Cloud Computing for Electronics

IBM Sales and Distribution Electronics Industry
White paper

Cloud Computing for Electronics

2 Cloud Computing for Electronics

Staying Ahead with Cost-effective Cloud IBM® believes that cloud computing technologies are
Computing particularly well-suited for organizations in the electronics
Since the crisis in the financial markets in 2008, global industry that seek to build a proactive approach to this
business leaders have been aggressively rethinking their dynamic new age.
strategies. In the electronics industry, these strategies are
likely to be quite different, reflecting the enormous diversity This paper provides a view of cloud computing for the
of the industry itself. From consumer electronics to medical electronics industry and describes the technologies and
devices, industry sub-segments are all trying to respond to functions required to improve efficiency, reduce costs and
lower consumer spending and stricter access to capital in their enable new capabilities.
own unique ways.
At play: Integration driven by need to
The closer watch that consumers are keeping on their wallets innovate and operational excellence
has not affected the desire for intelligent, interactive electronic With so many manufactured products now incorporating
devices — from the largest flat-panel television to the smallest electronic components and the pace of commerce so rapid,
radio-frequency identification tag — however. To stay ahead, the industry has not only grown quickly, but it has also become
electronics companies are feeling the pressure to be the first far more complex in order to remain competitive. The
to create and seize unrealized opportunities for developing breakneck pace of technology development has put incredible
innovative products that enable differentiated services. pressure on original electronics equipment manufacturers
(OEMs) to develop new and innovative products as a matter
Breakthrough technologies such as cloud computing can of course. And, they must also deliver on a tight schedule,
empower electronics companies, driving the convergence with fewer resources and lower capital investment, and at
of business and IT. Through this process, the distances and ever-lower prices. For example, while companies are
costs between companies and their customers are significantly incorporating innovative technologies that will boost the
reduced and organizations are able to respond to the dynamic performance of the next phone, camera or computer, they
environment and complexity with operational dexterity, are also trying to make the products more affordable.
innovation and enhanced customer focus.

Electronics Industry 3

To meet consumer and customer needs, companies are actively
seeking ways to bring their best offerings to customers and
consumers, regardless of geographic location. Unfortunately,
parent companies with multiple global subsidiaries often lack
the seamless integration that enables them to take advantage of
specific needs in local markets. Also, as electronics companies
add new capabilities, make strategic acquisitions and enter new
market segments, they increase the complexity of operations
The Internet and electronics and the challenges of managing the investment in IT and the
ongoing operational cost of IT. To overcome these business
The Internet has permanently changed not just our everyday
lives, but also society at large and how enterprises operate challenges, an electronics OEM should operate as a single,
around the world: globally integrated organization. The benefits of doing so can
position them to:
• Intelligent, interactive electronic devices — such as flat
panel televisions that can receive the latest movies from a
web subscription service to the small radio-frequency • Achieve cost-saving operational efficiencies with economy
identification tag that track containers on trucks from port of scale.
to distribution center — exploit Internet technology to • Capture global (and growing) market opportunities.
enhance the consumer experience and improve how • Achieve faster time to market using global scale, expertise
business is done every day. and resources (skills and IT).
• Breakthrough Internet technologies such as social media • Create the flexibility to quickly respond to change.
are empowering businesses, driving the convergence of
business and the web. The emergence of cloud computing, web services and service-
• The distances between companies and their customers oriented architecture (SOA), together with new standards, is
are becoming significantly reduced as the Internet makes the key to providing the integration that will open up the field
it possible for them to communicate instantly. to innovation, collaboration and operational efficiency.


