part of larger integrated systems, yet face increasing pressure from the bundle dragons who put together these prepackaged, turnkey solutions. Whether your product is designed for a security system, a commercial restroom, a lighting environment, or a mechanical room, if it must earn its place in a spec or a system assembled by others, this paper will help you differentiate and succeed against these beasts.

Your biggest challenge is staying relevant—and valuable—when the market is moving toward packaged convenience. It’s hard to fight a dragon.

But first, you must define where you magic – your position. Because only then can you decide how to stand out in battle.

Where’s the Magic?

Manufacturers in the building systems and security integration landscape find themselves in a difficult situation. Once dominated by discrete parts—audio, access control, sensors, video—today’s landscape increasingly favors comprehensive, bundled solutions sold as single ecosystems – the dragons.

For example, companies like Verkada now offer cloud-based security platforms that combine high-definition cameras, door access controls, environmental sensors, and audio detection in a single managed system. Similarly, traditional giants like Honeywell and Johnson Controls have evolved from selling standalone alarm panels and CCTV equipment to providing unified building management ecosystems that integrate security, HVAC, lighting, and fire safety under one interface.

This bundled approach extends to smaller-scale solutions as well. Ring transformed home security by packaging doorbell cameras, motion sensors, indoor cameras, and alarm systems into a cohesive ecosystem managed through a single mobile app, rather than requiring homeowners to piece together products from multiple manufacturers.

Manufacturers in the HVAC industry face a similar consolidation challenge. What was once a competitive field of discrete components—thermostats, sensors, dampers, actuators, VAV boxes—is increasingly dominated by integrated building management platforms that bundle these elements into seamless, software-driven systems. Companies like Siemens and Honeywell now offer full-stack solutions that combine temperature control, energy analytics, fault detection, and demand response under a unified platform. Even newer players in the smart building space—such as Distech or Delta Controls—are winning market share by offering HVAC, lighting, and shade control from a single interface, reducing the role and visibility of individual component manufacturers unless they are certified, integrated, or spec’d in from the outset.

And the plumbing and electrical market aren’t any different.

In plumbing, what was once a product-by-product marketplace—flush valves, faucets, mixing valves, water heaters—is shifting toward smart water management platforms that bundle these devices into cohesive, sensor-enabled ecosystems. Companies like Zurn now offer fully integrated restroom systems, complete with automated flushometers, touchless faucets, leak detection, and usage analytics—all managed from a centralized dashboard. The rise of water efficiency mandates, remote monitoring, and facility-wide hygiene standards means that unless a component is designed to plug into these systems—or is already included in the spec—standalone products risk being left behind in favor of more integrated packages.

And in the electrical domain, the bundling trend is accelerating through smart panels, metering systems, and networked load control. Once characterized by independent breakers, relays, and power monitoring devices, the commercial electrical space is now increasingly controlled by platforms from companies like Schneider Electric (EcoStruxure) and Legrand (Wattstopper) that unify distribution, monitoring, and automation into scalable, connected solutions. These platforms don’t just manage power—they integrate with HVAC, lighting, and life safety systems to optimize energy use at the building level. As a result, component manufacturers—whether making sub-meters, lighting relays, or surge suppressors—must ensure interoperability with these ecosystems or risk commoditization within the spec.

Across security, HVAC, plumbing, and electrical systems, the pattern is clear: integration is no longer optional—it’s the price of admission. The dragons control the landscape. In every case, formerly independent components are being incinerated into bundled ecosystems led by platform players. For component manufacturers, this pattern poses a critical challenge: how do you remain relevant, visible, and alive when you’re no longer the center of the system? The answer begins with understanding what kind of magic you can offer the dragon.

So What’s a Component Guy to Do?

As pointed out, decide on your position first. Regardless of invisible or visible, both paths lead through an integrator – those companies that can now deploy and maintain an entire infrastructure through a single vendor relationship with the owner.

These system integrators have evolved from traditional installers into comprehensive technology partners that control the PROCESS, not just the component. The integrator becomes responsible for ensuring all components communicate effectively, managing software updates across different manufacturers’ equipment, providing single-source technical support, and often offering consolidated billing.[1] This approach eliminates the finger-pointing that previously occurred when systems from different vendors failed to work together properly. If there’s an issue with camera footage not triggering the access control system, for example, the organization calls one number rather than trying to determine whether it’s a camera problem, a network issue, or an access control malfunction.

