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IBM Sales and Distribution        Electronics IndustryWhite paperCloud Computing for Electronics
2   Cloud Computing for ElectronicsStaying Ahead with Cost-effective Cloud                               IBM® believes tha...
Electronics Industry   3                                                                   To meet consumer and customer n...
4   Cloud Computing for ElectronicsIn this dynamic new age, we strongly believe that deployment      OEMs that seek to enh...
Electronics Industry   5When customers can find the product information theywant quickly, they return and become loyal cus...
6   Cloud Computing for ElectronicsAs a result, proactively managing the supply chain and           With cloud computing, ...
Electronics Industry   7Enabling collaborative product                                             Electronics OEMs are ha...
8   Cloud Computing for ElectronicsElectronics OEMs have made dramatic reductions in the             For R&D, cloud provid...
Electronics Industry   9Cloud can also help automate collaborative productdevelopment, coordinate business decisions and e...
10   Cloud Computing for ElectronicsThis new paradigm introduces opportunities for innovative         For device manufactu...
Electronics Industry   11Facilitating demand-driven collaborationwith cloudElectronics is more globalized than many other ...
12   Cloud Computing for ElectronicsThe best way to cope with changing market conditions              By providing timely,...
Electronics Industry   13Getting started with cloud                                                                       ...
14     Cloud Computing for ElectronicsThis model has broken down consumer electronics functions                           ...
Electronics Industry   15                  Customer             Business           Compliance,         Information        ...
16   Cloud Computing for ElectronicsLarge scale storage on the cloud with IBM Smart                    Real-time collabora...
Electronics Industry   17Improve time-to-market on high-technology                          Engineering and scientific com...
18   Cloud Computing for ElectronicsDesktop virtualization with IBM Smart Desktop                    Conclusion: Work with...
Electronics Industry   19Cloud computing solutions provide the resources, power and          •	   Optimized	automation	and...
© Copyright IBM Corporation 2011  IBM Corporation  Route 100  Somers, NY 10589  U.S.A.  Produced in the United States of A...
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Cloud Computing for Electronics

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Transcript of "Cloud Computing for Electronics"

  1. 1. IBM Sales and Distribution Electronics IndustryWhite paperCloud Computing for Electronics
  2. 2. 2 Cloud Computing for ElectronicsStaying Ahead with Cost-effective Cloud IBM® believes that cloud computing technologies areComputing particularly well-suited for organizations in the electronicsSince the crisis in the financial markets in 2008, global industry that seek to build a proactive approach to thisbusiness leaders have been aggressively rethinking their dynamic new age.strategies. In the electronics industry, these strategies arelikely to be quite different, reflecting the enormous diversity This paper provides a view of cloud computing for theof the industry itself. From consumer electronics to medical electronics industry and describes the technologies anddevices, industry sub-segments are all trying to respond to functions required to improve efficiency, reduce costs andlower consumer spending and stricter access to capital in their enable new capabilities.own unique ways. At play: Integration driven by need toThe closer watch that consumers are keeping on their wallets innovate and operational excellencehas not affected the desire for intelligent, interactive electronic With so many manufactured products now incorporatingdevices — from the largest flat-panel television to the smallest electronic components and the pace of commerce so rapid,radio-frequency identification tag — however. To stay ahead, the industry has not only grown quickly, but it has also becomeelectronics companies are feeling the pressure to be the first far more complex in order to remain competitive. Theto create and seize unrealized opportunities for developing breakneck pace of technology development has put incredibleinnovative products that enable differentiated services. pressure on original electronics equipment manufacturers (OEMs) to develop new and innovative products as a matterBreakthrough technologies such as cloud computing can of course. And, they must also deliver on a tight schedule,empower electronics companies, driving the convergence with fewer resources and lower capital investment, and atof business and IT. Through this process, the distances and ever-lower prices. For example, while companies arecosts between companies and their customers are significantly incorporating innovative technologies that will boost thereduced and organizations are able to respond to the dynamic performance of the next phone, camera or computer, theyenvironment and complexity with operational dexterity, are also trying to make the products more affordable.innovation and enhanced customer focus.