In this dynamic new age, we strongly believe that deployment OEMs that seek to enhance the customer experience using
of information technology using cloud will be the key to direct sales channels need adequate integration. Effective
success over the next decade. The very real challenges facing order management is easier to achieve when front-end and
the electronics industry — and the trends that will shape its back-end systems are integrated. Often, however, that is not
future — can now be fulfilled with cloud computing, using the case. Also complicating matters is data that is fragmented
business process-as-a-service, software-as-a-service, platform- and difficult to synchronize because it is stored in multiple
as-a-service and infrastructure-as-a-service mechanisms as its and proprietary enterprise resource planning (ERP),
delivery models. customer relationship management (CRM) and content
management systems.

Enhancing brand value with systems, Today, there are a number of options for integrating
application and data integration in e-commerce applications and other backend systems. A
the cloud common approach is to load data required by the e-commerce
New direct sales channels — OEM online and branded application as needed. Data management solutions vary, and
brick-and-mortar stores — are becoming increasingly the use of extract-transform-load (ETL) solutions make the
prominent because of their inherently strong profit margins. job easier. But moving data from the source to the e-commerce
An additional, highly significant benefit that OEM direct application adds complexity. It also adds processing time,
channels can offer is improved customer value. By facilitating and it can be difficult to change the data in real-time.
direct control over the quality of the user experience, direct
channels help OEMs deliver what customers demand most. Cloud computing is an option that can provide the integration
Research by the IBM Institute for Business Value indicates OEMs need for direct channels without complexity and
that a positive customer experience is a key driver of loyalty. processing time. The information integration can be brought
about much more effectively using software-as-a-service,
platform-as-a-service and infrastructure-as-a-service cloud
delivery models and SOA. The technology can support
anywhere, any time access and real-time information updates
that are automatically fed to the ERP systems for the direct or
online channels. The resulting improvements in product
information availability, timeliness and accuracy, along with
order processing that is more efficient and effective, are what
drive the most critical benefit for OEMs.


When customers can find the product information they
want quickly, they return and become loyal customers.
This strengthens the brand of the OEM.

Improving operational efficiency with
cloud computing
The electronics space is characterized by intense price
competition, compressed product life cycles and continuous
pressure to reduce costs. Retailers, hoping to attract customers Consumer electronics trends
with aggressive sales and promotions, in turn are starting to The current volatile economic climate has created trends that
put pricing pressure on their OEM suppliers. Players are having an effect on consumer electronics companies:
throughout the extended supply chain are working down
existing inventories to alleviate the need for working capital. • Diminished consumer credit has led to a decrease in
Retailers are delaying or trimming orders and OEM companies discretionary spending.
are aiming to reduce output levels. • Consumers now perceive the latest products—which many
would typically purchase at the earliest possible retail
availability—to be luxury items they must save for.
• Increasing insularity and longer working hours are making
people worried about the safety and security of their home.
Consumers are demanding security systems that can be
monitored from a remote location.
• Broadband connectivity for homes is growing at faster rate.
The typical flat rate fee structure for broadband connectivity
reduces the marginal network cost of additional services to
effectively zero.


As a result, proactively managing the supply chain and With cloud computing, OEMs can create a proactive and
product life cycles to ensure that the cost incurred in the action-oriented operations environment without a large,
development and marketing of products is recovered before upfront capital investment in more infrastructure and
the competition introduces a new product is critical. Having applications or overburdening their servers and data centers.
access to information about consumer preferences, product Collaboration and advanced analytics tools delivered from
sales trends, customer profiles and channel information, the cloud can provide the means for sharing information
such as product velocity and the effectiveness of marketing and making decisions at a lower cost than if they had to
campaigns, can help. Solutions that take information from implement and maintain various collaboration and business
CRM, ERP and product life cycle management (PLM) systems analytics applications.
and disseminate it in a standard format and structure for
analysis and identification of problems can contribute to Cloud computing with SOA can help companies integrate
better product development and inventory management. information from the market with PLM, procurement,
Visibility of the market and competition at a global level operations, and logistics systems. The result is a connected,
can be analyzed and advanced analytics solutions can transparent supply chain and more efficient, proactive
provide alerts to situation like stock outs or product failure operations. People from different geographies and functions
well in advance. can travel less and communicate more. Various stakeholders
can act as events occur with alerts and events triggered or
The caveat for these solutions is the upfront investment for activated by key metrics. Experts are readily available for
software and applications and the high processing power guidance on problems and solutions for smarter, more effective
they require. resource management.


