Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Flexible Business Models with Higher Revenue and Income for Electronics Industry

05.09.2003


An IBM study released today reveals that companies in the electronics industry who adopt a flexible, adaptive, on-demand business model can produce up to twice the revenue per employee and more than twice the operating income per employee than less mature companies.

According to the study, The On Demand Outlook for the Electronics Industry, average revenue per employee for electronics companies surveyed for the period 1998-2002 was about US$300,000 for companies implementing on-demand business models vs. US$150,000-250,000 for less mature companies. Average operating income per employee for the same period was US$40,000 (mature) vs. US$17,000 (immature).

The study was based on detailed analysis of publicly available financial and operational data on 24 of the world’s leading electronics companies. It analyzed such attributes as focus on core competencies, use of variable cost structures and business processes, and the ability to predict and pre-empt changes in the marketplace. Overall, it determined that companies that are more advanced in these areas are better equipped to achieve improved financial performance.



The study is accompanied by a new analytical report by IBM Business Consulting Services, which examines the potential business impact of building more flexible and autonomic capabilities into electronics companies’ globally dispersed operations. Adapting an e-business on demand approach, the report contends, can help electronics companies deal with market volatility, solve pain around high and inflexible cost structures, and generate significantly higher revenues per employee.

In that report, entitled "When The Butterfly Flaps Its Wings - Adapting to Chaos and Uncertainty in the Electronics Industry," authors George Bailey, Matt Porta and Betsy Tong observe that electronics companies can substantially lower their level of exposure to future instability in an already volatile sector.

"Seemingly inconsequential, faraway events-akin to a butterfly flapping its wings-will continue to have marked effects on the electronics industry. While companies have long talked about the promise of networks, real-time data and analysis and action, what’s different now is that the technology is mature enough to truly enable autonomic management of global processes in real-time," said George Bailey, partner and Global electronics industry leader for IBM Business Consulting Services. "E-business on demand is a powerful, practical program for getting better business results - period."

Contact: IBM Business Consulting Services, Richard Janes, Tel. +44 207 021 9370, richard.janes@uk.ibm.com

Richard Janes | IBM Business Consulting Services
Further information:
http://www.ibm.com/bcs/electronics
http://www.ibm.com/bcs

More articles from Studies and Analyses:

nachricht Multi-year study finds 'hotspots' of ammonia over world's major agricultural areas
17.03.2017 | University of Maryland

nachricht Diabetes Drug May Improve Bone Fat-induced Defects of Fracture Healing
17.03.2017 | Deutsches Institut für Ernährungsforschung Potsdam-Rehbrücke

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Giant Magnetic Fields in the Universe

Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.

The results will be published on March 22 in the journal „Astronomy & Astrophysics“.

Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...

Im Focus: Tracing down linear ubiquitination

Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.

Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...

Im Focus: Perovskite edges can be tuned for optoelectronic performance

Layered 2D material improves efficiency for solar cells and LEDs

In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...

Im Focus: Polymer-coated silicon nanosheets as alternative to graphene: A perfect team for nanoelectronics

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...

Im Focus: Researchers Imitate Molecular Crowding in Cells

Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to simulate these confined natural conditions in artificial vesicles for the first time. As reported in the academic journal Small, the results are offering better insight into the development of nanoreactors and artificial organelles.

Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

International Land Use Symposium ILUS 2017: Call for Abstracts and Registration open

20.03.2017 | Event News

CONNECT 2017: International congress on connective tissue

14.03.2017 | Event News

ICTM Conference: Turbine Construction between Big Data and Additive Manufacturing

07.03.2017 | Event News

 
Latest News

Argon is not the 'dope' for metallic hydrogen

24.03.2017 | Materials Sciences

Astronomers find unexpected, dust-obscured star formation in distant galaxy

24.03.2017 | Physics and Astronomy

Gravitational wave kicks monster black hole out of galactic core

24.03.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>