PV Industry Strategic Marketing 062010

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Comprehensive overview of the PV industry\’s equipment manufacturer\’s market potential in 2010

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PV Industry Strategic Marketing 062010

  1. 1. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  2. 2. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  3. 3. Global PV Market 2010 Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  4. 4. Global PV Market 2010 • Global manufacturing capacity greatly exceeds global demand. • With an estimated total of 16.1 GW of module manufacturing capacity online by the end of 2010, the global PV market is no longer constrained by supply. • In this new world, demand is determined at the project level based on the economic value proposition of a solar investment relative to alternative investments. • The gold rush is necessarily followed by the government reducing, and often capping, incentives in order to constrain market growth. Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  5. 5. Global PV Market 2010 Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  6. 6. Global PV Market 2010 • As Germany’s star begins to fade in the second half of 2010, no individual market will emerge to soak up excess inventory in sufficient volume to become the singular focus of global demand. • In other words, no country has the necessary characteristics to replace Germany as the singular market of last resort. • Over-reliance on the gold rush mentality and its resulting boom-bust cycle is an ineffective way to build a global industry. • In contrast, supporting steady but controlled growth in a larger number of markets provides a platform for global expansion and de-risks exposure to individual incentive programs. Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  7. 7. Global PV Market 2010 Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  8. 8. Global PV Market 2010 • Module prices will resume their rapid decline in 2011: Following steady to slightly upward price movements in the first half of 2010, global module ASPs will resume their decline in the second half of the year. • In 2011, difficult demand conditions will force module prices down by a further 19 percent, reaching below US$1.40/W on average. • However, ASPs declines will begin to moderate in 2012 and 2013 as stronger demand growth returns to the global market, supported by a class of secondary markets. Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  9. 9. Global PV Market 2010 • Thin-film will grow to 30% market share by 2013: The promise of thin-film technologies will begin to match reality over the next four years, as winning proponents of newly commercialized modules, as well as First Solar’s CdTe, will find increasing demand for their products. • But while thin film’s market share of demand will grow, some technologies (particularly amorphous silicon) will have an even larger share of manufacturing capacity. • As a result, high-margin thin film production will be enjoyed by a selected few suppliers. Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  10. 10. Global PV Market 2010 Source: GTM Research, 2010 GLOBAL PV DEMAND ANALYSIS AND FORECAST , May 2010
  11. 11. Global PV Market 2010 • Looking forward, the industry will return to high growth in 2010 and also over the next 5 years. Even in the slowest growth scenario, the global market will be 2.5 times its current size by 2014. • Under the Production Led scenario, the fastest growing forecast, annual industry revenues approach US$100 billion by 2014. http://www.wikinvest.com/industry/Solar_Power
  12. 12. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  13. 13. New Laser Sources For Efficiency Enhancement http://en.wikipedia.org/wiki/Solasys#Laser-selective_emitter_doping
  14. 14. Laser Technologies • Market dynamics drive technology preferences. Adoption rates for laser sources within the solar industry are dictated by a range of different factors, including: → Supply-demand market dynamics; → Maturity and qualification of new process steps disseminated from within the research community; → Return on investment (ROI) of laser-based processing versus alternative (non-laser) technologies available to cell manufacturers; Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  15. 15. Laser Technologies → The extent to which production equipment utilized is supplied by complete (turnkey) full production line manufacturers, compared to discrete (customized) modular inline tooling; → Availability of 24/7 production-qualified laser sources to commercialize research proven laser-based process stages; → Availability of turnkey laser-based tools with wide process windows, optimum process quality, and acceptable cost entry points. Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  16. 16. Laser Technologies Breakdown of relative revenues (in U.S. $) for lasers sold into solar cell manufacturing during 2008 showing a strong bias towards nanosecond diode- pumped solid-state (DPSS) lasers.