Many integrators have also developed their own proprietary management platforms (yes, dragons breed) that create a unified dashboard for disparate security technologies, further simplifying operations for their clients while creating deeper vendor relationships and recurring revenue streams (i.e., Stanley Security –now part of Johnson Controls — developed their own Command and Control Centers that served as unified operation platforms, combining their installation expertise with proprietary software that manages everything from burglar alarms to sophisticated video analytics across client facilities).

These bundles are marketed as smarter, simpler, and more secure. They’re convenient for integrators, attractive to procurement officers, and supported by powerful platform providers.

So what happens if you’re not the bundle? How do you handle your dragon?

We believe a component manufacturer has to double down and become best of class. It’s about winning without being the whole package. It’s about the magic of a Blue Ocean.

In fact, it’s about finding your Blue Ocean—an uncontested instead of fighting in a Red Ocean (other components) and battling the dragon head on. The component manufacturer’s path forward isn’t about beating the bundle. It’s about becoming the one component the system can be without.

To do that, you need magic.

For example, the most visible Red Ocean in plumbing is comprised of the “Big Three” fixture manufacturers: Moen, Delta, and Kohler. Kohler leads the charge in integrating smart home technology into plumbing fixtures through their Konnect® platform, which includes voice-activated and app-controlled features while Moen’s U By Moen Smart Faucet feature allows customers to control water flow in four separate ways: voice control, remotely via an app, hands-free, or the old-fashioned manual way.

These competitions has become so intense that companies are essentially giving away previously profitable components just to win a platform contract. Indeed, these competitions create a race to the bottom in margins – a “race to the bottom” not exclusive to any single industry[2].

In virtually all industries, component manufacturers facing bundling solutions and trying to stay alive face the same problem: how do you stay relevant as a component?

The Integrator is the Dragon

Many of these component companies regardless of market are run by entrepreneurs – people with a vision of being best in class at what they do. They worked hard to build their businesses, became successful and suddenly face a dragon waking up and destroying their revenue with fire.

It’s hard to fight a dragon. Tradition suggests exploiting weaknesses like soft underbellies, using reflective shields against fire breath, or finding that one loose scale. Smart heroes often use wit over brute force – riddles, trickery, or turning the dragon’s pride against it. Sometimes it’s about understanding what the dragon actually wants rather than fighting at all!

You can’t out-bundle the bundlers; you’ll get incinerated. So instead, find the soft underbelly. Look for market segments the platform dragons are ignoring – maybe they’re over-engineering for small businesses, or their “complete solutions” are overkill for specific niches. That’s a vulnerable spot to attack.

You can use speed and your agility. Component manufacturers can pivot faster than platform dragons. When customer needs change or new technologies emerge, you can adapt your specialized component while they’re still trying to figure out how it fits into their massive ecosystem.[3]

You can turn their strength against them. The bundle’s complexity (being all things to all people) becomes a weakness. A component can market itself as the simple, best-in-class solution that doesn’t require customers to buy things they don’t need or learn a whole new platform. That’s exactly what Ring did to Resideo, isn’t it?.

Finally, instead of competing on “completeness,” compete on specialization, performance, or specific use cases where being unbundled is actually an advantage. Sometimes it’s about what the dragon actually wants and doesn’t know he wants it. Maybe there’s a way to become part of their ecosystem as a preferred component rather than fighting them entirely. Show the dragon your magic!

The component manufacturers who survive are the ones who will realize they’re not fighting other components anymore – they’re fighting the bundle dragon, which requires completely different tactics.

Because in reality, you don’t need to become a dragon. You just need to bring the one piece of magic the dragon can’t live without.

Creating Magic

In Construction/Architecture, for example, you need to deal with the General Contractors who are classic integrators, coordinating electrical, plumbing, HVAC, and structural trades into a finished building. Or MEP Engineers (Mechanical, Electrical, Plumbing) who design integrated building systems rather than standalone components. These specifiers have short lists of products, both bundled and non-bundled.

Where’s the Magic for These Dragons?

You’ll find it in recalls. Contractors hate recalls more than anything. They also want to make the most money they can on a project (who doesn’t). But with all the variables happening these days (tariffs are just one), create your magic by not only having best-of-class in what you offer, but creating a pricing scenario the GC can’t resist.

