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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 Consumer Electronics
Group 2B:DishaRobinKunal
PranshulSiddharth
Sudarshan
Agenda
Spending on IT
Value Chain Disruptions
Business Model / Process Transformations
Successful Business Transformation
Failed Business Transformation
Trends
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 2011Source: IT Metrics: IT spending & staffing report, 2011
Dell : 1.49% of revenue ~ $916 mn in 2011Source: http://en.community.dell.com
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
UnifiedCo-ordination
Diversified Replication
Business Model / Process Transformation
Business application – CRM
• 24 hours toll free number
• Online support on website
• Offers free mobile downloads from the website
Business Model / Process Transformation
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!
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!
TRENDS - SMAC• Online marketing using social platforms like Twitter and
• 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
• 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
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
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
THANK YOU !!