非标准电子产品的非标准利润：供应商如何充分发挥非标准电子产品的潜力（英文版）.pdf

Non-standard profits from non-standard electronicsHow suppliers can realise the full potential of non-standard electronicsJuly 2018Management summaryUsed in demanding applications and mission-critical contexts, non-standard electronics represent a vital seg-ment of the wider electronics industry. However, the de-gree of complexity and unique features are not the only factors differentiating non-standard electronics from standard systems and components. Our analysis sug-gests that companies offering non-standard electronic solutions generate a wider range of profits than those offering standard electronic solutions, with non-stan-dard electronics suppliers generating up to 10% higher EBIT margins if these business models are well under-stood and operated. This begs a crucial question for non-standard electronics suppliers: how to realise the full potential of non-standard electronics?Several factors are at play, but ultimately it comes down to understanding which business models you should follow, how well these business models fit together, and how well they are deployed. This study has identified four business models applied in many non-standard electronics contexts, each with specific success factors and key performance indicators.Leading players must not only select the most appropriate business model for each product line, but also manage the overall portfolio effectively. This will allow them to maxi-mise synergies while avoiding conflicts.By redefining their approach and adopt-ing initiatives presented in this paper, suppliers can achieve non-standard profits from non-standard electronics.2 Roland Berger Focus Non-standard profits from non-standard electronicsContents1. The realm of non-standard electronics .4Identifying and positioning non-standard electronics.2. Key success factors . 10Understanding and choosing the business model(s) you operate is critical to achieving high margins. 3. Keeping score . 16Use the right key performance indicators to manage each business model. 4. The road to success . 18An action plan for decision makers to realise the full potential of non-standard electronics. Coverphoto: forplayday/ iStockphotoNon-standard profits from non-standard electronics Roland Berger Focus 3Chapter 1:The realm of non-standard electronics Identifying and positioning non-standard electronics.4 Roland Berger Focus Non-standard profits from non-standard electronicsThe electronics and electronic solutions market is one of the largest and most diverse as the array of different products and end-use applications seems to be virtually unlimited. Electronics is one of the key enablers for many important technological developments and trends (e.g. Industry 4.0, Internet of Things).Due to the sheer size and diversity of the electronics mar-ket, it might appear to be difficult to deduce clear strate-gic messages and identify winning ways forward. This study focuses on non-standard electronics, a specific seg-ment of the market where a clearly defined business ap-proach is critical in order to overcome complexity. Non-standard electronics are characterised by a set of three distinctive features that differentiates them from standard electronics:NON-STANDARD ELECTRONICS ARE MOSTLY APPLIED IN INDUSTRIES FACING MORE EX-TREME OPERATING CONDITIONS Non-standard electronics are predominantly found in industries that require products and systems operating under special conditions. Industries that show this high degree of electronics complexity include aero-space & defence, healthcare, automotive and the high-end segments of the industrials sector. Within these more complex and demanding industries, electronics need to fulfil very specific requirements and must comply with a strict regulatory environment. Most of the electronics used in the consumer or com-munication sectors are interchangeable to some ex-tent. Differently from non-standard electronics, stan-dard electronics are manufactured in large quantities by well-known electronics players and primarily dif-ferentiate themselves through their general level of technological development. At the other end of the spectrum, in the healthcare or space sectors for example, electronics typically re-quire a higher degree of application-specificity. This need to offer a diverse range of tailored solutions, compounded by a stricter regulatory environment and comprehensive certification requirements in such industries, brings a significant level of complex-ity to the manufacturers operations. ANON-STANDARD ELECTRONICS POSSESS AN ARRAY OF UNIQUE FEATURES AT PRODUCT LEVEL Non-standard electronics are differentiated from stan-dard electronics principally through a higher degree of customisation, higher precision, greater reliability and increased robustness in harsh environments. Such com-plexity and customisation is typically driven by indus-try-specific requirements, increasing development costs for non-standard electronics, while reducing potential economies of scale in production.High reliability refers to a near-zero chance of failure after initial product testing and certification. Once de-ployed in an optimally designed environment, high reli-ability electronics are designed for fit-and-forget, such that there is no expected need to replace these parts throughout the lifetime of an entire system. Conse-quently, these components must be reliable as well as durable they should