  3. 3. Electronics Industry 3 To meet consumer and customer needs, companies are actively seeking ways to bring their best offerings to customers and consumers, regardless of geographic location. Unfortunately, parent companies with multiple global subsidiaries often lack the seamless integration that enables them to take advantage of specific needs in local markets. Also, as electronics companies add new capabilities, make strategic acquisitions and enter new market segments, they increase the complexity of operationsThe Internet and electronics and the challenges of managing the investment in IT and the ongoing operational cost of IT. To overcome these businessThe Internet has permanently changed not just our everydaylives, but also society at large and how enterprises operate challenges, an electronics OEM should operate as a single,around the world: globally integrated organization. The benefits of doing so can position them to:• Intelligent, interactive electronic devices — such as flat panel televisions that can receive the latest movies from a web subscription service to the small radio-frequency • Achieve cost-saving operational efficiencies with economy identification tag that track containers on trucks from port of scale. to distribution center — exploit Internet technology to • Capture global (and growing) market opportunities. enhance the consumer experience and improve how • Achieve faster time to market using global scale, expertise business is done every day. and resources (skills and IT).• Breakthrough Internet technologies such as social media • Create the flexibility to quickly respond to change. are empowering businesses, driving the convergence of business and the web. The emergence of cloud computing, web services and service-• The distances between companies and their customers oriented architecture (SOA), together with new standards, is are becoming significantly reduced as the Internet makes the key to providing the integration that will open up the field it possible for them to communicate instantly. to innovation, collaboration and operational efficiency.
  4. 4. 4 Cloud Computing for ElectronicsIn this dynamic new age, we strongly believe that deployment OEMs that seek to enhance the customer experience usingof information technology using cloud will be the key to direct sales channels need adequate integration. Effectivesuccess over the next decade. The very real challenges facing order management is easier to achieve when front-end andthe electronics industry — and the trends that will shape its back-end systems are integrated. Often, however, that is notfuture — can now be fulfilled with cloud computing, using the case. Also complicating matters is data that is fragmentedbusiness process-as-a-service, software-as-a-service, platform- and difficult to synchronize because it is stored in multipleas-a-service and infrastructure-as-a-service mechanisms as its and proprietary enterprise resource planning (ERP),delivery models. customer relationship management (CRM) and content management systems.Enhancing brand value with systems, Today, there are a number of options for integratingapplication and data integration in e-commerce applications and other backend systems. Athe cloud common approach is to load data required by the e-commerceNew direct sales channels — OEM online and branded application as needed. Data management solutions vary, andbrick-and-mortar stores — are becoming increasingly the use of extract-transform-load (ETL) solutions make theprominent because of their inherently strong profit margins. job easier. But moving data from the source to the e-commerceAn additional, highly significant benefit that OEM direct application adds complexity. It also adds processing time,channels can offer is improved customer value. By facilitating and it can be difficult to change the data in real-time.direct control over the quality of the user experience, directchannels help OEMs deliver what customers demand most. Cloud computing is an option that can provide the integrationResearch by the IBM Institute for Business Value indicates OEMs need for direct channels without complexity andthat a positive customer experience is a key driver of loyalty. processing time. The information integration can be brought about much more effectively using software-as-a-service, platform-as-a-service and infrastructure-as-a-service cloud delivery models and SOA. The technology can support anywhere, any time access and real-time information updates that are automatically fed to the ERP systems for the direct or online channels. The resulting improvements in product information availability, timeliness and accuracy, along with order processing that is more efficient and effective, are what drive the most critical benefit for OEMs.
  5. 5. Electronics Industry 5When customers can find the product information theywant quickly, they return and become loyal customers.This strengthens the brand of the OEM.Improving operational efficiency withcloud computingThe electronics space is characterized by intense pricecompetition, compressed product life cycles and continuouspressure to reduce costs. Retailers, hoping to attract customers Consumer electronics trendswith aggressive sales and promotions, in turn are starting to The current volatile economic climate has created trends thatput pricing pressure on their OEM suppliers. Players are having an effect on consumer electronics companies:throughout the extended supply chain are working downexisting inventories to alleviate the need for working capital. • Diminished consumer credit has led to a decrease inRetailers are delaying or trimming orders and OEM companies discretionary spending.are aiming to reduce output levels. • Consumers now perceive the latest products—which many would typically purchase at the earliest possible retail availability—to be luxury items they must save for. • Increasing insularity and longer working hours are making people worried about the safety and security of their home. Consumers are demanding security systems that can be monitored from a remote location. • Broadband connectivity for homes is growing at faster rate. The typical flat rate fee structure for broadband connectivity reduces the marginal network cost of additional services to effectively zero.