Enabling collaborative product Electronics OEMs are having difficulty bringing new products
development with cloud to market as fast as they need to, primarily because the
Competitive advantage created by going to market first majority of their products take more than 100 days to
with innovative new products — be they feature-rich or develop, test and release. Also, many products are delivered
value-driven — is critically important in the electronics late, and late launches generate less revenue. A typical product
industry. Market demands shift very rapidly in electronics, development process starts with a design concept that requires
and expectations are invariably high. IBM research indicates the following input: product objectives, business strategy,
that electronics companies feel these forces more than customer buying behavior, and research and development
other industries (Figure 1). (R&D) roadmap. Solution opportunities are explored, selected
for best match to requirements and then further refined for
plan commitment. The result is a set of product specifications,
Comparison of competitive differentiators features, technology requirements, materials, staffing
requirements, competitive positioning and so on.
Faster response to
market needs
During the process, inputs from various divisions and
New products/services participants have to be collected, collated and shared.
development The process is iterative and involves many rounds of
Differentiated discussions about cost estimates, investments, technology
product/services
manufacturing, skills, tools and methodology, pricing and
Operational efficiency/ economics. It involves a number of participants spread
effectiveness throughout an organization. These participants often need
Organizational information stored in various applications and systems in
governance different — and sometimes even incompatible — formats and
Electronics 0 20 40 60 80 100 updated according to need. If this variable space is not
All Industries managed well, the result is a longer product development
cycle and a greater demand on resources.
Figure 1: Competitive differentiators according to electronics companies
Source: IBM Institute for Business Value


Electronics OEMs have made dramatic reductions in the For R&D, cloud provides access to the high performance
product development cycle time with product life cycle computing, storage and network resources necessary for
management (PLM) systems, but the development process electronic design and simulation. Engineering spending on
remains inefficient. One solution is to integrate PLM systems IT is under increased scrutiny by CIOs as the burden to
with other business systems, which can support collaborative refresh engineering workstations, servers, storage and networks
innovation and improve the parts requirements, ordering, continually to meet new project requirements becomes
supply and delivery processes. Simplifying the development unsustainable. Cloud makes it possible to provision and
environment and automating processes can also reduce cycle access interactive and batch engineering analysis workloads
time while supporting quality. and to share resources between project teams very efficiently
and with dynamic steering of resource assignments. Designer
Cloud computing with SOA is a cost-effective way for the access to traditional desk-side workstation environments in
electronics industry to bring about the deeper and faster the cloud enables them to work as needed and available,
data visibility, collaboration and analysis that can speed regardless of location.
product development. The cloud delivery model can integrate
information, applications and functions with SOA design In addition, a well-considered cloud computing approach
technology and little or no capital expenditure. It handles the makes possible remote, collaborative product development
provisioning of systems and access to services such as design and management between design, commercial, operations
and process management applications and databases required and marketing teams. Everyone can access information
for design control and project integrity. on demand, which can bolster the trust between the
stakeholders and facilitate accurate and reliable decision-
making. This approach enables evaluation and action — on
demand — so that you can respond more quickly.


