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 WAKE-UP provides new treatment option for stroke patients | International study led by UKE
17.05.2018 | Universitätsklinikum Hamburg-Eppendorf

nachricht First form of therapy for childhood dementia CLN2 developed
25.04.2018 | Universitätsklinikum Hamburg-Eppendorf

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: Powerful IT security for the car of the future – research alliance develops new approaches

The more electronics steer, accelerate and brake cars, the more important it is to protect them against cyber-attacks. That is why 15 partners from industry and academia will work together over the next three years on new approaches to IT security in self-driving cars. The joint project goes by the name Security For Connected, Autonomous Cars (SecForCARs) and has funding of €7.2 million from the German Federal Ministry of Education and Research. Infineon is leading the project.

Vehicles already offer diverse communication interfaces and more and more automated functions, such as distance and lane-keeping assist systems. At the same...

Im Focus: Molecular switch will facilitate the development of pioneering electro-optical devices

A research team led by physicists at the Technical University of Munich (TUM) has developed molecular nanoswitches that can be toggled between two structurally different states using an applied voltage. They can serve as the basis for a pioneering class of devices that could replace silicon-based components with organic molecules.

The development of new electronic technologies drives the incessant reduction of functional component sizes. In the context of an international collaborative...

Im Focus: LZH showcases laser material processing of tomorrow at the LASYS 2018

At the LASYS 2018, from June 5th to 7th, the Laser Zentrum Hannover e.V. (LZH) will be showcasing processes for the laser material processing of tomorrow in hall 4 at stand 4E75. With blown bomb shells the LZH will present first results of a research project on civil security.

At this year's LASYS, the LZH will exhibit light-based processes such as cutting, welding, ablation and structuring as well as additive manufacturing for...

Im Focus: Self-illuminating pixels for a new display generation

There are videos on the internet that can make one marvel at technology. For example, a smartphone is casually bent around the arm or a thin-film display is rolled in all directions and with almost every diameter. From the user's point of view, this looks fantastic. From a professional point of view, however, the question arises: Is that already possible?

At Display Week 2018, scientists from the Fraunhofer Institute for Applied Polymer Research IAP will be demonstrating today’s technological possibilities and...

Im Focus: Explanation for puzzling quantum oscillations has been found

So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics

Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

In focus: Climate adapted plants

25.05.2018 | Event News

Save the date: Forum European Neuroscience – 07-11 July 2018 in Berlin, Germany

02.05.2018 | Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

 
Latest News

In focus: Climate adapted plants

25.05.2018 | Event News

Flow probes from the 3D printer

25.05.2018 | Machine Engineering

Less is more? Gene switch for healthy aging found

25.05.2018 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>