What Electronic Tech Buyers Need

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A

CASE

ONWHAT ELECTRONIC TECH BUYERS NEED

SUBMITTED TO

PROF. K.R RAO

BY

C.VISHAL CHANDRA

SEC “B”

1226109210

GIIB 23nd

FEB 2009



CASE: WHAT ELECTRONICS TECH BUYERS NEED

About the case:

This case is all about the electronics industry, its opportunities and challenges in the

contemporary. Also, the importance of ERP (enterprise resource planning) is mentioned and how

effectively ERP can be used in electronics industry to improve the on the operations and

optimization in the company.

Electronics industry:

Electronics industry is by and large the fastest growing sector. The hardware components serve

as an important support to the stupendous growth of this industry. It is the industry where there

are huge opportunities for growth and have as many challenges as there are opportunities. It

requires pragmatic and visionary innovators to run the electronic firm successfully. there are four

largest components which are contributing to the growth of the industry which are consumer

electronics, semiconductors, RIFD/ sensors and automotive technologies with many of sub

sectors within each component. It is estimated that only retail components would account for the

annual sales of about $50 billion. Some of the other subsectors include flat panel display

manufacturers, integrated circuits, nano technologies, power supplies, security equipment and

connectors etc.

Challenges faced by the industry:

The electronics industry also faces a whole lot of challenges which the firms have to concentrate

on for their growth and survival in the business. Some of the challenges faced by this industry

are:

• Product obsolescence: industry faces very fast product obsolescence when compared to

other industries and sectors. Firms must be very innovative and continuously invest in

R&D for competing in the market.





considerably. Short product cycle time will help the firms improve in their lead time errors and

also reduce costs to a great extent.

• Strategies to compete in the global environment:

Strategies such as enriching the adopting to global suppliers which give the firms the advantage

of arbitrage will help in reducing the costs and compete in the global market. Also improving on

global supply chain by forming MoU’s with different distributors through out the world and also

adapting the strategies of mergers and acquisitions will help the firms to survive in the global

markets. Huge investments in R&D and also the understanding the buyer’s behavior in different

countries requires the support of various partners across the globe. Thus, mergers and

acquisitions would play a major role in designing strategies to compete in global environment.

• Employing different solutions for planning resources and forecasting demands will help

the firms to utilize its available resources to meet the demands effectively.

One such solution would be enterprise resource planning (ERP). Enterprise resource planning is

the industry term used to describe a broad set of activities supported by multi-module application

software that helps a manufacturer or other business manage the important parts of its business.

These parts can include product planning, parts purchasing, maintaining inventories, interacting

with suppliers, providing customer service, and tracking orders. ERP can also include applicationmodules for the finance and human resources aspects of a business. The major features and

functions of ERP include;

o Integrated functionality which includes manufacturing, inventory and material

management, sales and distribution management, supplier and purchase

management, human resource management, financial resource management and

plant maintenance management.

o Support to a wide variety of operational styles and also execution styles.

o Availability of modules for analyzing each of the business operations and provide

optimal solution for utilization of resources according to the demand.



o Forecasting of demand from different distributors available to the firm and also

provide solutions for the optimization of costs for transportation and on time

delivery.

o Allocate finances for each of the manufacturing stage and provide the information

regarding the cost structure of the firm.

o Provide data regarding the supply chain of the firm and allows analyzing the

supply chain deficiencies and errors.

o Service oriented architecture (SOA) which provides the services which are able to

connect the systems and communicating internally. This is the service which is

provided to use the ERP effectively in all respects.

o The software is also provided with EDI (electronic data interchange) which will

be very helpful for the firms to exchange the data between various departments

and also to communicate with the firms suppliers, inter country collaborations and

CPFR (collaborative planning, forecasting and replenishment).

Support given by SYSPRO:

One of the companies that are giving support for the electronic industry in providing with ERP isSYSPRO. It gives the firms vertical collaboration between the electronics manufacturers and

distributors. It is giving electronics firms viable, logical and long term solutions in providing

with the data of forecasting and optimal solutions in supply chain and resources management.

The key modules provide by SYSPRO are manufacturing, financials, distribution, analytics and

CRM. The solutions provided by this company are becoming very handy for small and medium

scale firms. The technology architecture that SYSPRO utilizes is a multilayered, .NET stack that

provides significant connectivity and product flexibility. This is critical for electronics makers

that need to interact with third parties and their systems.

SYSPRO was launched approximately 30 years ago. Their software products are in use in over

60 countries today. Total customer count for SYSPRO exceeds 14,000. The other sectors which

SYSPRO is offering ERP systems include aerospace, automotive, chemicals, machine and

equipment manufacturing, medical devices, food and beverages industry.



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What Electronic Tech Buyers Need