Value Net Structure Switching: The need for adaptive local manufacturing in the electronics value business

Outsourcing and off-shoring of local manufacturing are key strategies which were applied by many companies within the last 10 years. In various cases these decisions were more short-term oriented without looking at the entire business consequences. We believe that within the electronics value business local manufacturing plays a significant role during all phases of a technology life cycle, as long as factories adapt their roles and tasks to the particular needs. The goal of the research is to examine the impact of the technology life cycle on companies supply- and value-net and the changing roles and tasks of local manufacturing. The presentation will give an overview about the research idea followed by a detailed discussion about a case named the HP Solution Factory Europe. This factory is HPs fulfilment centre for the HP Enterprise Systems and Storage Business in Europe and generates annual revenues of nearly $2.5 billion. At HP a new industry leading fulfilment model had been developed in four phases where the HP factory transitioned from a high-tech factory producing computers towards a solution integrator constituting a framework for a virtual business network. For more information, please contact Chantal Schoof (cschoof@rsm.nl/ 82032)