From Low Cost To Global Leadership

KEL340
ROBERT C. WOLCOTT AND MICHAEL J. LIPPITZ
From Low Cost to Global Leadership:

Computime (Hong Kong) Leads Through Innovation
In 2007 Computime management could look back on more than thirty years of steady growth.
Founded in 1974 in Hong Kong by mechanical engineer Auyang Ho (hereafter referred to as Mr.
Auyang), the company had grown from a small manufacturer of digital clocks to a global
electronic controls enterprise with operations in Asia, Europe, the Middle East, and North
America. Mr. Auyangs son, Bernie Auyang Pak Hong (hereafter referred to as Auyang), was
now CEO. Under their combined leadership, Computime had successfully implemented two fiveyear plans that had brought revenues to more than US$300 million and gained the company a
listing on the Hong Kong Exchange.
However, competition in Computimes core markets had markedly increased over the last
few years, intensified by Chinese government policies encouraging the establishment of new
technology companies. Concurrently, overall demand for labor and raw materials in Southeast
China had raised costs. Computimes manufacturing centers in Guangzhou, located in mainland
China near Hong Kong, no longer benefited from cheap labor compared to that provided farther
inland in China or in parts of Southeast Asia.
Auyang realized that Computime needed to find new ways to add value beyond low-cost
mass production and small-scale product customization. Computime would need to contribute its
own solutions, i.e., conceiving, designing, and manufacturing more of its clients products, as
well developing its own brands. In 2004 Computime built a new research and development
(R&D) team, followed in 2006 by a dedicated R&D facility in mainland China. The company
also introduced its own line of branded products under the Salus name in the UK.
By 2007 R&D had established its value and Salus had achieved significant success in the UK
with plans for rollout throughout Europe, but challenges remained. How should R&D coordinate
with business units? To what extent should R&D engage with customers in Computimes diverse
markets? How far beyond the companys core businesses should R&D explore? What would be
the implications of transitioning from designing and producing products for customers to
producing proprietary branded products?
Surveying the sprawling Hong Kong skyline from afar, Auyang stood prepared to make
significant decisions regarding Computimes future. What should they be?
2008 by the Kellogg School of Management, Northwestern University. This case was prepared by Professor Robert C. Wolcott and
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COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY
KEL340
The Contract Manufacturing Industry

Since the late 1970s, companies in many industries had expanded their use of electronic
manufacturing services (EMS)i.e., contract manufacturersfor their electronic components.
Typically, an electronics products company such as Phillips, Siemens, or Motorola would
develop and design new products to precise specifications and then transfer the plans to contract
manufacturers for production. The first large player in this space, Solectron, was founded in the
United States in the late 1970s.
The trend toward EMS particularly benefited an emerging breed of Asian companies such as
Flextronics (Singapore), as well as U.S.-based companies that introduced Asian production, such
as Solectron, Jabil, and Sanmina-SCI. Electronics manufacturing was a growth industry, and
offered better business opportunities than more traditional ventures such as textile manufacturing
for the millions of people who migrated from agricultural to urban industrial settings. Asian
governments encouraged the development of technology companies of this sort for the highquality jobs and technical skills they helped generate.
Until the 1990s, most contract manufacturers did not design new products. Rather, they
produced what others had designed. Motivated to increase margins and responding to requests
from customers, some contract manufacturers developed in-house design capabilities as a service
for their clients. They became known as original design manufacturers (ODMs). As the industry
evolved, some branded electronics products companies began relying on ODMs for more and
more of their product development, from concept definition through design and manufacturing.
By 2005 the contract manufacturing industry had reached global revenues of approximately
US$190 billion, representing the combination of EMS ($116.5 billion) and ODM ($73.6 billion).
Exhibit 1 shows the top ten EMS and ODM companies worldwide in 2007.1
From Digital Clocks to Global Automated Controls Supplier

