Unlocking Customer-Centric Success in the Semiconductor Industry: Effecting a mind-shift between Sales and System

Introduction

In the ever-evolving semiconductor industry, where innovation is the lifeblood and customer demands are intricate, a paradigm shift has been in the making. Customers no longer seek mere components; they yearn for “solutions to their complex problems”, coupled with the assurance of “unwavering support “ throughout their design and commercialization journey.

Yet, achieving this customer-centric mindset has been a formidable challenge, primarily due to organizational structures that segregate Sales, System Engineering, and Field Application teams.

This blog will outline basic steps that enable semiconductor organizations to make this transformative journey.

The Dilemma of a Sales Team in the Semiconductor Industry

The sales team in the semiconductor industry faces pressure from two sides – the rapid innovation and advancements that the internal team makes or intends to make – ranging from Line extensions (incremental innovation) to potential leapfrogs.

Contrast that with the customers who are on a similar rapid journey from “satisficing” (a good enough solution) to longer-term disruptive innovations they aspire to achieve.

However, these intricate customer requirements need to be understood from a holistic system perspective compared to improve component performance with no real end goal.

The Sales-System Engineering Partnership

Imagine a scenario where Sales and System Engineering experts join forces to transcend the traditional sales pitch. This partnership involves a profound understanding of the customer's end-to-end requirements, encompassing not just individual components but the entire system.

Sales Expertise:

Sales teams excel in relationship-building and understanding customer paiN points, translating those needs into tangible solutions.

System Engineering Knowledge:

System Engineers possess the technical acumen to navigate the complexities of semiconductor systems, comprehending how individual components integrate into a larger system and impact overall performance.

The Customer-Centric Approach

This dynamic duo strives to become true customer advocates, working in unison to:

Understand Unique Needs:

The Sales and System Engineering partnership delves deep into grasping each customer's unique challenges and requirements.

They're not merely selling products; they're crafting tailored solutions aligned with customers' end goals.

Provide Expert Guidance:

Armed with technical knowledge, the partnership offers expert guidance, recommending the most suitable configurations to optimize system performance and solve customers' end problems instead of merely focusing on component specifications.

This may sometimes require suggestions of components from the competition’s portfolio, especially when they are complementary to the current organization's portfolio.

This is when Sales and System elevate themselves from mere "Sellers" to customers' "advocates".

Overcoming Organizational Hurdles

While this customer-centric approach holds immense promise, it often faces resistance from entrenched organizational structures. Organization managers and architects should break down these barriers through concerted efforts, primarily by instituting customers as a common stake.

There is a win-win opportunity in this collaboration – with system engineering in tow, sales can strengthen their relationship with customers by being true advocates: with sales helping open doors to customer conversations that reveal their true needs, system architects can develop insights and innovate at a level that will have higher chances of customer adoption.

Conclusion: The Overall Business Advantage

The goal for the sales team should be to elevate themselves as true customer advocates, while the goal for System Engineering is to ideate and innovate at a level that solves customers' real problems and not just a component-centric view. In the semiconductor industry, the path to success lies in embracing this customer-centricity and, therefore, effecting a strong collaboration between two teams that are often distant within an organization.

This collaboration can lead to the realization of immense business advantages:

Architecture First – Component Follow:

System engineering can collaborate with customers for future architecture. It is natural to assume that the component business will be a natural outcome of this collaboration.

True Advocates, Sales Gets the First Call:

When sales is side by side with customers solving their real problems instead of pushing a better component, this sales team is the first in the customer's mind. They receive the first call for current and future needs of customers.

It's time for the industry to champion this transformative approach, transcending boundaries and recognizing the power of collaboration in delivering unparalleled customer value.