Times have changed. In the past PC brands had all the say with emphasis on white-collar business opportunity. However, after the surging demand of handsets in 2000, the Chinese market has become increasingly important. How to define the needs of the Chinese handset market and even keep an eye on the upstream supply chain have posed a formidable challenge for many world-class consulting companies. In the early days of China's economy opening-up, all privatized state-owned enterprises sought out endorsements from world-class consulting companies. Although the same logic should apply everywhere, Chinese state-owned enterprises may not have really understood the strategic recommendations of consulting companies. But the endorsements from well-known consulting companies would provide them with a springboard to promote privatization in China. It is indeed a lucrative business for the consulting companies worldwide. But they are dedicated to local market research and corporate projects, rather than supply chain research.
On the other hand, the supply and demand of key components such as semiconductors and panels are intricately associated with the market structure of production and sales. On top of that, diversification of industry and market structures, and the increasingly important role of East Asian countries are ushering in the rise of Asian research institutions and technology consulting companies.
Friends in the industry or academia often ask me whether there is a set of research methods for industry analysis. They probably want me to divulge all my "secrets." I have extensively read many reports from many institutions, and understand that each industry survey or index analysis has its own methodology. The point is less about which one is better than about how much effort and resources you are willing to spend, and whether the research methodology fits in your organizational culture, meet customer needs, and whether you can stick with it.
For research institutions in Taiwan, a well-planned research method should not be the typical strategy matrix, nor analysis with run-of-the-mill SWOT structure. But rather, it should be a system featuring real-time response and a mechanism to release the status quo of supply chain which reflects Taiwan's advantages and answers the call from industry. It serves to satisfy customer needs, provide information of industry trends and promote industry value. At DIGITIMES, we can estimate global sales data from informtion we gather from the supply chain. For instance, we may grasp the dynamics of the makers of several major notebooks and original parts, and then come up with the production and sales data of the notebook industry.
A good analyst needs to know something that no one else does and make unique judgments or develop new business models. It can mean special connection or ability to infer future trends. In fact, more than 80% of the general industry information can be obtained from public sources. Data do not speak. The key is the analyst's ability to interpret the data and the lecturer's credibility earned from the audience and customers. Therefore, ethics is very important for the analyst. You may choose not to talk, but don't tell lies.
Each consulting firm has its own advantage. As long as we have a good business plan, Taiwan's ICT industry is large enough to feed a team of several hundred professional consultants.
(Editor's note: This is part of a series by DIGITIMES Asia president Colley Hwang about industry research work.)