  17. 17. Laser Technologies Early Laser Adoption • First, let’s summarize those applications used extensively by the solar industry, in which laser-based process tools featured heavily until the end of 2008: • Junction isolation (also known as laser edge isolation) has become a well-proven laser-based process in c-Si lines as the final step at the back-end of cell manufacturing. • Here, lasers scribe an electrical isolation groove around the perimeter of the front surface, between the finger grid and the edge of the cell. Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  18. 18. Laser Technologies • Finger groove formation and mask creation (for both heavy diffusion and metallization) was applied extensively by BP-Solar within the well- known laser grooved buried contact (LGBC) c-Si cells. Lasers again performed scribing. This time along finger and bus-bar lines on the front surface. • Thin-film patterning uses lasers to selectively remove layers of materials during the various deposition stages employed to fabricate thin-film solar panels. These scribe lines provide cell isolation and interconnection across the panels. Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  19. 19. Laser Technologies The three main applications historically for lasers used in solar cell manufacturing have been (left to right) laser edge isolation, laser scribing for buried contacts, and thin-film selective removal.
  20. 20. Laser Technologies • Laser types used for these applications have been dominated by nanosecond diode-pumped solid-state (DPSS) sources operating at 1064 nm (IR), 532 nm (green) and 355 nm (UV). • The quality of scribing is optimized by choosing laser wavelengths to overlap with the absorption bands of the materials being ablated. • In those niche cases where process windows for nanosecond material removal prove too challenging for reliable and repeatable industry implementation, some researchers are currently exploring the use of sub- nanosecond (in particular picosecond) laser types. Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  21. 21. Laser Technologies • Lasers used in c-Si fabs during this same time period received far less attention. • Skepticism had been raised over laser technology in general when LGBC cell types failed to reach mass production levels (more on account of market dynamics then at play, coupled with the absence of any equipment supply-chain in place). • And lasers were up against both dry (plasma) and wet (chemical) etching solutions for junction isolation— technologies preferred by much of the equipment supply chain at that time. Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  22. 22. Laser Technologies The MWT (metal wrap through) cell concept "wraps" front contacts to the cell backside. Complete backside wiring is a technological advantage and the wrapped front side contact can use a larger area. (Courtesy of Jenoptik)
  23. 23. New Laser Sources For Efficiency Enhancement Laser-based processes forming part of efficiency enhancement stages within c-Si cell production can be allocated to one of four categories, defined as: • Assisting in mask writing for subsequent metallization, secondary diffusion in selective emitters, or surface etching to texture; • Localized secondary diffusion (laser doping via phosphorous- or boron-contained precursor layers); • Contact preparation (finger and busbar grooves, through-silicon-vias, interdigitated structuring); Source: Finlay Colville, Coherent Inc., Photonics Online, 29/11/2009
  24. 24. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  25. 25. Top 10 Solar PV Equipment Suppliers Source: VLSI Research
  26. 26. China PV Market 2010 -- Newsflash -- • Apollo Solar Energy Technology, Fujian Apollo (an indirect wholly-owned subsidiary of the Group) and Hanergy have entered into the principal sales contract of providing Hanergy equipment and integrated turnkey solution for the manufacturing of silicon-based thin film solar PV modules, for a total contract sum of US$2.55 billion. • The equipment sales contract will be divided into three batches of production lines and be produced and delivered by Fujian Apollo in three phases. • Each batch of the production lines consists of, among other items, 140 units of PECVD equipment and 30 units of PVD equipment, which are the core equipment of the new turnkey equipment, tools and machinery of the solar PV modules production system. Source: www.solarbuzz.com, 17 June, 2010
  27. 27. China PV Market 2010 -- Newsflash -- • Fujian Apollo shall complete the delivery of all equipment for each batch of the production lines within six months after the payment of the first installment of the prepayment for such batch of the production lines. • The aggregate equipment consideration is US$2.55 billion which was arrived at by reference to the historical selling price of similar equipment with similar capacity for the production of the thin film solar PV modules. • The equipment consideration for each batch of production lines is US$850 million. Source: www.solarbuzz.com, 17 June, 2010
