Based on the dat and information from the following report, come up with a budget for solution 1.1 (3D Software/Product Design Programs )

All Final Project Work BUSI410 - Group 6 November 20, 2020 C D . l' Business name: STMicroelectronics ( Semiconductor technologies Microelectronics) Background: Location: Headquartered in Geneva, Switzerland with 10 other manufacturing sites. They recorded $9.56 billion revenue and have 46,000 employees, with 7,800 in Research and Development as of 2019. Over 100,000 customers in the world. In 1987, this Italian-French company was founded by big semiconductors companies. Merger: SGS Microelettronica + Thomson-CSF Semiconductor = STMicroelectronics. Initially, the brand name of the company was SGS-Thomson. In 1998, the name changed after Thompson SA withdrew ownership of the company (SuccessStory). The acquisition of many assets opened the opportunity for rapid growth in the market for ST. Now they are one of the largest semiconductors companies in Europe and have the best competencies, products and technologies. Management and Ownership: President and CEO: Jean-Marc Chery Finance, Infrastructure & Services, CFO: Lorenzo Grandi Head of Sales,Marketing. Communications & Strategy Development: Marco Cassis Product, Services and Strategies: 0 They have over 10 product and solution evaluation tools designed for customers. An example is; Communication and Connectivity Eval Boards. 0 Customer support ofces are located close to many of STM's customers in order to provide fast, hands-on eld support. A dedicated support organization is also in place for their key accounts. 0 Account managers and field sales engineers are the primary customer interface. They manage the business relationship with the customer, respond to customer requirements and ensure that ST is able to comply with customer requirements. 0 The Original Equipment Manufacturers(OEM) or end-customers account for more than 60% of their Total Revenues as compared to their Distribution customers. 0 ST is a differentiated company and follows a broad differentiation strategy from their very large end market and their differentiated technologies. Another aspect of their strategy is customer innovation for their products and solutions to create more value inspired from their needs. 0 ST has many sustainability goals by the year 2025. Regarding recent world issues, the technology industry ought to be more responsible so some of their goals are; -20% energy consumption and GHG emissions, limit severe Cluality incidents by 75%, Preparing the future by supporting schools in countries where they operate. Problem Statement - Customer Contact and Product Promotion Updated November 19, 2020 As strategic management students, our mission is to analyse the company STMicroelectronics and rethink how they can become more attractive, innovative. and agile in regards to customer contact and product promotion. We are to imagine the year is 2030 and we are facing major global issues such as the sanitary crisis and global warming. With these obstacles, we will suggest ideas to ensure that ST continues to be the leader in the semiconductor industry through being innovative with its efforts to remain intimate with customers during this trying time and nding ways to continue with: - Organisation of exhibits using technology and the internet (online video conferences, webinars, descriptive videos, learning portal on the website) - Showing demonstrations (sending a similar product box to the customer that the company representative has, and having an in-person demo, webinars, etc) - Evaluation Kits (distributing physical and virtual kits to customers with attached explanatory videos or one on one video calls) With all these working towards the common goal of keeping customer intimacy, we will develop these obstacles into opportunities for growth and expand on our own ideas on how to mitigate any downfalls that the current situation could have on these channels. We will provide ST with suggestions for new technologies, tools, and organizations that can help them to stay number one. With all of the issues they will face in 2030, STMicroelectronics needs our help to ensure they stay competitive and have strategic plans in place to combat these obstacles with pride. Strengths 1. Customer satisfaction measurement: ST attaches great importance to its customers. They have implemented a strategy to guarantee the satisfaction of their customers with regard to the various services received. The customer satisfaction program revolves around 5 essential aspects which are: sustainability, innovation and R&D, supply chain, quality, and commercial excellence. The various complaints and recommendations from customers are also used to improve the business, they are taken into account and processed quickly enough to remedy them. Dealer community: The company has a strong connection with the many dealers, not only because of the increase in demand but because they are involved in promoting the company's products but also training. These dealers help to improve and participate in the realization of promotional products; they help to strengthen the bond/ relation with customers, to be closer to them but also help to solve and respond to customer problems and expectations quickly. Weakness 1. Poor market research: ST has not conducted market research in the past 2 years and bases most of their decision making on past information and statistics. This, in effect, limits the correct response to customer expectations, as times change and so do priorities and needs. This point plays on customer relations and customer satisfaction. Poor R&D: Compared to competitors, they invest the least in research and development. This fact can lead to a failure in customer intimacy but also limit product promotion. For example today, companies with a good level of R&D have been able to deal with the Covid threat and have opted for virtual presentations, for example concerning their product promotion. Adding to that, the Lack of R 8. D leads to frequent malfunction of the