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HP2-H31 - Sales Essentials of HP Workstations Exam - BrainDump Information

Vendor Name : HP
Exam Code : HP2-H31
Exam Name : Sales Essentials of HP Workstations Exam
Questions and Answers : 50 Q & A
Updated On : March 20, 2019
PDF Download Mirror : HP2-H31 Braindumps
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HP2-H31 exam Dumps Source : Sales Essentials of HP Workstations Exam

Test Code : HP2-H31
Test Name : Sales Essentials of HP Workstations Exam
Vendor Name : HP
Q&A : 50 Real Questions

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HP Sales Essentials of HP

HP Elite x3 to continue to be on sale “through 2019” | killexams.com Real Questions and Pass4sure dumps

Responding to reports of the Elite x3‘s dying, HP says that the windows 10 cell smartphone will continue to be sold for as a minimum the subsequent two years.

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HP is always responding to customer feedback to bring the most appropriate product experiences. We stay dedicated to our mobility method and vision and should sell the Elite x3 through 2019 while continuing to raise our portfolio delivering multi-OS gadgets, add-ons and workflow transformation options. Mobility is a thrilling and hastily evolving area, and HP will continue to discover methods to address our shoppers’ mobile computing needs.

Grapevine talk from WindowsUnited claimed that the manufacturer would can the phone on November 1, leaving the lifeless-end platform without a flagship-degree machine on sale. home windows 10 cellular has been sidetracked to a department of the latest typical windows 10 infrastructure, Redstone2. It may be left behind as additional versions of Redstone are constructed with the knowledge of kind aspect-agnostic “Andromeda OS” taking over late subsequent 12 months.

HP has surrounded the Elite x3 with numerous business-grade accessories akin to screen output docks for a computer medium and desktop displays. It also has Android pills in addition to home windows tablets for sale.

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HP in danger of losing Key Witness forward of $5.1 Billion Trial | killexams.com Real Questions and Pass4sure dumps

No outcomes discovered, are trying new keyword!HP is trying to get Christopher Egan, Autonomy’s former head of U.S. revenue, to give proof within the 9-month trial. Egan, who admitted to wrongdoing in trade for a deferred prosecution settlement, ...

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    Ecosystem Enablers For Hardware And IoT Innovators: A Look At 25+ Makerspaces And Accelerators In India | killexams.com real questions and Pass4sure dumps

    History is fundamentally a narrative of innovation, be it the invention of the wheel or the creation of computers. Innovation is the lifeforce of the ongoing global technological revolution. It drives economic growth and progress. In the words of Harold S. Geneen, innovation is also one of the five essential skills for entrepreneurial success. In recent times, the responsibility of promoting innovation, especially in hardware, has been shouldered to a great extent by a fast-growing network of ecosystem enablers, including makerspaces and startup accelerators all across the world for IoT and hardware innovators.

    For the uninitiated, makerspaces are collaborative communities inside schools, libraries and other public/private entities. Makerspaces serve as platforms for makers, hobbyists, technologists, and enthusiasts to come together, exchange ideas and innovate. Makerspaces and accelerators also offer mentoring services to students and professionals in a variety of practical domains, including robotics, drones, 3D printing, coding and woodworking, among others.

    Startup accelerators play the role of nurturer, offering support to early-stage, growth-driven companies. These accelerators provide ready-access to a well-connected community of experts, mentors, investors, and advisors. Startup accelerators facilitate the growth of fledgling startups through education, mentorship, and financing. Among the 60 most active startup accelerators in India are such names as 500 Startups, 50K Accelerator, Appy Hours, Jaarvis Accelerator, DesignGild, Intel India Maker Lab, and others.

    Central to the concept of makerspaces and startup accelerators  is collaboration. This brings us to the next question. What makes collaboration among innovators so important? According to Canadian author and consultant Don Tapscott, “Collaboration is important not just because it’s a better way to learn. The spirit of collaboration is penetrating every institution and all of our lives. So learning to collaborate is part of equipping yourself for effectiveness, problem solving, innovation and life-long learning in an ever-changing networked economy.”

    Although late to the scene, the Indian startup ecosystem is slowly opening up to the idea of makerspaces and startup accelerators for hardware and IoT innovators. To provide readers an overview of the fast-evolving segment, we at Inc42 have compiled a list of the top makerspaces and hardware accelerators currently existing in the country.

    The Top 21 Makerspaces In IndiaWorkbench Projects

    Location: Bengaluru

    Equipment Available: Laser cutter, CNC router, vinyl cutter, 3D printers, oscilloscopes, function/signal generators, power supplies, electronics prototyping tools, fully-equipped carpentry workshop, arc welding machine, filming and documentation (tripod, DSLR, lenses, recorder, mic, GoPros), basic metal working tools, air Compressor, 3D Scanner, Well Equipped Inventory for Project Requirements, Industrial Sewing machines, integrated PA system, HD projector, LPG gas and gas-based attachments for job work, basic biohacking lab.

    Facilities Offered: High-speed Internet, coworking zones, meeting room, social space, smoking bay, innovation management, marketing solutions, capacity building, skilling, R&D consultation, critical curation, corp outsourcing, customised programs, build operate and transfer, hardware incubation, prototyping and job work, policy and advocacy, tech and startup events, strategy consulting, trainings, mentorship.

    Community Strength: 80 members monthly (40 full monthly, 40 floating), 500 unique footfalls every month, 10,000 plus engaged per year, 15,000 subscribers in the email database.

    Timings: 9.30 am – 8 pm (open all days)

    Membership Starts At: $50/ INR 3000+ taxes per month

    A Brief Overview: Founded in 2013, Workbench Projects is a coworking, prototyping and hardware innovation hub that provides state-of-the-art facilities for makers, entrepreneurs and innovators to come together and share ideas. It works to create a nurturing DIY culture among enthusiasts. The platform aims to become an intermediary channel for corporates, governments, startups, SMEs and MSEMs to connect and collaborate.

    Project DEFY

    Location: Bengaluru

    Equipment Available: Garage tools, refurbished laptops, Arduino, classroom supplies.

    Facilities Offered: Applied learning, community training, ‘nooks’ as makeshift classrooms.

    Community Strength: Project DEFY boasts a social reach of over 2,688 people.