  28. 28. Chinese Solar PV Equipment Industry 2010 • Of the 10 major equipment required for solar cell production lines, 8 types can be made in China. • 6 (diffusion furnace, plasma etching machines, cleaning/texturing machines, phosphorous-silicate glass (PSG) removal equipment, and low-temperature drying oven) take a leading role in production lines in China; • The remaining two (tube-type PECVD and fast sintering furnace) coexist with the imported equipment, and their market share keeps increasing. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  29. 29. Chinese Solar PV Equipment Industry 2010 • However, automatic screen printer, automatic sorting machine, and plate PECVD are still dominated by imported products. • Presently, the mainstream production lines of solar cells in China adopt both domestically made and imported equipment. • A standard 25MW production line calls for the investment of approximately USD 5-9 million. • To build a PV production line, the equipment investment accounts for over 70%. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  30. 30. Chinese Solar PV Equipment Industry 2010 • Though Chinese investment in the PV production lines increases continuously in recent years, the core PECVD equipment is totally dependent on import. • Of the 6 key cell manufacturing devices, the technology levels of Chinese domestically made products are as follows: Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  31. 31. Chinese Solar PV Equipment Industry 2010 • Diffusion furnace, plasma etching machine, cleaning/texturing machine: Meet or approach the international advanced level; they possess cost/ performance advantages; occupy a large part of the domestic market. • The home-made texturing machines for surface texturing of polycrystalline silicon cells fall behind imported ones. • Besides, there is neither laser etching/resistance trimming machine for peripheral etching nor wet chemical etching equipment. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  32. 32. Chinese Solar PV Equipment Industry 2010 • PECVD: with large production capacity and better film quality, the tube-type PECVD equipment has been on equal terms with the plate PECVD. • Now tube-type PECVD equipment has entered large production lines in large quantities. • Since 2008, new progress has been made in the techniques of domestically made tube-type PECVD equipment. • Its processing quality approaches that of equipment by famous, international manufacturers. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  33. 33. Chinese Solar PV Equipment Industry 2010 • Thus, it is favored by more clients and its share is increasing. • It is expected that the domestically made tube- type PECVD equipment will become the mainstream in the industrial application in the future. • Presently, the research on the domestically made plate PECVD is also in progress. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  34. 34. Chinese Solar PV Equipment Industry 2010 • High-temperature sintering furnace: It falls slightly behind the international standard, but has made good progress in recent years. • Some high-end products are used in large production lines, displaying outstanding performance. • Screen printer: Automatic printers with multiple printing heads have entered the market. It will take a period for users to accept them. • The manually operated and semi-automatic products cannot enter the mainstream production lines. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  35. 35. Chinese Solar PV Equipment Industry 2010 • Automatic detection/ sorting machine: Technology has reached the international medium level. In 2009, the sales revenue of Chinese solar equipment rose by 14.3% to reach about CNY 3.20 billion. In 2010, with the decline of poly-silicon prices, the cost of solar power generation will gradually approach that of traditional power generation. The support by domestic and foreign governments will also be enhanced. Thus, the PV market will continue the current rapid development trend. It is forecasted that the growth rate of Chinese solar equipment in 2010 will exceed that in 2009. Source: Market Research.com, 5. May, 2010 http://www.marketresearch.com/map/prod/2681499.html
  36. 36. Chinese Solar PV Equipment Industry 2010 • China announced in March of 2009 that it would subsidize solar energy installations at a rate of $3 per watt - about 60% of the cost - as part of its economic stimulus package. • In January 2009, the Qinghai province announced the world's first 1 GW solar farm, with 400 MW going to Suntech Power Holdings, 200 MW going ReneSola, 200 MW going to JA Solar, and the remaining 200 MW being competed for by various other solar firms. • Furthermore, two other provinces are rumored to be planning 2 GW projects. Source: http://www.wikinvest.com/industry/Solar_Power
  37. 37. Chinese Solar PV Equipment Industry 2010 • Since China's "Golden Sun" program was announced in July 2009, China's Ministry of Finance already selected 294 solar projects totaling 642 MW. • Under the program, China's Ministry of Finance will subsidize 50 percent of the construction costs for on-grid solar power plants and up to 70 percent of the construction costs for off-grid installations, plus transmission costs where necessary. Source: http://www.wikinvest.com/industry/Solar_Power
  38. 38. Competition – centrotherm PV AG • centrotherm photovoltaics AG is reporting an additional milestone achievement of its solar cell division. • Efficiencies of 17.1 percent have now been achieved on high-quality, multi-crystalline customer material. • With these results, the photovoltaic specialists demonstrate the great potential inherent in the selective emitter technology in the multi-crystalline area. • The efficiency enhancements achieved are the result of the newly developed cell front side based on selective emitter technology. • First production lines with selective emitter technology have been sold to Asia. • centrotherm photovoltaics is directly passing on the achieved development progress to customers in the form of upgrade options for existing turnkey production lines.
