Move Ahead to Embrace E-Solutions
Aaron Hand, Managing Editor -- Semiconductor International, 3/1/2001
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In a recent study of the middle market titled "All Business is eBusiness," Cahners In-Stat Group reports an $11B spending increase for Internet-specific solutions and services last year. But, the analysts note, the increased spending has not been particularly strategic. Rather, it is simply the product of a sheep-like move to have an Internet presence.
Ask typical manufacturers if their company is on the Internet, and they'll point with pride to their Web site. It communicates information to customers, such as company history, contact information, product specifications and maybe even datasheets. If they're really advanced, they might even let customers place orders right from the Web site, delving into e-commerce.
But the Internet means much more than simply having a Web presence. Companies need to take the next step, and really take advantage of the capabilities the Internet has to offer. They need to develop Web resources that enhance business and manufacturing strategies in dynamic and relevant ways.
Even high-tech industries like semiconductor manufacturing have only begun to scratch the surface of the Internet's capabilities. Certainly, a few pioneers are leading the way into innovative uses, embracing e-commerce, and implementing e-diagnostics and e-manufacturing ideas (see "E-Diagnostics: Monitoring Tool Performance" for examples of innovative uses of the Internet for diagnosing equipment performance; and check out "E-Business Enters the Semiconductor Industry" to learn more about how business-to-business Internet usage affects supply chain management).
These innovators are coming up with ways to use the tools developed for Internet communication, data mining, security, etc., to use in manufacturing. Such moves mean letting go of the old IT infrastructure and adopting a new philosophy in which each piece of fab equipment operates like an individual Web site. E-diagnostics is a good example of why this makes sense — there are clear benefits to giving equipment makers access to their own tools in a way that's easily controlled by their customers. Using the inexpensive tools that have already been developed for the Internet makes a lot more sense than developing all new SEMI communication standards. Like e-diagnostics, this model can be applied to other disciplines such as yield management and fault detection, supply chain management, inventory management, AEC/APC and SPC.
In a global survey of CEOs across markets, the impact of the Internet was cited as a top management challenge, jumping from eighth place last year to second place this year. At the same time, however, the survey by Accenture and The Conference Board showed that fewer CEOs of technology companies ranked the impact of the Internet as a top concern than last year. Perhaps the technology CEOs do not recognize the Internet as a "challenge," secure that their Web sites are up and running, and that they can communicate with their customers through e-mail.
But they can't afford to get complacent. In another study, In-Stat predicts that companies in semiconductor manufacturing will rise to take greater advantage of Internet capabilities in the next couple years. In "Semiconductor E-Commerce: Driving Supply Chain Efficiencies," In-Stat forecasts that e-commerce transactions within this industry will skyrocket from last year's $12.7B to $104.6B in 2003. It also predicts that e-commerce transactions will make up a much bigger portion of total semiconductor sales by 2003, rising from 6.2% to 39%.
We're headed in the right direction. But, after having received billions of dollars of investment, it's time the Internet began paying its way.
