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Tuesday, September 20, 2011
Thursday, February 24, 2011
Broadband: encouraging deploying and boosting demand - Semiconductors: Opinion - Column
Posted by Unknown
1:10 AM, under | No comments
OVER THE PAST TWO years, President Bush has repeatedly emphasized the importance of broadband expansion, but unfortunately his rhetoric has not always matched his true priorities. When Congress passed economic stimulus legislation earlier this year, President Bush rebuffed bipartisan efforts to include a proposal to provide tax credits to telecommunications companies that deploy broadband to rural and underserved areas. Meanwhile, unemployment in my Silicon Valley district has risen to 7.9 percent--the highest percentage since 1983. A recent survey of more than 400 San Francisco Bay Area CEOs indicates that only 39 percent believe the local economy will become stronger in the next six months.
With national economic forecasts equally gloomy, it is now time for Congress to refocus its attention on revitalizing the IT sector, which was responsible for ushering in unprecedented capital investment and job growth during the 1990s. Renewed emphasis on broadband deployment holds the promise of restoring the 500,000 telecommunications jobs that have been eliminated since the downturn of the economy. In fact, a recent study by Stephen Pociask of TeleNomic Research concluded that building a robust national broadband network could directly and indirectly create 1.2 million new jobs.
The federal government has a powerful role to play in maximizing broadband opportunities. First and foremost, the federal government must articulate a bold and coherent broadband strategy as suggested by numerous industry associations, including TechNet and the Telecommunications Industry Association. It is shameful that, of the G7 countries, the United States and Italy are the only two that lack a broadband policy and vision. The National Telecommunications and Information Administration at the U.S. Department of Commerce is only now developing a strategy, one that will largely rely on removing regulatory roadblocks to investment in this critical infrastructure.
While the Bush administration should remove unnecessary regulatory obstacles, it should also work with congressional leaders to pass tax incentives for broadband deployment. The Broadband Internet Access Act, for example, offers a five-year, two-tiered tax credit to telecommunications companies that build-out advanced broadband infrastructure to rural and underserved areas. Support from the Bush administration for this bill would best illustrate its commitment to a sophisticated high-speed Internet network.
But even as the federal government works to expand broadband supply, it must also take steps to bolster demand for advanced telecommunications services. According to J.P. Morgan, 85 percent of households potentially have access to broadband. However, only 12 percent of these households have chosen to subscribe to broadband services. Government at all levels must address the underlying and unresolved issues that have led to such low subscription levels.
At an average cost of $50 per month, broadband service is not cheap. Most Americans do not yet find Internet content and applications compelling enough to pay this monthly fee. But government can help foster an environment that encourages further innovation and creativity on the Internet. In order to create that environment, Congress must adopt public policies that promote broadband demand. Federal agencies need to continue their efforts to offer services online, and Congress can advance this effort by passing the E-Goveminent Act of 2002. Congress must also pass reasonable privacy and spam legislation and promote the use of technologies that inspire consumer confidence such as the Platform for Privacy Preferences (P3P). Further, Congress will need to act on a number of outstanding copyright issues that have led to confusion over the use of digital content.
It was our nation's early emphasis on promoting ubiquitous access to basic telephone service that positioned the United States to lead the world in adoption and commercialization of the Internet. I am convinced that appropriate federal and private sector investment in broadband will lead to a new era of innovation and job creation.
Resource
With national economic forecasts equally gloomy, it is now time for Congress to refocus its attention on revitalizing the IT sector, which was responsible for ushering in unprecedented capital investment and job growth during the 1990s. Renewed emphasis on broadband deployment holds the promise of restoring the 500,000 telecommunications jobs that have been eliminated since the downturn of the economy. In fact, a recent study by Stephen Pociask of TeleNomic Research concluded that building a robust national broadband network could directly and indirectly create 1.2 million new jobs.
The federal government has a powerful role to play in maximizing broadband opportunities. First and foremost, the federal government must articulate a bold and coherent broadband strategy as suggested by numerous industry associations, including TechNet and the Telecommunications Industry Association. It is shameful that, of the G7 countries, the United States and Italy are the only two that lack a broadband policy and vision. The National Telecommunications and Information Administration at the U.S. Department of Commerce is only now developing a strategy, one that will largely rely on removing regulatory roadblocks to investment in this critical infrastructure.