  39. 39. Competition – centrotherm PV AG • Innovative production processes such as the selective emitter technology are being developed in such a way that they can be integrated and retrofitted into existing process flows. • "An efficiency enhancement of 0.5% allows production costs to be cut by around 3%," was how Dr. Peter Fath, CTO of centrotherm photovoltaics, summed up the significance of this goal. "This allows us to continuously realize cost-saving potentials for our customers that strengthen their competitiveness." • In the initial process runs for the new cell back side, the centrotherm photovoltaics research and development team has achieved best values of 18.6 percent on a mono-crystalline material.
  40. 40. Competition – centrotherm PV AG • The company anticipates that significantly higher results can be attained in combination with the selective emitter technology on the cell front side. • The product range is supplemented by reactors and converters for the manufacturing of solar silicon. • It guarantees its customers important performance parameters such as production capacity, degree of efficacy, and completion deadlines for turnkey lines. • The Group employs around 1,100 staff members, and operates in Europe, Asia and the USA. • centrotherm photovoltaics achieved revenue in the 2008 financial year of €375 million, and EBIT of €56 million.
  41. 41. Competition – Manz Automation • Many c-Si solar cell manufacturers are developing various selective emitter processes that place emitters underneath the front contacts of cells to boost conversion efficiencies. • However, Manz Automation may be taking a lead in announcing that its laser-based production technology has been selected by Yingli Green, Bosch, and Conergy. • “Our selective emitter technology, coupled with our ultraprecise screenprinter, will enable us to develop additional market shares,” commented Dieter Manz, CEO of Manz Automation. • “This technology offers just what solar manufacturers need. According to our research, the process we have developed to create selective emitters offers by far the lowest production costs, and that is why it will help our customers to improve their profitability.”
  42. 42. Competition – Manz Automation • Specially developed laser optics allow parts of the phosphorous, present after diffusion in phosphorus glass, to be carefully diffused again to the surface of the solar cell without any defects. • As a result, the doping with phosphor atoms can be locally increased, thus significantly boosting the conductivity between the silicon wafer and the contact fingers. • Manz uses a high-precision printer (HAP2400) and the OneStep selective emitter laser line to produce the SE structure.
  43. 43. Competition – Manz Automation • Manz has presented technical papers on the technology with other companies, such as Deutsche Cell and REC Solar. • With these properties, HAP2400 is by far the most precise and fastest screen-printer on the market. • The machine is an integral component of the Manz back-end line, and together with the OneStep Selective Emitter laser line it offers the ideal combination to produce highly efficient solar cells.
  44. 44. Competition – Oerlikon Solar • Oerlikon Solar leads the thin film silicon PV equipment sector with more than 450 MW installed around the world. • Over 1 million panels have already been produced by its customers. • With the company's Micromorph® factories, Oerlikon Solar plans to reach production costs at grid parity in 2010 making solar energy cost equal to fossil fuel-generated energy.
  45. 45. Competition – Oerlikon Solar • The company is on track to offer its customers an advanced fab design capable of producing modules for $0.70/W by the end of 2010 offering the fastest time to revenue in the thin film silicon PV industry. • Oerlikon Solar's thin film silicon technology offers cost-advantages over crystalline silicon, and is making strong efficiency gains. At the same time it provides long term competitive advantages compared to most other technologies.
  46. 46. Competition – Oerlikon Solar • In the past 12 months, Oerlikon Solar has continued to significantly drive down module costs by approximately 25 percent, and improving the productivity of its lines from 60 MW in 2008 to 100 MW in 2009 without additional equipment.
