We thought you'd be interested in the results of a recent study on the impact of IT on business performance for top-performing electronic components companies. We have examined their strategies, challenges and areas for improvement and have estimated the financial benefits that can be realized through SAP’s solutions for the industry.

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This analysis is based on our knowledge of and extensive experience in the electronic components industry, and utilizes data from publicly available sources of information about the peer companies included in our analysis. Our findings are detailed below.

In order to drive shareholder value, some of the strategic and operational goals companies in the Electronic Components industry are pursuing are:

• Driving Revenue Growth
• Strengthening Sales and Marketing Techniques
• Focusing on Customer Satisfaction

To provide some perspective on the impact that a focused effort on improving operations would have on your company, we have conducted a comparison between a hypothetical “average” company (a company operating at the industry-average level for which revenue of $500M is assumed) and peer companies representing the Electronic Components industry.

What Moving The Needle could mean to your company:

• Every one percentage improvement in revenue growth = ~$182K in operating income
• Every $10K improvement in revenue per employee = ~$275K in operating income
• Every day improvement in DII = ~$260K in free cash flow
• Every day improvement in DSO = ~$430K in free cash flow

_{Source: Stratascope, SAP analysis Electronics for Imaging (EFI), Informatica, Manhattan Associates, Macrovision, Websense, Taleo and Callidus Software.}

Speaker

• Daniel Dimitruk, SGE Mid-Market Industry Principal, SAP Americas
• Steve Reynolds, Solution Engineer, SAP Americas