be able to, for example, withstand high temperatures and other extreme conditions.In summary, non-standard electronics are mission-critical parts in complex and highly demanding industries requir-ing precise, reliable and durable electronic products.VOLUME REQUIREMENTS FOR NON-STANDARD ELECTRONICS ARE TYPICALLY RELATIVELY LOW Demand for non-standard electronics is typically rela-tively low, either because the mature end-market for the (customised) products is relatively small, or due to the fledgling nature of the end-market.Mature markets are generally characterised by abundant engineering and manufacturing resources, high levels of industry standardisation and peak production volumes. Non-standard profits from non-standard electronics Roland Berger Focus 5Source: Roland BergerA: The complex world of non-standard electronicsplexity of electronics solutions by industry and non-standard electronics presence.HEALTHCAREThe more extreme or sensitive the typical operating conditions in an industry, the more likely the requirementfor non-standard electronics. For Healthcare, Space and Aerospace & Defence this applies to the majority of applications, for automotive and high-end industrial, specific applications require non-standard electronics AEROSPACE & DEFENCEINDUSTRIALCOMPUTERSPACEAUTOMOTIVECOMMUNICATIONSCONSUMERNON-STANDARD ELECTRONICS INDUSTRIES6 Roland Berger Focus Non-standard profits from non-standard electronicsTHE APPROACH For this analysis, we have analysed a broad range of elec-tronics companies on their presence across different segments within the electronics industry. We then mea-sured EBIT margins across this collection of companies to derive their distribution within standard and non-standard electronics companies. This approach al-lowed us to highlight how the mean and range of EBIT margins differ between the two groups. For the comparison of standard vs. non-standard elec-tronics players, we collected and analysed financial infor-mation of over 100 electronics companies in 8 industries.The difference between standard and non-standard electronics becomes more intriguing when comparing the operating profit margins for different players in the two segments. COn average, standard and non-standard electronics players generate similar operating profits of c. 4-5%. For standard electronics suppliers, the EBIT margin distri-bution is narrower due to more intense volumes and higher competition. Suppliers of non-standard electronics produce smaller volumes and face less competition. This means that non-standard electronics suppliers can be less efficient if they accept lower EBIT margins. On the other hand, sup-pliers can potentially generate up to 10% higher EBIT mar-gin if they deliver their customised products efficiently. The absence of all factors in less developed markets cre-ates a greater need for non-standard electronics. BIn embryonic markets, production volumes are lower, engineering and manufacturing resources are limited, and there has typically been less of a market-wide drive to standardise products and processes. Markets in an earlier stage represent opportunities for non-standard electronics due to demand for customised solutions that deliver mission-critical performance, as well as the need for application-specific solutions during product development phases. As a non-standard elec-tronics supplier serving embryonic or developing mar-kets, it is key to understand when standardisation is expected. You can then either drive the standardisation yourself, or choose to divest the business to a party that is better suited to playing the standardised lower margin, higher volume game.A RISKIER BET The difference between standard and non-standard electronics becomes more intriguing when comparing the operating profit margins for different players in the two segments. COn average, standard and non-standard electronics players generate similar operating profits of c. 4-5%. For standard electronics suppliers, the EBIT margin distribution is narrower due to more intense volumes and higher competition. Suppliers of non-standard electronics produce smaller volumes and face less competition. This means that non-standard electronics suppliers can be less effi-cient if they accept lower EBIT margins. On the other hand, suppliers can potentially generate up to 10% higher EBIT margin if they deliver their customised products efficiently. Non-standard profits from non-standard electronics Roland Berger Focus 7Source: Roland BergerB: The opportunity of early-stage markets.Non-standard electronics presence along the market maturity curve.EmbryonicPrototype product, no standardisationMore advanced product, standards formingProduct developed, standardisation imminent/establishedProduct fully established, in line with industry-wide standardsDeveloping MatureVolumeTime8 Roland Berger Focus Non-standard profits from non-standard electronicsSource: Company annual filings, Roland BergerC: The riskier bet of non-standard electronics.EBIT margin distribution of standard and non-standard electronics companies.-5% 0%0246810125% 10% 15% 20% 25%EBIT marginRelative frequencyofoccurrenceSTANDARD NON-STANDARDNon-standard profits from non-standard electronics Roland Berger Focus 9Chapter 2:Key success factorsUnderstanding and choosing the business model(s) you operate is critical to achieving high margins. 10 Roland Berger Focus Non-standard profits from non-standard electronics