Cloud can also help automate collaborative product
development, coordinate business decisions and eliminate
rework. With cloud, companies can enforce standardized
protocols, synchronize information between systems and
access a centralized database provided by infrastructure-as-a-
service. With automation and standardization, OEMs can
improve development efficiency and avoid costly downstream
errors. This helps to speed time to market and time to value,
which in turn can yield a critical competitive advantage. The smarter home opportunity

By 2013, 1.2 billion connected consumer electronics devices are
Enabling smarter homes with cloud expected in the more than 800 million homes with broadband
The digital revolution has dramatically increased the connections. OEMs can use cloud to take advantage of this
function and reduced the cost of consumer devices. This has opportunity in these areas:
led to an explosion of new devices in the home, from digital
TVs and game systems to environmental controls, appliances, • Entertainment and convenience: Consumer electronics
companies can create open platforms for new lines of
and safety and monitoring devices, along with lifestyle,
flat panel televisions with a portal that personalizes
wellness and medical devices. As a result, consumers of various
entertainment content from numerous broadcasters and
ages and backgrounds are becoming more receptive to
movie studios. This can reduce the number of commercials
connected products and experiences. At the same time, they viewers have to watch, enable broadcasters and advertisers
are demanding more quality and intuitive interfaces with to deliver more personalized entertainment options with
these experiences, offering service providers an opportunity targeted advertisements and provide TV manufacturers
to differentiate with new services and easy-to-use features. with an opportunity to differentiate their products.
• Energy management: Automatically synchronizing lighting,
home appliances, climate control sensors and other home
electronics minimizes energy use based on changing
exterior conditions and usage patterns in the home, which
can result in significant cost saving.
• Safety and security: The ability to deploy home sensors
that can instantly notify homeowners, selected neighbors
or the police and fire departments can enhance home
security and provide peace of mind. These services can
also empower family members to remotely check on the
safety of children and the well-being of elders.
• Health and wellness: A medical device maker designed
embedded software that helps healthcare providers
continuously monitor patients with implanted or other
at-home medical devices without having hospitalization or
office visits. Smarter homes and sensors monitor fitness,
well-being and consistent activities. These home health
electronic devices can collect evaluative information
about current health condition for disease prevention
and overall wellness.


This new paradigm introduces opportunities for innovative For device manufacturers, the incremental cost to connect
services that build on the computational power and scalability devices that already have substantial intelligence in them is
of the cloud, along with the collective consumer knowledge. easily offset by a number of benefits. Fewer truck rolls to
Many of these devices can already connect individually to consumers’ homes reduce the repair and warranty costs and
services in the Internet over the cloud, even though each might increase the consumer satisfaction for both the manufacturer
use different application protocols and interfaces. Putting the and the retailer. The potential for product registration
intelligence into services in the cloud reduces the complexity increases exponentially. Consumers are willing to pay a little
of managing software in the home devices and simplifies the extra for the assurance that their appliance will not fail at a
interoperability of devices. This is accomplished by bridging time when it is most inconvenient. Other benefits such as
the services throughout the network with Web service access to more information, advice and the ability to control
interfaces, translating the different device protocols to a devices remotely are additional incentives.
common platform, then connecting the devices through the
network cloud.

Data that is aggregated and then stored in the cloud can
provide dramatic new insights about consumer needs and
behavior. Ultimately, this paradigm facilitates a host of
possibilities, from radically improving the performance of
current devices and services, to delivering benefits which have
not yet even been considered.


Facilitating demand-driven collaboration
with cloud
Electronics is more globalized than many other industries,
which magnifies the effect of supply and demand shocks.
The extended global supply chain introduces vulnerability
to supply constraints and cost changes. For example, the
availability of certain kinds of electronic components can
affect everything from cell phones to televisions to computers
The electronics industry in the current economic climate
to toys. On the other side of the equation, there is the
ever-changing electronics marketplace defined by rapidly The watchword in the electronics industry is volatility.
shifting customer preferences and the exercising of pricing Electronics OEMs constantly find themselves in a reactive
power. These factors combine to squeeze electronics OEMs, posture, forced to respond quickly to a wide range of dynamics.
compressing product life cycles and forcing them into Today’s economic climate, with double digit declines in the
dramatic pricing actions to maintain a competitive edge. sales of semiconductors and LCDs, only further emphasizes
this reality for electronics companies.

