A corporation defines its profit-making potential by the activities upon which it focuses its key resources.
<30% PM (profit margin) for contract manufacturing (OEM)
<50% PM for ODM with little IP leadership
>50% PM for an IP leader setting a de facto standard
The two curves along Core Competency axis (based on Innovation ) and Customer Recognition axis (based on Brand ) form the wall of the bowl holding the potential profit
Lowering of either curve will let the potential profit escape
In order to achieve high profit (like “Wintel”), a corporation must focus its resources mainly on strengthening its core competency with differentiating IP generation and promoting customer recognition as the leading brand .
Proper IP portfolio => dominance in a specific appl .
“ Wintel” in personal computing; TI in DSP
eBay in on-line auction and trading
New standards < = new applications => new IP
New applications <=> new system integr. (SI) reqmts.
New applications => new SI/application know-how
New applications => new IP & patent applications
New applications => new landscape for competition
The crowning of new top suppliers
The Value/Demand Chain IC H/W Platform IC S/W Platform (API, drivers, etc.) System Application Platform(s) Generic Reference Design (w/ other chips) Differentiated Application Designs Various Applications/Services Consumer Markets (End Users) IC Design houses System Integrators Service Providers For Consumer Electronics Market System Manuf.
Create a self-nurturing ecosystem (to be self-growing) – similar to Intel’s and TI’s “Developer Communities”
Provide complete system-level turnkey solutions ASAP for the targeted applications/customers
Accelerate time-to-market and time-to-mass production ( profitability )
Realize ROI within the earliest possible timeframe
Leverage others’ resources along the demand/value-chain by forming a consortium of (1) hardware/IC makers, (2) system integrators, (3) system manufacturers and (4) service providers to collaborate up-front to proactively address all the system integration issues in a well-coordinated manner .
System function requirements
H/W, S/W and middleware interface and application requirements
Mainland acknowledged Hong Kong’s legal system is more suitable for IP protection, servicing & trading
Hong Kong’s high-tech development efforts are regarded as integral parts of PRD’s regional and China’s global efforts to establish a FAVORABLE ECOSYSTEM to foster SUSTAINABLE SELF-ENRICHING high-tech developments
Resource sharing and COMPLEMENTARY core competency developments are the bases for long-term win-win collaborations between Hong Kong and Mainland
United for a better future of PRD : Hong Kong and its close mainland neighbors understand they should be partners instead of competitors
The supreme methodology for a company or country to achieve continuing innovation and technological and market dominance:
ICM (Intellectual Capital Management):
The vital CORPORATE culture and system necessary for continuous improvement of one’s DOMAIN KNOWLEDGE & Core Competence (including the interdisciplinary areas) within the chosen competitive landscape – “the domain”
Information Age (the age of knowledge-based society) is built on 3 successive global platforms:
1) Hardware platform that is mass-affordable
2) Network platform that is universally accessible
3) Content/service platform that enables experience sharing
Hardware platform means electronic devices…
A vast network of electronic devices covering access (personal access devices), edge and core levels
Made mass-affordable with semiconductor technology (scalability of CMOS)
Network platform for global internet (Internet Protocol-based) connectivity
Information highways, storages & traffic management
Enable information-sharing for anybody anywhere anytime
Content/service platform for experience sharing
Application service providers (ASP) for corporate clients
Content providers for various consumer markets
IT (Information Technology) is the technological and associated business process engineering (BPE) know-how to optimize the interactions among the 3 platforms for valued service deliveries to consumers
Technology being disruptive in nature drives business process re-engineering for competitive advantages - that’s change!
The shorter the technology/product lifecycles as fuelled by scalability of CMOS (the first cause on the supply side), the quicker the business process re-engineering cycles will be for better services (the first cause on the demand side)
IT Business Areas & Opportunities Moore’s Law and Metcalfe’s Law (acting on H/W and Network Platforms respectively) are fuelling on-going IT systems re-engineering for global improvements (changes) like magma shaping earth’s crust’s movements High-valued services with good business potentials Network environment given (by providers) or to be set up Data mining from public domain to add values Factors given or to be used “as is” – not to reinvent H/W components S/W & F/W Network Platform System (H/W) Platform Network Services/environments: Internet, cellular, WiMAX System Integration Protocols & Interfaces (Open stds. for reuse?) Content Layer Service Platform CRM, ERP, POS, etc. Applications (ASP) Consumer Services Public Domain Company Proprietary Bus. Domain Knowledge Instructions & Interfaces New ICs and Devices every 18 months or less