...The online direct factory to customer personal computer vendor is based on making sales to other business, and manufacturing are outsourced. This would result in most of their transactions are done online. Since all of their business is done online and through credit transaction, this will prompt this company to have a large account receivable and large marketable securities since everything will be converted to cash quickly. In addition, their inventory turnover should be high due to most of it will be outsourced or made to order. They order their parts through other vendors. For example, the inventory turnover for the online direct factory was 79.8 days, which was the highest among all firms. We decided to compare the online direct factory with a comparable company such as Dell. For instance, Dell had an inventory turnover of about 45 days, however, Dell expanded its business to consumers and is not based on business-to-business sales. This could explain the reason for the lower inventory turnover. The accounts receivable was almost identical for both companies, while marketable securities was slightly lower for Dell. The computer software developer sell most of their products online and direct to customers, so most of their sales and transaction online. This explains the high receivable collection period because most of their transactions can be bought with their own business credit card and that will take up to 1 month for it to be received. Furthermore, they have a low...
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...Computers and The Movie Industry Nathaniel Ephriam III ITT Technical Institute Abstract Changes in the movie industry because of computers are far reaching. The amounts of movies made in today’s market that have some kind of computer imaging in it have more than doubled. Nearly all of your Big Budget films use computer technology to add realism to their projects. It is nowadays included into the budget. No longer is special effects alone enough to sell the film. However with the combination of both computers and special effects, even hard to please directors are becoming tame. Even Animation is seeing unbelievable results using computer technology. No current Animation is considered a serious project unless they use some form of computerization. In the last decade more and more films are made in this new way. The use of computer technology has also been responsible for many awards currently being received by movie companies. Awards such as Oscars, Academy Awards and Golden Globes, you name it computers are responsible for it. Computers and the Movie Industry Hollywood has released some of the most memorable films the world has ever seen. Films like The Wizard of Oz, The Towering Inferno, and Titanic are more than just great cinema. They show the connection of computers and the movie industry. All of the films mentioned earlier and hundreds more were all made with some level of computer aid. The term “special effects” meant very little to the public when it was...
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...Computer: A computer is a general purpose device that can be programmed to carry out a finite set of arithmetic or logical operations. Since a sequence of operations can be readily changed, the computer can solve more than one kind of problem. Conventionally, a computer consists of at least one processing element, typically a central processing unit (CPU) and some form of memory. The processing element carries out arithmetic and logic operations, and a sequencing and control unit that can change the order of operations based on stored information. Peripheral devices allow information to be retrieved from an external source, and the result of operations saved and retrieved. A TYPICAL COMPUTER SYSTEM: A typical digital computer consists of: a) A central processor unit (CPU) b) A memory c) Input/output (I/0) ports Functions of Computer The main and also basic the functions of a computer is to run programs. The programs they run can help to improve humans' everyday lives. But, there are four basic functions of a Computer. They are: 1. Input Function: You input data i.e. you provide data; a set of instructions. You input data through input devices which are keyboard, mouse, scanner, etc. 2. Processing Function: The computer processing unit manipulates the data which is done by the C.P.U 3. Output Function: After processing the data the computer displays the result, it gives an output. Output devices are the monitor, in the case of visual...
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...B. Industry Analysis (Porter’s Five Forces) 1. Rivalry Among Competitors The competition in personal computer industry is very intense and fierce. The five main manufacturers namely IBM, Dell, Apple, HP and Compaq are in competition to produce the least expensive and most efficient machine. Apple focuses more on innovation while Dell focuses on distribution channel and services, which create differentiation to some extent. Price competition has become severe in the industry as PC has become a more commodity-like product. This in turn has drives the industry to embrace any cost-cutting measures in an effort to increase their decreasing profit margin. Since the quality of a personal computer is largely determined by the microprocessor and application system installed, the profitability and prosperity of the industry is dependent of the profitability and prosperity of these suppliers. 2. Potential New Entrants The threats from new entrants to the personal computer industry is weak to moderate due to the presence of dominant players deters the entry of new players to immediately enter the market and establish their own brand. In such a competitive market, these companies have invested heavily on their research and development, customer service, and marketing departments. This creates an increased competition between companies who are competing to build superior products. Due to increased standardization in operating system and microprocessors, it is easy for any new entrants...