    Timings: Normal school hours

    Membership Starts At: Non-Profit Organisation

    A Brief Overview: Standing for “Design Education for Yourself,” Project DEFY is a non-profit organisation that works to make quality education accessible to people from lower economic groups. Disillusioned with his job as an IT engineer, Abhijit Sinha decided to do something for the greater good. As the founder of Project DEFY, Sinha believes that “learning happens naturally” and that “information is available freely.” Unlike the other makerspaces listed in this article, Project DEFY takes an innovative, new approach to promote applied learning. The organisation creates makeshift classrooms, which they call “nooks,” with just 10 refurbished laptops, an Internet connection, a simple tool-set in a 500 to 1,000 square-feet physical space. Several of these nooks are currently situated in Bengaluru, Mangaluru, and Kaggalipura.

    makerspaces-hardware-iot-acceleratorsMaker’s Asylum

    Location: Mumbai, Delhi

    Equipment Available: 3D printers, Laser Engraver, Power Tools, CNC Router

    Facilities Offered: Electronics lab, coworking spaces, hardware incubation

    Community Strength: About 70 active members. Maker’s Asylum, Mumbai currently boasts more than 14,750 followers on Facebook, while the Delhi branch has nearly 5,000 followers.

    Timings: 11 am to 9 pm

    Membership Starts At: INR 2,500 for University students and INR 5,000 for adults per month.

    Brief Overview: The inception of Maker’s Asylum makes for an interesting read. One afternoon in 2013, the ceiling of EyeNetra’s office in Mumbai collapsed, prompting Vaibhav Chhabra, a carpenter, to take to social media in search of people with a knack for building furniture. Soon afterwards, eight DIY enthusiasts came forward to create the first Maker’s Asylum. Nearly four years later, the makerspace platform has evolved into a fast-growing community of hobbyists, hardware entrepreneurs, engineers and problem-solvers. It boasts of over 6,000 square feet of coworking space that provides easy access to tools, technology and talent.

    Curiosity Gym

    Location: Mumbai

    Equipment Available: 3D printers, power tools and hand tools, 3D doodlers, IoT tool kits.

    Facilities Offered: Workshops, innovation hubs, product designing, prototyping, mentoring, science camps, DIY camps.

    Community Strength: 650+ followers on Facebook.

    Timings: 10 am to 7 pm

    Membership Starts At: INR 500 per month

    A Brief Overview: Curiosity Gym is a DIY-oriented makerspace platform with a focus on applied learning, tinkering, prototyping and product making. Open to technology enthusiasts of all ages, the platform offers members mentoring services to help learn design, 3D printing and DIY. It also conducts regular workshops showcasing the latest innovations in 3D printing, IoT, drones, Robotics and programming. To facilitate learning real-life applications, Curiosity Gym offers internships to local as well as international students.

    FabLab Kerala  

    Location: Kochi and Trivandrum, Kerala

    Equipment Available: 3D printers, CNC machine, PCB milling machine, vinyl cutters, laser cutter, electronic work bench, hand tools, power tools.

    Facilities Offered: 3D printing, CNC milling, vinyl plotting, molding and casting, laser cutting, sandblasting, electronic components testing

    Community Strength: 2,330+ followers on Facebook.

    Timings: 9 am to 7 pm

    Membership Fees: INR 3,000 per month

    Brief Overview: Backed by the Government of Kerala, Kerala Startup Mission (KSUM) has created two FabLabs, one at Startup Village (Kochi) and the other at Technopark (Trivandrum). FabLab serves as a technical prototyping platform geared towards promoting entrepreneurship, innovation, and invention. Focussed primarily on digital fabrication, FabLabs help create a self-sustaining global knowledge sharing network by connecting learners, educators, technologists, researchers and innovators from around the country.

    FabLab CEPT

    Location: CEPT University, Ahmedabad, Gujarat

    Equipment Available: Othermill, GX-24, Legend Mini 18, Shopbot Gantry, MDX-20, MDX-15, Kinect V1, Ultimaker 2, Up Plus 2

    Facilities Offered: Laser engraving and cutting, CNC, PCB milling, 3D printing, vinyl cutting

    Community Strength: 50 to 100 (core group). FabLab CEPT has a total of more than 4,316 followers on Facebook.

    Timings: 10 am – 7 pm

    Membership Starts At: INR 1,000 per month.

    Brief Overview: Jointly run by CEPT University and The Motwani Jadeja Family Foundation, FabLab CEPT is part of MIT’s Center for Bits and Atoms-run Fab Foundation. The design-oriented makerspace is envisioned as a platform that provides entrepreneurs, thinkers, and problem-solvers access to requisite resources for invention in art, engineering, medicine, biology, agriculture, economics, business and social science among others. Its aim is to foster strong, mutually-dependent communities through learning, doing and sharing.

    Maker’s Loft

    Location: Kolkata, West Bengal

    Equipment Available: 3D Printer, CNC machines, MultiCNC prototyping machine, laser cutter, knitting machine, block printing, screen printing, sewing machine, machine embroidery, hardware incubation, Styro cutter, printer and scanner, hand and power tools.

    Facilities Offered: Woodworking, laser cutting, 3D printing, textiles, upcycling projects, art installation, robotics, virtual reality, digital fabrication.

    Community Strength: On Facebook, Maker’s Loft boasts more than 2,110 followers.

    Timings: 11 am – 7 pm

    Membership Starts At: INR 3,000 per month

    Brief Overview: Maker’s Loft functions as a makerspace dedicated to children. Aimed at promoting hands-on learning through creative activities and fun science projects, the platform strives to pique the interest of children in STEM (Science, Technology, Engineering and Mathematics) fields. Maker’s Loft provides an environment that facilitates learning through self-discovery and collaboration across different age groups. It is currently supported by a fast-growing community of artists, designers, architects, engineers, hackers, students, hobbyists and professionals.



    Location: Koramangala, Bengaluru

    Equipment Available: WIP: PCB milling, Electronics assembly, 4-Axis CNC, chemistry and biotech lab.

    Facilities Offered: Metal-working, woodworking, injection molding, 3D printing, electronics

    Community Strength: 180+ members

    Timings: 24/7 open

    Membership Starts At: INR 4,000

    Brief Overview: IKP-Eden, as its name suggests, focusses on three basic things: engineering, design and entrepreneurial network. Established in 2015, the 25,000 square-feet coworking space is modelled after US-based TechShops and FabLabs. The platform is open to makers, entrepreneurs, and hobbyists looking to start a hardware product revolution in the country. It currently conduct workshops for students (both schools and colleges) as well as professionals on a variety of topics, including IoT, Robotics, medical devices, electronic toys, industrial design and graphic design.

    Nuts and Boltz

    Location: Delhi

    Equipment Available: Soldering iron, etching station for PCB, multimeter, DC power supply (variable), Arduino and compatible shields, batteries and charging stations, 3D FDM printer, mini CNC-Shapeoko, woodworking tools, etc.

    Facilities Offered: PCB manufacturing, 3D printing, online product marketing, additive manufacturing, Robotics and automation, woodworking.

    Community Strength: The number of makers on Nuts and Boltz’s platform stands at 1,280. It also boasts a community of over 4,760 people on Facebook.

    Timings:  10 am to 7 pm

    Membership Starts At: INR 1,500 per month.

