I am personally very happy, excited and motivated to see a renewed interest in the Professional circles about growth of this business, recession and gloom not withstanding past year or so. This sedate and low profile Industry is getting lot of ink in the Press which is all very well. So far so good, the only caveat is all these market figures and projections are indicating exuberance from nouveau experts trying to hype these things up. Our submission to all T&M professionals and Entrepreneurs remains is please take the hard data into account and then guestimate market size more rationally.
However next obvious question is which data is MORE authentic? I will go to the very basic data from the Government Department of IT and Electronics. Just see the two macro figures of Export of Electronics and Domestic Production standing at $4 Billion and $20 B respectively. Peg these figures to sum total of T&M business done by all major T&M companies Beyond these two blocks Services in Defense, Telecom, Railways, Broadcasting and Semiconductors are other top T&M consumers. I sincerely believe this may be a newer and more rational basis of estimating T&M equipment market in India as we see the pie growing by approx 20pct over next three years.
Will appreciate comments and critique on this.
Monday, December 14, 2009
Saturday, December 12, 2009
T&M can help address Current Spectrum Challenge!
Telecomm Industry in several countries in Asia is facing challenge of Growth (past 50% or more mobile penetration),Customer Churn expected,pressure on ARPU and efficiency of spectrum deployment.T&M services based on measurement and Management can be helpful here.For instance the Monitoring Organisation is having an excellent Real Time Spectrum Monitoring System based on Spectrum Analysers and Processing System around it.
All the major Transmission devices-be it Sattelite,Microwave or UHF are being monitored real time and the data of I/O is networked centrally with the Headquarters.There is parallely a sort of CRM also which recieves inputs through the application at the Monitoring Organisation.
What we need to ensure is couple of things.The interfaces with the transmitting devices need be proper and the data integrity from the various field offices.The process will then be automated and through the autopilot we will be knowing how much Efficiency we are achieving.Secondly we need to have our Goal of Telecomm services established.These two will ensure we use the available Spectrum efficiently and optimise on the need of getting the Spectrum vacated by other users.
T&M services thus can help the Industry resolve a nagging problem of Spectrum Management rationally,automatically and without resorting to unusual human involvement.A good use oF IT and T&M for national Purpose.
Those interested in knowing further on this application may contact the writer.
All the major Transmission devices-be it Sattelite,Microwave or UHF are being monitored real time and the data of I/O is networked centrally with the Headquarters.There is parallely a sort of CRM also which recieves inputs through the application at the Monitoring Organisation.
What we need to ensure is couple of things.The interfaces with the transmitting devices need be proper and the data integrity from the various field offices.The process will then be automated and through the autopilot we will be knowing how much Efficiency we are achieving.Secondly we need to have our Goal of Telecomm services established.These two will ensure we use the available Spectrum efficiently and optimise on the need of getting the Spectrum vacated by other users.
T&M services thus can help the Industry resolve a nagging problem of Spectrum Management rationally,automatically and without resorting to unusual human involvement.A good use oF IT and T&M for national Purpose.
Those interested in knowing further on this application may contact the writer.
Sunday, November 1, 2009
T&M Equipment and Services Purchase Decisions
More and More companies buying T&M equipment and Services are getting Finance Savy in making these decisions.These criterion are being driven by the prevaling Recessionary conditions as well as the competitive activity thrown up due to liberalisations in their industries.
Traditionally the criterion of buying T&M Capex was to consider the Capital cost of acquisition and Total Cost of ownership TCO.Government buyers,or Public Sector Units were safely attached to the Lowest Cost L1 syndrome,a safer option with the Decision Making Unit of the Purchaser.However nowadays the Private players will look with a microscope any Capital Expenditure!
Today more and more companies are trying to link the Financial impact with the Technical features of these Test Instruments/Services.They consider the TCO along with the RoA (Return on Assets).RoA and in some cases the Growth of RoA becomes the more important consideration for the CFO before approval to buy is given.The trick is therefore to present solution which helps in reducing the Assets (by sharing or virtualisation of some sort) and making higher Return Ratio!
For the T&M Professional Seller, this becomes the trickier part.Selling Professionals need to use the combination of Technical Knowledge,Financial Skills and Customer application understanding.For Example if he is selling a Power Supply of 100 Watt in $ 1000 ,he has to start thinking his sales price as $10 per Watt.If his tester reduces Testing time by 10 minute per sub-assemby,the return on Productivity will have to be quantified accordingly.
In India too several Telecomm Service Providers and other companies are squeezing better and better RoA when they purchase T&M.T&M Professionals need to Position their Equipment and Services in a way it can help Telecomm companies becoming Assetlight.
