Information Technology in the Consumer Electronics Industry
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This presentation covers the the IT spending in the Consumer Electronics Industry has increased in recent times highlighting some successful and some failed business transformation and finally looks into the IT Trends - Social, Mobile, Analytics & Cloud.
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Information Technology in the Consumer Electronics Industry
- 1. Information Technology in Consumer Electronics Group 2B: Disha Robin Kunal Pranshul Siddharth Sudarshan
- 2. Agenda Spending on IT Value Chain Disruptions Business Model / Process Transformations Successful Business Transformation Failed Business Transformation Trends
- 3. Spending on Information Technology • The world has become increasingly HYPER-CONNECTED and hence the line between CE & IT is very hard to distinguish. • Resulted in consumerization of information technology. Consumer Products : 2% of revenue in 2011 Source: IT Metrics: IT spending & staffing report, 2011 Dell : 1.49% of revenue ~ $916 mn in 2011 Source: http://en.community.dell.com
- 4. Value Chain Disruptions in the Industry • Forward integrating their distribution by opening own store / selling through website. Classical Disintermediation • Coupling Galaxy and Wave with Airtel data plans • Google Services (Google News) as real time interface for marketing • Android software in Samsung. Network based Mediation • E-retail through eBay, Flipkart, etc. • Use of payment gateways. Remediation
- 5. UnifiedCo-ordination Diversified Replication Business Model / Process Transformation
- 6. Business application – CRM • 24 hours toll free number • Online support on website • Offers free mobile downloads from the website Business Model / Process Transformation
- 7. Successful Business Transformation • Apple transitioned from a computer company to a consumer electronics company Success - Apple’s iTunes (2001) • Revolutionized the music industry by digitizing music and selling it online Innovated in completely different format for selling the same product!
- 8. Failed Business Transformation • Failure – Whirlpool (1999) – Suffered a crippled shipping system resulting in 6 - 8 week delays in shipping orders, and inventory lying idle in their warehouses, after it went live with a SAP ERP application in spite of receiving warnings in the testing phase – Reason for go ahead : Preventing a delay in their implementation schedule Speed thrills, but kills!
- 9. TRENDS - SMAC • Online marketing using social platforms like Twitter and Facebook • Viral marketing through social media platforms raises consumer excitement more than traditional marketing • Increased engagement through continuous presence amongst consumers using social media Reference: http://mashable.com/2012/01/13/ces-20120-social-media/#432338- ViewSonic-Tablet-Series
- 10. • Mobile apps. Eg. Sony mobile app helps in : – Searching for Sony products – Pricing List – Reviews – Wishlist (Add products to your wishlist to buy later) – Dealer Store • Mobile devices designed to: – Process checkout – Accept payments – Email electronic receipts to customers, right there on the sales floor. Reference: http://www.deloitte.com/view/en_US/us/Insights/Browse-by-Content- Type/deloitte-debates/d3c33d448427f210VgnVCM1000001a56f00aRCRD.htm TRENDS - SMAC
- 11. Use of M-Net by Samsung • To maximize returns on its marketing investments • Managers can assess primary marketing objectives • Analyze the results of marketing investments around the globe • Build predictive models and what-if scenarios to test future investments • Revealed mismatches between some of its marketing investments and the maximum returns those investments could ever yield Reference: http://www.accenture.com/us-en/Pages/insight-technology-consumer-goods- companies-analytics-summary.aspx TRENDS - SMAC
- 12. Reasons behind consumer electronics opting for Cloud Computing • The desire for electronics manufacturers to differentiate themselves often, its cloud services that provide that “extra” zing to the products • The second reason is the desire to convert a one-time sale to a continuous revenue stream • The proliferation of connected technologies necessitates the sale of cloud-based services • E.g. : Google brings Cloud Computing to Consumer Electronics with Google TV TRENDS - SMAC
- 13. THANK YOU !!
Editor's Notes
- Spending in ce is much lesser than other industries since product itself is it enabled
- Already discussed ..
- Intially replicated like tv, fridge etc. mobile phones picked up when they launched smarttphones …moving to higher integration thru usage f platforms like cloud and android…thus products are now interconnect and so are the business units…now moving towards unifications
- Social Trends are more than just integrating Twitter or Wi-Fi into a product, it’s the experience the product offers. Consumers increasingly want their experience with tech to be social. E.g. Consumers increasingly want their experience with tech to be social. A fitness gadget, for example, isn’t just about working out — it’s about setting goals, working toward them, sharing your progress with friends and doing it all in a way that makes you feel good about yourself.When online streaming and downloading is factored in, consumers are actually watching more TV over the past few years, according to NielsenSocial networks are distractions but they compliment the TV experience.Twitter and Facebook get an audience more excited about a show, or a product, than traditional marketing ever could.Move towards green technology and power efficiency is a social trend. consumers seek to connect to their world by making it better in a small but measurable way.
- One consumer electronics retailer designed their stores without traditional point-of-sale registers and queues; instead they equipped their associates with mobile devices designed to process checkout, accept payments and email electronic receipts to customers, right there on the sales floor.
- The Korean electronics giant uses analytics to maximize returns on its marketing investments. Its analytics system, M-Net, houses masses of data as well as the analytic tools needed to make sense of it. Samsung managers can assess primary marketing objectives, analyze the results of recent marketing investments around the globe, and build predictive models and what-if scenarios to test future investments. M-Net has saved Samsung millions of dollars by revealing mismatches between some of its marketing investments and the maximum returns those investments could ever yield.
- With the gamut of choices on offer, the consumer demands something “extra” to patronize a certain product; Thus, in the same manner that utilities are charged by the month, subscriptions to cloud services can bring in the dollars long after the electronic device or equipment has been sold. Additionally, I believe that satisfaction with such service can prevent customer churn – the consumer may come back to the same manufacturer for the next model of the device. For example, manufacturer X, which sells mobile phones, laptops and tablets, can ensure greater brand loyalty by providing cloud access to share data across these devices.
- Early 2000’s Samsung electronics were replicating models of TV, refrigerator, washing machines. In 2005 samsung diversified into launching mobile phones and further diversified into smart phone market. After becoming a market leader in smart phones, Samsung is slowly integrating its products and services with platforms like Android and cloud computing.