Hitech

Hi-tech Industry: Bracing for Innovation, transformation and operational excellence

The Hi-Tech industry exhibits the classical phenomenon of the "Red Queen" effect whereby competing companies and the products are constantly engaged in a battle just to eke out survival. The problem is further exacerbated by the inexorable nature of rapid technological change, which leads to dramatic shrinkage of product lifecycles. The accelerating pace of change, forces the companies to constantly balance their product portfolios.
Hi-tech Industry: Bracing for Innovation, transformation and operational excellence The Hi-Tech industry exhibits the classical phenomenon of the "Red Queen" effect whereby competing companies and the products are constantly engaged in a battle just to eke out survival. The problem is further exacerbated by the inexorable nature of rapid technological change, which leads to dramatic shrinkage of product lifecycles. The accelerating pace of change, forces the companies to constantly balance their product portfolios.
The hi-tech industry is increasingly embracing "servitization" - a business model innovation whereby companies extend existing products through the provision of related services. Servitization of products is both a challenge and an opportunity. Organizations can no longer depend on "Product Stewardship" alone; they are exploring the possibility of morphing from a product company to a solutions company. This change significantly alters the cash flow leading to a strain on financial management.

So how should companies respond to these challenges? Dealing with incessant change means that companies must innovate and be ready to rapidly reinvent themselves even with limited financial resources. Hi-tech companies need to improve the agility and visibility of their supply chain. Strong collaboration with their suppliers and implementation of advanced sales and operations planning has become more important than ever before. Hi-tech firms need to seize the advantage of collaboration with suppliers, channel partners and customers to improve the ability to innovate and quickly introduce new solutions in the market place.
Hi The pressure of innovation translates into an imperative for a strong product portfolio and the capability to manage product lifecycle. Organizations have to put greater emphasis on customer intimacy and keep abreast of technology changes. Hi-Tech companies continue to strive for Manufacturing Excellence to improve margins while actively addressing growing consumer awareness and demand for recycling, waste management, sustainability and energy efficiency>

While Mergers & Acquisitions are proliferating, the true value and success can be derived by completing the process effectively and efficiently. Companies need to build tools and methods that help integrating the two businesses quickly.