On a personal note today,Nov 1, 2009 I am recalling my Professional journey started 38 years ago in this Indian Silicon Valley- Bangalore, while I joined a batch of Engineers at BEL.My work involved designing Microwave Components/Systems for the Defense equipment then.Our first brush with the T&M industry was as an user then.Thanks and Greetings to Bangaloreans and Karnataka today-the Kannada Rajyotsava day.
At Bangalore, vishnu_goel@yahoo.com +91 98 101 01238
Traditionally the criterion of buying T&M Capex was to consider the Capital cost of acquisition and Total Cost of ownership TCO.Government buyers,or Public Sector Units were safely attached to the Lowest Cost L1 syndrome,a safer option with the Decision Making Unit of the Purchaser.However nowadays the Private players will look with a microscope any Capital Expenditure!
Today more and more companies are trying to link the Financial impact with the Technical features of these Test Instruments/Services.They consider the TCO along with the RoA (Return on Assets).RoA and in some cases the Growth of RoA becomes the more important consideration for the CFO before approval to buy is given.The trick is therefore to present solution which helps in reducing the Assets (by sharing or virtualisation of some sort) and making higher Return Ratio!
For the T&M Professional Seller, this becomes the trickier part.Selling Professionals need to use the combination of Technical Knowledge,Financial Skills and Customer application understanding.For Example if he is selling a Power Supply of 100 Watt in $ 1000 ,he has to start thinking his sales price as $10 per Watt.If his tester reduces Testing time by 10 minute per sub-assemby,the return on Productivity will have to be quantified accordingly.
In India too several Telecomm Service Providers and other companies are squeezing better and better RoA when they purchase T&M.T&M Professionals need to Position their Equipment and Services in a way it can help Telecomm companies becoming Assetlight.
On a personal note today,Nov 1, 2009 I am recalling my Professional journey started 38 years ago in this Indian Silicon Valley- Bangalore, while I joined a batch of Engineers at BEL.My work involved designing Microwave Components/Systems for the Defense equipment then.Our first brush with the T&M industry was as an user then.Thanks and Greetings to Bangaloreans and Karnataka today-the Kannada Rajyotsava day.
At Bangalore, vishnu_goel@yahoo.com +91 98 101 01238
Sunday, October 25, 2009
T&M Equipment Industry needs rediscovery
T&M Equipment industry is undergoing lot of changes yet again!This year had been stormy and full of consolidations and realignments.Both T&M equipments and the Services sectors underwent changes which were driven by the Communications segment related.The Network equipment manufacturers (NEM) realigned with emerging players from Asia dominating the scene in several countries.
An interesting aspect was preparation of launch of 3G and also planning of LTE services in several countries.It appears that the T&M segment related to Communications will be dictated by those
players covering all the layers of the model.There are very few players who can claim the availability of Testers for all 7 layers and all phases of Network Rollout.The suppliers will like to address these applications and fill existing gaps,if any.
The Contention between Capex and Opex continues in the Telecomm companies before these purchases get finalised.The mandarins of these companies worry about EBITDA(Profit before Taxes) and Cash Flows before T&M procurements.Internal dynamics decide who will manage the budget?Usually the T&M vendors who are able to show better return on Assets,win the contracts.The T&M purchases are being bracketed alongwith other infrastructure assets,like Towers.
I expect similar things happening to Defense,Aerospace,Railways and Automotive and semiconductors Segments.The value of the T&M equipment and the services will be their ability to show Return and rate of growth of Return on these assets,and not merely the savings and Quality alone.
T&M Professionals now have to continuously worry about the innovative services they can offer along with the equipment.Reverse Logistics chains need to be tightened and its cycle time reduced.This will lead to better and better Engineering Services revenues as well.
An interesting aspect was preparation of launch of 3G and also planning of LTE services in several countries.It appears that the T&M segment related to Communications will be dictated by those
players covering all the layers of the model.There are very few players who can claim the availability of Testers for all 7 layers and all phases of Network Rollout.The suppliers will like to address these applications and fill existing gaps,if any.
The Contention between Capex and Opex continues in the Telecomm companies before these purchases get finalised.The mandarins of these companies worry about EBITDA(Profit before Taxes) and Cash Flows before T&M procurements.Internal dynamics decide who will manage the budget?Usually the T&M vendors who are able to show better return on Assets,win the contracts.The T&M purchases are being bracketed alongwith other infrastructure assets,like Towers.
I expect similar things happening to Defense,Aerospace,Railways and Automotive and semiconductors Segments.The value of the T&M equipment and the services will be their ability to show Return and rate of growth of Return on these assets,and not merely the savings and Quality alone.
T&M Professionals now have to continuously worry about the innovative services they can offer along with the equipment.Reverse Logistics chains need to be tightened and its cycle time reduced.This will lead to better and better Engineering Services revenues as well.