Computimes First Hit Leads to Growth and New Markets
The digital clock was invented in 1956. Early models used cathode ray tubes to display digits
and were employed in expensive instrumentation, often by the military. By the early 1970s,
advances in semiconductor technology, light-emitting diodes, liquid crystals, and conductive
glass allowed digital clock technology to be realized in consumer electronics, most popularly in
digital watches (see Exhibit 2 for a historical summary of Computime sales and major events).
Raymond Auyang, Mr. Auyangs brother, saw an opportunity to produce digital clocks more
cheaply in Hong Kong than in the United States, Europe, or Japan. He presented the idea to Mr.
Auyang, who had experience in building and managing manufacturing facilities. Mr. Auyang
agreed, and in 1974 they gathered a group of fifteen engineers to start development and
production. Computime became the first company in the region to produce mass-market digital
clocks.
Consultancy iSuppli Corporation, http://www.isuppli.com.
2
KELLOGG SCHOOL OF MANAGEMENT
KEL340
Digital clocks soon became standard equipment in automobiles and numerous other products.
By 1979 Computime had delivered more than one million devices to customers in North America
and Europe. In 1980 it built a manufacturing facility in neighboring Guangzhou, China, making
the company an early mover into the newly created special economic zones (SEZs) set up by the
Chinese government in the Deng Xiaoping era. Dengs government, roughly from 1978 through
the early 1990s (Deng never held the official head of state position but was recognized during
most of this period as Chinas undisputed leader), instituted widespread economic reforms to
transform China from a traditional communist state to a socialist market economy, creating what
Deng referred to as socialism with Chinese characteristics. The SEZs allowed foreign direct
investment and other economic liberalizations for specific areas. The National Peoples Congress
passed Regulations for the Special Economic Zone of Guangdong Province in August 1980.
Computime completed its Guangzhou facility soon after.
However, Mr. Auyang recognized that the companys products would become commoditized
due to intensified competition from other companies making similar products. He decided to
create something that does more than show time. Computimes engineering team expanded the
functionality of its product lines to include programmability, i.e., the ability to switch devices on
and off at prescribed times. In the early 1980s, Mr. Auyang challenged his company to learn how
to make temperature control devices to replace the largely mechanical thermostats of the time.
(The Honeywell electronic programmable thermostat had already been invented, but it served a
small niche market.) Computime became the first Chinese company to introduce appliance timers
and electronic thermostats.
By focusing on manufacturing quality and efficiency, as well as tracking the latest product
trends from the United States and Europe, Computime expanded overseas. The company opened
its first office in the United States in 1982. It moved its manufacturing operations and six hundred
staff to Shenzhen, China, in 1984, further betting on the then-nascent transformation of the
Chinese economy. Beginning in 1987, Mr. Auyang vertically integrated development,
manufacturing, and sales to enhance quality control, efficiency, and responsiveness. As staff size
grew to include more than 1,000 people in 1989, the company opened corporate headquarters in
Kwun Tong, Hong Kong, to better access global markets and world-class management expertise.
Computime became an early convert to the International Standards Organization (ISO)
certification standards for manufacturing practices. It became ISO 9002 certified in 1995, ahead
of many manufacturers of comparable size in the United States and Europe.2 The company also
worked hard to instill the values of teamwork and responsibility for the community promulgated
by its founder.
The First Five-Year Plan, 19972002

The first five-year strategic plan targeted growing the company to US$100 million in
revenues. As part of the plan, Computime expanded its manufacturing capacity and opened its
first dedicated offices in Europe and Japan. Its relentless focus on quality and efficiency was
recognized with the Hong Kong Industry Grand Prize for Quality in 2001, ISO 14001
2
ISO 9002 is maintained by ISO, the International Organization for Standardization, and is administered by accreditation and
certification bodies. Some of the requirements include procedures for key business processes, monitoring and recordkeeping
processes, checking output for defects, and facilitating continual improvement. See Wikipedia, ISO 9000, http://en.wikipedia.org/wiki/
ISO_9000.

