Highway to the Customer
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1 Highway to the Customer Maria Marced General Manager Sales and Marketing Operations September 15, 2005
2 Agenda Highway to the Customer Market dynamics Business Renewal in Sales and Marketing Tracking results 2
3 Market changes affect our Go-to-Market strategy Market changes: Convergence New Business Models Digitalization CONTENTS OEM ODM EMS DISTRIBUTION Service providers Software providers Content providers Design houses Government Retailers Banks Nokia Samsung SEMC Philips Siemens HP Quanta Asustek Compal Inventec BenQ Lite-On Solectron Flextronics Sanmina-SCI Foxconn Jabil WPI SAC Avnet Arrow Future Design in Sales realization 3
4 Fashion Centers design the future Design centers in Americas and Japan 60% of design-ins are created in Americas and Japan Design Influence Spend, 2005 Sales Revenues ($ B) Consumption Design-in 46% 34% 19% 18% 26% 22% 17% 18% Americas Japan Asia Pac EMEA Source: isuppli 1H
5 Agenda Highway to the Customer Market dynamics Business Renewal in Sales and Marketing Tracking results 5
6 Highway to the Customer 4 Businesses, 4 Shared Processes Strategy & Business development Product Creation Manufacturing & Supply chain Sales & Marketing responsible for: Applications Highway to our Customers Design in Sales Realization Marketing Markets & customers 6
7 Sales Growth and 5-15% IFO Our Sales & Marketing actions to realize our ambitions In parallel look at M&A Build partnerships Grow scale in key areas & invest in new products Asset light, flexible manufacturing Business portfolio pruning & Focus on key areas Rebuild market share (start now with existing products) Improve Operational Excellence Lower the break even point Sales UP Application focus for convergence customers Short TTM to accelerate design-in cycles Streamline the Sell UP organization Application focus for convergence customers Short TTM to accelerate design-in cycles Closer to the customer Streamline the organization Closer to the customer Streamline More customer face the organization face time time Closer to the customer Move More customer Back face Office timeto Front Office Market oriented, simpler organization with inspired talent Time Instill culture Passion and eagerness to win Passion and eagerness to win 7
8 Sales UP Plan 1) Realize additional design-in projects for Key Customers and emerging businesses Start with existing products Reduce Time-to-Volume Strengthen some geographies (e.g., Taiwan) 2) Create additional orders with MultiMarket Semiconductors Increase our footprint in every application we support Targeted result: At least 250 M Euro additional sales in next 12 months offsetting the pruning of our portfolio 8
9 Beef up Field support at the customer Regional Customer Partnership Centers Field support moves closer to the customer Support ODM customers: Turkey Design center Taiwanese customers Support EMS: Eastern Europe and Russia Support Fashion Centers: Transforming Indirect to Direct heads and Increase Technical support in USA Account managers for 80 ISV Partners 9
10 Business partnerships will enable broader product offerings and faster TTM Growing impact of partnerships Leverage 80 partnerships to get 1 BUS$ in semiconductors sales to OEMs in 2008 Philips Microsoft cooperation Microsoft WMT, E-home, Mobile and Embedded Nexperia Home Nexperia Mobile 10
11 Agenda Highway to the Customer Market dynamics Business Renewal in Sales and Marketing Tracking results 11
12 Customers find us increasingly Easy to Experience Strengthening Customer Relationships Score Easy to Experience Advanced Designed Around You Q Q Q Q Q Q2 Quarter 12
13 A strong portfolio of Key Customers Achieved: 65% of business with Key Customers This is a focused platform allowing us to add about 10 new Key Customers in the convergence domains and the fashion centers % sales from key customers Q Q Q Q Q Q Q Q Q Q
14 Customer Awards Q1 - Q Best MultiMarket Logistics Award Arrow Supplier Account Manager of the year Outstanding Supply Chain Partner Award by Vtech Best Supplier Award from Samsung for supplier excellence and outstanding technical support in supplying around 30 million GSM and GPRS system solution chipsets 2004 Global Supplier Performance Award of Flextronics for world class support in quality, total costs, supply chain management, global account management, design Ascalade Supplier of the Year Award for the partnership and improvement in areas such as; quality, service & delivery, personnel structure and technical support. Panasonic Supplier Award 14
15 Summarizing Highway to the Customer Balanced customer portfolio 65% of sales comes from Key Customers Dedicated Partnership program for 80 partners Highway to the customer: Closer to the customer Sales UP plan First results: Improved Vendor Rating Key Customer Awards 15
16 16
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