Cost-Cutting Is No Panacea for High-Tech Growth

View comments: newest first | oldest first | threaded
<< First   < Prev   Page 3 of 3
User Rank
Supply Network Guru
Re: Cost cutting is prudent step
mfbertozzi   11/19/2012 3:08:37 AM

@_hm:that's the point, I agree with you in the sense, theorically speaking, there isn't an universal ratio for evaluating "unproductive people", it depends on the market we are speaking about; despite that, I am quite curious to know how many companies (which are evaluating jobs cut) have implemented and are using  "charge back" model for mapping internal productivity/unproductivity.

User Rank
Supply Network Guru
Cost cutting is prudent step
_hm   11/17/2012 3:19:11 AM

Cost cutting is generally prudent step. As company grows at rapid pace, many unnecessary, unproductive people get in to organization. This also reduces ratio of technical/engineer to non-technical people. This is not good omen for hi-tech compnay. For hi-tech company hard core engineer to total employee ratio of 75% is indication of its good health and bright future.


The Source
User Rank
Re: Great anaylsis
The Source   11/16/2012 2:12:09 PM

Dear Barbara,

I'm glad you agree with me.  Companies competing in this new high-tech environment owe it to themselves, their shareholders and their customers to think about developing innovative products and services that will take their company's revenue to the next level.  I think that we are getting to a tipping point where some companies may not survive the current technology changes.  For sure, cutting operational costs alone is not the answer and should not be seen as a winning formula for poor performing high-tech companies.

Thanks for your comments.




Barbara Jorgensen
User Rank
Great anaylsis
Barbara Jorgensen   11/16/2012 1:47:55 PM

Nicole--this whole blog is spot on. I particularly like your point that Apple, HP and Dell all use Foxconn, but only Apple is thriving in this market. It's clear that it is the OEM's strategy that either succeeds or fails, not the EMS

<< First   < Prev   Page 3 of 3

More Blogs from At the Source
Tax support, credit products, and investment funding sources all read like plays from the capitalist West's playbook.
Increasingly, purchasing is becoming an even more strategic part of supply chain activities. It can make the profession challenging, but the potential benefits are clear.
The US has China in its sights over the issue of cyber espionage. Smart supply chain execs need to keep their attention on this evolving issue, which could impact product demand.
The smart watches of the near future promise to push the boundaries beyond simple time and data delivery as they move toward being true health trackers.
The pool of CNC operators is scarce, and demand is on the rise. It's time for industry and educators to team up and fill the gap. Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Upcoming Dialogues
Live Chat 10/30: Top 10 Metrics That Enhance Procurement Performance
We'll be talking about the 10 most important procurement performance metrics, from the old standards to new and emerging best-practices.
Remind Me
Live Chat 11/06: Enterprise Risks, Intellectual Property & Supply Chains
Enterprise risk management (ERM) frameworks can be useful to identify, assess, and manage intellectual property (IP) risks that arise in supply chain compliance. We'll look at real-world examples and strategies for mitigating those risks.
Remind Me
Archived Dialogues
Live Chat 10/16: Applying a Macroeconomic Lens to the Supply Chain
EBN blogger Apek Mulay will be our guest as we talk about how macroeconomic reforms have the potential to impact the supply chain.
Live Chat 9/25: Minimizing Risk in the Global Supply Chain
Dave Bowen, CEO of e-sourcing firm MarketMaker4, will be our guest as we explore ways to minimize and manage geo-political and corporate risk in supply chain and sourcing through the use of technology.
Latest Poll
EBN Newswire
FORT WORTH, TX   10/24/2014
Allied Electronics Releases 2015 Catalogue
Arrow Receives Its First Responsible Recycling ...
Twitter Feed
EBN Online Twitter Feed