  6. 6. 6 Cloud Computing for ElectronicsAs a result, proactively managing the supply chain and With cloud computing, OEMs can create a proactive andproduct life cycles to ensure that the cost incurred in the action-oriented operations environment without a large,development and marketing of products is recovered before upfront capital investment in more infrastructure andthe competition introduces a new product is critical. Having applications or overburdening their servers and data centers.access to information about consumer preferences, product Collaboration and advanced analytics tools delivered fromsales trends, customer profiles and channel information, the cloud can provide the means for sharing informationsuch as product velocity and the effectiveness of marketing and making decisions at a lower cost than if they had tocampaigns, can help. Solutions that take information from implement and maintain various collaboration and businessCRM, ERP and product life cycle management (PLM) systems analytics applications.and disseminate it in a standard format and structure foranalysis and identification of problems can contribute to Cloud computing with SOA can help companies integratebetter product development and inventory management. information from the market with PLM, procurement,Visibility of the market and competition at a global level operations, and logistics systems. The result is a connected,can be analyzed and advanced analytics solutions can transparent supply chain and more efficient, proactiveprovide alerts to situation like stock outs or product failure operations. People from different geographies and functionswell in advance. can travel less and communicate more. Various stakeholders can act as events occur with alerts and events triggered orThe caveat for these solutions is the upfront investment for activated by key metrics. Experts are readily available forsoftware and applications and the high processing power guidance on problems and solutions for smarter, more effectivethey require. resource management.
  7. 7. Electronics Industry 7Enabling collaborative product Electronics OEMs are having difficulty bringing new productsdevelopment with cloud to market as fast as they need to, primarily because theCompetitive advantage created by going to market first majority of their products take more than 100 days towith innovative new products — be they feature-rich or develop, test and release. Also, many products are deliveredvalue-driven — is critically important in the electronics late, and late launches generate less revenue. A typical productindustry. Market demands shift very rapidly in electronics, development process starts with a design concept that requiresand expectations are invariably high. IBM research indicates the following input: product objectives, business strategy,that electronics companies feel these forces more than customer buying behavior, and research and developmentother industries (Figure 1). (R&D) roadmap. Solution opportunities are explored, selected for best match to requirements and then further refined for plan commitment. The result is a set of product specifications, Comparison of competitive differentiators features, technology requirements, materials, staffing requirements, competitive positioning and so on. Faster response to market needs During the process, inputs from various divisions and New products/services participants have to be collected, collated and shared. development The process is iterative and involves many rounds of Differentiated discussions about cost estimates, investments, technology product/services manufacturing, skills, tools and methodology, pricing and Operational efficiency/ economics. It involves a number of participants spread effectiveness throughout an organization. These participants often need Organizational information stored in various applications and systems in governance different — and sometimes even incompatible — formats and Electronics 0 20 40 60 80 100 updated according to need. If this variable space is not All Industries managed well, the result is a longer product development cycle and a greater demand on resources.Figure 1: Competitive differentiators according to electronics companiesSource: IBM Institute for Business Value
  8. 8. 8 Cloud Computing for ElectronicsElectronics OEMs have made dramatic reductions in the For R&D, cloud provides access to the high performanceproduct development cycle time with product life cycle computing, storage and network resources necessary formanagement (PLM) systems, but the development process electronic design and simulation. Engineering spending onremains inefficient. One solution is to integrate PLM systems IT is under increased scrutiny by CIOs as the burden towith other business systems, which can support collaborative refresh engineering workstations, servers, storage and networksinnovation and improve the parts requirements, ordering, continually to meet new project requirements becomessupply and delivery processes. Simplifying the development unsustainable. Cloud makes it possible to provision andenvironment and automating processes can also reduce cycle access interactive and batch engineering analysis workloadstime while supporting quality. and to share resources between project teams very efficiently and with dynamic steering of resource assignments. DesignerCloud computing with SOA is a cost-effective way for the access to traditional desk-side workstation environments inelectronics industry to bring about the deeper and faster the cloud enables them to work as needed and available,data visibility, collaboration and analysis that can speed regardless of location.product development. The cloud delivery model can integrateinformation, applications and functions with SOA design In addition, a well-considered cloud computing approachtechnology and little or no capital expenditure. It handles the makes possible remote, collaborative product developmentprovisioning of systems and access to services such as design and management between design, commercial, operationsand process management applications and databases required and marketing teams. Everyone can access informationfor design control and project integrity. on demand, which can bolster the trust between the stakeholders and facilitate accurate and reliable decision- making. This approach enables evaluation and action — on demand — so that you can respond more quickly.