    Brief Overview: Boasting a 1,800 square feet work space in Delhi, Nuts and Boltz is a makerspace platform that provides programmers, enthusiasts, scientists and engineers access to latest technologies, resources and tools to handcraft the next generation of gadgets, robots, UAVs and 3D printing creations. It serves as a channel for interaction and collaboration among members. The platform currently offers hardware incubation and rapid prototyping services aimed at facilitating the development of future technologies in different domains, including aerospace, defense, healthcare, architecture and consumer goods.  

    JMoon MakerSpace

    Location: New Delhi

    Equipment Available: Soldering stations, hand-held power tools for woodworking (drill, jigsaw, dremel, grinder), 2 FDM 3D printers, laser engravers, materials for moulding/casting, and electronic products from RoboRium.com. Basically, products and tools for making projects in Robotics, home automation, Internet of Things, wearables, 3D printing and cosplay.

    Facilities Offered: WiFi, books (technical books, management books, some competitive exam books, novels, comic books etc.), renting and buying of electronics (not tools), startup incubation for entrepreneurs working in Robotics, Internet of Things, wearables, Augmented/ Virtual Reality, machine learning, artificial intelligence, blockchain, distributed Internet, or app-based solutions.

    Community Strength: At any given time, the community’s strength is half a dozen to around 20. Also, on Facebook, the makerspace has a community of 1940, while on Meetup it is 990+.

    Timings: Changes according to seasons and school/college vacations. Currently, 10 am to 6 pm.

    Membership Starts At: INR 2,499 per month

    A Brief Overview: JMoon MakerSpace is a self-sustaining community space, open for all passionate makers to access the resources of JMoon L.A.B.S. Ideated by Jasmeet Singh in April 2013, it claims to be Delhi’s first Makerspace and started operations in September 2014. It helps innovators collaborate with members for projects and prototypes as well as provide incubation, network and training facilities.

    THE Workshop

    Location: Bengaluru

    Facilities Offered: Woodworking, metalworks, computational design, corporate training, electronics/ IoT work, and design thinking workshops.

    A Brief Overview: THE Workshop stands for Think Happy Everyday Workshop and was founded by Anabelle M Viegas and Craig M Dmello in January 2015. The makerspace aims to collaborate with academics from leading universities, cutting-edge industry experts, innovative thinkers, makers and doers, to develop and sustain a cross-disciplinary design community built from the ground up. Mentors from across the world will run a variety of workshops, research modules and host open discussions.

    Collab House

    Location: Hyderabad, Bengaluru

    Facilities Offered: Service consulting; programmes for engagement, business, product

    innovation, design and engineering.

    Community Strength: 40+ local and international communities like Global Shapers Hyderabad, Startup Grind Hyderabad, TEDx Hyderabad, and more. Plus, a 6,000 supporting community of hackers, makers, entrepreneurs and designers.

    A Brief Overview: Collab House was founded by Vineel Reddy Pindi in June 2014. The makerspace is working at the intersection of technology, innovation and community, focussing on the future of collaboration, learning and building things. It is basically a collaborative hub that supports hacker, maker, startup and creative activity.


    Location: Pune

    Equipment Available: Basic hand tools and power tools, soldering irons, laser printer scanner copier, projector, side-glow optical fibre, 3D printer, 3D pens, conducting threads and fabric, 96Boards DragonBoard 410c, 96Boards BLE Carbon, Arduino UNO, Arduino Lilypad, Banana Pro, BPi-R1, Grove Sensor Kit for Arduino, Intel Edison, Raspberry Pi 3 Model B, CodeBug, NodeMCU ESP8266, Adafruit Gemma, Adafruit Flora, BBC micro:bit, SEELablet, iBeacon bare boards

    Facilities Offered: Wired Ethernet and WiFi Internet, Air-Conditioned open seating, Library and books, Lockers

    Community Strength: 3,000+ followers on Facebook

    Membership Starts At: INR 23,990 per month

    A Brief Overview: With a motto of “Learn, Make, and Collaborate”, Reserved-bit is envisioned as a maker space that provides members access to cutting-edge tools, toys, computers, electronics, canvas, art and craft supplies, legos. The makerspace serves as a platform for like-minded people to come together and build a social circle. The goal in the end is to encourage technology enthusiasts to collaboratively design and build anything, while also learn new skills and discover new ideas.

    Heramb MakerLab

    Location: Pune

    Equipment Available: 3D printer

    Facilities Offered: 3D printer distribution, 3D printing service, Raspberry Pi, Arduino microcontroller.

    A Brief Overview: Heramb MakerLab was founded in April 2014 with a vision to spread knowledge of the latest technology advancements to students and professionals. The company is currently dealing with 3D printer (FDM) distribution and 3D printing services. The team is also developing new products like Robotic ams, intelligent lamps, DIY circuits etc.

    Research Innovation Incubation Design Laboratory (RiiDL)

    Location: Somaiya Vidyavihar, Mumbai

    Equipment Available: Laser cutter, vinyl cutter, CNC wood router, milling machine, Avion 3D printer, Dream 3D printer, Guider 3D printer, Fromlabs2 3D printer

    Facilities Offered: Incubation Space, Conference Room, Meeting Room, Cafeteria (shared facility), Office Space, Seminar Hall (shared facility)

    Community Strength: 5,000+ innovators

    Timings: 10 am to 7 pm

    Membership Starts At: INR 5,000 per annum

    A Brief Overview: Backed by Government of India’s Department of Science and Technology, RiiDL is a non-for-profit makerspace/incubator located at the Somaiya Vidyavihar campus, which comprises of 34 institutions with 39,000 students. RiiDL currently boasts a Technology Business Incubator, in addition to FabLab Supernode and Bioriidl, a DIY Biolab and Bioincubator. To boost the country’s startup ecosystem, the makerspace also offers a 2-month accelerator programme, Refine, as well as Bio Entrepreneurship Programme.

    Vigyan Ashram

    Location: Pune

    Equipment Available: LED lighting solution, Egg incubator, Precision Agri control devices, Sanitary incinerator, traditional fabrication tools

    Facilities Offered: Laser Cutting, Vinyl cutting, CNC – PCB milling, Plasma metal cutting, Electronics and micro processors, 3D printing & scanning

    Timings: 9.30 am to 5.30 pm

    A Brief Overview: Vigyan Ashram currently houses a Fab Lab and a DIY Lab. Members of Vigyan Ashram uses latest technologies and tools to solve rural problems, especially in the area of agriculture. Its DIY Lab has workplace , fabrication tools, agricultural setup, biogas, solar systems, electronics, 3D printing. The organisation conducts regular workshops as well as a Fab Camp for school students and makers based in Pune.


    Location: Gurugram, Haryana

    Equipment Available: DIY Kits

    Facilities Offered: Makers playground, invention space, workshops, electronic fabrication, collaboration.

    A Brief Overview: Banaao was established in October 2015 by Prem Sagar and Sumit Kathuria. It is a community-based organisation with a focus on providing a collaborative environment in order to create unimaginable things, and, in the process attain a sense of fulfilment.

