New Year Requires Focus on Current Industry Trends, New Approaches to Corporate Performance
In the after math of CES a few weeks ago, where the numbers of attendees and exhibitors increased from last year as a result of the global economic upturn, I think it’s important to go on record in this blog to highlight some of the key macro forces that will continue to impact 2010 and beyond, per some comments I made a few months ago in Electronics World magazine.
There’s no question that the global high tech and electronics (HT&E) industry has matured from 1970-85 era, when vertically integrated delivered complete product lines themselves. But since the then the industry changed, outsourcing many functions to create new cost efficiencies and speed in product development. And consumers have gained the upper hand in identifying the products they want through Web 2.0 communities.
Trend #1 – The power shift to consumers has resulted from active consumers leveraging Web 2.0 capabilities to influence the success of products. HT&E companies need to take advantage of digital marketing solutions that manage local content in different countries in one place and bring harmony to e-advertising campaigns, and proactive monitoring and response to customer needs/ feedback.
Trend #2 – Computing, entertainment and communications are going digital and converging to create exciting new products, services and business opportunities. Combining these produces can manage the customer experience throughout the lifecycle of the product and drive new and recurring higher margin revenue opportunities. It is no longer about an innovative technology product, but about the total consumer experience it delivers with content and services.
Trend #3 – Emerging economies are exerting new influence on HT&E companies, as their consumers gain affluence and require refinements to the ‘one size fits all’ mentality that previously defined product development and marketing. HT&E companies are challenged to create ‘profitable proximity’ by developing capabilities to observe and serve the unique local needs.
Trend #4 – Rising demand for products correlates to rising commodity and transportation prices. Consumers and politicians around the world are interested in ensuring sustainability and provide a unique opportunity for HT&E companies to innovate.
Trend #5 – Wide ranging differences exist among all countries for regulations governing environmental, healthcare and competitive issues. Large scale manufacturers need systems that create transparency for compliance with all those regulations and then go one step further by incorporating them in their everyday business practices.
Trend #6 – An influx of Gen-X and Millennial generation workers and the exit of Baby Boomers from the work-a-day world create new opportunities for companies to introduce high productivity IT solutions. Solutions need to be easy and familiar to use and integrated across the enterprise.
Please read more about these trends and their likely impacts on HT&E companies in the Electronics World article. It’s my hope you will find it quite interesting as we move forward into 2010. – Sanjay Ravi