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 Self-organising system enables motile cells to form complex search pattern
07.05.2019 | Westfälische Wilhelms-Universität Münster

nachricht Mouse studies show minimally invasive route can accurately administer drugs to brain
02.05.2019 | Johns Hopkins Medicine

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: The hidden structure of the periodic system

The well-known representation of chemical elements is just one example of how objects can be arranged and classified

The periodic table of elements that most chemistry books depict is only one special case. This tabular overview of the chemical elements, which goes back to...

Im Focus: MPSD team discovers light-induced ferroelectricity in strontium titanate

Light can be used not only to measure materials’ properties, but also to change them. Especially interesting are those cases in which the function of a material can be modified, such as its ability to conduct electricity or to store information in its magnetic state. A team led by Andrea Cavalleri from the Max Planck Institute for the Structure and Dynamics of Matter in Hamburg used terahertz frequency light pulses to transform a non-ferroelectric material into a ferroelectric one.

Ferroelectricity is a state in which the constituent lattice “looks” in one specific direction, forming a macroscopic electrical polarisation. The ability to...

Im Focus: Determining the Earth’s gravity field more accurately than ever before

Researchers at TU Graz calculate the most accurate gravity field determination of the Earth using 1.16 billion satellite measurements. This yields valuable knowledge for climate research.

The Earth’s gravity fluctuates from place to place. Geodesists use this phenomenon to observe geodynamic and climatological processes. Using...

Im Focus: Tube anemone has the largest animal mitochondrial genome ever sequenced

Discovery by Brazilian and US researchers could change the classification of two species, which appear more akin to jellyfish than was thought.

The tube anemone Isarachnanthus nocturnus is only 15 cm long but has the largest mitochondrial genome of any animal sequenced to date, with 80,923 base pairs....

Im Focus: Tiny light box opens new doors into the nanoworld

Researchers at Chalmers University of Technology, Sweden, have discovered a completely new way of capturing, amplifying and linking light to matter at the nanolevel. Using a tiny box, built from stacked atomically thin material, they have succeeded in creating a type of feedback loop in which light and matter become one. The discovery, which was recently published in Nature Nanotechnology, opens up new possibilities in the world of nanophotonics.

Photonics is concerned with various means of using light. Fibre-optic communication is an example of photonics, as is the technology behind photodetectors and...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

SEMANTiCS 2019 brings together industry leaders and data scientists in Karlsruhe

29.04.2019 | Event News

Revered mathematicians and computer scientists converge with 200 young researchers in Heidelberg!

17.04.2019 | Event News

First dust conference in the Central Asian part of the earth’s dust belt

15.04.2019 | Event News

 
Latest News

Uncovering hidden protein structures

18.06.2019 | Life Sciences

Monitoring biodiversity with sound: how machines can enrich our knowledge

18.06.2019 | Life Sciences

Schizophrenia: Adolescence is the game-changer

18.06.2019 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>