    E4D Banjarapalya [Mini Fab Lab]

    Location: Bengaluru

    A Brief Overview: Started as an experiment in 2013, the Banjarapalya Makerspace aims to create scalable, alternate, but self-sustainable schools. It is a first-of-its-kind rural tech space, run completely by the local community itself, engaging people from all backgrounds and ages, in a bias-free, self-customised environment of learning. About 200 local people, aged between 7 and 55 have, at different points of time, interact with the space in learning and making. It basically makes use of the Internet to find cool ideas/projects and then building and designing their own.

    Chennai Makerspace

    Location: Chennai

    Equipment Available: Kossel 3D Printer, an array of microcontrollers ranging from BeagleBone Blacks to Intel Galeleo, tools for PCB fabrication, sensor tools, drills.

    A Brief Overview: Chennai Makerspace was founded in July 2015 to nurture an individual’s inner childlike curiosity and zeal. It also conducts hands on workshops introducing concepts linked to IoT, image processing, Robotics, PCBs and more.

    Vigyan Ashram Fab Lab

    Location: Pune

    Equipment Available: Laser, 3D printer, CNC milling, hardware incubation, plasma cutting, vinyl cutting, electronics, computer graphic, traditional fabrication & welding tools.

    Facilities Offered: Fab Academy offers 6 months training on digital fabrication, a DIY Lab, which has a workplace, fabrication tools, agricultural setup, biogas, solar systems, electronics, 3D printing, workshop for school students and Makers from Pune.

    Timings: 9.30 am – 5 pm

    Membership Starts At: INR 3,000 per annum

    A Brief Overview: Dr. Neil Greshenfeld, Director, Center for Bits and atoms at MIT (US), led the foundation of Vigyan Ashram Fab Lab in 2002. The makerspace aims to provide LED lighting solution, Egg incubator, Precision Agri control devices, Sanitary incinerator and more.


    Location: Karnal, Delhi, Noida

    Equipment Available: Laser etcher, 3D printing, beginners electronics and Arduino learning kit, Robotics kits, Raspberry Pi boards, Lego kits.

    Facilities Offered: Access to working space with Internet, mechanical and power tools, training on the tools, priority event invites & discounts, electronic workstations, woodworking workstation, soldering workstations.

    Timings: Tuesday to Sunday, 9 am to 6 pm

    Membership Starts At: INR 3,999 (professionals) per month. INR 1,999 (students) per month

    A Brief Overview: MakersBox Lab in Karnal was launched in April 2016 in a Public Private Partnership with the Government of Haryana. It has been positioned centrally to spur education and innovation amongst students and learners of all age groups. It is a community Makerspace, with a vision to inspire people to innovate and invent. The founders, Harpreet Kaur Sapra, Dhruv Bhutani (left in July 2016) and Harkrisha Singh (left in October 2016), initially started in October 2015 as an idea in Delhi, and were incubated at SproutBox.


    Image Credit: Memento Nora

    Potential Labs

    Location: Hyderabad

    Equipment Available: All kind of equipment.

    Facilities Offered: Online ecommerce store, three offline stores to buy project components.

    A Brief Overview: It is a research lab, focussed on areas such as Android, Robotics, Arduino, embedded systems, open source dev, sustainable energy, 3D motion gestures and more. The makerspace also helps set up IoT Labs and R&D Centers in industries, MNCs, companies, engineering colleges, academic institutions and training centres. The team curates, advises and helps in selecting the right mix of IoT components based on preferences, requirements and budget.They have an online ecommerce portal to buy materials such as 3D printers, DIY Kits and other project components. Also, they have three offline retail stores available in different areas within Hyderabad.

    IoT And Hardware Startup AcceleratorsRevvx

    Launched In: 2015

    Headquartered In: Bengaluru, Shenzhen and Taipei

    Founded By: Avinash Kaushik, Satish Mugulavalli

    Focus area(s): Internet of Things, Augmented /Virtual Reality, Robotics, drones, blockchain, wearables, connected automobiles.

    Some Startup Graduates: The first startup batch consisting of five startups graduated in May 2016. The list included SeaHow, Fragging Monk, The Things Cloud and Senze. A total of 15 startups have been incubated under its first two batches. In February 2017, Revvx announced to invite startups for the third batch in association with Nasscom.

    A Brief Overview: The Revvx hardware accelerator programme helps startups with prototyping, mass manufacturing and distribution. Apart from Nasscom, Revxx has also partnered with a Chinese hardware company NexPCB and has collaborated with NASDAQ-listed Global Sources, a worldwide electronics sourcing trade show.

    Haxx Accelerator

    Launched In: 2012

    Headquartered In: Shenzen, China. It announced recently that it will invest in Indian startups as well.

    Founded By: Sean O’Sullivan, Cyril Ebersweiler

    Focus area(s): IoT, Robotics, healthcare, infrastructure.

    Some Startup Graduates: Since its launch in 2012, it has invested in over 160 startups globally. In India, the accelerator has invested in startups such as Ray IoT and Diabeto.

    A Brief Overview: Hax Accelerator organises a four-month programme for around 12 early-stage hardware startups in China’s Shenzhen district and Silicon Valley. It is a global hardware startup accelerator, backed by venture capital firm SOS Ventures, working with a $250 Mn fund. It announced to invest $100K each in 10 Indian startups working in the hardware segment in July 2016.


    Launched In: 2015

    Headquartered In: Pune, Bengaluru, The USA

    Founded By: Sanjay Puri

    Focus area(s): LIDAR, RADAR, cyber security, Artificial Intelligence, IoT, autonomous vehicles

    Some Startup Graduates: The current accelerator portfolio includes 18 startups such as Trackyo, Streak Helmet, Wiper, Raksha Safedrive, near Park and more.

    A Brief Overview: AUTONEBULA is catalysing the startups that produce new applications, systems and data for the advancement of transportation worldwide. Startups are screened on the basis of their business model, Minimum Viable Product (MVP) status, Target Addressable Market (TAM) and other metrics. The selected startups undergo a year-long programme covering areas such as product development, scaling a business and digital marketing. Seed funding may also be provided once selected by AUTONEBULA.

    Center of Excellence for IOT

    Launched In: 2016 (Ideated in 2015)

    Headquartered In: Bengaluru, Karnataka

    Founded By: Ministry of Electronics & IT (DeitY) and Education and Research Network (ERNET) in association with Nasscom.

    Focus area(s): Affordable healthcare, Smart Energy, IoT.

    Some Startup Graduates: The current portfolio includes around 22 startups such as SeeHow.

