Benchmarking with Product Life Cycle Analysis in the Semiconductor Industry

A benchmarking of seven companies which manufacture specialized semiconductor devices such as highly customized analog/digital devices demonstrates that the differing role of information technology in these otherwise similar organizations is best understood by knowledge of how the company has positioned itself on the Product Life Cycle PLC. The role of information technology changes markedly as a function of what strategy the firm adopts to address the rapidly changing demands of the semiconductor industry. Even though they are in the same sector, companies at the leading edge of the PLC do not need heavy emphasis on information technology, but companies which concentrate on more mature parts of the PLC have a corresponding heavier reliance on information technology. Benchmarking methodology can be extended by integration of the PLC, and this may prove useful in analysis of other economic sectors.