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2006. Thomas Simonis. Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity. CEE-Wirtschaftsforum 2006. Forum Velden.
 

2006. Thomas Simonis. Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity. CEE-Wirtschaftsforum 2006. Forum Velden.

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    2006. Thomas Simonis. Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity. CEE-Wirtschaftsforum 2006. Forum Velden. 2006. Thomas Simonis. Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity. CEE-Wirtschaftsforum 2006. Forum Velden. Presentation Transcript

    • Infineon Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity Velden, 21.09.2006 DI Thomas Simonis Managing Director Infineon Technologies Romania
    • Infineon at a Glance
      • Infineon – the no. 4 semiconductor company worldwide
      • Revenues of Euro 6.8 billion in the fiscal year 2005 and 1.97 billion in the third quarter of fiscal year 2006
      • Approx. 41,100 employees (incl. 7,400 R&D staff) as of June 30, 2006
      • Strong technology portfolio with about 42,000 patents and applications; more than 35 major R&D locations worldwide
      • Focus on automotive and industrial electronics, security and chip cards, communication and memory products via its affiliate Qimonda
    • Infineon – Business Groups Communication Solutions Automotive, Industrial & Multimarket Memory Products * a 100% subsidiary continuing the operations of the former MP COM AIM *
    • Automotive, Industrial & Multimarket Product Range
      • Pressure, temperature, hall sensors; RF ICs
      • 8-bit, 16-bit, 32-bit TriCore® microcontrollers
      • MOSFETs, IGBTs, voltage regulators, transceivers, smart power, system ICs
      • Power discretes, - modules, -stacks, - ICs
      • AF and RF diodes and transistors; SSICs, MMICs
      • Chip card controllers and memories (contactbased and contactless)
      • Security ICs
      • Customer specific solutions and design
      Market Positions No. 2 in Automotive ww, no. 1 in EU No. 3 in RF Discretes No. 1 in Power No. 1 in Chip Card and Security ICs Sources: Strategy Analytics (2005), iSuppli (2004), IMS (2005), Gartner Dataquest (2005) Core competencies
      • Highest quality products and services
      • Leading edge technology and IP portfolio
      • System expertise with broad application competence
      • Strong worldwide presence with local sales and R&D support
      • Dedicated and committed account teams and distributors
    • Why Infineon Goes Bucharest - Keyfactors Villach Austria Bucharest Romania Padua Italy Munich Germany Graz Austria R&D network for power mixed signal
      • Strengthens alliance of intelligent power semiconductors
      • Proximitiy to customers
      • Surrounding infrastructure
      • Proximity to universities
      • Highly qualified engineers
      • Strong high-tech orientation among authorities
      • Cost advantages
    • Infineon Romania Facts & Figures
      • Official annoncement in April 05: formation of Infineon Technologies Romania
      • June 05: Legal entity Infineon Technologies Romania & Co. SCS founded
      • Operations started in August 2005 with 19 employees
      • 18. January 2006: Inauguration of the Development Center Bucharest
      • Today 120 employees
        • 80 on site
        • 40 abroad on training
      • R&D focus on
        • Automotive Power
        • Sense and Control
        • Radio Frequency
        • Chipcard
    • Internal Success Factors for a new R&D Center
      • Clear definition of required competencies
        • not to mention the low cost argument first
      • Convince and buy-in of internal customers
        • guarantees the active support of involved persons and departments
      • Comprehensive location analysis
        • ranking list of criteria, weight factors
      • Consulting and governmental relations by lobbyist
        • door opener, lobbying
      • Professional and experienced project team
        • HR, finance, purchasing, facilities, export control, IT
      • Delegates for management and knowledge transfer
        • well connected to mother company, processes, technologies
    • Success Factors in Entering the Romanian Market
      • Pool of experienced, well educated people
        • sufficient number of people with the required specialization
      • Close co-operation with technical universities
        • Master studies, laboratory, interns, masters/ PhD thesis
      • Infrastructure
        • good internet and phone supply, airport, public transport
      • Cultural proximity
        • European country and culture
      • IP protection enforced
      • Regulatory proximity as far as laws are concerned
    • Challenges
      • Complicated visa procedure inbound and outbound
        • Inbound: getting work- and residential permit takes more than 3 months
        • Outbound: long process in some EU countries
      • Compensation package finding
        • starting a new industry, right „price“ finding
        • false expectations and unrealistic demands of candidates
      • Bureaucracy
        • huge number of documents for simple processes
      • Customs
        • very entertaining behaviour of customs staff
        • long approval processes to get customs clearance
      • Frequently changing laws and regulations
        • labour and tax laws, 2h per day to go through alterations
    • Lessons Learned: Logistics, IT
      • Must have reliable shipping company with good contacts to authorities/ customs
      • Invoices to be in Romanian language; otherwise, risk that goods are not being delivered
      • Approval needed for
        • hardware and software for security applications (e.g. encryption)
        • software tools used in all design processes
        • all project, design, and technology data
      • Very good experience with Internet and telephone provider
        • high flexibility in providing tailored solutions on short notice
      • IT personnel is well educated and experienced
        • but seldom familiar with centralizes IT systems/ operations
      • Local hardware vendors try to ignore internationally agreed conditions with Infineon
    • Lessons Learned: Personnel, Service
      • To start up, a high quality local recruiter is essential
      • To reduce cost, quickly set up inhouse HR department
        • comprehensive training on inhouse processes required
      • Clearly set rules and regulations – and that they are compulsory and not negotiable
      • Outbound delegates (trainees): logistics, accomodation, allowances must be well though-out
      • Service and support structures and service levels are not up to Austrian standards
        • suppliers are happy with 80% solutions, do not reply
        • craftsmen do not appear since they already work somwhere else for more
    • Knowledge Transfer as an Opportunity
      • Setting up a high-tech R&D center
      • Knowledge transfer through comprehensive training
        • working in a solid international R&D network on an equal footing
      • Project responsibility, no extended workbench
        • highly motivated teams, working on essential projects
      • Long term perspective
        • further potential for expansion
        • Competence Center
      • Opportunity for Romania
        • starting a new high tech industry with future-proof work places
        • will attract more high tech industry and create more jobs in other industries as well
    • Never stop thinking.