ASEE Conference at WPI Engineering Education and Practice for the Global Economy CIS Global Business...
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Transcript of ASEE Conference at WPI Engineering Education and Practice for the Global Economy CIS Global Business...
ASEE Conference at WPI
Engineering Education and Practice for the Global Economy
CIS Global Business Strategies
Al Barry
17 Mar 2006
3/17/2006 ASEE at WPI 2
Agenda
• Introduction to CIS
• The Global Challenge
• Our Response
• A Few Observations
• What this Means for the US
3/17/2006 ASEE at WPI 3
Introduction to CIS and subsidiaries
• Linear slides• Rack mounting kits
• Heat exchanger parts• Cable management• Keyboard/monitors
• Antennas
• 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
• 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
• HPQ• IBM
• Powerwave• Sun Microsystems
• Carrier • Whirlpool
• Dell
Organization
Customers
Products
3/17/2006 ASEE at WPI 4
Wuxi, China
Manufacturing
Assembly & Service
Engineering
Singapore
Glasgow, UK
Grand Prairie, TXAPCIS
New products for global markets from Asia Pacific CIS
3/17/2006 ASEE at WPI 8
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 9
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 10
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
AP Engineers and Managers:
• 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
3/17/2006 ASEE at WPI 11
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