  9. 9. Electronics Industry 9Cloud can also help automate collaborative productdevelopment, coordinate business decisions and eliminaterework. With cloud, companies can enforce standardizedprotocols, synchronize information between systems andaccess a centralized database provided by infrastructure-as-a-service. With automation and standardization, OEMs canimprove development efficiency and avoid costly downstreamerrors. This helps to speed time to market and time to value,which in turn can yield a critical competitive advantage. The smarter home opportunity By 2013, 1.2 billion connected consumer electronics devices areEnabling smarter homes with cloud expected in the more than 800 million homes with broadbandThe digital revolution has dramatically increased the connections. OEMs can use cloud to take advantage of thisfunction and reduced the cost of consumer devices. This has opportunity in these areas:led to an explosion of new devices in the home, from digitalTVs and game systems to environmental controls, appliances, • Entertainment and convenience: Consumer electronics companies can create open platforms for new lines ofand safety and monitoring devices, along with lifestyle, flat panel televisions with a portal that personalizeswellness and medical devices. As a result, consumers of various entertainment content from numerous broadcasters andages and backgrounds are becoming more receptive to movie studios. This can reduce the number of commercialsconnected products and experiences. At the same time, they viewers have to watch, enable broadcasters and advertisersare demanding more quality and intuitive interfaces with to deliver more personalized entertainment options withthese experiences, offering service providers an opportunity targeted advertisements and provide TV manufacturersto differentiate with new services and easy-to-use features. with an opportunity to differentiate their products. • Energy management: Automatically synchronizing lighting, home appliances, climate control sensors and other home electronics minimizes energy use based on changing exterior conditions and usage patterns in the home, which can result in significant cost saving. • Safety and security: The ability to deploy home sensors that can instantly notify homeowners, selected neighbors or the police and fire departments can enhance home security and provide peace of mind. These services can also empower family members to remotely check on the safety of children and the well-being of elders. • Health and wellness: A medical device maker designed embedded software that helps healthcare providers continuously monitor patients with implanted or other at-home medical devices without having hospitalization or office visits. Smarter homes and sensors monitor fitness, well-being and consistent activities. These home health electronic devices can collect evaluative information about current health condition for disease prevention and overall wellness.
  10. 10. 10 Cloud Computing for ElectronicsThis new paradigm introduces opportunities for innovative For device manufacturers, the incremental cost to connectservices that build on the computational power and scalability devices that already have substantial intelligence in them isof the cloud, along with the collective consumer knowledge. easily offset by a number of benefits. Fewer truck rolls toMany of these devices can already connect individually to consumers’ homes reduce the repair and warranty costs andservices in the Internet over the cloud, even though each might increase the consumer satisfaction for both the manufactureruse different application protocols and interfaces. Putting the and the retailer. The potential for product registrationintelligence into services in the cloud reduces the complexity increases exponentially. Consumers are willing to pay a littleof managing software in the home devices and simplifies the extra for the assurance that their appliance will not fail at ainteroperability of devices. This is accomplished by bridging time when it is most inconvenient. Other benefits such asthe services throughout the network with Web service access to more information, advice and the ability to controlinterfaces, translating the different device protocols to a devices remotely are additional incentives.common platform, then connecting the devices through thenetwork cloud.Data that is aggregated and then stored in the cloud canprovide dramatic new insights about consumer needs andbehavior. Ultimately, this paradigm facilitates a host ofpossibilities, from radically improving the performance ofcurrent devices and services, to delivering benefits which havenot yet even been considered.