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...or Leave the PC Industry The computer industry is a tough and competitive business. Companies are constantly competing to have the newest and greatest advancements in technology that will make their product the most appealing to consumers. It is a multi billion-dollar industry, but in mid August Hewlett Packard, the worlds largest PC distributor made the announcement that it planned to exit the Personal computer industry to focus on other aspects of their company. This shocked not only consumers, but also other competitors in the industry. Just a few months after Leo Apotheker, the CEO who made this decision, was fired from his position and replaced by Meg Whitman. When Whitman was hired she made it clear that “Apotheker's plan to exit PCs would still be considered.” For about three months this left Investors unsure about the HP stock and in just three days the stock dropped about $10 per share. It wasn’t until late October that Whitman officially announced the HP would stay in the PC business. Was this the right thing to do for the company or should they have exited the business to focus on other facets of the company? “Hewlett Packard’s revenue from last year was 92,755 million. The Personal Computer Group (PCG) brought in more that 30% of that revenue pulling in 30,458 million. Looking at this data it seems that getting rid of this line would be foolish and risky for the company. Apotheker though was focused more on the operating margin the PC industry was producing....
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...The FICCI-KPMG Indian Media and Entertainment Industry Report 2013 published a record 16% growth over the previous The report also states that the games industry in India will grow at a 22% CAGR to cross Rs. 4000 crore ($776m) by 2017. That means the video games industry in India will almost triple itself in 5 years.year, to Rs.1500 crore (Rs. 15 billion / $277 million). Sweet numbers. The console segment will overall grow at a rate of 19% CAGR, to reach Rs. 1900 crore ($351m) by 2017. The report is yet to take in other future factors such as the possible success/failure of PS4 and the upcoming Xbox. On the other hand, the Internet & Mobile Association of India estimates that 50% of India’s mobile users have access to gaming content on their devices. These numbers are expected to rise amid increased penetration of smartphones and tablets. Mobile gaming revenues in India typically have come through telecom operator partnerships, but this is expected to change by 2014, the report states, when sources such as app-stores and online marketplaces will dominate mobile revenues. This despite the fact that operators are now offering up to 70% revenue share to game publishers. As expected, the big challenge for game publishers is monetisation, as a chunk of mobile game revenue in India comes from ad-funded free-to-play games. This also might be due to the fact of limited high-speed connectivity of smartphones and tablets alike, and limited access to credit cards. On a positive...
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...the evolution of the global computer industry? Country Environments: Government’s R&D efforts provided the initial spark required by private firms, who took over and expanded the early concepts to commercially viable ideas and products. Also, the government agencies were a major buyer of computer technologies. Japanese government started many state subsidised research projects which helped local firms to develop competency mainframe and computer manufacturing. European nations also provided funding to their local firms for R&D. Government Policies: Government policies often followed protectionist strategies against foreign competitors and allowed local firms to expand and grow. This was evident from the governments favouring local firms over foreign vendors for buying technologies. In Japan, state departments were mandated to buy Japanese products. The US state departments were a major buyer of IBM’s general purpose computers. All European nations also favoured their own local firms for all government procurements. The government policies also helped in the regulation of domestic competition and fostered more competition. The U.S. Department of Justice initiated three major antitrust suits against IBM which forced the company to unbundle its hardware and software which opened the door for other hardware and software vendors to make compatible products. Firm Level Capabilities: IBM was one of the biggest players in the computer industry and continued to lead the market...
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...Partnering with Industry for a Computer Science and Engineering Capstone Senior Design Course Ken Christensen[1], Dewey Rundus1, and Zornitza Genova Prodanoff1 1 2 Abstract A capstone design course is an important component of the senior year curriculum for engineering students and plays a key role in achieving departmental ABET EC 2000 outcomes. In the Department of Computer Science and Engineering at the University of South Florida, we have partnered with industry to have students work in teams on industry-contributed “real world” projects. Industry partners contribute projects, mentor students, give a guest lecture, and provide the opportunity for students to present their project at the industry site. Students work on projects in teams and are given milestones and schedules to follow. The milestones include formal requirements, specifications and design, prototype demonstration, test plan, and final project delivery and presentation. The final presentation includes a project demonstration, user documentation, press release, and a poster that is permanently displayed in the department seminar room. The course includes formal lecture and reading assignments on the development process. A midterm exam covers these topics. Soft topics include discussions on working in teams. Our industry partners stress the importance of students being able to work well in teams. We hope that our experience can serve as a guide for other engineering departments considering...
