Hi-Tech
Unprecedented disruption requires transformation. Build compelling customer and partner experiences, reinvent core operations and scale new business models with the power of digital.
Digital innovation is rapidly changing how products are conceived, created, sold and supported. Compounded by the trend toward smart, connected and AI-powered products, this digital upheaval is driving a major pivot to “as-a-service” and other new business models.
So what does leadership look like in this new era of continual transformation?
It’s a combination of reinventing the core business while simultaneously scaling a new business model. It means rethinking high tech products and services offerings, delivering them across a digital supply chain, and infusing operations with AI and human-machine collaboration. Last but not least, it’s about building a workforce empowered with the right digital tools and a culture of constant innovation.
Emotional AI
Emotional AI technology can help businesses capture peoples’ emotional reactions in real-time—by decoding facial expressions, analyzing voice patterns, scanning e-mails for the tone of language, monitoring eye movements and measuring neurological immersion levels.
Emotional AI will not only offer new metrics to understand people; it will redefine products and services as we know them. But Emotional AI also brings risks. The data collected using Emotional AI technology will test companies with a whole new set of ethical challenges that require responsible actions.
Emotional AI applications can lead to better experiences, better design and better service for customers. They also hold the potential to open up a completely new world of opportunities for Communications, Technology and Platform companies.
Agile Business Models:
Leaders at core semiconductor companies see opportunity at every turn for a broader product portfolio—from providing connectivity solutions in cars to technology companies’ push for Artificial Intelligence (AI) support. But they need the resources and capabilities to drive competitive agility and take advantage of those opportunities. M&A can get them there, at speed.
What’s changed
Customer expectations. Intelligent machines and the Internet of Things (IoT) have increased the demands placed on chips. Customers expect more diverse, sophisticated applications, from smart vehicles to connected homes.
Design windows. Semiconductor companies do not have the luxury of time to master the learning necessary, as competitors move quickly to create growth for themselves. Acquiring expertise is the only feasible option. And with talent scarce, this means acquiring a company with that expertise.
Cost of R&D. With the design cost by technology node increasing dramatically—a 10x increase from 28nm to 5nm—companies are searching for a solution to not only stay current but expand R&D to cover broader product portfolios.
Fueling growth
Jansiv Strategy sees leading semiconductor companies using M&A for three major reasons to help better equip themselves for the future:
Growing the core. Some companies pursue growth via expansion in existing markets and customer segments, across an existing product set or within a customer market. These companies may also be divesting assets in non-core business areas.
Migrating to adjacent businesses. A number of semiconductor companies grow via expansion along the value chain. They use new distribution channels, new geographies or products, and technology modifications to serve new customer segments.
Pivoting to new opportunities. More semiconductor companies are achieving growth via completely new products and services, migrating into “white spaces.” Doing so involves risk, and the market reaction is not always positive.