For example, we proposed a time-based pricing strategy with a rebate mechanism for a client recently to deal with the flux in tariffs. It was the magic they were looking for. The strategy balanced price protection with customer trust. You quote a price today that includes a tariff-related buffer. But if tariffs drop within a set time frame (e.g., 90, 180, or 365 days), the customer receives a rebate or credit for part or all of the buffer. The magic was that it:

  • protected the client’s margins if tariffs rise.
  • prevented the customer from overpaying if tariffs fall.
  • was fair, auditable, and transparent.

Time-based pricing with rebate was pricing with integrity — not just self-preservation. It also reduced the need to constantly re-negotiate, which happened daily because of the flux in the market. It actually turned (magically) risk management into a customer benefit!

Most companies handle risk internally and pass it along in opaque ways (e.g., through surcharges, sudden increases, or delayed pricing updates).  The recommended model in our strategy:

  • Makes risk-sharing visible and collaborative.
  • Builds trust because it shows the customer:

In other words, the message was: “We’re not pocketing the premium — if things improve, you’ll get it back.”

Many customers of a component manufacturer are thinking:

  • “Am I overpaying because of today’s political chaos?”
  • “What happens if tariffs fall after I place the order?”
  • “Will I be able to explain this pricing to my boss or procurement?”

Such thoughts are DESPITE any deep relationships with customers. The time-based pricing with rebate strategy answers all three questions:

  • They’re not overpaying forever — they’ll get a rebate if conditions change.
  • You’re giving them an auditable, forward-looking commitment.
  • You’re giving them language they can use internally to explain the cost.

That’s real differentiation — especially valuable in B2B markets where relationships and reputation matter.

And I can go on. But the point is, the component manufacturer must create some magic if he is going to deal with dragons. The common thread in magic is reducing complexity for the end customer. Having a best-in-class product. Doing things “out of the ordinary” that provide value-added service. As naïve as it sounds, it’s deciding who is your customer – which dragon are you going to work with? And then giving the dragon what the dragon wants.

How to Work Magic with a Dragon

To become the component a dragon insists on using, the component manufacturer must do work some magic. Here are some spells you might take advantage of:

  1. Prove it in the field.
    Showcase installations where your product fixed problems others created.

    • Document the outcome clearly. Create a short, field-ready summary that spells out the problem, your component’s role in solving it, and the impact on performance, compliance, or cost. Focus on the before and after, not just product features.
    • Arm the integrator. Package that story into a format your integrator can reuse—whether it’s a one-slide visual, a talking point in their proposal, or a short case snippet in their RFP response. Make it easy for them to bring you into the next job.
    • Use field success in your technical marketing. These stories carry far more weight than spec sheets. Weave them into your training sessions, product pages, and even AIA/CES presentations. Real-world performance overrules brochure claims every time.
    • Support the exception request. If your component isn’t the default in a bundle, show how it solved a problem the default caused. That’s exactly what specifiers need to justify the deviation—especially if it’s tied to risk, reliability, or compliance.
    • Create a repeatable narrative. Once one integrator wins with your component, others will follow if you give them the tools to make the same case. Turn isolated victories into replicable patterns.
  1. Design for installers.
    No one talks about components more than the installer—and no one is more decisive in what gets quietly replaced, swapped, or recommended off-spec. If your product saves them time, frustration, or callbacks, they’ll find a way to get it into the job—even when it’s not part of the official bundle. Try these tricks.

    • Simplify the installation. Reduce the work. Eliminate specialty tools. Design universal connections that match legacy footprints. These things don’t make them into glossy brochures, but they show up every day on systems everywhere.[4]
    • Make installation intuitive. If a competitor’s component requires a drawing to “figure it out” and yours doesn’t, you’ve just become the installer’s go-to—even if you’re not in the bundle. Make that your first line of attack.
    • Prioritize first-time success. Factory test every unit. Calibrate defaults for common use cases. Include templates, QR-code videos, or mobile apps to guide setup. Installers remember what worked the first time and what didn’t. That memory can override procurement.
    • Design for field adjustability. The ability to tune, test, or swap settings after install—without returning to the shop—saves hours. Include diagnostic LEDs, local test modes, or mobile configuration interfaces if you can.
    • Respect their time. The fewer questions your component raises during a job, the more likely it will be used again. Products that “just work” build quiet loyalty—especially when they help an installer meet a tight schedule or avoid a second shift.
  1. Provide integrator-ready content.
    The best component in the world won’t make it into the project if no one can explain it clearly under pressure. Integrators are constantly pitching, quoting, and defending their choices—often with little time, little context, and a lot on the line. If you make it easy for them to plug your product into their story, they will. Here’s how:

