Product Innovation

Strategy

In promoting IoT cocreation, a key task for Advantech is to grow its core business by innovating mainstream trends and applying advanced domain-focused technologies. We implement special projects to review the effects and trends of innovation, encourage the development of innovative products, and continuously adjust our product strategies.



Advantech reached its annual goals on the number of innovative proposals in 2019 and 2020.

Management Mechanism

1. Focus discussion on product innovation and evolution

Manage and control departments to concentrate their resources on developing A+ products with high market potential.

Corporate level A+X Innovation Meetings: The Chairman himself hosts meetings on innovation and evolution topics out of Advantech Headquarters. The format of these meetings promotes discipline in formulating innovative ideas.

Business group level: Annual business plan meetings are held to integrate the internal strategic directions of each business group in order to discover new opportunities for innovation. Key content is aimed at reviewing product innovation/business group development strategies.

A+ product management policies
Definition of an A+ product: In 3 years, annual sales amount reaches US$3 million or the product sells 10,000 pieces.
A+ product KPI: From 2021 to 2025, the revenue ratio of an A+ product increases 10% each year.

2. Long-term technology development and optimization

Establish the Cross–Business Group Horizontal Integration R&D Technical Committee to achieve the following goals:

Sharing – interdepartmental collaboration and technology sharing

Innovation – Increase the core technology of products and value-added services

Intercommunication – Rapidly copy IP to create different series of products

Innovation results of the 2020 Inno-Tech Workshop include:
robust AI products for smart transportation, software and hardware value-added ecosystem, and image capture development plan. For more details please refer to Advantech 2020 CSR Report

3. Initiate the EBO mechanism

To assist Advantech in long-term innovation operation management, we will continue to guide and cultivate new business and technology development opportunities. For this, we plan to introduce an EBO mechanism. From perspectives including industry, commerce, and technology, we are planning long-term strategic proposals regarding global market trends and innovative technology development for the coming 5 years.