3
KEL340
certification in 2002, and U.S. Food and Drug Administration approval for the manufacture of
medical devices for the U.S. market in 2003.
The five-year plan also paved the way for new management systems. The company grew over
many years by pursuing leading trends in time-based programmable electronics products and
building high-quality, efficient manufacturing capabilities. While this strategy worked, it relied
largely on the insight and direction of the company founder. Like entrepreneurs worldwide, Mr.
Auyang knew that he would eventually need to transfer leadership to the next generation. He also
recognized that his growing company required an expanded professional management team.
Mr. Auyangs son Bernie Auyang represented the future of this family-owned business.
Having started on the production line and in the warehouse, Auyang had risen through the ranks
of finance, sales, and marketing to become president in 1998 and CEO in 2002. Although Mr.
Auyang remained chairman, he provided his son with increasing autonomy, particularly in hiring
and setting the overall strategic direction of the company. Computime also added an
exceptionally effective chief operations officer (COO), Choi Po Yee (Alice), and invested her
with substantial authority for day-to-day operations.
One of Auyangs first hires, in 1998, was Wei Long (W. L.) Ha as chief of engineering. Ha
brought experience in new product development for telecommunications products companies, as
well as advanced degrees in electronic systems design and industrial management. He developed
and implemented a formal new product introduction (NPI) process based on state-of-the-art stagegate processes and built up Computimes Chinese engineering force. (Computime could hire
about three mainland Chinese engineers for the same cost as a single Hong Kong engineer.)
In 2000 Computime split into business units in order to better focus on distinct customer
groups. The business unit structure evolved as market opportunities changed. In 2002 business
units included building and home controls, appliance controls, and commercial and industrial
controls. (Appliance controls was originally part of building and home controls but split off when
the market became large enough to justify an independent division.) Ha became president of
building and home controls, the largest business unit. Exhibit 3 depicts the 2007 Computime
organizational chart and Exhibit 4 lists major product lines by business unit and major OEM
customers.
Despite respectable growth from these initiatives, Auyang realized that increased competition
in contract manufacturing was coming. Many new Chinese companies were becoming proficient
at turning a specification into a product with good quality control. If Computime wanted to
continue to grow and prosper, it would need to continue to find new opportunities.
The Second Five-Year Plan, 20022007

Computime began the development of its new strategic direction by examining how it could
maintain its margins and grow to a US$300 million company over five years.
Computime management concluded that it would need to create its own opportunities by
innovating across its core technology platforms. This would allow it to create new customer
solutions, and in certain areas introduce its own branded products. In the past, Computime had
assigned patents to its customers. Now it would seek to develop its own intellectual property
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KEL340
through R&D. Rather than being strictly an EMS or ODM company, Computime would become
an Asian control technology leader. (See Exhibit 5 for global locations.)
Branded Products
One of the first growth initiatives in the second five-year plan was to move into branded
products, in addition to serving as a contract manufacturer. In 2002 Computime formed a
partnership with Sensotec of the UK, a leader in safety electronics, to create Salus Controls Plc.,
with a focus on thermostats, timers, and values. In 2004 Computime acquired a controlling
interest in Salus and in 2006 acquired the remaining stock. Since 2004 Salus had doubled its
product sales in the UK. Dean Jepson, managing director of Salus, saw the partnership with
Computime as helping Salus become a leading international brand. Commenting on the 2006
equity investment, Jepson said:
Its taken us just two years, in a crowded . . . market, for Salus to become widely
renowned for its unparalleled product offering, technical support, and after-sales service.
With additional substantial investment from Computime in product development and
ambitious marketing strategies, we look forward to penetrating existing and new
markets.3
In addition to expanding geographically across Europe, Salus was developing solar energy
products to take advantage of that fast-growing segment.
Going Public
In order to raise money to finance the companys growthi.e., its R&D strategy, strategic
acquisitions, and geographical expansionComputime became a publicly traded company on the
Hong Kong exchange in October 2006. In its prospectus, it identified high-margin opportunities
in high-technology controls used in equipment such as power turbines and medical testing
devices. Computime indicated that it would seek to acquire other controls manufacturing
technologies and proprietary and innovative engineering processes. As for geographic
expansion, in 2007 Salus products launched in Germany and France, with plans to eventually be
sold throughout Europe. Computime also began seeking partnerships with its OEMs to expand its
presence in China and elsewhere.
The IPO was about more than raising capital. Contrary to many family companies
perspectives, Auyang, his father, and the rest of the board believed that building a public
company traded on a sophisticated exchange would instill discipline and rigor in management and
raise awareness within global capital markets. Computime welcomed the enhanced scrutiny, even
as it faced increased pressure to report and perform. Consistent with its move into more
technologically sophisticated solutions, the move to the public markets also allowed the company
to institute a stock option plan to attract and retain experienced professionals.
3
Salus Announces Major Developments, Buildingtalk, June 20, 2007, http://www.buildingtalk.com/news/saz/saz102.html (accessed
April 5, 2008).