servers and does not allow the fact to keep in touch 100% with customers, it also limits innovation which could discourage customers. Opportunities: 1. Virtual interaction - During this time of pandemic we have denitely learned about the necessity of online interaction in the business eld. With this rapid growth of technology we can assume that ten years from now the wave of technology would gain heights. They just have to ride it by improving their website and creating more virtual interactive tools to engage with their customers online and improve customer intimacy. (David, 2020) Qustomers becoming more nature conscious - Ten years from now we are assuming to face the issue of global warming. Pe0ple will become more nature conscious and lean towards sustainable companies. Therefore, using sustainable methods like clean energy, in the production unit and also in the transportation can improve customer retention. (DHL International, 2020) production unit and also in the transportation can improve customer retention. (DHL International, 2020) Threats: 1. Rapid change in technology - With a very short life cycle of the technological industry it is more likely to fall short in the ways how a company interacts with their customers. Customers might prefer companies who are constantly updating their ways of interaction. With big technological companies working on augmented reality, the success is sooner than we know. Therefore, adapting this new tech would boost customer interaction and product promotion. (Data Bridge Market Research, 2020) 2. Sanitary Crisis - There is also a threat of sanitary crisis in the future which can potentially Crash the business world. The sanitary mea5ures could be more strict and interactions would be extremely limited. Maintaining customer interaction would be more challenging than ever. (PWC Global, 2020) Benchmark Analysis Overall Industry Introduction: - Corporations and consumers use semiconductors globally - Semiconductors: small conductors of electricity, or \"chips" that make up electronic devices - Companies are driven by producing: smaller, cheaper, faster semiconductors - Why? to facilitate more streamlined. powerful, and affordable technology products - 323 Companies - Four categories: microprocessors, memory chips, commodity integrated circuits, and complex "systems on a chip." - Companies play a major role in the development of new technology products and are seen by many investors as a key investment - Stocks tend to be high STMicroelectronics Revenue (TTM): $9.7 billion Industries: Telecommunications, computer, Net Income (TTM): $0.9 billion industrial, and consumer electronics. Market Cap: $23.9 billion 1-Year Trailing Total Return: 74.5% Exchange: New York Stock Exchange NVIDI A Corp Revenue (TTM): $11.8 billion Net Income (TTM): $3.3 billion Market Cap: $227.2 billion Known for: High-end video graphics 1-Year Trailing Total Return: 155.5% Exchange: Nasdaq Intel Corp Revenue (TTM): $75.7 billion Known for: Motherboard chipsets, network Net Income (TTM): $22.7 billion interface controllers, and integrated circuits. Market Cap: $256.1 billion o Made the world's rst metal oxide 1-Year Trailing Total Return: 34.1% semiconductor Exchange: Nasdaq 0 Biggest in the industry Fundamental Data: This graph demonstrates where STMicroelectronics stands compared to two major competitors, Intel Corp and NVIDIA Corp. STMicroelectronics is not the leader of the industry in regards to revenue, as it stands at 9.7 billion and Intel stands at 75.7 billion, so there is a significant difference there. Despite this, something interesting to note is that the 1-year trailing total return for Intel is 34.1%, whereas for STMicroelectronics it is 74.5%. Additionally, NVIDIA and Intel are both on the 'Nasdaq' stock exchange, and STMicroelectronics is on the New York stock exchange. STMicroelectronics Industries: Telecommunications, computer, Most cites OHSAS 18001 certied industrial, and consumer electronics. 77% of employees recommend ST as a great place to work 50 average training hourslemployee in 2019 34% women in the workforce 9% women in executive positions Workforce is close to 19 percent female, NVIDIA Go up from 16 percent three years ago rp 25 percent of executive staff is female . _ _ Equal pay commitment: an external rm KNOW" for: High-end Vldeo graphics to analyzes all pay practices for gender and ethnicity Top 100 best places to work - Fortune Intel Corp 27.5% women in the workforce Known for: Motherboard chipsets, network 20% executive staff female interface controllers, and integrated circuits. Rated well by Bloomberg in the index for 0 Made the world's rst metal oxide companies supporting gender equality semiconductor 0 Biggest in the industry 2019: $1 billion in annual spending with tier 1 and tier 2 certied diverse suppliers 2019: $279 million annually with women-owned businesses globally Responsibility: This graph demonstrates how each company ranks regarding diversity and inclusion in the workplace. Regarding happiness in the workplace, at STMicroelectronics 77% of employees said it was a great place to work, and this could be due to the average of 50 training hours per employee. Similarly, NVIDIA was named one of the Fortune top 100 best places to work. For Intel, they ranked well by Bloomberg as a company that supports gender equality. The same can be said with STMicroelectronics and NVIDIA too, as they both have high numbers of women in the workforce and in executive positions, with STMicroelectronics having the most women, and NVIDIA having the most women in executive positions. STMicroelactronics Customer support ofces located close to Industries: Telecommunications, computer, customers provide fast hands on-eld industrial, and consumer electronics. support. Dedicated support organization for company's key accounts Engineers & account managers responsible for ensuring the satisfaction of customer requirements \"Solutions" section of the site which shows what they can help with for connectivity solutions They offer a \"sample and buy" section to the