Saturday, July 25, 2009
T&M Services are really part of ENGINEERING services!
Test and Measurement (T&M) related services are really a subset of the larger gamut of Engineering Services undertaken by a Tech Company on behalf of their Client Employers.
These services are called for by Defense,Aerospace,Telecom,Semiconductors or Manufacturing companies and have a very strong impact on the success of their core businesses results. For example a Telecom Operator in Mobile Business may expect their vendors-either an IT company or NEM infrastructure supplier to manage the total Network and deliver the preagreed Service Level. T&M services are in the same ilk as the IT/telecom outsourced services and a good T&M vendor can be the most optimum services supplier because of the Test & Management domain knowledge.
T&M domain knowledge becomes the sustainable,competitive advantage for this company as none of the other supplier vendors have so much specialised technology knowledge as well as Performance /Conformance expertise with them. Likewise in the other sectors-Defense, Aerospace, Semiconductors and Manufacturing too the T&M technologies are very handy in understanding these businesses and delivering the appropriate Solutions through T&M services delivery.
T&M services may start with Repair,Calibration,Automation,Interface defining and approvals, Leasing and Rental, Code Development plus Integration. Tech Support Centers, Training on technology and Consulting at higher end. Obviously they become Engineering Services Package in an overall Service Domain.The real value addition and creation then happens at the intersection of a smart T&M Services Vendor and the Clients Core Business Units.
Worldwide Engineering Services Outsourcing is multi Hundreds of Billions Dollar business and all the major companies outsource it to major Global and Regional IT and Consulting Companies. However it is my belief a T&M services vendor-TEST & MANAGEMENT not just Test and Measurement Vendor has technology and domain window open for him to offer these services more legitimately!
These services are called for by Defense,Aerospace,Telecom,Semiconductors or Manufacturing companies and have a very strong impact on the success of their core businesses results. For example a Telecom Operator in Mobile Business may expect their vendors-either an IT company or NEM infrastructure supplier to manage the total Network and deliver the preagreed Service Level. T&M services are in the same ilk as the IT/telecom outsourced services and a good T&M vendor can be the most optimum services supplier because of the Test & Management domain knowledge.
T&M domain knowledge becomes the sustainable,competitive advantage for this company as none of the other supplier vendors have so much specialised technology knowledge as well as Performance /Conformance expertise with them. Likewise in the other sectors-Defense, Aerospace, Semiconductors and Manufacturing too the T&M technologies are very handy in understanding these businesses and delivering the appropriate Solutions through T&M services delivery.
T&M services may start with Repair,Calibration,Automation,Interface defining and approvals, Leasing and Rental, Code Development plus Integration. Tech Support Centers, Training on technology and Consulting at higher end. Obviously they become Engineering Services Package in an overall Service Domain.The real value addition and creation then happens at the intersection of a smart T&M Services Vendor and the Clients Core Business Units.
Worldwide Engineering Services Outsourcing is multi Hundreds of Billions Dollar business and all the major companies outsource it to major Global and Regional IT and Consulting Companies. However it is my belief a T&M services vendor-TEST & MANAGEMENT not just Test and Measurement Vendor has technology and domain window open for him to offer these services more legitimately!
Saturday, July 4, 2009
Competitive Advantages for T&M Professional
T&M Professionals have an inherent array of competitive advntages to themselves even though this industry is not big Globally and in India.This industry has unique characteristics which enables its members very visible to the various sectors it serves. Measurement of any physical parameter enables it to be controlled,regulated and improved and so achieved.Be these parameters are Electrical ,as they are in our industry,or other Business variables, like Sales,Profit and Growth rates etc.
Measurement is the only way to know HOW we are doing! Well these are hard parameters,but like wise the "Soft Parameters" can also be measured, the example being how often we are polite,punctual in attending class,or responsive to the customers needs. Without the inherent MEASUREable goals we are more likely to blow it off! T&M Professionals therefore are very often used to rigid measurement,and control across the functions they are serving.The T&M instrument designer has to factor in that his designs are capable to test Equipment with an order more accurately than the Device Under Test. Their designs are ahead of the Technology curve they are supposed to measure-both in terms of Performance of their own, and conformance to the set Standards in that domain.
It is this inherent characteristics which keeps T&M Professionals always aware of future needs of the Customer, his pain points where Quality,Productivity and Profitability will be impacted by the capability,or lack of it, of the T&M instrumentation.A T&M professional in Sales, Service Support or Solution Delivery is very equipped with the Technical/Application knowledge so he can link the Business issues to the Expectations from appropriate Test & Measure.Are these advantages competitive and sustainable ? These are sustainable if these professional keep improving on the domain knowledge and stay current. Of course soft factors like Motivation and desire to improve play part, like in any tech field !
