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 !!
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