  11. 11. Electronics Industry 11Facilitating demand-driven collaborationwith cloudElectronics is more globalized than many other industries,which magnifies the effect of supply and demand shocks.The extended global supply chain introduces vulnerabilityto supply constraints and cost changes. For example, theavailability of certain kinds of electronic components canaffect everything from cell phones to televisions to computers The electronics industry in the current economic climateto toys. On the other side of the equation, there is theever-changing electronics marketplace defined by rapidly The watchword in the electronics industry is volatility.shifting customer preferences and the exercising of pricing Electronics OEMs constantly find themselves in a reactivepower. These factors combine to squeeze electronics OEMs, posture, forced to respond quickly to a wide range of dynamics.compressing product life cycles and forcing them into Today’s economic climate, with double digit declines in thedramatic pricing actions to maintain a competitive edge. sales of semiconductors and LCDs, only further emphasizes this reality for electronics companies. In the face of this harsh reality, survival in today’s market and positioning the company for future revenue growth remains a top agenda item for industry CEOs. The lowering of costs and improvements in efficiency are seen as the key components of surviving the global recession and emerging stronger than competitors for future growth as the economy recovers.
  12. 12. 12 Cloud Computing for ElectronicsThe best way to cope with changing market conditions By providing timely, consistent information and automatedis for all companies in the electronics value chain to work data interchange between systems, cloud can improvetogether. With greater transparency of supply chain partner transparency and reduce errors. The non-proprietary, flexibleactivity, automated data collection, collaborating and nature of cloud means it can easily integrate with the varietyintegration of OEM organization and supplier systems, of systems used by retailers. The result for the business ismeeting demand is easier and yields better results. Automated faster execution, reduced channel inventory, improvedprocesses and exception-based information access can improve resource utilization and better customer service, which,the forecasting and planning process with retailers and in turn, can optimize the efficiency and profitability of valuesuppliers. The automated electronic exchange of sales, chain relationships.pricing, discount, branding and consumer preference databetween retailer and OEM systems can help all organizations In summary, by delivering IT services when, where andchoose the best marketing strategy. how you need them, cloud computing can help OEMs gain competitive advantage and maximize return onThe cloud delivery model is an excellent way to facilitate a investment. The best cloud computing solution is one thatcollaborative value chain with optimized demand planning. will take high-cost workloads and move them to low-costInstead of all the stakeholders investing in expensive environments that can be dynamically configured andapplications and infrastructure that they then must maintain, provisioned on demand.they can access the application, services, infrastructure andautomation they need to exchange information and meetpeaks in demand with scalability and flexibility. Retailers andOEMs can exchange information and collaborate on marketingplans and promotions. Suppliers and OEMs can exchangeinformation about parts, raw materials and more — all withoutstraining their budgets or data centers. In some cases, thesame services can even be reused.
  13. 13. Electronics Industry 13Getting started with cloud IBM’s methodology, for example, is to take a componentCloud computing is worth pursuing for cost reduction, business model view of an OEM enterprise and identifyintegration, speed-to-market and quality benefits. The key specific workloads that match the characteristics that areto a successful move to the cloud is to create a cloud most suitable for movement to a cloud infrastructure.enablement plan that is not so complicated that it becomes Figure 2 illustrates a Component Business Model for aunclear where to begin. consumer electronics company.Getting precise about which OEM capabilities, functionsand departments can benefit from cloud and moving specificworkloads will be lot more effective than simply trying to“cloud enable” an entire IT infrastructure all at once. Consumer Relationship Client Relationship Supply Chain (Manufacturing, Business Management Distribution & Logistics) Category/Brand Strategy Account Strategy and Planning Supply Chain Planning Corporate Strategy & Planning Strategy & Channel Strategy Planning New Market Development Procurement/Sourcing Strategy Asset Utilization/Capacity Planning Product/Platform/Convergence Investment Decisioning Services Partnership Strategy Services Operations and Development Strategy Supply Chain Planning Alliance & Outsourcing Strategy Forecast & Demand Management Solutions/Product/Software Business Performance Lifecycle Management Account Management Assembly/Production Management Management Monitoring & Management Configuration Management Supplier Management & Organization and Process Design Customization Tracking Category/Brand Channel Management Management Distribution and Logistics Partnership Management External Market Analysis Inventory Management & Tracking Services/Solutions Reverse Logistics & Outsourcing Management Services Management Parts Fulfillment Management Innovation Management Equipment Maintenance & Legal and Regulatory Management Compliance Solutions/Product/Software Indirect Procurement Development Business Development Purchasing & Contract Execution Sales Promotion & Execution Production & Assembly Finance, Accounting and GL Execution Order Execution Configuration HR Administration Marketing Execution Services Delivery/Solutions Warehouse & Transportation Logistics IT Systems and Operations Execution Treasury and Risk Management Consumer Services Supplier Contracts Management Delivery/Solutions Execution After Sales Support Facilities Management Business components that may harness the power of cloudFigure 2: Component business model for a consumer electronics company
