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Irresistible! Markets, Models, and Meta-Value in Consumer Electronics

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  • Description
  • Sample Content
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  • Copyright 2006
  • Dimensions: 6x9
  • Pages: 272
  • Edition: 1st
  • Book
  • ISBN-10: 0-13-198758-5
  • ISBN-13: 978-0-13-198758-6
  • eBook (Adobe DRM)
  • ISBN-10: 0-7686-6823-9
  • ISBN-13: 978-0-7686-6823-0

“The consumer electronics world sets a blistering pace for innovation, and anyone hoping to keep up–or take the lead–should read this book. Insightful and comprehensive, it maps out the industry terrain, and then points the way toward opportunities that lie ahead. Bailey and Wenzek have put together a compelling read on this fas­cinating global industry.”

–Tom Kelley, General Manager IDEO author, The Ten Faces of Innovation

“Consumer electronics is one of the largest, fastest growing, most exciting, and most ruthless markets in the global economy. And technology and innovation are pouring into the space at an accelerating pace. Unfortunately, many vendors are not making money. Maniacal focus on return on investment is the key to success, and this book provides thought-provoking ideas on how to drive it.”

–Mike Bingle, Managing Director Silver Lake Partners

“An industry built on the foundation of market dominance is being shaken up. In consumer electronics, those keystone companies that appraise the innovative value of niche players regain profitable growth. This book outlines what it takes to win in a turbulent ecosystem.”

–Marco Iansiti, Professor of Business Administration Harvard Business School

The consumer electronics industry is entering an era of extraordinary growth. The industry’s best companies will ride that wave to unprecedented success. But, today, many CE companies are struggling with business models that are simply untenable. They must change to survive: they must change even more dramatically to win.

In this book, two world-renowned consultants preview the industry’s future–from online gaming to telehealthcare, and beyond. Next, they present a powerful new blueprint, offering indispensable guidance on everything from technology platforms to user interface design, branding to channel strategies. You’ll discover how to uncover new sources of value, design better models for doing business, and fuel growth by reaching new geographical markets. Whatever your role in the industry, this book will help you:

·   Make better decisions, find your differentiators, and focus on your key success drivers

·   Tap into the emergent “meta-value” that arises when technologies, devices, services, and content come together

·   Reach tomorrow’s smart, service-sensitive shopper: not just the “technology-hungry” customers

·   Widen margins by adding value consumers will pay for

·   Transform cost structures to support rapid growth and nonstop change

·   Sell into China, India, and other fast-growing emerging markets

·   Preview “telehealthcare”: the surprising application for the living room

·   Gain new insights into online gaming, smart home technology, and more

·   Discover the immense power of IBM’s Cell Broadband Engine processor–and the business opportunities it enables

·   Leverage embedded Linux to build more affordable, profitable, consumer-centric products

·   Develop higher-value software for connected consumer electronics

·   Differentiate products through state-of-the-art design and user interfaces

·   Discover what the industry’s “winners” will look like in five years–and how to be one of them

The consumer electronics industry continues to grow at breakneck speed: from MP3 players to home healthcare devices, consumers are adopting new technologies faster than ever before. But most consumer electronics companies are struggling with razor-thin margins, or even losses. Their traditional business models simply aren’t working anymore. In Irresistible! Markets, Models, and Meta-Value in Consumer Electronics, IBM’s leading consumer electronic industry consultants reveal powerful new opportunities to profit–and offer realistic advice for leveraging them.

Drawing on their experience working with innovators from Helsinki to Osaka, the authors and contributors introduce revolutionary On Demand Business models for improving profitability, and identify tomorrow’s most profitable CE opportunities. They cover every element of success: technology, design, service, branding, channel strategies, and much more. Whether you’re an executive or engineer, strategist or entrepreneur, this book will help you find your differentiators, focus on your key success drivers–and become one of this industry’s big long-term winners!

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Preface

Untitled Document We have worked with many, if not most, of the leadership teams of major consumer electronics (CE) companies around the world. To say that these teams are in a state of flux falls short of describing the changes they are facing and the decisions they must make. They know we are entering an incredible period of growth, a period when consumer electronics will change the world we live in and how we live in it. It is also a period that the consumer electronics companies understand what they must be prepared for. Their current business models will most probably limit their opportunities, and unless they change, many will not thrive and some may not survive. Although all the CE companies are struggling to find the way forward, this is all new, and there are few definitive answers. After working with our clients everywhere from Helsinki to Osaka to New York, we decided to collect and share some of the insights we have gained. One word about IBM, considering we both work for IBM: IBM is not a CE company and doesn't plan to become one. Instead we are the "arms supplier" to the industry. We provide technology, business advice, and software to virtually all the ecosystem players.

This book is intended to be of interest to the millions of consumers who are fascinated by CE and who are curious about where things are going. The book is intended to be essential reading to the thousands of CE industry executives and the executives of adjacent companies who either buy, distribute, or contribute products to CE companies.

We look forward to working with our clients on creating the future of consumer electronics and discussing with all of you at the next opportunity.

George Bailey—Global Electronics Industry Leader, IBM Business Consulting Services, Greenwich, CT, USA, December 2005

Hagen Wenzek—Global Electronics Industry Leader, IBM Institute for Business Value, Heidelberg, Germany, December 2005

Find additional insight at http://www.ibm.com/industries/electronics/irresistible.

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