ASEE Conference at WPI

Engineering Education and Practice for the Global Economy

CIS Global Business Strategies

Al Barry

17 Mar 2006

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Agenda

• Introduction to CIS

• The Global Challenge

• Our Response

• A Few Observations

• What this Means for the US

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Introduction to CIS and subsidiaries

• Linear slides• Rack mounting kits

• Heat exchanger parts• Cable management• Keyboard/monitors

• Antennas

• Linear slides• Rack mounting kits

• Heat exchanger parts• Cable management• Keyboard/monitors

• Antennas

• 1,400+ people• US$115 M revenue

• NA HQ Grand Prairie TX• EU HQ, Scotland

• AP HQ, Singapore

• 1,400+ people• US$115 M revenue

• NA HQ Grand Prairie TX• EU HQ, Scotland

• AP HQ, Singapore

• HPQ• IBM

• Powerwave• Sun Microsystems

• Carrier • Whirlpool

• Dell

• HPQ• IBM

• Powerwave• Sun Microsystems

• Carrier • Whirlpool

• Dell

Organization

Customers

Products

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Wuxi, China

Manufacturing

Assembly & Service

Engineering

Singapore

Glasgow, UK

Grand Prairie, TXAPCIS

New products for global markets from Asia Pacific CIS

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Products: Power Distribution and Control

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Products: Linear Slides

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Products: Antennas for Mobile Phone Towers

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The Global Challenge

• Server customers moved their sourcing to Asia with a heavy emphasis on China

• Taiwanese contract manufacturers with Chinese factories became the key suppliers

• US and EU suppliers shrank or went out of business

• CIS was an integrator with a US footprint, the market wanted manufacturers with an AP footprint

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Our Response

• Grow our small Chinese assembly shop into a world class manufacturing facility

• Establish engineering office for new product design and testing

• Develop CIS intellectual property for products

• Build one global company, not three!

• Leverage our business development and service leadership

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A Few Observations

US Engineers and Managers:

• Better creative and problem solving skills

• A culture that values the individual and questioning why

• Every day experience with high quality products and services

• Expectation of high living standard• Economic rewards to pursue other

interests

AP Engineers and Managers:

• Prepared to follow explicit instruction and routine

• A culture that values the group and tradition

• Every day experience with lower quality products and services

• Expectation to achieve a better living standard

• Economic rewards to consume more common goods/services

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What this Means for US Businesses

• More value in product design and distribution, less value in product manufacture

• US engineer can manage design, sourcing, quality, and manufacturing engineers world wide

• R&D for products/processes are the key to technical job creation in the US

• These jobs will be fewer than those in product or service supply chains

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What this Means for US Engineers

• Know your engineering science, develop technical skills

• Understand economics

• Develop product, project, and people management skills

• Understand culture, learn how to manage globally