  14. 14. 14 Cloud Computing for ElectronicsThis model has broken down consumer electronics functions Figures 3 and 4 show similar component business modelsinto four parts: consumer relationship; client relationship; for the semiconductor segment and communication servicesupply chain management, manufacturing, distribution/ providers.logistics; and business management. On the y axis, thecomponents are associated with a specific stage: strategyand planning; monitor and manage; and execution. In eachcategory, the components that could be considered good cloudcandidates are identified with a symbol. Of note is the fact thatthe entire supply chain category is a candidate for cloud. Market & Product Demand & Customer Manufacturing Distribution Business & Risk Positioning Management & Logistics Management Global Account Strategy Operations Planning Corporate Strategy & Demand Generation Innovation Strategy and Market Making Strategy Planning Platform Strategy Logistics Strategy Channel Strategy Partner Strategy Pricing Strategy Production Strategy Alliance Management Up-sell, Cross-sell Strategy Strategy Procurement & Sourcing Line of Business Planning Strategy Utilization of Assets Services & After Sales Strategy Supplier Selection Investment Planning Outsourcing Strategy Forecasting and Demand GTM Coverage Model Management / sop Performance Tracking Partner Management Business Performance Environmental Planning Channel and Partner Account Specific Design & Development Reverse Logistics Production Optimizations Management PLM for End-of-Life Brand Development Strategy PLM New Product Operations Planning Organization and Customer Allocation Product and Process Planning Tracking Process Design Monitor & Quality Control Manage Supplier Management Legal and Regulatory Incentive Management Compliance Customer Feedback & Inventory Management Outsourcing Issue Tracking Management Spares and Equipment Maintenance Planning Warehousing Transportation Marketing Communications Manage Customer Management Management Planning and Tracking Quotes Configuration Treasury and Finance, Risk Accounting Production & Capacity Management and GL Business Development Scheduling Product Catalog Classification and Manufacturing Execution Partner Contract Maintenance Collaborative Account Execution Indirect Procurement/ Planning Plant Maintenance MRO Buying Execution Order Execution Product Launch Purchasing & Supplier Facilities Validation Partner Management Customer Feedback Enablement Execution Inventory Tracking & HR Prototype Development Post-Sales Parts Movement Administration Product Offering Reverse Logistics Environmental Service Environmental Compliance Execution IT Systems and Management Planning Execution Operations Business components that may harness the power of cloudFigure 3: Business component model for the semiconductor segment
  15. 15. Electronics Industry 15 Customer Business Compliance, Information Solution Solution Value Chain Relationship & Finance Risk & Quality Management Development (Supply Chain, Support & Services) Business & Research & Client Business Business Asset & Value Chain Strategy Finance Strategy Development Development Resilience Information Management Strategy Business Portfolio Strategy Strategy Market Management Platform Strategy Directing Management Value Chain Planning Bus. Enterprise Architecture Regulatory Knowledge Channel Compliance Management Development Strategy Enterprise Strategy Strategy Capability Value Chain Rules & Policies Resource Strategy Management Market Portfolio Manage Standard Business Process Solutions Management Business Models Compliance Information Architecture Value Chain Management Financial Resource Client profile Management Security, Privacy Management Develop. Process management & Data Protection Deployment Controlling Bus. Process Demand & Supply Management Opportunity Performance Integrated Risk Development Management Management Intellectual Program Mgt. IT Management Property Partner Process Partner Sales Human Resources Regulatory Management Release Integration Integration Management Management Management Compliance Mgt. Planning Account & Financial Implement Data & Content Research Procurement Services Territory Operations Compliance Management Execution Management Management Policies Solution Solution Bus. Processes Knowledge Production Capture & Engineering Operations & Executing Solution & IT Infrastructure Quality Availability Solution Compo- Management Maintenance Marketing Management nent Development Solution Warranty HR Operations IP Capitalization Collaborative Integration Management Manage Business Design-In Contract Legal Management Resilience & Asset Lifecycle Engineering Solution Client Inventory Lifecycle & Support Disaster recovery Management support Logistics