High Tech companies have suffered severely during the economic downturn and face several challenges – maturing markets, rapid commoditization of products and services, shortened product life cycles, extreme price competition through low-cost attackers forcing incumbent High Tech sellers to deliver more for less, slower demand growth, rising material costs and product piracy. Over the next couple of years High Tech executives will have to focus on innovation and growth opportunities, capital productivity and optimized operational costs in order to ensure top-line growth.
New delivery models for products and services, e.g. dynamic pricing models for software and new ecosystems between traditional hardware manufacturers, software developers, content makers and distributors will arise.
Major core questions High Tech companies must address are:
- Where are the most effective levers to increase performance and thus reduce costs and optimize processes without disrupting business?
- In which part of the value chain should High Tech companies position themselves and what are the potential ecosystems?
- Which are the innovations they should invest to capture higher margins?
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