TABLE OF CONTENTS Feng Cheng, Markus Ettl, Grace Lin, and David D. Yao
In the computer industry we see dramatic reductions in the price of computers, driven by advances in technology and competitive forces pushing towards lower margins. Product life cycles are collapsing to months rather than years, giving companies less time to recover product development costs and increasing the pressure to rapidly and flawlessly commercialize new technology. We are constantly being challenged to improve on productivity throughout the enterprise. We continue reengineering business processes and eliminating steps, and over the past several years our attention has increasingly turned toward managing the value chain.
IBM and its partners and competitors seek operational and financial performance improvement through reduced product development cycles, operational efficiency, and better customer responsiveness. This quest for excellence has become significantly more complex as enterprises no longer compete as stand-alone entities. The success is achieved through value chain optimization and collaboration among all value chain participants, from OEM's, Tier-1's, and lower tier suppliers to distributors, trading partners, and retailers. Deploying common business processes across distinct operating entities allows participants to share decision-making, workflows, and capabilities in pursuit of lower costs and greater efficiency.
A significant challenge, and opportunity, for IBM is that we have one of the most vertically integrated supply chains in the industry. We manufacture most major assemblies in our computers. As a result, IBM's integrated supply chain is even more complex and difficult to manage. Our supply chain is under constant pressure to...
