The Study of Critical Success Factors for Knowledge-Based Technology Service Industry

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THE STUDY OF CRITICAL SUCCESS FACTORS
FOR KNOWLEDGE-BASED TECHNOLOGY
SERVICE INDUSTRY

INTRODUCTION
1.1 Research Background
Most Taiwanese have witnessed the development of Taiwan with the focus on from agriculture, textile industry, light industry, electronic industry to hi-tech industry today. Due to the right direction of development chosen by local industries and the smooth transformation of Taiwanese industries, people here live a good life. Going to great length to develop hi-tech industry has become one of the most important strategies in Taiwan. Now Taiwan dominates the world with regard to production of computer mouse, keyboard, PC case, switching power supply, CRT monitor, LCD monitor, scanner, mother board, video graphic card, modem, CD driver, notebook computer, etc. Semiconductor is also vital. As to production of semiconductors, foundry and memory products represent more than 90% of all commodities. Taiwan, now producing over half supply of foundry, is the number one maker in the world. DRAM also stands for 40% of IC production value in Taiwan.

Over the last few years, Taiwanese industries have changed from labor-intensive ones to capital-intensive, skill-intensive or even knowledge-intensive ones. It is expected that hi-tech industry will decide the development of Taiwanese industries and affect the economic growth in the future.

Taiwan now ranks the third as to IT industry in the world, and the fourth as to IC. The government and citizens should work together to maintain the competitive advantages of these industries. Moreover, up-stream and down-stream industries are built in order to deal with future trends.

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1.2 Research Motivation
In a little-profit era, profit margin is very low, so businesses have to lower the operational cost, especially the corporate expenditure in order to let every department to work out its maximum function. The advent of little-profit era means that on the one hand, some companies might vanish from the market; on the other hand, some industries have to integrate.

Clients used to gain profit when products were sold out. Nowadays customers can invent value with enterprises at any point of business operation. This is called co-creation, which emphasized that looking from clients’ viewpoint, clients are invited to participate in every phase of value chains. Or, customers are allowed to become real partners. The biggest difference between hi-tech industry and knowledge-based technology service industry is that the former focuses on practical production, compared to the latter on generation of invisible items. For instance, hi-tech consulting companies and EMC (electromagnetic compatibility) testing and certification laboratory don’t have any tangible products, but they are actually the unsung heroes. First, they provide hi-tech industry assessment and installment of facilities; planning and arrangement of production process; and control and suggestions of productive cost. Second, they help hi-tech products prevent the disturbance of electromagnetic waves, and design the setting of circuits according to regulations in the world. Third, products thus enter the market more quickly, in a better quality and in a cheaper price. Last, they grab the best time to roll out products, so the maximum profit of products is reached. Therefore, knowledge-based technology service industry can be seen as a highly productive sector. Wanting to survive in such a time full of cutthroat competition and low percentage growth, enterprises have to put themselves in customers’ shoes. That’s where two 3

concepts, “customer-oriented” and “create profit for customer”, come from. I am lucky to be involved in operation and management of knowledge-based technology service industry. The objects I serve are domestic IT industry, electronic industry, lighting business, medical instrument business, etc. My job is to assist these businesses to acquire certifications of electromagnetic waves on newly...
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