5
KEL340
Toward an Innovation Capability

Finding the Right R&D Strategy and Organizational Solution
Consistent with the companys heritage, Computime R&D projects were driven by the
requirements of customers, as opposed to exploratory research. To jumpstart the process, it
acquired a 40 percent stake in an external company, Perception Digital, in 2006. Computime
discovered the opportunity during its search for acquisitions to support development of
proprietary technologies. It quickly found that the cultures of the two organizations were
incompatible and sold its stake in Perception Digital within the year.
The experience persuaded Auyang that an internal R&D group made more sense for
Computime. It would reflect the existing culture of integrity, teamwork, and a can-do attitude.
The new R&D focus was expected to enhance this basic culture, not represent a radical change. In
Auyangs mind, Computime had, in its earlier days, been quite innovative as a leader in contract
manufacturing and customization. That early spirit of innovation remained, but the company had
become too focused on near-term, tactical objectives.
At first, the engineering departments of the business units argued that they could take on the
R&D task as an expansion of their day-to-day responsibilities. Auyang felt that R&D personnel
needed to report directly to him, but he agreed to disperse them among the business units. They
became a soft function within the units. After several months, it became clear that, because
R&D engineers were next to the engineering departments in the factories, they were routinely
being pulled in to help solve near-term problems or just build minor new features into existing
products. Auyang decided that Computime required an external R&D center.
To determine how best to proceed, Auyang worked with senior leadership to select focal
areas for technology development. What were the key market drivers in automated controls?
Which emerging technologies would be of significance across Computimes business units?
Which of these areas represented the best opportunities for the company, given its competencies
and customers?
After extensive discussions and benchmarking against industry leaders, Computime
management settled on three pillarswhich came to be known as its 3Es Strategyfor its growth
strategy in automated controls:
Environmentally friendly
Energy efficient
Easy to use
Computime also identified five initial technology arenas:
Wireless (Zigbee4)
Variable motor control
Zigbee was a wireless networking protocol for which Computime made compatible products.
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KEL340
Human-machine interface
Sensors
Software control
In 2004 Auyang asked W. L. Ha to become the first head of R&D. Ha was reluctant, as he
had already achieved 20 percent growth in the building and home controls unit. He would be
giving up business unit leadership in exchange for a handful of people and a portfolio of R&D
projects. He suggested Auyang hire someone from the outside with experience as an R&D lead.
However, Auyang wanted to retain continuity and ensure a close working relationship between
R&D and engineering. He reasoned that engineering would need to adopt R&D projects when
they matured and apply them in their markets, so the linkage had to be strong. More importantly,
management at Computime relied strongly on trust. It would be important to have an experienced
and respected insider lead the new effort.
Ha agreed, though he retained his leadership of the building and home controls unit until
October 2005. Ha began building an R&D capability by bringing in a small number of top
internal people who possessed both technical skill and open-minded personalities. He found that
most of these people, by dint of their forward-thinking tendencies, did not necessarily fit well into
the engineering culture of the business units or were not being well managed by their supervisors.
He eventually located ten people inside the company who wanted to be part of the R&D
enterprise. (Coincidentally, during this period, the heads of the two other Computime business
units were changed, reducing resistance to internal reassignments.)
After Ha selected these ten internal people, he began hiring from the outside until he had built
the organization to thirty-five people. He hired certain people primarily for their technical skills
related to the five initial project areas identified during the strategic planning for the R&D
function. He hired others for their vision for innovation.
In June 2006 Computime opened a stand-alone R&D center in Nanshan, China, in the
Shenzhen High Technology Park. This enabled most of Computimes R&D personnel to work
next door to researchers from other corporate R&D centers, rather than near factory engineers. In
addition, a handful of engineers remained in Hong Kong and a few in the United States.
Converting Vision to Action