    A Brief Overview: The accelerator was launched in line with the vision of Digital India and Make In India. It provides lab infrastructure and active participation from industry to the startups and is supported by the Electronic Development Fund, which is the fund of funds and has a corpus of over INR 10,000 crore. The fund, which supports the COE, is managed by CanBank Venture Capital Fund Ltd (CVCFL). The COE aims to provide a unique facility, equipment and a place for the product startups to work on their ideas and take them towards completion.

    GSF Global Accelerator

    Launched In: 2012

    Headquartered In: Gurugram, Haryana

    Founded By: Rajesh Sawhney

    Focus area(s): Internet, mobile

    Some Startup Graduates: The portfolio mentions companies like Little Eye Labs (acquired by Facebook in 2014), SilverPush, Zapr, Overcart, HackerEarth and more.

    A Brief Overview: In early 2015, GSF launched an accelerator and an early-stage fund to invest in IoT and cloud startups in collaboration with Cisco Investments. The GSF Global Accelerator is a 13-week programme wherein startups are provided access to venture and business networks, personalised and intensive mentoring, and initial capital. It invests $30-$60K at 8-9% equity in selected startups and also does follow-on rounds of up to $500K into select startups after the programme.

    Target Accelerator Program

    Launched In: 2014 (Launched in India)

    Headquartered In: Bengaluru, Karnataka

    Founded By: A subsidiary of Minneapolis-based Dayton Department Stores.

    Focus area(s): Marketing, mobile, big data analytics, merchandising and supply chain technologies.

    Some Startup Graduates: The portfolio includes startups such as Lechal, Preksh, MintM, Uncanny Vision and more.

    A Brief Overview: With its four-month extensive programme, the Target accelerator aims to help early-stage startups to develop concepts that could improve Target’s business and the broader retail industry. The final selection will be based on the team and its talent and, most importantly, the relevance of the idea to Target. It provides Seed funding up to $30K. Apart from this, it also has a focus on hardware and has subsequently funded and mentored startups in this domain. The American retail chain has been selecting startups relevant to its business for its accelerator program in India and its fourth batch of startups was majorly focussed on AI, AR and IoT.

    Qualcomm® Design in India Challenge

    Launched In: December 2015

    Headquartered In: Bengaluru (Globally, it has 188 offices)

    Founded By: Qualcomm®’s QDIC in collaboration with the NASSCOM

    Focus area(s): Product design, development, and manufacturing of hardware and IoT startups in healthcare, education, banking, automotive as well as smart cities.

    Some Startup Graduates: Some of the startup finalists of the challenge in different years included iSquare Mobility Pvt. Ltd, Avanijal Agri Automation Pvt. Ltd, Alexapath Private Limited, iBot Control Systems India Pvt. Ltd., and more.

    A Brief Overview: In the first round, 10 companies are selected and given $10K, as well as incubation and access to Qualcomm’s innovation labs. Post this, in the final round, the top three startups get a total prize money of $100K.


    With the advent of revolutionary new technologies like 3D printing, Robotics and nanotechnology, the world’s hardware sector has seen substantial growth. While the IT and software market was imperative to the growth and development of the Indian economy in the 1980s, hardware innovation could be what drives India to global dominance.

    When asked about the potential of the industry, Soaib Grewal, former Venture Partner at 500 Startups, told Inc42, “I truly believe that Indian startups can lead in hardware enabled-solutions (people call this IoT but I hate that term).  In my opinion hardware ecosystems of the future will require three things to succeed: excellent software engineering, a knowledge of enterprise sales and customer support and hardware design and manufacturing expertise and infrastructure. I think we are pretty good at the first two and if we can figure out the third component, we’re golden.”

    Despite limitations in terms of inadequate manufacturing infrastructure and lack of proper funding, the country’s electronics and hardware sector is expected to reach $112-$130 Bn by 2018. To bolster the growth of this industry, the government has taken several initiatives in the last few years. For instance, last month, NITI Aayog announced plans to build 500 Atal Tinkering Labs under the Atal Innovation Mission. Earlier in June, it was reported that the state-run think tank was looking to install up to 1,000 tinkering labs in schools around the country, in an attempt to get children hooked on STEM-related subjects.

    While the potential of makerspaces and accelerators as drivers of hardware and IoT innovation has already been realised in the western world, these concepts have only recently made their way into emerging digital nations like India. With rising technology adoption and the government support, future generations will definitely be tinkering with innovation and creativity. For the hardware industry to thrive and scale, a robust network of ecosystem enablers, including makerspaces and startup accelerators, will likely be indispensable for this to occur. After all, it is called ‘Make In India’ for a reason, to make and create in India, for the world.

    InnoNation (earlier Innofest), which is an iSPIRT initiative, has announced the third edition of its annual showcase to be held in Bengaluru. The two-day event is focussed towards bringing the best experts, innovators, and makers under one roof to inspire the next generation of innovators building IoT, Robotics and other related hardware startups. Interested IoT and hardware innovators interested in participating for InnoNation by iSPIRT can apply here! And for attending the event, click here.

    [Written by Meha Agarwal and Sukanya Mukherjee with the help of Abhijeet Khandagale.]

    PS: Do not worry if we haven’t included your accelerators or makerspaces in the list. Just send in your details in the comments below and the list will keep growing. Stay tuned for more in the series!

    Go Downstream: The New Profit Imperative in Manufacturing | killexams.com real questions and Pass4sure dumps

    The 1990s have been a great time to be in business—unless, that is, you happen to be a manufacturer. Despite the long economic expansion—and despite their own rigorous focus on improving productivity and quality—most large manufacturers have struggled during the past decade. Titans with household names like Whirlpool, Texas Instruments, Polaroid, and Bausch & Lomb have achieved little, if any, profit growth. And they have plenty of company. Stock valuations throughout the manufacturing sector have been dormant, while the markets in general have soared. Only one in eight of the 1,000 largest manufacturers has outperformed the S&P 500 since 1988, and fully one-third have seen the value of their stocks decline.

    But if most manufacturers have floundered, a few have prospered, posting healthy growth in revenues, profits, and shareholder value. The thriving companies are a diverse lot, ranging from Honeywell and General Electric to Nokia and Coca-Cola, but they’ve all taken a similar route to success: they’ve gone downstream, toward the customer. While they’ve built on their core manufacturing capabilities, they’ve moved beyond the factory gate to tap into the valuable economic activity that occurs throughout the entire product life cycle.

    Smart manufacturers are moving downstream for a very simple reason: that’s where the money is. Manufacturers’ traditional value-chain role—producing and selling goods—has become less and less attractive as demand for products has stagnated throughout the economy. U.S. economic growth has slowed dramatically over the past 30 years, from an average annual rate of 4.1% in the 1960s to 2.6% in the first nine years of the 1990s. The drop has been even steeper in many manufacturing sectors. The annual growth in sales of industrial machinery, for example, declined from 5.2% to 2.0% over this period.

