The fallout from the global recession, massive fragmenting of the value chain, the rise of a more diverse world economy and new sales and distribution models have created tough challenges for semiconductor companies when it comes to understanding and predicting demand for their chips and managing their supply chains.
This lack of accurate information is a dangerous liability in a world characterized by unprecedented volatility and competition, says Scott Grant, a managing director with Accenture's Semiconductor Business.
Without clear insight into true demand and an accurate picture of capacity, semiconductor companies find themselves essentially flying blind.
Semiconductor companies must focus on integrating their external supply chain partners by developing and deploying strong extended relationship management (XRM) capabilities.
Not bad advice in these post-recessionary times.
The other extreme advice for semiconductor companies?
Innovate, lest Silicon Valley becomes a "rust belt."