Management Business components that may harness the power of cloudFigure 4: Component business model for communication service providersOne way to begin to use cloud computing is to move IBM cloud solutionsnoncritical services to the cloud first. As a company gains Cloud offerings from IBM, such as Smart Business Desktop,confidence, some of the more critical services can then become LotusLive™, Smart Business Storage Cloud and Smartpart of the cloud. The choice of what to move also depends on Business Development and Test on the Cloud, provide thethe cloud deployment model selected: private: private hosted; power to collaborate in real time on mission-critical tasks,public; and hybrid. Other services that are good candidates for offer access to scalable high power computing and help reducethe cloud are e-commerce transactions, sales management, infrastructure cost and investments.supply chain planning, test and development and businessprocess management.No matter where you start, IBM has solutions that can help.
  16. 16. 16 Cloud Computing for ElectronicsLarge scale storage on the cloud with IBM Smart Real-time collaboration with partners, regulatoryBusiness Storage Cloud agencies and suppliers with IBM LotusLiveRaw storage growth is being driven by the widespread use of Fierce competition and dynamic customer demand are puttingemail, need for instant file access for business reasons and the pressure on electronic companies to introduce innovativecapture of more detailed business data structures to meet products at lower costs on a regular basis. This industry isregulatory requirements. Also, OEMs maintain all kinds of facing a very real challenge as it attempts to manage enterpriseproduct information, engineering data and customer feedback. risk, which is resulting from the faster product life cycle.Meanwhile, demands for redundancy and high availability can The failure or delay in product launch incurs huge costs.easily triple the size of an enterprise data storage set. Mitigating this risk requires collaboration between multiple stakeholders with on-demand transfer of data and informationIBM Smart Business Storage Cloud can help electronics between suppliers, vendors, R&D teams, marketing andcompanies successfully deploy a high-performance, scalable production functions and regulatory agencies for productstorage virtualization solution to facilitate growth and approvals and validations. IBM LotusLive is a cloud solutioninnovation at lower operational costs. As data volumes grow with the collaboration features needed for effectively handlingand the ability to handle various file formats becomes more such issues.complex, this solution can grow to support efficient andcost-effective access to data without degradation of LotusLive is a collection of integrated, online collaborationperformance and with fewer outages. solutions and social networking services for your business. People can meet online, share files, chat, manage projects and network with potential clients, anywhere, anytime. Whether someone works remotely, manages remote teams or just needs one simple place to bring colleagues together, LotusLive delivers a securely designed environment that facilitates connection, communication and collaboration.
  17. 17. Electronics Industry 17Improve time-to-market on high-technology Engineering and scientific computingapplications with IBM Smart Business Development Billions of dollars are spent on R&D and product design asand Test on the IBM Cloud companies feel the pressure to bring innovative products toElectronic companies are under constant pressure to innovate market on time, at cost, while meeting targeted objectives forand use IT to integrate the information. As a result, developers high quality. There is limited time to discover problems in thefor OEMs are being asked to update and develop applications physical space, so a great deal of design planning, explorationthat incorporate latest business needs with new programming and detailed implementation must be modeled and tested inlanguages and software. However, traditional development and the virtual realm before realizing in the physical. This oftentesting environments pose several challenges: high labor and requires tremendous amounts of processing power to supportcapital costs, long development cycles and greater risk for fundamental research, engineering design and analysisconfiguration errors. Developers are now finding ways to applications The high computing resources needed for thesemeet these challenges using cloud computing. processes are very expensive to manage and can be under utilized in one phase and inadequate in another.IBM Smart Business Development and Test on the IBMCloud provides rapid access to a security-rich, enterprise-class Today the IBM Smart Business Development and Test ondevelopment and test environment. The standardized the IBM Cloud can provide OEMs with the power anddevelopment and test environment can help developers for flexibility to handle these demanding computing needs.electronics companies test and deploy applications with Peaks and valleys might still exist, but IBM can help smoothreduced capital and operational costs. There is virtually no them out. Over time, IBM will announce additional offeringsinfrastructure to maintain and electronics companies benefit specifically targeting engineering and scientific computing.from pay-as-you-go pricing for their development and testingresources. And, they can set up more accurate testenvironments in minutes versus weeks using standardizedconfigurations.