    At the same time, the installed base of products has been expanding steadily in many industries, thanks to the accumulation of past purchases and to longer product life spans. In many industries, the number of units in the installed base is an order of magnitude greater than the number sold annually. The number of U.S. automobiles in service, for example, has grown from 60 million in 1950 to 200 million today, while recent sales have been essentially flat at 15 million vehicles a year. That has created an installed-base-to-new-unit ratio of 13 to 1. This pattern is repeated across many other sectors, including locomotives (a ratio of 22 to 1), civil aircraft (150 to 1), and tractors (30 to 1).

    The combination of stagnant product demand and an expanding installed base has pushed economic value downstream, away from manufacturing and toward providing services required to operate and maintain products. We’re all familiar with the big picture: since 1960, services’ share of the U.S. gross domestic product has grown by 16 percentage points, to 40%, while manufacturing’s share has declined by ten percentage points, to just 17%. Less publicized are the similar shifts that are transforming individual product markets. In many manufacturing sectors, revenues from downstream activities now represent ten to 30 times the annual dollar volume of the underlying product sales.

    Weak product demand and the growing installed base have pushed value downstream from manufacturing.

    In corporate computing, for example, the average company spends only about one-fifth of its annual personal-computer budget on purchasing the boxes themselves; the rest goes to technical support, administration, and other maintenance activities. In the rail industry, the major railroads now spend $28 billion a year maintaining and operating their locomotives and related infrastructure, but they purchase less than $1.4 billion worth of new locomotives. The average household spends more than $6,000 per year on auto-related expenses, but only about 20% goes to the purchase of a new car; the rest covers ancillary expenses such as gas, insurance, repairs, and financing. (See the exhibit “Where the Money Is.”)

    Where the Money Is Source: GartnerGroup, Association of American Railroads, Federal Highway Administration Office of Highway Information Management. Railroad expenditures are for Class 1 railroads.

    Downstream markets offer important benefits besides large new sources of revenue. They tend to have higher margins and to require fewer assets than product manufacturing. And because they tend to provide steady service-revenue streams, they’re often countercyclical. Clearly, in manufacturing today, the real money lies downstream, not in the production function.

    Rethinking Manufacturing Strategy

    Because manufacturers have an intimate knowledge of their products and markets, they are well positioned to carry out many downstream activities, from providing financing and maintenance to supplying spare parts and consumables. Exploiting the downstream opportunities, though, requires a new way of thinking about strategy.

    Ever since the birth of the modern industrial corporation in the 1920s, manufacturing strategy has been built on three foundations: the vertical integration of supply and production activities to control the cost and maintain the predictability of raw materials and other inputs; disciplined research to create superior products; and a dominant market position to provide economies of scale. With these in place, manufacturers could be assured of a durable cost advantage, steady revenue growth, and substantial scale barriers to competition. The usual reward was double-digit margins and returns on capital.

    But those foundations aren’t much help to organizations seeking downstream, service-based advantages. To capture value downstream, manufacturers need to expand their definition of the value chain, shift their focus from operational excellence to customer allegiance, and rethink the meaning of vertical integration.

    Redefining the Value Chain.

    Manufacturers tend to view downstream services as a necessary evil—something to give customers in order to clinch a sale. Automakers, for example, offer free maintenance and subsidized leases to sell cars. But to pursue downstream opportunities, manufacturers need to shift their perspective a full 180 degrees, viewing the product sale as a way to open the door for the provision of future services.

    The manufacturer has to look at the value chain through the customer’s eyes, examining all the activities the customer performs in using and maintaining a product throughout its life cycle, from sale to disposal. While some manufacturers already provide financing and replacement parts, the downstream opportunities are usually much broader. Consider the aircraft market. The traditional manufacturer’s view of the value chain is relatively compact: assembling the plane, selling and delivering it, supplying spare parts and upgrades. From the customer’s perspective, however, the downstream chain is much more complex. It includes financing and leasing, maintenance, scheduling and capacity planning, catering and servicing, parts-depot operations, and refurbishment and resale, not to mention flying the plane.

    Boeing has broadened its view of the value chain and now offers financing, local parts supply, ground maintenance, logistics management, and pilot training. Even as it struggles with slack demand and production glitches in its commercial-aircraft business, it is building a thriving services business that exploits its dominant share of the airplane installed base.

    Redefining the value chain also means redefining the way profit is measured. Product margin can no longer be the primary yardstick. After all, a product’s profitability does not determine the profitability of the services associated with maintaining and operating it. Hewlett-Packard’s printer business, for example, faces intense price competition and as a result has slender margins. From a traditional product perspective, it is not very lucrative. Yet each printer that HP sells provides the company with the opportunity to supply a stream of ink cartridges at very healthy margins. HP could probably give its printers away to build its installed base and still come out ahead in profitability.

    Giving printers away may sound far-fetched, but it’s the logical extension of a business model based on an installed-base annuity stream. It’s how the cellular-phone and cable-television markets are already structured in the United States, and it’s how the home personal-computer market may soon operate. With PC prices falling and Internet use booming, manufacturers are realizing that they can make more from Internet-access fees than from computer sales alone. Gateway 2000 and other major vendors have begun offering consumers a personal computer, financing, technical support, and Internet access for a single monthly fee, turning a low-margin product sale into a lucrative annuity stream. Other companies are experimenting with giving away computers in return for long-term Internet-service contracts.

    Building Customer Allegiance.

    In the old world of manufacturing, superior products and superior scale provided barriers to competition. Today they rarely do. In many industries, including chemicals, vehicles, computer workstations, and commercial aircraft, the technical and performance differences among the products of major manufacturers are often small and easily bridged. It’s hard, if not impossible, to maintain a price-performance lead. Scale, meanwhile, has become easy to replicate or circumvent. The explosion of venture funding now provides start-ups with access to large amounts of capital. And the emergence of outsourcing and virtual businesses means that capital-intensive assets can be acquired through alliances or contracts. Rather than functioning as sources of competitive advantage, large asset bases increasingly tie a manufacturer to obsolete strategies, allowing innovative competitors to swarm in.

    In the new world of manufacturing, the sturdiest barrier to competition is customer allegiance. The goal is not necessarily to gain the largest share of customers but to gain the strongest relationships with the most profitable customers. By earning their loyalty, a manufacturer can become their preferred supplier of services throughout the product life span.

    Delivering a great product is not enough to gain a customer’s allegiance. You have to deliver a combination of services that minimizes the overall costs associated with owning and using the product. Xerox has come to understand this. The company is succeeding in selling large copier systems by emphasizing how the copier and associated Xerox services will reduce expenses for labor, archiving, and retrieval, thereby lowering customers’ document-management costs. In the process, Xerox is building stronger, more proprietary relationships with its customers.

    Rethinking Vertical Integration.

    As value has shifted toward the customer, distribution—once the backwater of strategy—has become the mainstream. It is where much of the profit in many industries can now be found. But distribution lies outside manufacturers’ traditional concept of vertical integration as a move upstream into the sources of supply.

