Global supply chain management identified as the single biggest challenge in hi-tech product development according to Infosys survey
Fremont, CA; April 29, 2005: In a survey conducted by Infosys (NASDAQ:INFY), at the Electronics Supply Chain Association (ESCA) Spring 2005 Symposium, an overwhelming majority (70%) of supply chain executives confirmed that managing global supply chain is the single biggest challenge in product development for the hi-tech industry. The event saw participation by 170 supply chain executives from 89 leading companies spanning the semiconductor industry, original equipment manufacturers, software vendors, distributors, and electronic manufacturing service providers.
The survey also confirmed that time-to-market is critical in new product introductions (43%), more so than quality of design (8%) or product differentiation (34%). Results show a strong indication from supply chain executives that in a rapidly changing market, companies are willing to tradeoff optimization of product features, performance, cost and reliability, primarily because modular versions of the product are introduced on subsequent releases as newer technologies develop.
The survey findings also revealed collaboration amongst design partners, suppliers, and customers is the key element of effective and integrated product management and in the current new product development process the collaboration environment is sub-optimal.
In addition, the majority also indicated marketing & sales as well as engineering were the primary influencers during the new product development phase. Manufacturing received only 3% of the votes, showing a strong disconnect between the perceptions of the roles played by the design and manufacturing functions.
Infosys provides business solutions to companies in the hi-tech and discrete manufacturing industry. Miguel Zuniga, Solution Manager at Infosys Hi-Tech and Discrete Manufacturing Practice, led an interactive discussion at the event titled "Integrated Product Management" on how companies could shorten the product lifecycle and maximize profitability through information-sharing and process integration. Commenting on the survey findings, he said, "The survey confirms our view that hi-tech companies would benefit greatly from a comprehensive and holistic view of each product throughout its lifecycle so that all parties involved can look for opportunities to increase competitive advantage. I look forward to further discussions with many of the participants that will enable Infosys to continue to develop innovative ways to improve global supply chain management and product time-to-market for our clients."