In the face of this harsh reality, survival in today’s market and
positioning the company for future revenue growth remains a
top agenda item for industry CEOs. The lowering of costs and
improvements in efficiency are seen as the key components of
surviving the global recession and emerging stronger than
competitors for future growth as the economy recovers.


The best way to cope with changing market conditions By providing timely, consistent information and automated
is for all companies in the electronics value chain to work data interchange between systems, cloud can improve
together. With greater transparency of supply chain partner transparency and reduce errors. The non-proprietary, flexible
activity, automated data collection, collaborating and nature of cloud means it can easily integrate with the variety
integration of OEM organization and supplier systems, of systems used by retailers. The result for the business is
meeting demand is easier and yields better results. Automated faster execution, reduced channel inventory, improved
processes and exception-based information access can improve resource utilization and better customer service, which,
the forecasting and planning process with retailers and in turn, can optimize the efficiency and profitability of value
suppliers. The automated electronic exchange of sales, chain relationships.
pricing, discount, branding and consumer preference data
between retailer and OEM systems can help all organizations In summary, by delivering IT services when, where and
choose the best marketing strategy. how you need them, cloud computing can help OEMs
gain competitive advantage and maximize return on
The cloud delivery model is an excellent way to facilitate a investment. The best cloud computing solution is one that
collaborative value chain with optimized demand planning. will take high-cost workloads and move them to low-cost
Instead of all the stakeholders investing in expensive environments that can be dynamically configured and
applications and infrastructure that they then must maintain, provisioned on demand.
they can access the application, services, infrastructure and
automation they need to exchange information and meet
peaks in demand with scalability and flexibility. Retailers and
OEMs can exchange information and collaborate on marketing
plans and promotions. Suppliers and OEMs can exchange
information about parts, raw materials and more — all without
straining their budgets or data centers. In some cases, the
same services can even be reused.


Getting started with cloud IBM’s methodology, for example, is to take a component
Cloud computing is worth pursuing for cost reduction, business model view of an OEM enterprise and identify
integration, speed-to-market and quality benefits. The key specific workloads that match the characteristics that are
to a successful move to the cloud is to create a cloud most suitable for movement to a cloud infrastructure.
enablement plan that is not so complicated that it becomes Figure 2 illustrates a Component Business Model for a
unclear where to begin. consumer electronics company.

Getting precise about which OEM capabilities, functions
and departments can benefit from cloud and moving specific
workloads will be lot more effective than simply trying to
“cloud enable” an entire IT infrastructure all at once.

Consumer Relationship Client Relationship Supply Chain (Manufacturing, Business Management
Distribution & Logistics)
Category/Brand Strategy Account Strategy and Planning Supply Chain Planning Corporate Strategy & Planning
Strategy &

Channel Strategy
Planning

New Market Development Procurement/Sourcing Strategy Asset Utilization/Capacity Planning

Product/Platform/Convergence Investment Decisioning
Services Partnership Strategy Services Operations and
Development Strategy Supply Chain Planning
Alliance & Outsourcing Strategy

Forecast & Demand Management
Solutions/Product/Software Business Performance
Lifecycle Management Account Management Assembly/Production Management Management
Monitoring & Management

Configuration Management

Supplier Management & Organization and Process Design
Customization Tracking
Category/Brand Channel Management
Management Distribution and Logistics
Partnership Management External Market Analysis
Inventory Management & Tracking

Services/Solutions Reverse Logistics & Outsourcing Management
Services Management Parts Fulfillment Management
Innovation Management
Equipment Maintenance & Legal and Regulatory
Management Compliance

Solutions/Product/Software Indirect Procurement
Development Business Development Purchasing & Contract Execution

Sales Promotion & Execution Production & Assembly Finance, Accounting and GL
Execution

Order Execution Configuration HR Administration
Marketing Execution
Services Delivery/Solutions Warehouse & Transportation
Logistics IT Systems and Operations
Execution
Treasury and Risk Management
Consumer Services Supplier Contracts Management
Delivery/Solutions Execution After Sales Support
Facilities Management