    • Make it fast to explain. Provide sharp, jargon-free one-pagers that focus on what your component does differently—and why it matters. Don’t lead with features; lead with pain points solved – the benefits. Bullet format, clean visuals, and clear differentiators win attention.
    • Arm their salespeople. Give integrators branded (or co-brandable) sales decks with strong messaging, relevant verticals, and slide-ready diagrams. You’re not just selling the product—you’re helping them sell themselves with your product in the picture.[5]
    • Write the spec text for them. Pre-written CSI-compliant specification language helps get your component without friction. Include both performance specs and basis-of-design language. The easier it is to copy and paste, the better your chances of making the cut.
    • Visuals matter. Provide everything from diagrams, installation drawings, and more that reflect how your product fits into a larger solution. Bonus points for PDFs and CAD files with editable callouts. The more visual clarity you offer, the more likely you’ll survive design review.
    • Speak to their end user. Give them simple talking points for their clients—why your product improves reliability, saves labor, prevents failure, or avoids liability. This isn’t just technical storytelling. It’s commercial advocacy.
  1. Show up early.
    By the time an RFP hits the street, it’s usually too late. The real decisions—about architecture, system design, and preferred vendors—happened weeks or months earlier. If you’re not already in the conversation, you’re already out of contention. Component manufacturers who win consistently don’t wait for the bid. They win the spec before it’s written. Here’s how:

    • Build relationships with specifiers and consultants[6]. These are the quiet architects of system preference—the people who write “or approved equal” with intention. If you solve a real problem for them or make their design life easier, they’ll write you in as basis-of-design.
    • Educate before you pitch. Don’t lead with product. Lead with insight. Offer learning sessions, code updates, or field failure analysis. The most effective manufacturers show up not as vendors, but as educators—trusted sources of intelligence and foresight.
    • Offer spec-writing support. Help consultants and A/Es draft language that includes your component—or positions your feature as a minimum standard. If you don’t offer the boilerplate, someone else’s bundle will.
    • Identify projects in design development. Use lead services, local relationships, or integrator partnerships to find projects before they go to bid. Reach out to the engineering team or security consultant while the design is still flexible.
    • Share wins from other jobs. Specifiers don’t want to be first—they want to be right. When you can show where your product solved a code issue, passed an inspection, or avoided a failure, you give them the confidence to put your name in writing.

The best time to win the job is before there is a job.
If you want to beat the bundle, don’t wait in line—get written into the blueprint.
Making Dragons Your Partner

Making Dragons Your Partner

Dragons are really nothing to be afraid of; they are, however, to be respected, not only for what they have done to the market you find yourself in, but their ever-increasing size and integration ability.

But remember this: every integration needs components, so it really depends on how you define “component.” A chip is a component on a PC board, which is a component in a product, which is a component in a system, which is a component in a room, which is a component in a building, which is a component in a city or town…get the picture?

In a bundle-driven market, most manufacturers are fighting over the same crowded waters: they fight each other instead of learning to help the dragon. That’s really where the Blue Ocean resides. Solving the problem no one else sees, creating value no bundle delivers, and becoming the component that integrators remember, specify, and defend is how you create magic.

So what are you waiting for? You can’t defeat the bundle, but you can out solve it. Magic is how a component company wins without being the whole package.

For strategy consultations, contact Interline Creative Group. We help manufacturers find their market, tell their story, and grow their footprint in complex B2B channels.


