For Elcoteq, being the preferred global Life Cycle Services partner means that customers consider it to be a high performing and reliable company – one that is capable of understanding their needs and providing them with the best global service offering in the business, from product development to after market services.
Elcoteq’s vision – to be the preferred global Life Cycle Services partner for high-tech product and service companies – includes an emphasis on providing customers with more value added services rather than just aiming to have a high material content business.
In 2009, Elcoteq re-evaluated its plan to implement the integrated EMS strategy in the light of the uncertain market situation and trends in the economy. Rather than increasing its dependence on materials and certain technologies requiring significant investments, the company is now opting to concentrate on more flexible solutions and put an emphasis on enhancing and integrating its service offering even further. The aim is to strengthen life cycle management services – especially after market services – and in addition to OEMs to be able to serve operators and other service providers.
Elcoteq has two main goals that are linked to its vision: creating superior value for its high-tech customers and driving shareholder value on par with competition and beyond.
Elcoteq's Vision and Strategy
Elcoteq has three core strategic themes: expanding the service offering, growth with positive cash flow and operational excellence.
Expanding the service offering plays a key role especially in the adjusted and service-focused strategy. OEM customers expect their trustworthy partners to take on a larger role in the management of complex product structures throughout the entire product life cycle – both safeguarding OEMs’ intellectual property rights and making sure that their latest innovations are not leaked to benefit grey market products.
On the other hand, the uninterrupted usability of devices is crucial for the revenue and profit generation of operators and other service providers who bundle their subscription-based services with all kinds of complex devices. As the requirements for continuous usability tighten, Elcoteq targets to offer its customers a broader service offering globally.
Our target is to systematically move from high material content to high value added service-focused offerings. These services will continue to consist of product development and other engineering services, manufacturing and fulfillment services and especially various configuration, customization, repair and refurbishment services. Elcoteq seeks to bolster its ability to generate added value with its consistent processes, a truly global service network and top-quality service offering that minimizes the total costs of customers’ supply chains.
Growth with positive cash flow aims to balance the company’s customer base and at the same time optimize the use of service units. Several factories were either closed or consolidated during 2009 as part of the restructuring plan, but Elcoteq has been able to retain its global service offering capability in spite of these measures.
Operational excellence and its continuous improvement are key priorities for Elcoteq’s success. To establish a firm foundation, we must tailor and properly dimension our personnel expertise, organizational structures and processes to our business needs.
