Venture Strategy in Embedded Software Industry in Taiwan
Date Issued
2005
Date
2005
Author(s)
Weng, Ywan-Jen
DOI
zh-TW
Abstract
In the post-PC era, Taiwan’s IT hardware manufacturers face serious profit margin shrink-down due to increasing concentration of global buyers and constant price compeititon at the end market. Although Taiwanese firms have comptencies in post-architeture product development, build-to-configuration manufacturing systems, industrial clusters and global logistic, it is about time to review the sustainability of the existing ODM model and its value proposition.
The chipset vendors make the value chain shift by offering the total solution to the manufacturers, and the brands have the strong power to the distribution channels. Both of them drive the profit margin of the ODM players going down. Alternatively, if Taiwan could aggressively build up embedded software industry, it could enhance Taiwan’s hardware manufacturers and IC designers provision of value creation, which in turn could enhance Taiwan’s global competitiveness. While currently the embedded software industry does not exist in Taiwan, the present research will evaluate the potential of embedded software industry and suggest feasible ways for our government to initiate the industry development.
This research found that although Taiwan government keeps sponsoring the projects related to the embedded software development, the eventual outcomes are not satifactory. That is because the current commitment, strategy and framework are not adequate to building up the industry. We suggest the use of target-oriented tight-couple model to integrate the resources from government, IC design vendors, manufacturers and R&D parties. We should leverage and integrate the competitive advantages of Taiwan’s ODM capabilities, global logistic and IC design with the government budgets in more effective ways to enhance Taiwan’s competitive advantages on the IT industry value chain. Moreover, government should perform the role of an incubator by sponsoring the pioneering projects and transforming the core project teams to be entrepreneurial teams, or transfering them to the chipset vendors or ODM players who have commitements in this area, through which capabilities, experiences and experts can be accumulated. Policy implications and strategic recommendations are also discussed.
Subjects
嵌入式軟體
資通訊產業
法人科專計畫
Embedded Software
ITC Industries
Government-sponsoring Technology Project
Type
thesis
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