  47. 47. Competition – Applied Materials • The Chief Technology Officer of Applied Materials, Mark Pinto, announced that he is picking up and moving from Silicon Valley to China. • Pinto is the first CTO to actually relocate to China, which in itself is a watershed event, but also shows how important China is to Applied Materials and the changing landscape of technology investing. • I consider this to be a monumental move for the high tech industry because it signals a major shift of power. • Pinto has a young family (two boys, 10 and 11), so he isn’t making this move because he likes Kung Pao chicken. He is doing it because he and the rest of the Applied Materials management team understand the threat and the opportunity in China. Source: http://www.marketoracle.co.uk/Article18505.html
  48. 48. Competition – Applied Materials • The threat stems from the fact that the Chinese are producing more engineering graduates, technological breakthroughs and opportunity because the market for 1.3 billion is so huge. • It is the largest supplier of semiconductor manufacturing equipment in the world, one of the largest suppliers of materials for solar panels, and one of the top technology companies on the planet. What Applied Materials does matters. • Applied Materials recently completed the construction of its newest and largest research lab in Xian, which is best known as the home of the terra cotta warriors. Source: http://www.marketoracle.co.uk/Article18505.html
  49. 49. Competition – Applied Materials • This is not an inconsequential first step. This new research lab is the largest non-governmental solar energy research facility IN THE WORLD and will be one of the largest employers in the city of Xian. • Applied Materials is no newbie to China, either. It has had operations there for 25 years and currently gets 13% of its revenues from China, but it isn’t the only tech giant moving into the country. • Intel, Microsoft, Google, Cisco, and IBM, for example, have large offices and/or research facilities in China. Source: http://www.marketoracle.co.uk/Article18505.html
  50. 50. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  51. 51. Strategic Marketing -- Link Between R&D, Sales -- • Collaboration is key! • Market analysis • Competition/ Benchmarking • Market Communication • Trade Shows
  52. 52. Collaboration Solutions • eGroupWare is a free open source groupware software intended for businesses from small to enterprises. Its primary functions allow users to manage contacts, appointments, projects and to-do lists. • It is used either via its native web-interface, making access platform-independent, or by using different supported groupware clients, such as Kontact, Novell Evolution, or MS Outlook. It can also be used by mobile phone or PDA via SyncML. • It currently has translations for more than 25 languages, including right-to-left language support. It depends on a standard X-AMP System and as such requires no specific operating system. Most popular internet browsers are supported for use as web based clients. Source: http://www.egroupware.org/
  53. 53. eGroupWare Features • Calendar (including support for scheduling of groups, resources and contacts) • Contact-manager using an SQL database or LDAP • Integrated IMAP webmail client (FelaMiMail) • Infolog, an application for tasks and notes • Element based project manager highly integrated with all other apps • Resources management (inventory) and booking tool integrated into eGroupWare calendar • File manager • SiteMgr: Web-based authoring system with fine granulated access control lists • Time-tracker application integrated with project manager • Tracking of bugs or other, integrated with project manager • Wiki • Knowledge base Source: http://www.egroupware.org/
  54. 54. Public Relations Management Software • Vocus Professional PR Software allows you to create media lists, build relationships with key journalists and manage your news. • Vocus Professional Edition provides all of the features that most small and mid-sized organizations need to generate, track and analyze publicity. • Professional Edition includes access to the industry's most comprehensive media database that you can use to conduct media research and easily create targeted media lists. http://www.vocus.com/content/prprofessionaled.asp
  55. 55. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  56. 56. Product Development Strategies • Idea Generation is often called the "fuzzy front end" of the NPD process. • Ideas for new products can be obtained from basic research using a SWOT analysis. • It includes looking at market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. Source: http://en.wikipedia.org/wiki/New_product_development
  57. 57. Product Development Strategies • Idea Generation can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase. • The objective of Idea Screening is to eliminate unsound concepts prior to devoting resources to them. • The screeners should ask several questions: Source: http://en.wikipedia.org/wiki/New_product_development
  58. 58. Product Development Strategies – Will the customer in the target market benefit from the product? – What is the size and growth forecasts of the market segment/target market? – What is the current or expected competitive pressure for the product idea? – What are the industry sales and market trends the product idea is based on? – Is it technically feasible to manufacture the product? – Will the product be profitable when manufactured and delivered to the customer at the target price? Source: http://en.wikipedia.org/wiki/New_product_development
  59. 59. Product Development Strategies • Concept Development and Testing • Business Analysis • Beta-Testing/ Market Testing • Technical Implementation • Commercialization • New Product Pricing Source: http://en.wikipedia.org/wiki/New_product_development
  60. 60. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  61. 61. Marketing Strategy For The Group • How many & which trade shows? • Harmonization/ integration/ consolidation of product lines. • Retain existing brand names? • Develop new brands from newly acquired companies? • ‘Bleeding Edge’ or ‘Me Too’?
