information technology in the consumer electronics industry

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

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

• 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 !!