While the Bush administration should remove unnecessary regulatory obstacles, it should also work with congressional leaders to pass tax incentives for broadband deployment. The Broadband Internet Access Act, for example, offers a five-year, two-tiered tax credit to telecommunications companies that build-out advanced broadband infrastructure to rural and underserved areas. Support from the Bush administration for this bill would best illustrate its commitment to a sophisticated high-speed Internet network.
But even as the federal government works to expand broadband supply, it must also take steps to bolster demand for advanced telecommunications services. According to J.P. Morgan, 85 percent of households potentially have access to broadband. However, only 12 percent of these households have chosen to subscribe to broadband services. Government at all levels must address the underlying and unresolved issues that have led to such low subscription levels.
At an average cost of $50 per month, broadband service is not cheap. Most Americans do not yet find Internet content and applications compelling enough to pay this monthly fee. But government can help foster an environment that encourages further innovation and creativity on the Internet. In order to create that environment, Congress must adopt public policies that promote broadband demand. Federal agencies need to continue their efforts to offer services online, and Congress can advance this effort by passing the E-Goveminent Act of 2002. Congress must also pass reasonable privacy and spam legislation and promote the use of technologies that inspire consumer confidence such as the Platform for Privacy Preferences (P3P). Further, Congress will need to act on a number of outstanding copyright issues that have led to confusion over the use of digital content.
It was our nation's early emphasis on promoting ubiquitous access to basic telephone service that positioned the United States to lead the world in adoption and commercialization of the Internet. I am convinced that appropriate federal and private sector investment in broadband will lead to a new era of innovation and job creation.
Resource
It's e-business. And it's turning electronics companies into models of efficiency
Posted by Unknown
1:08 AM, under | No comments
Everywhere in the electronics industry today, collaborative e-business is simplifying operations, improving quality control and cutting costs. It's transformation time for the value chain. How are you going to play to win?
Your product is designed in Palo Alto. The chips come from Scotland, the boards from Penang. It's manufactured and assembled in Shandong, and must be shipped to a customer in Punta Arenas. Somehow, it's your job to make it all work. Fortunately, there's help. It's all about creating collaborative workflow up and down the value chain. It can get even the farthest-flung enterprise humming.
How, you ask? e-business. It's the only way to get there.
E-BUSINESS: THE TRANSFORMATION GAME
e-business doesn't just fine-tune your business, it dramatically transforms it. Even in a down cycle.
Particularly when demand is falling or flat, you have to be at your best to gain a competitive advantage. It's when the tough get even tougher. You have to bring new products to the market faster to drive better returns. At the same time, you have to wring costs from operations. It's all about protecting and expanding your margins. Enter Electronics Value Chain Management.
What can value chain management do for you? Create efficiencies by getting everyone on the same page at the same time. Share information up and down the value chain - from designers to suppliers to manufacturers to distributors to retailers and their customers. Value chain management can cut procurement costs by creating commonality in parts and suppliers. It controls inventory by getting the supply chain talking to the demand chain. It cuts transaction costs by integrating with public and private exchanges. Overall, it's a framework for reducing costs for electronics manufacturers by 10 to 30 percent. It's e-business. And it works.
CASE STUDY: PHILIPS CONSUMER ELECTRONICS
In 2001, the electronics industry was facing a slowing economy and increasinly fierce competition. In the face of this challenge, Philips Consumer Electronics North America needed to maximize customer satisfaction and increase profitability as quickly as possible.
They turned to IBM to develop a transformation road map that included a supply chain overhaul. The challenge involved improving the customer experience while reducing costs in the same breath.
The plan addressed all process and infrastructure elements of the supply chain. From procurement through manufacturing and order fulfillment. IBM analyzed consumer electronics trends and the changing requirements of key customers. The result? An optimized supply chain network.
Best-in-class warehouse and transportation management systems have been integrated into the SAP[R] system Philips was running. Logistics issues were addressed by outsourcing transportation and warehousing. management to a world-class, third-party provider. And the IBM Lean Manufacturing methodology was applied to identify, prioritize and implement improvements to manufacturing reliability.
