Developing Electronic Products in India Practices, Traps & Strategies for Success ELECTRONICS MANUFACTURING SERVICES Communications • Enterprise Computing & Storage • Multimedia • Industrial & Semiconductor • Defense & Aerospace • Medical • Automotive S.A.Srinivasa Moorthy, VP- Design Engineering & Head – India Design Center Sanmina-SCI Technology India Private Limited © 2009 Sanmina-SCI Corporation. Sanmina-SCI is a trademark of Sanmina-SCI Corporation. All trademarks and registered trademarks are the property of their respective owners. Note of Caution Sanmina-SCI Confidential Motivation for the Study Lack of successful products post CDOT era Why Entrepreneurs focus on software products not electronic products? Even simple products are imported Sanmina-SCI Confidential Brief on the study Structured Questionnaire Interview with respondents Respondents constituted from Start ups ( both failed and successful) EMS Industry Captive R&Ds Design Service Companies Sanmina-SCI Confidential Product Development Process Large & Medium Size Players Design Manufacture Support OEM Design Service EMS Providers Captive R&D Sanmina-SCI Confidential Captive R&D Product Development Process - Startups Technologist Founded Start-ups Non-Technologist Founded Start-ups Opportunity Spotting Opportunity Spotting # Input from Technology Partner # Market Scanning Technical Feasibility # Internal R&D inputs # Input from Partner & Vendors Commercial Viability # Internal Due Diligence Sanmina-SCI Confidential # Discovery of a new market or new need Commercial Viability # Internal due Diligence Technical Feasibility # Inputs from contractors/Vendors Traps during Concept Phase Wrong priorities for the right products Underestimating the dynamics of underlying technologies Underestimating the development lifecycle costs Basing Decision on near hand sources Falling in love with new technology/Cool features Sanmina-SCI Confidential Traps during Product Realization phase Deferring Reality Check until very late in the lifecycle Compromising on Engineering activities to meet timelines Trying to do all internally Not involving the downstream functions/partners early on in the product realization phase Lack of integration mechanism among the design team Sanmina-SCI Confidential Traps during transition to manufacturing Design team’s lack of understanding of drivers of manufacturing costs Compromising on the time allocated to transition design to manufacturing line Not designing for foreseeable eventualities Sanmina-SCI Confidential In the end what works? Strategy Remedies •Get Product Priorities Right •Defer development of components when alternatives exist •Invest in brand building or identity creation Process Remedies •Involve partners early in the lifecycle •Involve downstream vendors early in the design cycle •Ensure better collaboration between design teams Skill Remedies •Identify and acquire skills critical to product success •Groom in house talent as a back up •Develop Cross functional skill among the design teams Sanmina-SCI Confidential ELECTRONICS MANUFACTURING SERVICES Communications • Enterprise Computing & Storage • Multimedia • Industrial & Semiconductor • Defense & Aerospace • Medical • Automotive Thank You © 2009 Sanmina-SCI Corporation. Sanmina-SCI is a trademark of Sanmina-SCI Corporation. All trademarks and registered trademarks are the property of their respective owners.