    Moving downstream into distribution channels therefore brings a whole new set of challenges. In many industries, the battle for control over distribution is intense. Powerful channel consolidators with national scale, sophisticated operating systems, and a strong desire to control the customer are replacing local mom-and-pop operators. The most visible manifestation of this trend has been the ascendance of retail superstore chains like Home Depot, Circuit City, and Wal-Mart. Their vast scale and purchasing leverage have allowed them to offer broader product selections, lower prices, and better customer service than traditional stores while generating higher margins.

    Although generally good for consumers, these large chains have siphoned profits from manufacturers. They’ve drawn consumer loyalty away from the manufacturer and toward the store and its house brands, they’ve levied premiums for shelf space, they’ve exerted pressure to reduce prices, and they’ve replaced manufacturers’ financing and service businesses with their own.

    Look at what’s happened to Whirlpool. Once a dominant player in the appliance value chain, the company today sells one-quarter of its U.S. appliance volume through Sears, most often under Sears’s Kenmore brand. Sears has placed intense pressure on Whirlpool to reduce costs and prices and has threatened to switch its purchases to other manufacturers. While Whirlpool once earned considerable profits by offering consumer credit and maintenance contracts for its appliances, these profit-rich activities are now provided by Sears and other retail chains. In fact, they account for a large share of the chains’ operating income.

    This power shift is not confined to retailing. The consolidation of wholesalers and the development of “super channels” are under way in pharmaceuticals, office supplies, food, and auto parts. In the computer business, a few large resellers, including Ingram Micro and Tech Data, now control the distribution of 90% of the personal computers sold by IBM, Hewlett-Packard, and Compaq. With that channel control comes enormous power over the customer and the entire value chain. These resellers are now competing head-on with the manufacturers by offering their own cheap clones and establishing their own PC brand names. If the manufacturers attempt to bypass them and sell directly to consumers, the resellers can respond by cutting off the manufacturers’ access to a large proportion of buyers.

    New channels, from value-added reselling to telemarketing, have also emerged to threaten manufacturers. The biggest is the Internet, where dozens of new companies like Amazon.com, Autobytel.com, and eBay are becoming electronic intermediaries with powerful advantages: low start-up costs, an ability to provide ample information tailored to individual customers, and the means to allow buyers to customize the shopping experience. By altering the economics of distribution, making comparison shopping easier, and shifting customer allegiance to the intermediary, the Internet puts new pressure on manufacturers and their traditional channels.

    Because manufacturers know their products and markets intimately, they are well positioned to exploit many downstream opportunities.

    The upshot is clear: successful manufacturers will increasingly be characterized by a hands-on involvement with distribution, a focus on identifying and exploiting new channels, and a willingness to risk channel conflict in the pursuit of competitive advantage. Ford, for example, has recently shaken up the traditional automobile-distribution model by acquiring control of its dealerships in several regional markets. It has also revamped and rebranded retail operations, acquired a leading European auto-parts and service chain, and experimented with superstores and other formats. Ford aims to improve the profitability of dealerships and build stronger ties with car buyers across the vehicle life span. Manufacturers that ignore the opportunities for forward integration will see their profits continue to wither, as more and more value flows downstream into distribution channels.

    Four Downstream Business Models

    So what’s the best way to go downstream? We’ve found that successful downstream business models tend to take one of four basic forms. (See the exhibit “The Spectrum of Downstream Moves.”)

    The Spectrum of Downstream Moves

    Embedded Services.

    New digital technologies often allow traditional downstream services to be, in effect, built into a product. By freeing the customer of the need to perform those services, the newly configured “smart” product can save considerable labor costs, which the customer is usually willing to share with the manufacturer.

    Honeywell had traditionally sold discrete navigation, air-data, and collision-avoidance systems for commercial aircraft. As this market became increasingly competitive, the company looked downstream for new opportunities to increase its revenues and profits. Recognizing that the purchase cost of an airplane represents just a fraction of the overall expense associated with operating it, Honeywell developed a new product, the Airplane Information Management System (AIMS), which ties airplane systems together with microprocessors and software. AIMS performs a variety of tasks that used to be done manually, enabling airlines to reduce labor costs, speed aircraft turnaround time, and improve overall efficiency. By automating the in-flight monitoring of engine and systems performance, for example, AIMS reduces the need for expensive flight engineers. By performing sophisticated diagnostic tests throughout the airplane, the system decreases the number of false alarms and speeds up troubleshooting, minimizing airplane downtime and maintenance costs.

    The successful manufacturer will have a hands-on involvement with distribution and a willingness to risk channel conflict in the pursuit of advantage.

    Because of the value AIMS adds to airline operations, Honeywell has been able to charge a premium for it, and the company has become a preferred supplier for many related components. In addition, because Honeywell was the first to offer an integrated system, the company established the de facto standard for flight-management architecture. That has given Honeywell all the benefits of the network effect. While AIMS was originally deployed in Boeing aircraft, other airplane manufacturers, such as Airbus and Lockheed, are now adopting the system. By controlling the standard for flight management, Honeywell has gained an important link with airlines and has wrested valuable customer allegiance from Boeing and the other plane builders.

    Comprehensive Services.

    There are many downstream services, of course, that can’t be built into products. But that doesn’t mean they’re out of the reach of product manufacturers. Several companies have used their positions as product suppliers to launch suites of services for customers.

    GE’s resurgence under Jack Welch is often explained as the result of the company’s manufacturing skills. Just as important, however, is the comprehensive-services business model pursued by the conglomerate’s financing arm, GE Capital, often in tandem with GE’s product businesses. In the locomotive market, for instance, GE Locomotive and GE Capital handle many aspects of locomotive ownership and operation besides the provision of parts and financing. They finance a range of other rail assets, including boxcars, intermodal containers, and maintenance vehicles. They manage a variety of outsourced operations, such as running locomotive-maintenance facilities, providing boxcar-scheduling and routing services, and managing maintenance-vehicle fleets. They also refurbish and resell boxcars and locomotives. GE Locomotive has even teamed with Harris Corporation to improve railroads’ track utilization by pinpointing trains with advanced tracking systems.

    Through its relentless focus on the customer’s activities, GE has captured a rich source of sales and profits. At the same time, it has gained insight into the customer’s needs, which enables it to further refine products and services. And by ensconcing itself in many aspects of the customer’s business, it creates strong bonds that promote future product sales. Over the past 15 years, GE Capital has grown from a small financing operation supporting the product businesses to become the profit engine at the heart of the company, generating 41% of earnings.

    Integrated Solutions.

