The Customer Connection: Accept Nothing at Face Value

By John Dodge -- Movers & Shakers, 11/10/2005

When we decided what the sixth annual Movers and Shakers should be, nothing short of a remake would do. The initial thought was to produce a credible, objective and highly relevant publication. In other words, while acknowledging the leaders in the electronics industry, we would also probe their challenges, customers and problems. How do they navigate commodity markets? What's the impact of declining selling prices? How do customers evaluate suppliers? How does a company set up shop and sell in China, the world's fastest growing mega-market?

And like the leaders who endure, we did not forget that getting to the top can be easier than staying there. The good news is that 2006 looks promising relative to the past four years.

Besides producing a hard-nosed examination, we wanted Movers and Shakers 2005 to focus on the industry's global nature and innovation as a key growth driver. That's why we used more than 30 staff and freelance writers in electronics hotspots the world over—Berlin, London, San Jose, San Diego, Boston, Beijing, Shanghai, Tokyo and Hong Kong. Reflecting this geographic diversity are five chockfull regional sections focusing on the United States, China, Europe, Japan and Asia/Pacific nations like South Korea and Taiwan.

While innovation is the key to survival in the electronics industry, the term is prone to hyperbole and over-use. Every company in the industry claims it innovates. Indeed, "innovate or die" is a universal mantra. But some companies are better at it than others. We tried to identify promising innovators in every corner of the industry. Some are in countries you might not expect such as the Czech Republic or Russia. Innovation can occur anywhere, but the conditions must be ripe for it to run its course.

The word "customer" falls into the same category. Most CEOs boast they heavily engage with customers, but what does that really mean? Analog Devices CEO Jerry Fishman in his interview offered a refreshingly candid answer, insisting that many customers don't know what they want and look to the supplier for guidance. The customer-supplier conversation is dynamic—deeper, wider and more complex than simply factoring customer input into products.

One of the directions I'm proudest of in the 2005 Movers and Shakers are the "Customer Insights"—interviews with customers such as Dell, GM, Nokia and Bosch Automotive. The Customer Insights expose how Nokia's Jean-François Baril, for instance, interacts with electronics suppliers, where he sees his industry going and how the electronics companies can help Nokia get there. Rather than accept rhapsodic homilies about customers at face value, we went out and talked to them.

Of course, success in the marketplace ultimately speaks loudest. And if nothing else, this publication is about the leaders. So we chose 17 products categories, ranked the top 10 players by revenue and then profiled the leader in each. It was a daunting assignment. Our deepest thanks goes to iSuppli, Gartner/Dataquest, The Darnell Group, Venture Development Corp., Electronic Business and EDN magazines, EDN office manager Rose Murphy and especially summer intern Jordan Marshall for compiling, checking and rechecking a mountain of data and calculations.

We are certain you will find this a productive read and a handy ongoing resource. Here's a rundown of other things you'll find inside :

• Five forecast features explore where the industry is headed in 2006 and across five major regions of the world—from emerging countries to the well-established markets in the United States, Europe and Japan.
• The Global 250 ranks the fast trackers by percent growth.
• A country-by-country examination tracks electronics output and the hottest markets.
• Look forward to more Movers and Shakers online, including audiocasts.

And now for something completely different—a quiz. What countries make up the Asia/Pacific region? We had to figure this out in naming our regional section covering India, Singapore, South Korea and Taiwan.

We took license and included India along with standbys Korea, Taiwan and Singapore in our Asia/Pacific category. Arguably, China and Japan are Asia/Pac countries too, but their electronics economies are big enough to warrant their own sections. Pacific/Rim didn't work because that includes all countries that border the Pacific such as Chile and the United States. Southeast Asia didn't make the cut because Taiwan and Korea aren't considered part of that region. We could have just said India, Singapore, Korea and Taiwan, but that didn't fit in the space we had. What would you have done? We went with Asia/Pacific.

Did we cover the "customer connection" to your satisfaction? Write me at john.dodge@reedbusiness.com.

John Dodge is editor-in-chief of Movers and Shakers and EDN.