The creation of a separate R&D center raised the challenge of how to best keep R&D
connected to the corporations strategy. To maintain focus, Auyang repeatedly communicated his
clear and simple vision for the company (3Es), but now the entire company needed to act. As Bob
Cheng, director of engineering, noted, An idea you act on is innovation. One you dont act on is
a dream.
Everyone knew Computimes priorities were technology, manufacturing, and brand (Exhibit
6). Internal communication regarding the value of R&D initiatives for Computimes success with
technology and branding helped build respect within the company for the new center. To critique
and adjust the strategic direction, Computime instituted a technical advisory board. Auyang and
Ha served on the board with outside experts from local universities and major businesses in
Computimes universe of partners.

7
KEL340
R&D also needed to synchronize with the business units, a common problem for corporate
innovation programs. The mission for R&D was to develop technology platforms for
incorporation into products three to five years in the future. The business units were much nearer
term and more market focused. Kairy Lei, an up-and-coming young R&D manager, articulated
the problem well: How do you know when its time to involve the business unit? When should
marketing become involved, and how?
Early on, the R&D center sometimes extended its work into commercialization, though this
occasionally caused friction with business unit engineers accustomed to owning projects. There
also seemed to be concern about who would take the credit or blame for a projects results. To
manage these issues, Ha began personally working with the business units to help transition R&D
projects. Computime also developed more defined methods for keeping both R&D and
engineering staff appropriately involved and engaged during commercialization, for example,
with informal recognition rewards.
Lei said that R&D engineers would be motivated by seeing the results of their work in the
marketplace. Stories of which projects succeeded and why were to be actively shared, though by
2007 there were still no formal communication channels between R&D and business unit
engineers. There were, however, informal exchanges in which business unit engineers made
extended visits to the R&D center. An internal meeting on thermostat technology built
understanding between R&D and business unit engineers, as well as helped them synchronize
their efforts.
It was also a challenge to train R&D engineers hired in mainland China. While mainland
Chinese engineers tended to have a stronger theoretical basis in their training than their Hong
Kong counterparts, they were less accustomed to working in an environment of regular change,
where mistakes were tolerated and one needed to constantly try new approaches and seek new
ideas outside the company. Even Internet access restrictions in China could present real problems
interacting with external venues such as interoperability standards organizations. Chinese
engineers also tended to be less accustomed to sharing problems, offering ideas, and working in
teams. They had typically not been well trained in careful documentation of goals and processes.
Cheng, whose background included design engineering and product development, trained
engineers in the R&D center to devise and propose design improvements. He also focused on
finding those with an aptitude for English, allowing them to become more directly involved in
customer engagements. Hong Kong managers were also integrated into client-facing projects to
ensure R&D engineers did not inadvertently reveal intellectual property.
Andrew Li, the head of building and home controls, believed that by 2007 the process was
working well. The Zigbee wireless platform developed by the R&D center had found applications
in home automation to connect controls home-wide. His engineers piloted technologies from the
R&D center and found ways to improve the performance and reliability of their applications.
They were able to showcase the new capabilities to potential customers, customizing the message
to focus on price for retail markets and reliability for industrial markets.
Business units also began providing feedback to the R&D center. One of Lis customers,
seeking ways to improve energy efficiency in fan motors, approached Computime for help. R&D
devised an innovative way of controlling air flow and speed. Computime later considered
applying the technology to other variable motor control applications.
8
KEL340
Where To From Here?

