Case Studies
  Photonics Automation
  Cable TV Ad Insertion
  Integrated Circuit Distribution
  Electronics Market Forecast
  Bread Distribution

Electronics Market Forecast

Problem:
A leading manufacturer of resistor networks needed a tool to forecast market demand in order to improve their out-year budgeting process.  As there were not any publicly available research reports that the client could draw from, the client assumed that its revenues would grow at the average rate of electronic component consumption.


Process:
The process to develop the forecast tool involved four steps:

a. Analyze the client's sales history and customer base to understand the major customer segments the client's product were sold into.

b. For each segment, contact engineering and purchasing at the major customers to understand the design drivers that led to the selection and use of the client's products.
c. Develop a model to predict demand for the client's product based on the customer design drivers and market data that could serve a proxies for these drivers.

d. Test the validity of the model based on historical data and apply to available market forecasts for the proxy data.

Result:
The result of this project led to the determination that the client’s products were used in support with DRAM and SRAM memory.  A strong correlation existed with individual resistors consumed among resistor networks and the number of bits required to address DRAM and SRAM memory.  While a model was able to accurately forecast resistor network demand, the changes in DRAM and SRAM architectures indicated that resistor network growth would be significantly below that of the overall electronic components industry.  This resulted in the client lowering its capital investment plans

An added benefit from this analysis led to a more thorough understanding of the design requirements of resistor networks based on specific DRAM and SRAM architectures.  As a result, the information learned in this process enabled the client to design new products in support of next generation DRAM and SRAM architectures, thus leading the industry in new product introductions.