Rewriting demand in the disruptive era
An increasingly diversified customer base demanding intelligent and connected products delivered “as-a-service”. The growing number of cyber-threats, compelling makers of connected products to beef up security. A more complex supply chain. And changing political and economic forces. Taken together, these trends could spell trouble for high tech companies. Yet a small group of companies are not only surviving but distinguishing themselves in this disruptive world. We call them the High Tech Champions.
This report spotlights what sets them apart.
The eye of the vortex
While most industries attempt to survive the vortex of digital transformation, high tech companies occupy the eye of that vortex, albeit with varying providence. On one hand, platform companies are fueling digital transformation with rapid growth in AI-powered automation. On the other hand, semiconductor and component makers are raking in big bucks thanks to the explosion of connected devices—both consumer and industrial. Consequently, traditional products manufacturers with hardware-centric business models are squeezed for market and margin.
On the supply side, high tech manufacturers are hamstrung by an abundance of technological choice, fear of cannibalization of existing products by new product introductions, an acute shortage of skilled engineers and workers, and looming uncertainties of global trade wars.
The high tech industry’s new value propositions
While high tech companies are facing unprecedented economic, technological and social pressures, they can exploit new value propositions to capture 21st century consumer-driven opportunities.