According to three leading figures in Taiwan’s manufacturing sector: Cloud computing will open the door to manufacturing servitization
According to the Cloud Computing Vision for Manufacturing formulated by III-IDEAS, cloud computing can be utilized to develop high-value-added services, create new value and boost profits at all three stages of the production process: cloud computing can be used in planning and design at the pre-manufacturing stage, in manufacturing management at the manufacturing stage, and in value-added services at the post-manufacturing stage.
One of the key sources of competitive advantage for Taiwan’s manufacturing sector is the manufacturing, production and innovation capabilities that Taiwanese manufacturers have built up during the many years in which they have followed the OEM/ODM model. If integrated with cloud computing, these capabilities have the potential to create a new “OCM” model of hardware-software integration that would be unique to Taiwan. The OCM model would boost value-added creation throughout the value chain, and has applications not only for manufacturing but also to service provision.
“The cloud computing market of the future will be different from the notebook PC market of the past. With notebook PC ODM/OEM, the focus was on supply chain management, whereas in cloud computing the emphasis will be on value chain competition. In the old ODM/OEM market, the company that had the lowest costs could secure the orders, but with cloud computing you are competing to see who can provide the customer with the most value” says Quanta Computer Chairman Barry Lin, explaining why cloud computing will be the key weapon that enables Taiwan’s manufacturing industry to upgrade and refashion itself as service industry.
Jerry Kuo, Chairman of Hon Hai (Taiwan’s largest private-sector manufacturing company), says that the future will be the era of the Internet, and that Hon Hai cannot afford to get left behind. Kuo explains that Hon Hai has actually implementing a “Three Screens, One Cloud” strategy for some time now, without making a big fanfare about it.
Last year, TSMC (one of the world’s leading semiconductor companies) built an “unmanned factory.” TSMC Chairman Morris Chang believes that could computing will lead to a transformation of nano-era semiconductor technology, and that it will help to reduce lead time for TSMC’s customers, while also reducing IC development costs.
One of the key sources of competitive advantage for Taiwan’s manufacturing sector is the manufacturing, production and innovation capabilities that Taiwanese manufacturers have built up during the many years in which they have followed the OEM/ODM model. If integrated with cloud computing, these capabilities have the potential to create a new “OCM” model of hardware-software integration that would be unique to Taiwan. The OCM model would boost value-added creation throughout the value chain, and has applications not only for manufacturing but also to service provision.
“The cloud computing market of the future will be different from the notebook PC market of the past. With notebook PC ODM/OEM, the focus was on supply chain management, whereas in cloud computing the emphasis will be on value chain competition. In the old ODM/OEM market, the company that had the lowest costs could secure the orders, but with cloud computing you are competing to see who can provide the customer with the most value” says Quanta Computer Chairman Barry Lin, explaining why cloud computing will be the key weapon that enables Taiwan’s manufacturing industry to upgrade and refashion itself as service industry.
Jerry Kuo, Chairman of Hon Hai (Taiwan’s largest private-sector manufacturing company), says that the future will be the era of the Internet, and that Hon Hai cannot afford to get left behind. Kuo explains that Hon Hai has actually implementing a “Three Screens, One Cloud” strategy for some time now, without making a big fanfare about it.
Last year, TSMC (one of the world’s leading semiconductor companies) built an “unmanned factory.” TSMC Chairman Morris Chang believes that could computing will lead to a transformation of nano-era semiconductor technology, and that it will help to reduce lead time for TSMC’s customers, while also reducing IC development costs.
