Technology Convergence and Leadership
i.e. the New Lighting financial reality
Lighting Guy, 30 years Industry Observer and Active Participant Talent assessment => Industry leaders
My background…..
Past Market Observations, SiL 2013◦ Channel Diversity◦ Lighting mega-trends◦ Trend predictions
Talent market Market threats Ideas for success in the future
Agenda
Channel diversity (SiL ‘13)
Emerging trends◦ Leased lighting◦ Franchised distributors◦ ESCO emergence◦ Electronic distributors◦ Channel consolidation◦ A/V installers◦ Controls integrators
Trends updates◦ Very little growth◦ Growing◦ Growing◦ Components only◦ Tipping point◦ Growing◦ Growing
Lamp replacement DC Power distribution Building integration Design New markets Consolidation Alternative energy => Synergistic
Lighting Mega-Trends (SiL ‘13)
=> “Power Ball”=> Gaining traction=> Nascent=> Lagging=> Blue Ocean strategy=> Darwinian
Lighting will cease to pierce the plane of the ceiling
Residential design will coalesce solar power and native DC power distribution
Smart design will enable a new system approach: Lighting, HVAC, Desk-top, Security, Sound, etc.
Quality Lighting and Quality Design will intersect into a holistic smart building Gestalt.
The US lighting market will bifurcate: New Market v. Installed Market
5 Mega Trend Predictions (SiL ‘13)
Unemployment is near ZERO
Unemployment Level as of April 2014 Some HS, HS, Some College, Degreed
Boomers are retiring, GenY isn’t ready Existing talent has been absorbed by the
rapid growth of new companies Recession led to shallow bench strength GM’s are dropping Salaries are rising, rapidly Influx of semicon talent, with little channel
or product application knowledge Skills no longer match needs
Talent challenges
Limited access to talent that grasps the emerging channel opportunities
Replacement lamps are overshadowing the core lighting market
The explosion of technology is confusing the core issue of selling lighting
Competition for reps is driving up SG&A and diminishing the focus of reps
Buying influences are expanding and the need for broader market coverage increases
Market threats
1. Pick a strategy and develop a plan to own it
2. Focus closely on channel partnerships3. Minimize the adhesions of the past4. Develop synergistic alliances: controls,
software, integrators, security firms5. Expand your grasp of building changes:
◦ HVAC, controls, security, communications◦ Installation, DC power, solar, technology R&D
6. Invest: Talent delivers the highest ROI
The way forward
“In times of rapid change, experience could be your worst enemy” J. Paul Getty
Ted Konnerth, PhD [email protected]
847-307-7125
epilogue