09. December 2005
At a strategic level, the electronics industry has evolved dramatically during the last years. Vertically integrated companies have restructured themselves, focusing on core competencies, slashing costs and building networks of suppliers and partners that are also specialized and cost competitive. Cutting-edge products now come together not solely from individual companies but from networks of companies, each contributing a specialized, high-value aspect of the total solution.
At the structural level, several features of the electronics industry make the sector particularly suitable for e-business:
- Electronics is a truly global business. Product design, production and related marketing activities are frequently carried out in different parts of the world, exploiting comparative advantages of regions.
- Components and products are highly standardised, easy to describe and traded in considerable quantities.
- Value chains are complex and deep. Outsourcing is very common and requires intense cooperation between enterprises, often across cultural and geographical borders.
Product life cycles are short. Time to market is one of the most important strategic variables in the industry. In addition, technological progress means rapid depreciation of products and components.
- Manufacturers of electronics equipment are naturally IT-savvy and open to experiment with IT driven management solutions.
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