Business components that may
harness the power of cloud

Figure 2: Component business model for a consumer electronics company


This model has broken down consumer electronics functions Figures 3 and 4 show similar component business models
into four parts: consumer relationship; client relationship; for the semiconductor segment and communication service
supply chain management, manufacturing, distribution/ providers.
logistics; and business management. On the y axis, the
components are associated with a specific stage: strategy
and planning; monitor and manage; and execution. In each
category, the components that could be considered good cloud
candidates are identified with a symbol. Of note is the fact that
the entire supply chain category is a candidate for cloud.

Market & Product Demand & Customer Manufacturing Distribution Business & Risk
Positioning Management & Logistics Management

Global Account Strategy Operations Planning Corporate Strategy &
Demand Generation

Innovation Strategy
and Market Making

Strategy Planning
Platform Strategy

Logistics Strategy
Channel Strategy

Partner Strategy

Pricing Strategy
Production Strategy Alliance Management
Up-sell, Cross-sell
Strategy Strategy Procurement & Sourcing Line of Business Planning
Strategy Utilization of Assets
Services & After Sales
Strategy Supplier Selection Investment Planning
Outsourcing Strategy
Forecasting and Demand
GTM Coverage Model Management / sop
Performance Tracking
Partner Management

Business Performance
Environmental Planning

Channel and Partner

Account Specific
Design & Development

Reverse Logistics

Production Optimizations Management
PLM for End-of-Life
Brand Development

Strategy
PLM New Product

Operations
Planning

Organization and
Customer Allocation Product and Process
Planning
Tracking

Process Design
Monitor & Quality Control
Manage Supplier Management Legal and Regulatory
Incentive Management Compliance

Customer Feedback & Inventory Management Outsourcing
Issue Tracking Management
Spares and Equipment
Maintenance Planning Warehousing Transportation
Marketing Communications Manage Customer Management Management
Planning and Tracking Quotes Configuration Treasury and Finance,
Risk Accounting
Production & Capacity Management and GL
Business Development Scheduling
Product Catalog
Classification and Manufacturing Execution Partner Contract
Maintenance Collaborative Account Execution Indirect Procurement/
Planning Plant Maintenance MRO Buying
Execution Order Execution
Product Launch Purchasing & Supplier Facilities
Validation Partner Management
Customer Feedback Enablement
Execution Inventory Tracking & HR
Prototype Development
Post-Sales Parts Movement Administration
Product Offering Reverse Logistics
Environmental Service Environmental Compliance Execution IT Systems and
Management Planning Execution Operations


Figure 3: Business component model for the semiconductor segment


Customer Business Compliance, Information Solution Solution Value Chain
Relationship & Finance Risk & Quality Management Development (Supply Chain, Support & Services)

Business & Research &
Client Business Business
Asset & Value Chain Strategy
Finance Strategy Development
Development Resilience
Information
Management Strategy
Business Portfolio Strategy
Strategy
Market Management Platform Strategy
Directing Management Value Chain Planning
Bus. Enterprise
Architecture Regulatory Knowledge
Channel Compliance Management Development
Strategy Enterprise Strategy Strategy Capability Value Chain Rules & Policies
Resource Strategy Management

Market Portfolio Manage Standard Business Process Solutions
Management Business Models Compliance Information Architecture Value Chain Management
Financial Resource
Client profile Management Security, Privacy Management Develop. Process
management & Data Protection Deployment
Controlling Bus. Process Demand & Supply Management
Opportunity Performance Integrated Risk Development
Management Management Intellectual Program Mgt.
IT Management Property
Partner Process Partner
Sales Human Resources Regulatory Management Release Integration Integration Management
Management Management Compliance Mgt. Planning

