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onsof Electronics Association onsof Electronics Association

(for Marketing) at the FBDi
EMEA Semiconductor DTAM through Distribution (in M $) Graphic 2
Trend Days in November

2013 in Munich: the smart
phone and tablet generation

joins the workforce and will
INTERNATIONAL ELECTRONICS INTERNATIONAL ELECTRONICS rip apart traditional business
SUPPLIERS SUPPLIERS
processes and behaviors.
Designing, engineering,

purchasing, producing,
marketing will change; so will

consumer behavior (if it has not
already). “To get the attention

of your future customers and

employees, you have to get
between them and their smart

phones.” (Bosshardt)

Simplifying structures,
Source: dMaSS automation of dumb business

processes, personal meetings
and the land of terror for any 70s and 80s, distribution faces 4 manufacturers and customers only for troubleshooting or

procurement manager, if there times the service expectation for and would have to ask long-term strategies - all
wasn’t a components industry twice the risk and half the gross themselves “what is our role and this sound a
Consorzio Consorzio sr
di attività e servizi di attività e servizi that has always an extra margin. However, waiting for what is our value?” The answer being implemented now,
discount to spare. the manufacturers to disappear is not obvious and even less however, far t
per Associazioni per Associazioni o
e gruppi d’imprese e gruppi d’imprese to Asia and to leave Europe for easy, as the consolidation of the industry (according to market

You see where I am getting distribution could turn out to be global industry over the last 20 researchers) to be protected
at? No complaints about an illusion, as even a growing years has demonstrated. from logistics giants or to

margin or rougher partnerships DTAM does not necessarily be interesting for Digital
between market participants mean better or just prices, let us close the loop back to the Natives, who grow up with a

(see Xilinx und Flextronics), just thanks to full transparency beginning and the smart phones Smartphone as their best friend
the simple realization that there and global sourcing of many - the digital revolution has driven and have no inclination to spend

is not enough differentiation customers in the continent of many new developments, their lives behind an ERP client
the customer wants to pay plenty or the grey market. including massive structural in a rabbit hole at headquarters.

for. “More for less” or “all for changes in the industry of which
nothing” don’t seem to me the ramifications of Globalization If the next components cycle “The smartphone

viable concepts for one of the and the “forever cheaper” will already be influenced by and tablet generation

most capital intensive industries strategy of microelectronics that remains to be seen - joins the workforce and
there is. (with the subsequent pressure 2014 will be a little better than will rip apart traditional

The components distribution on prices and margins, 2013 and Europe will trail the business processes
industry struggles to redefine regardless of “Direct” or global development. But the and behaviors
”
its role - despite a 25% Distribution”) are just two. structural changes ahead
share of the total market and command answers for a few key

contenders who are bigger than So, we got innovation Another one that might questions: What do we really
most of the manufacturers. The (Manufacturers) and service have an even bigger effect sell? And how and with whom

growth curves of distribution quality (Distribution)! has been described by Dr. are we going to do it? The old
are similar to the total market, What is missing (to retain a David Bosshard, CEo of the answers are obviously not good

a massive step-up in DTAM proitable business model)? Gottlieb Duttweiler Institute enough anymore.

growth so far has only happened My personal believe is that the
in smaller countries that are customer value has to be

not in focus of manufacturers redefined, independent of the
anymore. possible results.

Distributors would have to
So, compared to the Golden re-assess their relationship to

3www.ideaelectronics.com