Computime had come a long way by 2007. The R&D function had for the most part gained
credibility. Business unit leadership had been able to witness R&Ds output and support for
leading-edge customer needs, but they also experienced a mandated change in priorities. Auyang
and his executive team held regular corporate performance reviews attended by business unit
heads and second-level directors, which began including innovation objectives.
Validation also came from customers. Customers increasingly approached Computime with
development challenges as the companys innovation reputation grew. Instead of dealing with
requests on a case-by-case basis, Auyang and Ha discussed how this kind of deeper customer
interaction might become more organized. They also wondered how Computime could
proactively reach out to customers to understand their needs and invest R&D resources in a
customer-leading fashion, rather than waiting for requests. The company served customers in
increasingly varied industries and geographies as the business expanded in Europe, North
America, and the Middle East. How could Computime manage such diverse requirements across
multiple industries and remain experts?
Other challenges loomed. Ha pointed out that while R&D had made great progress since
2004, the development process could be more rigorous. Moreover, while the 3Es and Five
Technologies provided an excellent foundation, Auyang and Ha needed to determine how and
when to evolve Computimes technology strategy. What role should R&D play in this process?
What about the business units? How should projects transition? How should the various groups
interact? Moreover, everyone was proud of the solid values they had been able to maintain
throughout Computimes growth, and they were mindful of the need to continue maintaining the
essence of this successful family-run company (Exhibit 7).
Perhaps most challenging, how could Computime continue its successful transition from
contract manufacturer to a true global leader offering its own branded products without
endangering customer trust? Shen Owyang, business development director, summarized the
challenge of Computimes evolution: Getting over the OEM mentality has been a challenge for
Computime, but the relentless management effort from the top is beginning to filter down. Today
we learn from our mistakes. There is no shame.
As Auyang prepared for the first annual shareholders meeting since the IPO, he pondered
what to do next. In the end, he recognized that innovation meant not only new products, but also
new ways of operating, attracting and retaining talent, pleasing customers, and achieving longterm growth. Auyang reasoned, Innovating is hard work . . . but its the only way well be a
global player in the long run.

9
KEL340
Exhibit 1: Electronic Manufacturing Services (EMS) and Original Design

Manufacturers (ODM) Industry Leaders, 2007 (US$ in millions)
TOP TEN EMSs
2007
Rank
2006
Rank
2007 Annual
Revenue
2006 Annual
Revenue
Change
(%)
Foxconn
54,706
39,253
39
Flextronics
33,346
28,876
15
Jabil
12,432
11,087
12
Sanmina-SCI
10,138
10,872
Celestica
8,069
8,811
Elcoteq
5,740
5,139
11
Benchmark
2,915
2,907
Venture
2,617
1,971
33
10
USI
2,046
1,676
22
10
NA
Plexus
1,624
1,513
133,633
112,105
19
Company Name
Total Top 10
TOP TEN ODMs

2007
Rank
2006
Rank
Quanta
23,259
14,170
64
Asustek
23,033
17,348
33
Compal
13,634
9,410
45
Wistron
8,658
6,603
31
TPV
8,419
7,238
16
Inventec
7,191
7,167
Lite-On
5,760
5,048
14
NA
Innolux
4,806
3,207
50
10
Mitac Intl
2,558
2,540
10
Inventec App
2,378
3,389
30
Total Top 10
99,696
76,120
31
Company Name
2007 Annual
Revenue
2006 Annual
Revenue
Change
(%)
Notes: Data by iSuppli Corp. 2007 figures are preliminary.

