Stanford researchers have collected data that for the first time will allow them to draw worldwide comparisons among computer firms, electronics manufacturers, manufacturers of industrial instruments, and large-systems makers. Known as the Excellence in Electronics Survey, the project draws together an unprecedented amount of data on what makes firms succeed, focusing on manufacturing and research and development, but including information on all functions of a business unit. The study involved firms in consumer electronics, computer manufacturing, and industrial electronics. Mendelson said that preliminary analysis of data from the electronics survey showed differences not only from one industry segment to another, but also between same-industry firms in different geographical areas. He reported that the average life cycle of products was 35 months in the computer industry, 40.4 months in consumer electronics, and 71 months in industrial electronics.
Preliminary analysis shows that the U.S. computer industry is more robust than previously believed.
Mendelson also described a trend toward vertical disintegration of firms, with U.S. and European firms showing a rapid move toward levels of vertical disintegration that in the past characterized Asian Pacific companies. Overall, approximately 50 percent of the firms in the survey reported plans to decrease their level of vertical integration, whereas about 20 percent reported a planned increase over the period from 1991 to 1994. There was a less dramatic increase among industrial electronics firms during the same period and virtually no change in consumer electronics. The data summarized in the table below also show the impact of organizational change and a shift away from business units organized by function and toward units organized around product or customer segments. Mendelson headed the Stanford effort.