[1] An example of an “integrator” distributor is W.W. Grainger. W.W. Grainger provides on-site inventory management through their KeepStock program, where representatives work directly within customer facilities to manage procurement and inventory. Companies like AutoCrib provide industrial vending machines that offer point-of-use inventory management for industrial supplies, where workers simply scan an ID or fingerprint to issue or return items. Würth Industry and others manage ordering, delivery, storage, and point-of-use accessibility with consumables programs tailored to each facility, providing 24/7 access to consumables and safety equipment. These machines stock everything from PPE and tools to spare parts, essentially functioning as automated company stores within manufacturing plants. Safety-Kleen provides parts washers, industrial waste management, and oil recycling services to more than 400,000 customers including corporations such as General Electric, Goodyear, and Chrysler. They establish on-site operations within automotive manufacturing facilities and other industrial plants, managing waste streams directly at the source.

[2] For example, Tier 2 and Tier 3 component suppliers in the automotive industry—makers of specific sensors, switches, or modules—are increasingly being squeezed by automakers who want to control entire subsystems or work only with Tier 1s who offer bundled systems (e.g., complete ADAS packages). A company that makes standalone ultrasonic parking sensors may have had profitable contracts ten years ago. Today, automakers prefer to buy full Advanced Driver Assistance Systems (ADAS) that include radar, lidar, ultrasonic sensors, and software from one Tier 1 supplier like Bosch, Continental, or Magna. The result: the sensor-only company must 1)either bundle with other sensor types and software or, 2)become so technically superior or reliable that a Tier 1 insists on using their sensor inside the larger system. In other words, if you’re not a full ADAS solution, you must prove you’re essential to it—or you risk being replaced by a bundled offering with better margin control. Another example is in Enterprise IT. Component makers—NICs (network interface cards), RAID controllers, or memory modules—once sold directly or via VARs. Today, platform giants like Dell, HPE, and Cisco sell fully bundled infrastructure solutions with certified components. A company like Mellanox Technologies (now part of NVIDIA) once sold best-in-class high-speed network cards and interconnects. But as Dell and HPE built hyperconverged infrastructure bundles, many started including “good enough” cards from preferred vendors—or offering Mellanox as an upgrade, not a default. The result: to stay relevant, Mellanox had to 1)Prove their cards reduced latency and power consumption measurably, 2) Partner tightly with platform vendors like NVIDIA (who acquired them), or 3) offer reference designs and open architectures to stay in high-performance computing. In other words, even in a world of virtualization and software-defining everything, the hardware component has to earn its way into the bundle—or be pushed aside or in this case, purchased.

[3] We were handling the printing for a major company who was swallowed by a much larger company, who then announced they were consolidated the printing – going with the largest (at that time) printer in the United States. Within two weeks of losing the business, we received a call from the big printer asking if he could hire us to handle the “small quantities” which were outside his scope. We retained that business for four more years, expanding it to his other customers. You see, the printer could only handle large volumes. And, guess what: we are not even a printer! This service gave us time to regroup and refocus or services.

[4] A major plumbing company instead of sticking to their toilet technology and installation benefits wanted to capture more of the “regular “in-the-floor toilet market without changing their technology. The manufacturer came up with a solution of enlarging the fixture to “cover the hole” in the floor from the wall where their technology was located. This made the fixture itself longer and wider to “fit” over the hole in the floor without modification of his technology. The toilet, as a result, became the size of a small bathtub; aesthetically – and installation wise – it was a nightmare. It actually complicated what typical toilet installs did to accommodate their technology. The result? the launch fell flat on its face. The manufacturer had to retreat to what they were good at: in the wall fixture solutions. If you are going to attack a market controlled by many dragons, the magic isn’t in thinking your technology is best.

[5] A component company was purchased by a dragon and in danger of being obsoleted or vanishing in the shadow of the dragon. Instead of fighting the dragon, the component company went around the dragon and provided installers and integrators with the benefits of their component – of using their component – a smoke detector, which you can imagine is a commodity product — as the one to ask for when dealing with an integrator or installer. The component company created leave behinds for the sales people to leave with the customers. The result? The component company kept its brand recognition and became the component of choice of the dragon.

[6] In Secure your Niche, I argued that because of the disruption going on, it’s increasingly important to be able to learn to “channel jump” — to move into adjacent channels and start talking to dragons early. In this piece, which was aimed at electrical distributors, I pointed out a distributor might jump into the security market to get the work. “In fact, the distributor today stands to gain a huge advantage in being able to not only speak the language of the architect or engineer, but to call on them comfortably long before an order is placed.” Do you speak dragon talk?

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