  62. 62. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  63. 63. Product Benchmarking • Performance Benchmarking • Informal Benchmarking • SWOT Analysis • Best Practice Benchmarking • Over 60% of organizations that are not currently using these tools indicated they are likely to use them in the next three years. Source: http://en.wikipedia.org/wiki/Benchmarking
  64. 64. Product Benchmarking • Identify your problem areas. • Identify other industries that have similar processes. • Identify organizations that are leaders in these areas. • Survey companies for measures and practices. • Visit the "best practice" companies to identify leading edge practices. • Implement new and improved business practices. Source: http://en.wikipedia.org/wiki/Benchmarking
  65. 65. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  66. 66. QA/ Customer Satisfaction ISO 9001:2000 System
  67. 67. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  68. 68. Global Spare Parts & Service Coverage • Global sales and marketing offices are nice, global service coverage is nicer. • Customer proximity is a key differentiator. • Logistics, capital invested is strategic. • Make or buy (i.e. use local partners or establish a local service company).
  69. 69. Global Spare Parts & Service Coverage • What kind of business software solution to manage/ track it? • Service Level Agreements (SLA)? • Customer training/ workshops? • Remote access? • What kind of warranties? • Are service handbooks localized?
  70. 70. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  71. 71. Post Acquisition Integration The ability to successfully integrate acquired companies is generally ranked as the single most important factor influencing acquisition success. Integrate where it matters. Companies should integrate only where valuable or necessary. Speed makes a difference, but only in the right direction. Put culture high on your leadership agenda. Decide quickly on a specific approach and use hard tactics -- organization structure, compensation incentives, and a shared decision-making system -- to address cultural integration. Source: Bain & Company
  72. 72. Post Acquisition Integration Make tough decisions early. The best acquirers move quickly to determine the new organizational structure and the key people who will drive the integration. Focus firepower on the base (key) businesses. They must have a plan to maintain the market share of both companies and their brands while the integration is underway -- acquirers are also most vulnerable to competitive attacks on customers and employees in the months following the announcement of a deal. Source: Bain & Company
  73. 73. Agenda 1. Overview 1.1 Global Market 1.2 Technologies 1.3 Competition 2. Strategic Marketing 2.1 Link Between R&D, Sales 2.2 Product Development Strategies 2.3 Marketing Strategy For The Group 2.4 Product Benchmarking 2.5 QA/ Customer Satisfaction 3. Global Spare Parts & Service Coverage 4. Integration Of Newly Acquired Companies 5. Product Harmonization/ Consolidation
  74. 74. Product Harmonization/ Consolidation Post acquisition activities: • Facility planning and industrial engineering actions can be very useful in the transition after an investment. • To reach the expected levels of growth, modernization, new product introduction, technology, integration, or interaction for which the investment is targeted. • End results will probably involve action throughout all facilities and operations. Jack Greene, Jackson Productivity Research Inc.
  75. 75. Product Harmonization/ Consolidation Maximize 1. Operating utilization and throughput at facilities. 2. Return on assets. 3. Product consolidation and integration, product mix. 4. Capacity for existing and new products. 5. Proximity to markets. 6. Customer service. 7. Access to technology, people, utilities. 8. Company image and quality of life objectives. Jack Greene, Jackson Productivity Research Inc.
  76. 76. Product Harmonization/ Consolidation Minimize 1. Location sensitive operating costs, such as labor at all levels of the organization chart, taxes, occupancy, utilities, waste disposal. 2. Distribution and incoming freight costs. 3. Constraints, cycle times, inventory. 4. Facility asset value and operating cost. 5. Antiquated facilities which impede operations. Jack Greene, Jackson Productivity Research Inc.
  77. 77. THE END! THANK YOU FOR YOUR ATTENTION

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