Whether you lead a software, hardware, semiconductor, services, storage, components or peripherals business, you know that technology demands a combination of long-term vision and on-a-dime adaptability. Bain’s cross-sector expertise and global insights help technology companies compete and thrive in an industry where innovation poses both an opportunity and a threat on an almost daily basis.
What We Do
We have worked with clients in computer software and hardware, semiconductor, IT services, storage, components and peripherals sectors. Our clients include eight of the ten largest technology conglomerates, three of the five leading software manufacturers and many key participants in the semiconductor industry. Our experience extends across the globe.
Bain works with companies in all stages of industry and life cycles. We help:
- Market leaders think through how acquisitions, adjacency moves, refined customer segmentation, improved sales force effectiveness, streamlined R&D processes, strategic sourcing and cost reduction efforts can help them maintain, or even increase, their advantage.
- Companies that have hit a speed bump find defensible niches, overhaul their cost structure, think through and execute potential changes in capital structure.
- Software companies identify opportunities for growth that will propel them into the ranks of top performers.
- Emerging players continue their trajectory by helping them to scale their organizations and processes to the increased complexity of their market participation.
- Private equity portfolio companies align strategic imperatives with their new owners, develop and implement plans to improve operational performance.
Bain works with leading technology companies to build strategic plans that address the industry's challenges, such as how technical and business model innovations shape the growth of a company's core business; the ways in which cloud computing will impact the business; and whether a company should consider entry into the services profit pools of the industry—and if so, how.
Technology companies face daunting and sometimes contradictory challenges. On one hand, new markets and competitors continue to emerge, driven by innovation around seven general themes:
- IT architecture shifts
- Emergence of new computing and communication platforms
- Pure technical innovation
- New business models
- Emergence of new ways to communicate
- "Accessory" opportunities created in the wake of platform success
- New applications generated by business processes
On the other hand, while change is constant, the themes in technology are perennial. In general, the new supplements rather than supplants the old, resulting in an increasingly complex landscape.
In parallel to this continued innovation, many "older" swaths of the high-tech industry are maturing, following the same classic patterns seen in other industries:
- Increasing competitor concentration
- More incremental product innovation
- Increasing customer segment specialization
- Migration to lower-cost channels
- Architectural, platform, format and business model shifts
- Growing role of private equity firms in restructuring industry sectors facing growth challenges