How the Web Impacts Design & the Supply Chain

1. How the Web Impacts Design & the Supply Chain

2. Objectives of Study • Confirm and discover behavior and motivations of design engineers and procurement / supply chain professionals on worldwide basis • Analyze on-line behavior changes with North American engineering community over past three years

3. Objectives of Presentation • Provide EOEM marketing, advertising agency, web development and supply chain professionals with statistical research, analysis, real-life experiences and practical information to better construct your Web site and help reach and service key prospects, partners and customers.

4. Methodology • 800 telephone interviews (25 minutes on average per interview) • Fieldwork dates: December, 2000, to February, 2001 • Sample size: • North America (500 interviews) • 250 design engineers / managers • 250 procurement / supply chain professionals • Europe (150 interviews) • United Kingdom, Germany, France • 90 engineering, 60 procurement/supply chain • Asia (150 interviews) • China, Taiwan, Korea • 90 engineering, 60 procurement /supply chain • Confidence interval +/- 3.4% • Comparisons to EE Times 1998 and 1999 data for trend analysis

5. Differences from 1999 study: • International focus • Inclusion of procurement/supply chain professionals • Greater detail on behavior and use • Updated Website evaluation criteria • New subjects: • Site searchability • EDA/ASP access • On-line marketing • Expanded e-commerce section

6. Engineering

7. Procurement/ Supply Chain

8. Online Usage

9. For North American engineers, time spent on-line each day continues to increase Engineering NA only

10. Engineers around the world are on-line each day Engineering

11. Time spent on online activities Engineering Worldwide 111 minutes per day:

12. Distribution of time spent on-line Engineering Average time per day (%)

13. Procurement professionals spend even more time on-line than do engineers. Engineering/ Procurement Worldwide

14. North American procurement leads in on-line activity by a considerable margin Procurement/ Supply Chain

15. Time spent on online activities Procurement/ Supply Chain Worldwide 152 minutes per day:

16. Distribution of time spent on-line Procurement/ Supply Chain Average time per day (%)

17. Comparison of time spent per session Engineering/ Procurement Worldwide Average minutes per session

18. Activities while searching for product information Those who search for information on electronic components Engineering

19. Activities while searching for product information Those who search for information on electronic components Procurement

20. Activities when gathering info on profession and electronic industry Those who gather information on their profession and industry Engineering

21. Activities when gathering info on profession and electronics industry Procurement/ Supply Chain

22. Activities when search for design ideas and application techniques Those who search for design ideas and application techniques Engineering

23. Procurement/ Supply Chain Activities when searching for technical information Those who search for technical information such as electronic component specifications

24. Observations • On-line behavior part of daily routine for engineers and supply chain managers globally • E-mail constitutes roughly half of all on-line behavior • Among North American engineers, on-line behavior up 9% from last year • Asian respondents (especially engineers) more enthusiastic about on-line activities than others • European engineers are on as frequently as their colleagues elsewhere, but devote less time per session to each activity • North American procurement/supply chain managers lead others in on-line usage, especially for e-mail and buying on-line • Similarities between engineering and procurement on informational searching activities

25. Design Activities

26. Engineering/ Procurement Worldwide Engineers and procurement display different on-line behavior patterns Top Two Box Scores Very/Somewhat Useful

27. Engineering/ Procurement On-line behavior differs by region – especially in Asia Top Two Box Scores Very/Somewhat Useful Conceptual stage Developing specs Simulation stage Testing and debugging Prototyping Sending to production Between projects Detailed design stage Qualifying and vendors

28. Engineering/ Procurement Worldwide Search engines and supplier’s sites are most popular starting points for Web searches…

29. …although among North American engineers, general search engines have grown in popularity. Engineering NA only

30. Engineering/ Procurement Asian and Europeans still prefer starting with sites of known suppliers.

31. Engineering/ Procurement Worldwide Frequent use of general search engines

32. Frequent use of general search engines Engineering/ Procurement

33. Engineering/ Procurement Worldwide Popular general search engines Those who use general search engines

34. Popular general search engines Those who use general search engines Engineering/Procurement

35. Engineering/ Procurement Worldwide Site search capabilities provided by supplier also frequently used

36. Engineering/ Procurement Worldwide Most search by keyword or part number rather than by parameter Top Box – Very Useful Those who typically use site search capabilities

37. Engineering/ Procurement Worldwide Preferred site-specific search methods Single Response Those who typically use site search capabilities

38. Asians prefer to search by keyword. Engineering/ Procurement Single Response Those who typically use site search capabilities

39. Observations • Engineers and procurement display differing on-line behavior patterns • Engineering more likely to be on-line early in design stage • Procurement’s on-line behavior more consistent throughout design stages • North Americans and Asians open to using Web later into the design process • Both groups begin their Web searching by using general search engines (esp. North America) or sites of known suppliers • Yahoo, Alta Vista and Google most popular search engines worldwide • Suppliers’ site searching by part number and keyword also frequent • Interest in parametric searching and “natural language” modest

40. Web Site Visitation

41. Engineering and supply chain visit supplier sites most often for product information…(“Very often” and “Somewhat often”) Engineering/ Procurement Worldwide

42. …although North Americans and Asians are also frequent users of other site capabilities (“Very often” and “Somewhat often”) Engineering/ Procurement

43. Importance of Product Information elements Engineering/ Procurement Worldwide Top Two Box Scores Extremely/Somewhat Important

44. Importance of Product Information elements Engineering/ Procurement Top Two Box Scores Extremely/Somewhat Important

45. Importance of Purchasing Services elements Engineering/ Procurement Worldwide Top Two Box Scores Extremely/Somewhat Important

46. Importance of Purchasing Services elements Engineering/ Procurement Top Two Box Scores Extremely/Somewhat Important

47. Importance of Design Support elements Engineering/ Procurement Worldwide Top Two Box Scores Extremely/Somewhat Important

48. Importance of Design Support elements Engineering/ Procurement Top Two Box Scores Extremely/Somewhat Important

49. Importance of Design Tools elements Engineering/ Procurement Worldwide Top Two Box Scores Extremely/Somewhat Important

50. Importance of Design Tools elements Engineering/ Procurement Top Two Box Scores Extremely/Somewhat Important