Account & Financial Implement Data & Content Research Procurement Services
Territory Operations Compliance Management Execution Management
Management Policies Solution Solution
Bus. Processes Knowledge Production
Capture & Engineering Operations &
Executing Solution
& IT Infrastructure
Quality Availability Solution Compo- Management Maintenance
Marketing Management nent Development Solution Warranty
HR Operations
IP Capitalization Collaborative Integration Management
Manage Business Design-In
Contract Legal Management Resilience & Asset Lifecycle Engineering Solution Client Inventory
Lifecycle & Support Disaster recovery Management support Logistics Management


Figure 4: Component business model for communication service providers

One way to begin to use cloud computing is to move IBM cloud solutions
noncritical services to the cloud first. As a company gains Cloud offerings from IBM, such as Smart Business Desktop,
confidence, some of the more critical services can then become LotusLive™, Smart Business Storage Cloud and Smart
part of the cloud. The choice of what to move also depends on Business Development and Test on the Cloud, provide the
the cloud deployment model selected: private: private hosted; power to collaborate in real time on mission-critical tasks,
public; and hybrid. Other services that are good candidates for offer access to scalable high power computing and help reduce
the cloud are e-commerce transactions, sales management, infrastructure cost and investments.
supply chain planning, test and development and business
process management.

No matter where you start, IBM has solutions that can help.


Large scale storage on the cloud with IBM Smart Real-time collaboration with partners, regulatory
Business Storage Cloud agencies and suppliers with IBM LotusLive
Raw storage growth is being driven by the widespread use of Fierce competition and dynamic customer demand are putting
email, need for instant file access for business reasons and the pressure on electronic companies to introduce innovative
capture of more detailed business data structures to meet products at lower costs on a regular basis. This industry is
regulatory requirements. Also, OEMs maintain all kinds of facing a very real challenge as it attempts to manage enterprise
product information, engineering data and customer feedback. risk, which is resulting from the faster product life cycle.
Meanwhile, demands for redundancy and high availability can The failure or delay in product launch incurs huge costs.
easily triple the size of an enterprise data storage set. Mitigating this risk requires collaboration between multiple
stakeholders with on-demand transfer of data and information
IBM Smart Business Storage Cloud can help electronics between suppliers, vendors, R&D teams, marketing and
companies successfully deploy a high-performance, scalable production functions and regulatory agencies for product
storage virtualization solution to facilitate growth and approvals and validations. IBM LotusLive is a cloud solution
innovation at lower operational costs. As data volumes grow with the collaboration features needed for effectively handling
and the ability to handle various file formats becomes more such issues.
complex, this solution can grow to support efficient and
cost-effective access to data without degradation of LotusLive is a collection of integrated, online collaboration
performance and with fewer outages. solutions and social networking services for your business.
People can meet online, share files, chat, manage projects and
network with potential clients, anywhere, anytime. Whether
someone works remotely, manages remote teams or just needs
one simple place to bring colleagues together, LotusLive
delivers a securely designed environment that facilitates
connection, communication and collaboration.


Improve time-to-market on high-technology Engineering and scientific computing
applications with IBM Smart Business Development Billions of dollars are spent on R&D and product design as
and Test on the IBM Cloud companies feel the pressure to bring innovative products to
Electronic companies are under constant pressure to innovate market on time, at cost, while meeting targeted objectives for
and use IT to integrate the information. As a result, developers high quality. There is limited time to discover problems in the
for OEMs are being asked to update and develop applications physical space, so a great deal of design planning, exploration
that incorporate latest business needs with new programming and detailed implementation must be modeled and tested in
languages and software. However, traditional development and the virtual realm before realizing in the physical. This often
testing environments pose several challenges: high labor and requires tremendous amounts of processing power to support
capital costs, long development cycles and greater risk for fundamental research, engineering design and analysis
configuration errors. Developers are now finding ways to applications The high computing resources needed for these
meet these challenges using cloud computing. processes are very expensive to manage and can be under
utilized in one phase and inadequate in another.
IBM Smart Business Development and Test on the IBM
Cloud provides rapid access to a security-rich, enterprise-class Today the IBM Smart Business Development and Test on
development and test environment. The standardized the IBM Cloud can provide OEMs with the power and
development and test environment can help developers for flexibility to handle these demanding computing needs.
electronics companies test and deploy applications with Peaks and valleys might still exist, but IBM can help smooth
reduced capital and operational costs. There is virtually no them out. Over time, IBM will announce additional offerings
infrastructure to maintain and electronics companies benefit specifically targeting engineering and scientific computing.
from pay-as-you-go pricing for their development and testing
resources. And, they can set up more accurate test
environments in minutes versus weeks using standardized
configurations.