Source: CEO Presentation
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Exhibit 2: Total Computime Sales and Major Events in Company History

SALES
(US$m)
350
2006
IPO in HK;
R&D Center opens
in Nanshan, China
300
2005
Bantian packaging
site; New US HQ;
Chamerlain JV
250
2004
200
1989
New headquarters in
Kwun Tong, HK
150
1999
2002
Moved to Shenzhen,
China with 600 staff
100
Opened 1st US office
Founded by Ho
Auyang in HK to
design & manufacture 1980
electronic clocks &
New factory in GZ
timing devices.
FDA approved for

medical devices
ISO14001 certified;
launched 2nd 5-yr Plan
1998
2001
Launched 1st 5-yr

Plan
1982
1974
2003
350,000sf manufacturing
space in Meilin, China
1984
1979
Shipped 1M digital
clocks
50
ISO13485 certified;
open Buji Tech Park,
Launched Salus brand
HK Quality Award
2000
QS9000 certification;
open Japan and
Germans offices
1995
ISO9002 certification
0
74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 01 02 03 04 05 06
Exhibit 3: Computimes Organization Structure

Board
of
Directors
( 9 Members)
Audit Committee
Renumeration Committee
Technology Advisory Board
Executive Office
CEO
COO
CFO
Corporate
Operations
Finance
SBUs
Technologies
VP
Quality
VP
Operations
Buji
Corp Finance
&
Treasury
VP
Building &
Home Controls
VP
Commercial &
Industrial Controls
VP
SBM
GM
Operations
Meilin
Legal
&
Compliance
VP
Appliance
Controls
President
Branded
Business
Director
HR
VP
Operations
Bantian
Internal
Audit
Department
VP
Research &
Development

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KEL340
Exhibit 4: Computimes Products and Major Clients
OURMARKETS
Control and automation devices in the follo wing end market applications:
Building and home

controls
Appliance controls
Commercial and
industrial controls
Climate controls
Security contr ols
Intelligent home
White goods
Brown goods
Spa and pool
Comm ercial controls

Industr ial contr ols
Healthcare
controls
Source: CEO Presentation
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KEL340
Exhibit 5: Computimes Global Presence
Exhibit 6: Computimes Business Model: TMB
BUSINESSMODEL
TMB
Technology
Research and
Development
Technology
Product design
and Engineering
Optimized
ODM
Manufacturing
Brand
Management
Low-cost business model with global distribution offers complete

end-to-end solution at key stages of the production process

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KEL340
Exhibit 7: Computimes Social Value Statement
CORPORATE POLICIES
SOCIAL We strive to strengthen
ties with the communities we
operate in, with emphasis on
creating opportunities for young
people.
EMPLOYEE We practise the po licies
of equal opportunity employment and
make employee well-being,
satisfa ction and take ho me value our
major concerns.
ENVIRONMENTAL We are guided
by principles o f acting responsibly in
all areas of our operations. We are
committed to conservation,
preservation and recycling.
14

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KEL340

ROBERT C. WOLCOTT AND MICHAEL J. LIPPITZ

From Low Cost to Global Leadership:

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

The Contract Manufacturing Industry

From Digital Clocks to Global Automated Controls Supplier

Consultancy iSuppli Corporation, http://www.isuppli.com.

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

The First Five-Year Plan, 19972002

KELLOGG SCHOOL OF MANAGEMENT

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

The Second Five-Year Plan, 20022007

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

KELLOGG SCHOOL OF MANAGEMENT

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Toward an Innovation Capability

Computime also identified five initial technology arenas:

Variable motor control

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Converting Vision to Action

KELLOGG SCHOOL OF MANAGEMENT

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Where To From Here?

KELLOGG SCHOOL OF MANAGEMENT

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Exhibit 1: Electronic Manufacturing Services (EMS) and Original Design

TOP TEN ODMs

Notes: Data by iSuppli Corp. 2007 figures are preliminary.

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Exhibit 2: Total Computime Sales and Major Events in Company History

Opened 1st US office

FDA approved for

Launched 1st 5-yr

Exhibit 3: Computimes Organization Structure

KELLOGG SCHOOL OF MANAGEMENT

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Exhibit 4: Computimes Products and Major Clients

Building and home

Comm ercial controls

Source: CEO Presentation

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Exhibit 5: Computimes Global Presence

Exhibit 6: Computimes Business Model: TMB

Low-cost business model with global distribution offers complete

KELLOGG SCHOOL OF MANAGEMENT

COMPUTIME (HK) BUILDS AN INNOVATION CAPABILITY

Exhibit 7: Computimes Social Value Statement

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