website where customers can contact ST or buy directly Online support center to They already offer seminars, trainings, and online videos for help with their products Support customers through website and several forums & communities NVIDIA Corp They have set up a \"Digital Genius\" application to improve the customer Known for: High-end video graphics experience and thus obtain ' smarter and faster customer responses' Online store for buying their products No customer training Intel Corp Collaborating with industry and partners Known for: Motherboard chipsets, network to advance the adoption of interface controllers, and integrated circuits. technology-neutral safety 0 Made the world's rst metal oxide After several complaints and semiconductor recommendations due to the rather 0 Biggest in the industry recurring technical problems suffered by intel customers, the brand has set up a new free online service in order to satisfy the customers and improve the experience. For any help, customers can reach ' Intel customer support'. Many documents are available for customers to see on their website, such as nancials and others. No customer training No customer store Intel does have a store for other products, but not for microelectronics. Customer Contact and Product Promotion: Something that STMicroelectronics does great is that they offer a section of their website for customers to \"sample and buy\" products directly. NVIDIA also has a similar function, but Intel does not have this option. ST also already offers various videos, seminars, and e-presantations to help customers learn about the products and show how they work, which makes them have an advantage amongst their competition. Although Intel and NVIDIA have information available on their website and have contact information accessible, they need to improve on providing their customers with more tools, similar to what ST is doing. Proposed Solutions Solution 1: Physical Evaluation Kitsi Demonstrations We could send a product box to the customer and the company representative could have the same product box, and over Zoom they could go through the box together. That way both of them can touch it and see it, similar to an in-person demo. This same method could be used for multi-member webinarsiseminars, and also include the virtual aspect of Solution 1.1. Solution 1. 1: 3D SoftwareiProduct Design Programs 3D illustrations/visuals for online demonstrations with advanced software Concept: - Providing customers with the design les so they can see it on their device. This is possible as we can save the designiProject/document to a google drive, a drop box and more. Then we share that with our frequent and loyal customers (in the rst instance, and this might bring in more customers later). This way they have access to the le and once the software we provide them with is downloaded, customers can observe and add modications to the design however they wish. - Eliminates shipping complications/waits (environmentally friendly) -advantage - Decreases error percentage & increases production efciency by reducing design error - advantage - Easy to share (dropbox, google drive) and saves time ( production lead-time) - advantage - Work is prone to viruses and could be easily hacked - - Time and cost of training staff for this new tool - - Create our own tool for this - Possibility to include Holograms! Holographic experiences - For our target, early adopters - gives a new experience that includes both trialability and compatibility. - E.g. EAGLE PCB design Software, Open Circuit Design Software, Meshmixer, SketchUp... - DO research on how this can reaiiy work - List advantages and disadvantages - Action plan on how to implement - Show an example to add evidence/support - Add benchmark information as support too AUTOCAD is a @ II -_ AUTOCAD JEU D'OUTILS JEU D'OUTILS JEU D'OUTILS ARCHITECTURE ELECTRICAL MECHANICAL JEU D'OUTILS JEU D'OUTILS JEU D'OUTILS JEU D'OUTILS MEP MAP 3D RASTER DESIGN PLANT 3D Solution 2: Enhanced Learning Portal Special educational/trial based portal on the website that is for customers/companies to nd out more specic detailed info - Including videostdemo videos - Training videos for the team Solution 3: Social Media Incentive Social media contests are a fun, easy way of connecting with customers and bringing in more fans/followers and prospects for your business. Facebook contests garner an average of 34% new customers per campaign, which is a great way to combat the platform's low organic reach. As far as positioning is concerned, the winner(s) of your Facebook or Instagram giveaway should gain the opportunity to be the rst to get their hands on your new offering, and get it for free or at a discounted rate. This is a good way to: Interact with early adopters Build customer intimacy by creating a community Solution 4: Worldwide Developers Conference (from Apple's WWDC) Apple hosts this annual show to assemble the different iOS (macOS, iPadOS, etc.) product developers. But with recent aggravating circumstances, they made the conference available and pushed it towards an enline presence to accommodate to: - Customers not being able to meet in one place and - Satisfy companies who cannot attend exhibitions and support their need to show their technologies Apple created a website dedicated entirely to lodging past exhibitions and host present and future exhibitions. They have 100+ engineering sessions (Video collections by apple engineers poster each day) They have 1-on-1 Developer Labs (by appointment) guidance on Apple technologies. Get in-depth details on how to implement new features, directly from the engineers who helped build the latest Project Name: SAMPLE PROJECT 1 Action Steps Timeline PROJECTMANAGED Priority Task Phase Assigned Status Start Date Due Date Planned Hours Department Materials Required Cost Notes High Purchase Software Planning Sam H. 50% 27-May 1-Jun 1 week HR Money Order $100 Train Team Planning Ada L. 75% 10-Jun 3 days Marketing Medium Sales Low Create Pamphlets Execution John G., Helena H., Fred P. 24-Jun 2 weeks