    A third effective business model is to combine products and services into a seamless offering that addresses a pressing customer need. The Finnish company Nokia has used this model to great effect. For many years, Nokia was a second-tier player in cellular equipment, a market that suffers, like many technology-driven markets, from short product cycles, weak product differentiation, and rapid price erosion. Recently, though, Nokia has emerged as the leading player, displacing the once-dominant Motorola, and has been able to generate healthy profits.

    Nokia has succeeded by looking beyond its traditional products and addressing all the equipment and service needs of the cellular carriers that are its customers. It saw, back in the mid-1990s, that carriers were facing three new challenges. First, cellular’s analog technology was being replaced by digital technology, which the carriers had little expertise in. Second, the carriers were struggling to expand their networks quickly enough to meet the rapid growth in demand. Third, the numerous smaller carriers born in the wake of the U.S. government’s 1995 spectrum auctions needed much more support than the phone companies that had long dominated the cellular business.

    Nokia responded by creating a comprehensive array of products, including handsets, transmission equipment, and switches, that could be easily deployed by carriers. Along with the products, it provided a range of services. It helped the carriers plan and manage their networks, meet zoning requirements for the construction of new transmission towers, and provide maintenance and technical support to customers. By purchasing this single set of products and services, the carriers could save considerable time and expense.

    Nokia’s integrated-solution business model has enabled it to create tremendous customer allegiance, capture a large share of customers’ high-margin network-infrastructure spending, and earn recurring service and upgrade revenues. While mobile-phone handsets represent Nokia’s largest share of sales, its highest margins and profits come from the associated network-development services. The company now has a net margin roughly four times that of Motorola (12% versus 3% for the years 1996–1998), and its market value has grown from $1 billion in 1990 to $65 billion today, far surpassing the performance of other cellular-equipment providers.

    Distribution Control.

    Whereas the first three business models focus on providing new services or products to customers, the fourth is very different. It entails entering the customers’ business—moving forward in the value chain to gain control over lucrative distribution activities.

    That’s the course Coca-Cola has taken. Although Coke has been a brand icon for much of this century, the company’s sharpest increase in shareholder value occurred during the past decade, after it moved downstream to consolidate its independent bottlers into the largest, most tightly integrated distribution network in the beverage industry. Today, Coke controls 70% of its U.S. bottling and distribution, and it is aggressively expanding its control overseas.

    Coke set up its independent-bottler network shortly after the turn of the century, determining the borders of each territory by the distance a horse-drawn wagon could travel in a day. For decades, the network provided Coke with an efficient way to expand its presence. But by the 1970s, technological changes were rendering the network obsolete. New plastic and aluminum packaging offered the promise of much more efficient manufacturing and distribution, but individual bottlers lacked the production volume and capital required to switch over their production lines. Aggressive regional bottlers had begun acquiring and consolidating their neighbors, threatening to upset the influence that Coke enjoyed over its distribution channel. When in 1986 two of the largest Coke bottlers announced their intention to merge, creating a company that would control one-third of Coke’s U.S. distribution, Coke sprang into action.

    It bought controlling positions in the majority of its independent bottlers and amalgamated many of them into a separate, Coke-controlled entity called Coca-Cola Enterprises. It then moved quickly to rationalize bottling plants and distribution networks and invest in plant upgrades. Channel control enabled Coke to grab shelf space and halt price erosion in the high-volume, low-profit supermarket segment through regional coordination of deliveries and services, consistent pricing, and nationwide account management.

    At the same time, Coke was able to extend its dominance of the profitable but fragmented vending-machine market, where prices are often two to four times higher than in supermarkets. Through Coca-Cola Enterprises, Coke provided the capital required to buy and stock vending machines and convenience-store coolers and to build a highly efficient, coordinated distribution system to attack this market. Because Coca-Cola Enterprises could now operate much more efficiently, Coke was able to raise its syrup prices, gaining higher profits on its core product.

    Coke’s channel initiative helped the company increase shareholder value during a time of slowing growth in soft-drink consumption. While Coke faces many challenges, its success in gaining control over distribution remains a bright spot for the company.

    Should You Go Downstream?

    A downstream move makes sense in many cases today, but not in every case. To assess the attractiveness of such a move, you first need to assess the attractiveness of the downstream market itself. (See the exhibit “How to Scope Out a Downstream Opportunity.”) In particular, you should look at such indicators as the ratio of installed units to annual new-unit sales, the customer’s usage costs over the product life cycle relative to the product’s price, and the profitability of downstream activities relative to product margins. Taken together, these measures will provide a sense of the size of the downstream profit opportunity. As we’ve seen, the numbers in many sectors, from locomotives to PCs, are enticing. But if you look at, say, the video-cassette recorder business, you get a very different picture. The VCR market has a low installed-base-to-new-unit ratio, and the costs associated with VCR ownership and usage are paltry; a VCR manufacturer probably wouldn’t want to make a big investment in supplying services to customers.

    You also need to examine your own competitive position. If your ability to differentiate your products is declining, or if your customers are gaining power through consolidation, a downstream move may be a necessity, providing the only way to escape a profit squeeze in your core manufacturing business.

    If the market seems attractive, the question then becomes: how much real influence can you exert over customers and their transactions? The answer hinges largely on the structure of the distribution channels in your industry. Companies such as Dell that already sell directly to end users are obviously in the best position to branch into downstream services. They have relationships with their customers and they don’t have to worry about conflicts with other channels. Companies that sell exclusively through a captive set of distributors—distributors that sell only one product line—will, on the other hand, likely face conflicts if they move downstream. An approach worth considering in these cases is to “buy the channel,” as Coke and Ford did when they acquired controlling stakes in their distribution channels.

    Companies that sell their products through a fragmented network of third-party distributors, such as IBM’s value-added resellers and John Deere’s dealers, also face difficult challenges, as do companies that use many different channels. But such companies can often work in partnership with their distributors to capitalize on downstream opportunities. If, finally, the industry’s channel is controlled by big, consolidated distributors—the Wal-Marts of the world—a downstream move will be tough to pull off. Because any one manufacturer’s products represent a small fraction of the distributor’s mix of goods, the manufacturer has little influence over the customer’s buying decisions. The only option may be to bypass the distributor via the Internet or some other new channel.

    Even if the prospects are bright, actually making a move downstream will not be easy. In addition to shifting your strategic perspective, you may well have to acquire new skills and new people. Coke had to learn how to run a distribution business. Honeywell and Nokia had to get new skills in software development and customer analysis. GE had to learn how to manage relationships with customers’ most senior executives. You’ll also have to devise new ways to measure your performance. The old metrics—market share, cycle time, and quality levels—tend to focus solely on the product. Managing downstream businesses requires looking at new variables such as profit per installed unit, share of customer’s total downstream-activity spending, and total customer return over the product life cycle.

    However difficult the transition, manufacturers can’t afford to ignore the opportunities that lie downstream. If they do, the next decade will be even bleaker than the last.

    A version of this article appeared in the September–October 1999 issue of Harvard Business Review.

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