ASEE Conference at WPI Engineering Education and Practice for the Global Economy CIS Global Business Strategies Al Barry 17 Mar 2006 Agenda • • • • • Introduction to CIS The Global Challenge Our Response A Few Observations What this Means for the US 3/17/2006 ASEE at WPI 2 Introduction to CIS and subsidiaries Products Organization • Linear slides • Rack mounting kits • Heat exchanger parts • Cable management • Keyboard/monitors • Antennas • 1,400+ people • US$115 M revenue • NA HQ Grand Prairie TX • EU HQ, Scotland • AP HQ, Singapore • HPQ • IBM • Powerwave • Sun Microsystems • Carrier • Whirlpool • Dell Customers 3/17/2006 ASEE at WPI 3 New products for global markets from Asia Pacific CIS Glasgow, UK Wuxi, China Grand Prairie, TX APCIS Singapore Manufacturing Assembly & Service Engineering 3/17/2006 ASEE at WPI 4 Products: Power Distribution and Control 3/17/2006 ASEE at WPI 5 Products: Linear Slides 3/17/2006 ASEE at WPI 6 Products: Antennas for Mobile Phone Towers 3/17/2006 ASEE at WPI 7 The Global Challenge • • • • Server customers moved their sourcing to Asia with a heavy emphasis on China Taiwanese contract manufacturers with Chinese factories became the key suppliers US and EU suppliers shrank or went out of business CIS was an integrator with a US footprint, the market wanted manufacturers with an AP footprint 3/17/2006 ASEE at WPI 8 Our Response • • • • • Grow our small Chinese assembly shop into a world class manufacturing facility Establish engineering office for new product design and testing Develop CIS intellectual property for products Build one global company, not three! Leverage our business development and service leadership 3/17/2006 ASEE at WPI 9 A Few Observations US Engineers and Managers: • • • • • Better creative and problem solving skills A culture that values the individual and questioning why Every day experience with high quality products and services Expectation of high living standard Economic rewards to pursue other interests 3/17/2006 AP Engineers and Managers: • • • • • ASEE at WPI Prepared to follow explicit instruction and routine A culture that values the group and tradition Every day experience with lower quality products and services Expectation to achieve a better living standard Economic rewards to consume more common goods/services 10 What this Means for US Businesses • • • • More value in product design and distribution, less value in product manufacture US engineer can manage design, sourcing, quality, and manufacturing engineers world wide R&D for products/processes are the key to technical job creation in the US These jobs will be fewer than those in product or service supply chains 3/17/2006 ASEE at WPI 11 What this Means for US Engineers • • • • Know your engineering science, develop technical skills Understand economics Develop product, project, and people management skills Understand culture, learn how to manage globally 3/17/2006 ASEE at WPI 12