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Stephen Marlow. Considerations for Going Global An Electronic Component Company Perspective. Executive Vice President Toshiba America Electronic Components, Inc. Advisory Board Member Center for Unconventional Security Affairs. Considerations when Going Global. Fiduciary Responsibilities
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Stephen Marlow Considerations for Going Global An Electronic Component Company Perspective Executive Vice President Toshiba America Electronic Components, Inc. Advisory Board Member Center for Unconventional Security Affairs
Considerations when Going Global • Fiduciary Responsibilities • Stakeholder • Brand • Regulatory & Compliance • Import & Export • Sox • Safety & Security • Assets • Information Security • IP Protection • Employee
Why TAEC went Global? Source: Michael Porter, Oracle Presentation 2008 To Support the Needs of Our Customers
D – Customer Design Site M – Customer Mfr Site TD – Toshiba Design Site D – 3rd Party Design Site M – 3rd Party Mfr Site TM – Toshiba Mfr Site Cellular Manufacturer M M D M D D D TD TD D M M TM D M M D TM M
Computer Manufacturer D – Customer Design Site M – Customer Mfr Site TD – Toshiba Design Site D – 3rd Party Design Site M – 3rd Party Mfr Site TM – Toshiba Mfr Site M M TD D TD D M TM D TM M D D TM M M M TM M
Printer Manufacturer D – Customer Design Site M – Customer Mfr Site TD – Toshiba Design Site D – 3rd Party Design Site M – 3rd Party Mfr Site TM – Toshiba Mfr Site D D TD D TD D M TD D TM M M M TM D M
Software/Firmware Development D D D D D TD D D D TD TD D D D TD TD D D D D D TD D D D TD D D D D D D D D D TD D D D D D D D D D TD D D TD D D D D D – Customer Design Site D – 3rd Party Design Site TD – Toshiba Design Site
Global Business Overlay • – Customer Sites • – 3rd Party Sites • – Toshiba Sites
Understanding the Business Environment • Which factors need to be considered? • Beyond the physical flow of product • What credible sources of information exist? • What are the real risks? • Risks are unique to each entity
Global Incidents Source: GlobalIncidentMap.com, 10/08
Country Threat Rating Source: Air Security International
Water Scarcity Source: IMWI report, Insights from the Comprehensive Assessment of Water Management in Agriculture, 2006
World Hunger Source: United Nations World Food Programme, 10/31/08
Life Impact of Climate Change Source: Center for Sustainability and the Global Environment (SAGE)
Global Business Overlay • – Customer Sites • – 3rd Party Sites • – Toshiba Sites
CONCLUSIONS: • Increasingly, business (not just manufacturing) is migrating to “low cost” areas of the world: • most densely populated on the planet • Population, Poverty & Malnutrition are the perfect petrie dish for geopolitical instability: • these same areas have the greatest climate and political risk. • highest risk for personnel • Crisis management and business continuity planning is essential: • establish “sensory networks” (accurate, relevant & timely) • prepare for the worst, but (practically) minor incidents are much more common