  18. 18. 18 Cloud Computing for ElectronicsDesktop virtualization with IBM Smart Desktop Conclusion: Work with IBM to usecloud computing solutions today’s cloud technology to buildThe electronics industry is highly globalized, with operationsin low-cost manufacturing hubs in remote locations and tomorrow’s solutions Over the past decade, marketplace dynamics havevarious distribution locations. The creation of a secure changed dramatically. Globalization, deregulation,IT environment that these hubs, distribution centers and a commoditization — and, in particular, the impact of themobile sales force can use to access and share information Internet — have been significant drivers of businessand applications remotely would require a major investment transformation. This is particularly true of the electronicsof capital and resources that is rarely feasible. industry, which creates products both for end users (such as consumer electronics) and other manufacturers (such asIBM Smart Business Desktop cloud computing services can office equipment providers and network equipment providers).help OEMs provide “anytime, anywhere” access to With so many manufactured products now incorporatingapplications, information and resources. For OEMs that need electronic components and the pace of commerce so rapid,to provide simplified, secure access to information and reduce the industry has not only grown quickly — it has also becomeIT cost, complexity and energy consumption, IBM offers far more competitive.desktop virtualization solutions using cloud computing thatcentralize a distributed client environment, help safeguard To meet today’s business challenges, an electronics OEMdata and applications, help increase business flexibility and should operate as a single, globally integrated organizationhelp reduce the cost of desktop hardware and management. that has overcome disparate, inflexible, poorly integrated IT architectures, a lack of process coordination and insufficient collaboration. Cloud computing is an excellent option for achieving global integration.
  19. 19. Electronics Industry 19Cloud computing solutions provide the resources, power and • Optimized automation and integration. Provide an openinfrastructure necessary for global integration with little enterprise data and process integration framework for existingupfront capital investment and without taxing resources, and new manufacturing applications.people and processes. With cloud computing solutions from • Expert collaboration functions. Enable or extend the abilityIBM, electronics companies can gain: to collaborate with experts on challenges and solutions instantly using collaboration technologies and shared• Visualization of contextual information all along the value information — all available from an exciting new vision of chain. View the entire supply chain network of distributors, the business control room. plants, warehouses and logistics providers in a fast and • Enterprise connectivity with ERP and other systems. intuitive graphical interface, where data from every Share critical operational information with other enterprise stakeholder is presented in hierarchical levels of detail, applications, such as procurement and ERP; this makes it ready for analysis and decision making. possible for extended business users to plan, forecast and• Better decisions with sophisticated measurement and respond to business imperatives better. predictive analysis. Perform deeper and more sophisticated • Collaboration tools. Knowledge sharing, messaging, video analysis of your market, distribution networks and demand, conferencing and screen sharing can drive productivity to viewing all KPIs and measurements in the right business new levels. context, for both real-time decision-making and operational planning. Change is possible. The tools exist today• Intelligent alerts and event management. Work with Get started by developing a strategy to make the most of cloud intelligent, predictive, sophisticated alerts that drive computing. Your IBM cloud computing roadmap speeds time information and action to both human and system to value and lets you take action in the smartest way possible. participants. For more information, visit: ibm.com/electronics
  20. 20. © Copyright IBM Corporation 2011 IBM Corporation Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America January 2011 All Rights Reserved IBM, the IBM logo, ibm.com, and LotusLive are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or TM), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other product, company or service names may be trademarks or service marks of others. Please Recycle ELW0-3002-USEN-00

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