Measurement is the only way to know HOW we are doing! Well these are hard parameters,but like wise the "Soft Parameters" can also be measured, the example being how often we are polite,punctual in attending class,or responsive to the customers needs. Without the inherent MEASUREable goals we are more likely to blow it off! T&M Professionals therefore are very often used to rigid measurement,and control across the functions they are serving.The T&M instrument designer has to factor in that his designs are capable to test Equipment with an order more accurately than the Device Under Test. Their designs are ahead of the Technology curve they are supposed to measure-both in terms of Performance of their own, and conformance to the set Standards in that domain.
It is this inherent characteristics which keeps T&M Professionals always aware of future needs of the Customer, his pain points where Quality,Productivity and Profitability will be impacted by the capability,or lack of it, of the T&M instrumentation.A T&M professional in Sales, Service Support or Solution Delivery is very equipped with the Technical/Application knowledge so he can link the Business issues to the Expectations from appropriate Test & Measure.Are these advantages competitive and sustainable ? These are sustainable if these professional keep improving on the domain knowledge and stay current. Of course soft factors like Motivation and desire to improve play part, like in any tech field !
Wednesday, February 18, 2009
Trend and Opportunities in Indian Market
What is your perception about the Indian T&M market?
The T&M market in India is in a very peculiar stage. Traditionally, the T&M companies were totally dependant on government projects. Particularly the Indian telecom sector and on BSNL. The process of buying bulk and multiple number of products is also very relevant. Because of bidding the price drops so low that in most cases it is not profitable. Of late, this trend has gone through a lot of changes. After the corporatisation of BSNL, the buying process has also undergone some changes and the requirement is now rationalised from their point of view. I have seen that T&M companies are suffering huge losses serving that market. I believe that market can be served by all kinds of vendors who have not as much regard for the quality of the product. So, that has been a loss-making proposition for most companies. The growth of telecom T&M will be with new operators challenging the government operators and who are clearly considering T&M as an investment and not merely as an expenditure. T&M should be considered as a key business tool. Unfortunately in our country, I have not seen anybody making use of this investment from that direction. This is happening because most of these T&M players were not able to communicate the strategic importance of T&M to all the telecom service providers. So, the responsibility lies with no one else but the T&M equipment vendors. I believe T&M has to be seen as a strategic investment to fulfil their customer-oriented objectives. If the service providers see investment in that light, then there is a huge opportunity for the T&M industry.
What trends and opportunities do you see in this segment?
A lot of things are shifting in the T&M market. One of the basic paradigms I are trying to change is the perception of T&M as test and management from test and measurement. So, after you have carried out the testing and the measurement you would like to make a closed group system by which you can manage the whole network. Another opportunity is that there is a great need in terms of offering real high value-add services to telecom companies. There is great scope to provide such services to someone who is oriented towards offering that quality of service to potential customers. So, the service providers should invest in areas where they can see the importance from business objectives. Then this industry will have a really bright future. It is unfortunate that none in the T&M industry has driven the cause.
The T&M market in India is in a very peculiar stage. Traditionally, the T&M companies were totally dependant on government projects. Particularly the Indian telecom sector and on BSNL. The process of buying bulk and multiple number of products is also very relevant. Because of bidding the price drops so low that in most cases it is not profitable. Of late, this trend has gone through a lot of changes. After the corporatisation of BSNL, the buying process has also undergone some changes and the requirement is now rationalised from their point of view. I have seen that T&M companies are suffering huge losses serving that market. I believe that market can be served by all kinds of vendors who have not as much regard for the quality of the product. So, that has been a loss-making proposition for most companies. The growth of telecom T&M will be with new operators challenging the government operators and who are clearly considering T&M as an investment and not merely as an expenditure. T&M should be considered as a key business tool. Unfortunately in our country, I have not seen anybody making use of this investment from that direction. This is happening because most of these T&M players were not able to communicate the strategic importance of T&M to all the telecom service providers. So, the responsibility lies with no one else but the T&M equipment vendors. I believe T&M has to be seen as a strategic investment to fulfil their customer-oriented objectives. If the service providers see investment in that light, then there is a huge opportunity for the T&M industry.
What trends and opportunities do you see in this segment? A lot of things are shifting in the T&M market. One of the basic paradigms I are trying to change is the perception of T&M as test and management from test and measurement. So, after you have carried out the testing and the measurement you would like to make a closed group system by which you can manage the whole network. Another opportunity is that there is a great need in terms of offering real high value-add services to telecom companies. There is great scope to provide such services to someone who is oriented towards offering that quality of service to potential customers. So, the service providers should invest in areas where they can see the importance from business objectives. Then this industry will have a really bright future. It is unfortunate that none in the T&M industry has driven the cause.
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