Death of a paradigm

Article Abstract:

Electronics manufacturers are shifting their approach to the question of whether to buy or lease automated test equipment. Traditionally, electronics companies have purchased their test equipment because of its long life. According to Teradyne, some equipment it built in the 1970s is still in use. However, several factors are pushing electronics companies to lease test equipment instead, including the tough competitive markets, capacity problems and rapid changes in technology. From a financial perspective, companies are seeking to match payment for equipment to the length of time the equipment is used, according to HP. Lucent Technologies also calls leasing a way to share risk. Almost all test equipment manufacturers offer leasing plans, but some suggest their customers use specialist companies, such as market leaders Comdisco and General Electric Capital.

Instruments to measure electricity, Electronic Components and Accessories, Equipment and supplies, Electronic test device, Electronic test equipment, Contracts, Market trend/market analysis, Testing equipment

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Restructuring puts innovation on a straighter, narrower path

Article Abstract:

Companies in the electronics industry need to be innovators, but most are poor at nurturing innovation. Innovation can be difficult in the electronics industry because much of the technology has reached a limit on what it can do, and many customers have reached a limit on what they are willing to pay of innovation. Restructuring efforts at many electronics firms in recent years has also had a drastic affect on innovation; most companies have sought to cut costs and improve productivity. Those that will survive in the market, though, not only need to be more productive, but also need to show Wall Street that they are moving forward to new solutions. Companies that want to be innovators need to create an organizational climate where innovation is encouraged and rewarded.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Management, Industry trend

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