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...Abandoning Innovation in Emerging Industries* Rajshree Agarwal College of Business University of Illinois at Urbana-Champaign 350 Wohlers Hall, 1206 S. Sixth Street Champaign, IL 61822 Voice: (217) 265-5513 agarwalr@uiuc.edu Barry L. Bayus Kenan-Flagler Business School University of North Carolina CB 3490 Chapel Hill, NC 27599 Voice: (919) 962-3210 Barry_Bayus@UNC.edu Mary Tripsas Harvard Business School Soldiers Field Road Boston, MA 02163 Voice: (617) 495-8407 mtripsas@hbs.edu Preliminary Draft September, 2005 All authors contributed equally and are listed in alphabetical order. The paper has benefited from comments made by seminar participants at the Harvard Business School. All remaining errors are ours. * Abandoning Innovation in Emerging Industries Abstract Existing models of industry evolution describe a smooth pattern of emergence over time in which the number of firms in an industry increases, hits a peak, decreases as a result of a shakeout, and then stabilizes as the industry reaches maturity. Although this model has been well-accepted and the basic empirical finding holds true across a range of industries, we propose that the finding is not as robust as is generally assumed. We introduce an alternative pattern of evolution in which, during the emergent stage, an industry experiences a sharp decrease in the number of firms – a “mini shakeout” – before increasing again, reaching a final peak and undergoing a major shakeout as described in the extant literature...
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...Standard Industrial Classification (PSIC) is a detailed classification of industries prevailing in the country according to the kind of productive activities undertaken by establishments. The 2009 PSIC was patterned after the UN International Standard Industrial Classification (ISIC) Rev. 4, but with some modifications to reflect national situation and requirements. The PSIC was revised to (1) reflect changes in economic activities, emergence of new industries, and the structure of the economy (2) to take into account the new technologies employed which affect the organization of production and shifting of economic activities and (3) to realign with the ISIC revisions for purposes of international comparability. The PSIC serves as a guide in the classification of establishments according to their economic activity useful for economic analysis. * It serves as a framework for data collection, processing and compilation to ensure uniformity and comparability of industrial statistics produced by various entities in both government and private sectors, including those involved in statistics and research activities. * It provides an effective mechanism for the integration of large numbers of statistics being collected for decision-making and policy formulation. * It serves as a basis in the construction of input-output (I-O) table. * It provides a basis for anticipating the emergence of new industries The 2009 PSIC provides a Summary of Classification Scheme which presents...
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...Airbus vs. Boeing Airbus and Boeing both compete in the highly competitive industry of manufacturing commercial aircraft. Over the years they have each controlled the market at differing times due to competitive advantages – an ability to create value through a company’s strategies and operations that its competitors cannot (ref – Strategic Management textbook , pg 22) Boeing, formed in 1916 by William Boeing and George Westervelt, dominated the industry until the 1970’s, when Airbus was organized through a collaboration between Britain, France and West Germany. Airbus began manufacturing the A-300 series which enabled them to capture 10% of the market share by 1975 (ref article), no small feat considering they were competing against the giant Boeing. Airbus’s ability to compete with Boeing and gain market share will be analyzed using the following business models: PESTEL Analysis, SWOT Analysis, Porter’s Five Forces, VRINE Analysis and Porter’s Model of Competitive Advantage. PESTEL ANALYSIS Political – Airbus was a product of a merger between three European countries; Britain, France and West Germany. In the 1970’s the political climates of all three were relatively stable. The three countries worked together in order to compete with the US. They did have to adhere to international trading policies and agreements (NAFTA, GATT). Economic – As they were competing largely in the US market, Airbus needed to constantly...