Philips expects to save millions of dollars in the first year of the project.
WHEN YOU PLAY TO WIN, WHO ELSE DO YOU WANT IN THE HUDDLE?
It's not just about e-business. And it's not just about the electronics business. It's about the intersection of the two.
And few live as comfortably at that intersection as we do. You want to play this game with someone who knows the electronics industry. Backwards and forwards. Inside out.
IBM has dedicated electronics specialists worldwide who've led literally thousands of projects in the electronics game. Not to mention major successes in our own electronics businesses all over the globe.
In fact, in its own operations, IBM's supply-demand planning time has been reduced from over 45 days to 16 days. Integrated supply chain gains include an 18% reduction in delivery costs, a 100% improvement in on-time delivery and a cut in order-to-deliver cycle time of 45%.
Currently, over 95% of IBM's purchases are conducted electronically.
It's called practicing what you preach. And practicing it with conviction.
resource
Your product is designed in Palo Alto. The chips come from Scotland, the boards from Penang. It's manufactured and assembled in Shandong, and must be shipped to a customer in Punta Arenas. Somehow, it's your job to make it all work. Fortunately, there's help. It's all about creating collaborative workflow up and down the value chain. It can get even the farthest-flung enterprise humming.
How, you ask? e-business. It's the only way to get there.
E-BUSINESS: THE TRANSFORMATION GAME
e-business doesn't just fine-tune your business, it dramatically transforms it. Even in a down cycle.
Particularly when demand is falling or flat, you have to be at your best to gain a competitive advantage. It's when the tough get even tougher. You have to bring new products to the market faster to drive better returns. At the same time, you have to wring costs from operations. It's all about protecting and expanding your margins. Enter Electronics Value Chain Management.
What can value chain management do for you? Create efficiencies by getting everyone on the same page at the same time. Share information up and down the value chain - from designers to suppliers to manufacturers to distributors to retailers and their customers. Value chain management can cut procurement costs by creating commonality in parts and suppliers. It controls inventory by getting the supply chain talking to the demand chain. It cuts transaction costs by integrating with public and private exchanges. Overall, it's a framework for reducing costs for electronics manufacturers by 10 to 30 percent. It's e-business. And it works.
CASE STUDY: PHILIPS CONSUMER ELECTRONICS
In 2001, the electronics industry was facing a slowing economy and increasinly fierce competition. In the face of this challenge, Philips Consumer Electronics North America needed to maximize customer satisfaction and increase profitability as quickly as possible.
They turned to IBM to develop a transformation road map that included a supply chain overhaul. The challenge involved improving the customer experience while reducing costs in the same breath.
The plan addressed all process and infrastructure elements of the supply chain. From procurement through manufacturing and order fulfillment. IBM analyzed consumer electronics trends and the changing requirements of key customers. The result? An optimized supply chain network.
Best-in-class warehouse and transportation management systems have been integrated into the SAP[R] system Philips was running. Logistics issues were addressed by outsourcing transportation and warehousing. management to a world-class, third-party provider. And the IBM Lean Manufacturing methodology was applied to identify, prioritize and implement improvements to manufacturing reliability.
Philips expects to save millions of dollars in the first year of the project.
WHEN YOU PLAY TO WIN, WHO ELSE DO YOU WANT IN THE HUDDLE?
It's not just about e-business. And it's not just about the electronics business. It's about the intersection of the two.
And few live as comfortably at that intersection as we do. You want to play this game with someone who knows the electronics industry. Backwards and forwards. Inside out.
IBM has dedicated electronics specialists worldwide who've led literally thousands of projects in the electronics game. Not to mention major successes in our own electronics businesses all over the globe.
In fact, in its own operations, IBM's supply-demand planning time has been reduced from over 45 days to 16 days. Integrated supply chain gains include an 18% reduction in delivery costs, a 100% improvement in on-time delivery and a cut in order-to-deliver cycle time of 45%.
Currently, over 95% of IBM's purchases are conducted electronically.
It's called practicing what you preach. And practicing it with conviction.
resource
