Motorola Sector Re-Positioned for Leadership in Electronics Market
26 January 1999
Motorola Sector Re-Positioned for Leadership in Embedded Electronics Market
Strengthened Customer Focus, Organizational Changes, New Name Illustrate
Continued Motorola Renewal
NORTHBROOK, Ill., Jan. 26 -- Motorola, Inc.
announced today that the Automotive, Component, Computer and Energy Sector
(ACCES) is realigning its overall strategy and organization to take advantage
of increasing opportunities in the embedded electronic solutions market.
ACCES is one of the two major Motorola businesses focused on the embedded
electronics market. In addition to ACCES, the Semiconductor Products Sector
(SPS), the world's No. 1 producer of embedded processors, provides high-volume
and unique discrete, analog and digital semiconductors.
According to company officials, the repositioning of ACCES is another step
in Motorola's continuing corporate-wide renewal efforts. The changes
announced today include actions to sharpen the Sector's focus on the growing
need for electronic systems solutions and other evolving customer
requirements, and to strengthen its global structure to best serve worldwide
customers. The Sector has also been renamed the Integrated Electronic Systems
Sector (IESS) to specifically reflect its focus.
"We are entering an age where intelligent electronics will be in nearly
every product we touch," said Joe Guglielmi, executive vice president and
president, IESS. "From devices that we use in our homes and offices to
entirely new products in such markets as automotive communications and
infotainment."
Increasingly, companies are asking electronics partners to deliver more
complete system solutions in order to integrate the latest electronic features
and improvements into their products. Outsourcing of design and manufacturing
of embedded electronics will grow from 90 billion dollars in 1998 to
178 billion in 2001, over 25 percent compound growth rate, according to
Technology Forecaster, Inc. as reported in September 1997. This opportunity,
combined with the accelerated pace of change in electronics which places ever-
increasing demands on manufacturers' products, indicates more and more
companies will look outside their own walls for the expertise needed to
deliver next generation, feature-rich products.
According to Guglielmi, "Motorola works hand in hand with customers to
integrate our knowledge of electronic components and systems -- our DigitalDNA
-- with our customers' intimate understanding of the consumer of their
products. Together, we develop the leading-edge products that enable our
customers to win in their markets. The changes announced today reflect our
drive to become our customer's global partner of choice for integrated
electronic systems solutions."
Sector Makes Changes to Provide High Value Solutions, Increase Customer
Responsiveness
In addition to announcing its renewed focus, IESS also announced that it
was establishing a new Europe, Middle East and Africa (EMEA) organization to
better support its customers in that region. Included in this structure is an
expanded IESS center of technical excellence, which will incorporate
engineering design and support for customers. Bernhard Laepke, vice
president, has been named general manager, IESS, EMEA. New business
development functions have also been established for the Asia Pacific and
Latin America regions. Xiaoying Gao has been appointed director, IESS, Asia
Pacific, and Henry Pujol, vice president, has been appointed director, IESS,
Latin America.
The third action announced today is the creation of a Global Account
Management Program to better support select customers that would benefit from
global sector-wide account coordination. Corporate vice president Bob Schaul,
has been named director, global account management and marketing. In addition
to better serving select global accounts, Schaul will also be responsible for
developing new business opportunities across the businesses of IESS.
The businesses of IESS include:
-- Automotive and Industrial Electronics Group (AIEG) -- a pioneer and
leader in the automotive electronics market,
-- Motorola Computer Group (MCG) -- a leader in embedded computer
systems from single board to fault tolerant systems, and a leader in
telecom, manufacturing systems and imaging markets,
-- Energy Systems Group (ESG) -- one of the world's largest solution
providers of energy systems for portable electronic products,
-- Telematics Communications Group (TCG) -- a newly formed group
leveraging Motorola's unique strengths to capitalize on emerging
automotive communications market, and
-- Flat Panel Display Division (FPDD) -- an innovative leader developing
a new class of display technology designed to revolutionize display
form factors for a variety of products.
"The net result of these actions -- combined with IESS' proven capability
to offer a broad and deep portfolio of technology, with world-class quality,
design and manufacturing expertise -- positions us better than ever to deliver
the best electronic system solutions in the industry," said Guglielmi. "With
IESS as our customers' electronic systems partner, they get the full range of
technology needed to add next-generation capabilities to their products, at
the right time and for the right price. Our proven competencies and
heightened customer responsiveness means customers can focus on the challenges
of their markets, and trust the electronics to us."
About Motorola Integrated Electronic Systems Sector
Motorola's Integrated Electronic Systems Sector (IESS) is a leading
provider of electronic systems for customers who integrate them into their
products. IESS designs and manufactures electronic solutions for automotive,
communications, imaging, manufacturing systems, computer and consumer markets.
Consisting of five businesses focused on delivering high value embedded
electronic solutions that enable customers to differentiate products and lead
their markets, IESS employs 10,000 people at more than 20 major manufacturing
facilities, laboratories and technology and design centers. The Sector's
sales activities cover worldwide markets and corporate headquarters are
located in Northbrook, Ill.
About Motorola, Inc.
Motorola is a global leader in advanced electronic systems and services.
It liberates the power of technology by creating software-enhanced products
that provide integrated customer solutions and Internet access via wireless
and satellite communications, as well as computing, networking and automotive
electronics. Motorola also provides essential digital building blocks in the
form of embedded semiconductors, controls and systems. Sales in 1998 were
$29.4 billion.