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...different industries, and how Making the decision whether they are oligopolies and how that effects that industry. If an industry is oligopolies is that good or bad for society. The diversity of the industries that are in this study should give a nice idea of how competitive some industries can be. First a look into the fluid milk industry, the U.S. Census Bureau shows that there are 280 different companies in the manufacturing of fluid milk. The largest four companies make up 46 percent of the industry themselves. The industry sells $33,547,992,000.00 per year, which is a very large industry. This industry appears to be an oligopoly, because the four largest companies make up almost 50 percent with the largest eight being 58 percent of the industry (census). “An oligopoly is an industry dominated by a few firms that, by virtue of their individual sizes, are large enough to influence the market price.” (case 2009) The census information shows that the largest eight firms should be able to control the industry and the prices that everyone else should follow. Next a look into the envelope manufacturing industry, here the census bureau shows that the largest four firms make up 57.6 percent of the industry that only consist of 149 firms, selling a total of $3,653,185,000.00 per year (census). With the largest four firms making up over half of the total sales this industry would be considered an oligopoly industry. Next a look into the electric computers industry, here the...
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...Gröne Alex Koster Measuring Industry Digitization Leaders and Laggards in the Digital Economy Use your smartphone to scan the QR code on the cover of this Perspective, and you will be taken to the CMT Foresight home page on Booz.com. Contact Information Beirut Bahjat El-Darwiche Partner +961-1-985-655 bahjat.eldarwiche@booz.com Berlin Dr. Florian Gröne Principal +49-30-88705-844 florian.groene@booz.com Delhi Ashish Sharma Principal +91-124-4998705 ashish.sharma2@booz.com Dubai Karim Sabbagh Senior Partner +971-4-390-0260 karim.sabbagh@booz.com Düsseldorf/Stockholm Dr. Roman Friedrich Partner +49-211-3890-165 roman.friedrich@booz.com London/Düsseldorf Dr. Michael Peterson Partner +44-20-7393-3310 michael.peterson@booz.com New York Philip Minasian Principal +1-212-551-6098 philip.minasian@booz.com Paris Pierre Péladeau Partner +33-1-44-34-3074 pierre.peladeau@booz.com San Francisco Matthew Le Merle Partner +1-415-994-4320 matthew.lemerle@booz.com São Paulo Ivan de Souza Senior Partner +55-11-5501-6368 ivan.desouza@booz.com Shanghai Andrew Cainey Partner +86-21-2327-9800 andrew.cainey@booz.com Sydney Vanessa Wallace Partner +61-2-9321-1906 vanessa.wallace@booz.com Zurich Alex Koster Principal +41-43-268-2133 alex.koster@booz.com Birger Maekelburger and Florian Stürmer also contributed to this Research. Booz & Company EXECUTIVE SUMMARY The pace of digitization is picking up rapidly, as consumers, companies, and entire industries become increasingly connected...
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...implementation, support or management of computer-based information systems, particularly software applications and computer hardware” by the Information Technology Association of America (IITA). Information Technology has been one of the fastest growing industries in the last three decades. With a growth rate of 5.6%, information technology sector is now more than a $1.6 trillion (Nasscom) industry from what was merely an industry of few millions in 1980s. Today almost all electronic devices have a chip programmed to run the device efficiently. Information technology does not just support the internet and computers; it has grown to almost every sector today, from computers to mobile phones, from banking to automobiles, from education systems to Business process, information technology is involved in improving the system performance everywhere. Information technology played an important role in improving process and performance of businesses. Globalisation had an important role in kicking off the demand for information technology. But this was not the only reason for high demand of software products and services, strong technological advances were being pursued in all sectors. Heeks and Nicholson (2004) identified that According to them the developed economies had significant growth in the sector since the 1970 after which the world saw rise of three countries, Israel, Ireland and India, who were then called the ‘first followers' in the industry and later came to be known as...
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...please do not quote! The impact of information technology on business, economy and society cannot be examined without an analysis of the profound changes in the productive structure of global capitalism. In the electronics industry, a new model of outsourced manufacturing has emerged as the centrepiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production is closely linked to the disintegration of the value chain and the emergence of the “Wintelist” (Borrus and Zysman 1997) model of competition and the rise of “fabless” product design companies in key sectors of the IT industry. In contrast to the general perception of the “informational economy” (Carnoy et al 1993, Castells 1996) as service- or science-based, the rise of the CM-model demonstrates that manufacturing still matters in the "new economy" (Cohen and Zysman 1987). This development also highlights the interaction of new information networks with the restructuring of production, work, and the global division of labor in technologically advanced industries. In this paper, we want to take a closer look at the restructuring of production and commodity chains in the assembly of IT-hardware (such as computers, internet switching and telecommunications...
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