Desktop virtualization with IBM Smart Desktop Conclusion: Work with IBM to use
cloud computing solutions
today’s cloud technology to build
The electronics industry is highly globalized, with operations
in low-cost manufacturing hubs in remote locations and
tomorrow’s solutions
Over the past decade, marketplace dynamics have
various distribution locations. The creation of a secure
changed dramatically. Globalization, deregulation,
IT environment that these hubs, distribution centers and a
commoditization — and, in particular, the impact of the
mobile sales force can use to access and share information
Internet — have been significant drivers of business
and applications remotely would require a major investment
transformation. This is particularly true of the electronics
of capital and resources that is rarely feasible.
industry, which creates products both for end users (such
as consumer electronics) and other manufacturers (such as
IBM Smart Business Desktop cloud computing services can
office equipment providers and network equipment providers).
help OEMs provide “anytime, anywhere” access to
With so many manufactured products now incorporating
applications, information and resources. For OEMs that need
electronic components and the pace of commerce so rapid,
to provide simplified, secure access to information and reduce
the industry has not only grown quickly — it has also become
IT cost, complexity and energy consumption, IBM offers
far more competitive.
desktop virtualization solutions using cloud computing that
centralize a distributed client environment, help safeguard
To meet today’s business challenges, an electronics OEM
data and applications, help increase business flexibility and
should operate as a single, globally integrated organization
help reduce the cost of desktop hardware and management.
that has overcome disparate, inflexible, poorly integrated IT
architectures, a lack of process coordination and insufficient
collaboration. Cloud computing is an excellent option for
achieving global integration.


Cloud computing solutions provide the resources, power and • Optimized automation and integration. Provide an open
infrastructure necessary for global integration with little enterprise data and process integration framework for existing
upfront capital investment and without taxing resources, and new manufacturing applications.
people and processes. With cloud computing solutions from • Expert collaboration functions. Enable or extend the ability
IBM, electronics companies can gain: to collaborate with experts on challenges and solutions
instantly using collaboration technologies and shared
• Visualization of contextual information all along the value information — all available from an exciting new vision of
chain. View the entire supply chain network of distributors, the business control room.
plants, warehouses and logistics providers in a fast and • Enterprise connectivity with ERP and other systems.
intuitive graphical interface, where data from every Share critical operational information with other enterprise
stakeholder is presented in hierarchical levels of detail, applications, such as procurement and ERP; this makes it
ready for analysis and decision making. possible for extended business users to plan, forecast and
• Better decisions with sophisticated measurement and respond to business imperatives better.
predictive analysis. Perform deeper and more sophisticated • Collaboration tools. Knowledge sharing, messaging, video
analysis of your market, distribution networks and demand, conferencing and screen sharing can drive productivity to
viewing all KPIs and measurements in the right business new levels.
context, for both real-time decision-making and operational
planning. Change is possible. The tools exist today
• Intelligent alerts and event management. Work with Get started by developing a strategy to make the most of cloud
intelligent, predictive, sophisticated alerts that drive computing. Your IBM cloud computing roadmap speeds time
information and action to both human and system to value and lets you take action in the smartest way possible.
participants.
For more information, visit:

ibm.com/electronics

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