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The Study of Critical Success Factors for Knowledge-Based Technology Service Industry

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1.1 Research Background

Most Taiwanese have witnessed the development of Taiwan with the focus on from

agriculture, textile industry, light industry, electronic industry to hi-tech industry today.

Due to the right direction of development chosen by local industries and the smooth

transformation of Taiwanese industries, people here live a good life. Going to great length

to develop hi-tech industry has become one of the most important strategies in Taiwan.

Now Taiwan dominates the world with regard to production of computer mouse,

keyboard, PC case, switching power supply, CRT monitor, LCD monitor, scanner, mother

board, video graphic card, modem, CD driver, notebook computer, etc.

Semiconductor is also vital. As to production of semiconductors, foundry and

memory products represent more than 90% of all commodities. Taiwan, now producing

over half supply of foundry, is the number one maker in the world. DRAM also stands for

40% of IC production value in Taiwan.

Over the last few years, Taiwanese industries have changed from labor-intensive

ones to capital-intensive, skill-intensive or even knowledge-intensive ones. It is expected

that hi-tech industry will decide the development of Taiwanese industries and affect the

economic growth in the future.

Taiwan now ranks the third as to IT industry in the world, and the fourth as to IC.

The government and citizens should work together to maintain the competitive

advantages of these industries. Moreover, up-stream and down-stream industries are built

in order to deal with future trends.


1.2 Research Motivation

In a little-profit era, profit margin is very low, so businesses have to lower the

operational cost, especially the corporate expenditure in order to let every department to

work out its maximum function. The advent of little-profit era means that on the one hand,

some companies might vanish from the market; on the other hand, some industries have

to integrate.

Clients used to gain profit when products were sold out. Nowadays customers can

invent value with enterprises at any point of business operation. This is called co-creation,

which emphasized that looking from clients’ viewpoint, clients are invited to participate

in every phase of value chains. Or, customers are allowed to become real partners.

The biggest difference between hi-tech industry and knowledge-based technology

service industry is that the former focuses on practical production, compared to the latter

on generation of invisible items. For instance, hi-tech consulting companies and EMC

(electromagnetic compatibility) testing and certification laboratory don’t have any

tangible products, but they are actually the unsung heroes. First, they provide hi-tech

industry assessment and installment of facilities; planning and arrangement of production

process; and control and suggestions of productive cost. Second, they help hi-tech

products prevent the disturbance of electromagnetic waves, and design the setting of

circuits according to regulations in the world. Third, products thus enter the market more

quickly, in a better quality and in a cheaper price. Last, they grab the best time to roll out


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