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Network Management Systems
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| Words: 1520 | Submitted: 24-Feb-2012
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Descriptionits about a case study of environmental issues
Network Management Systems – P3 Pilot Paper
Network Management Systems (NMS) is a privately owned hi-tech business set up in a location near London in 1993. NMS is the brainchild of a Canadian computer engineer, Ray Edwards. Ray is a classic hi-tech entrepreneur, constantly searching for ways to exploit technological opportunities and unafraid to take the risks associated with high technology start-ups. NMS’s first product was a digital error detection box able to ‘listen’ to computer signals and detect faults. The original box, designed by Ray, was built on his kitchen table and manufactured in a garage. Ray is a flamboyant character and a committed entrepreneur. In his words an entrepreneur is 'someone willing to work 18 hours a day for themselves ... to avoid working eight hours a day for someone else!'
Structure of the business and key product areas
By 2006 NMS employed 75 full time employees in a new, purpose built factory and office unit. These employees were a mix of technically qualified engineers working in research and development (R&D), factory staff manufacturing and assembling the products and a small sales and service support team. In 2006, NMS had three distinct product/service areas.
One of the three products NMS produced was data communication components which it sold directly to original equipment manufacturers (OEMs) that used these components in their hardware. Both the OEMs and their customers were predominantly large international companies. NMS had established a good reputation for the quality and performance of its components, which were also competitively priced. However, NMS had less than 1% share of the UK market in this sector and faced competition from more than twenty suppliers, most of who also competed internationally. Furthermore, one of NMS’s OEM customers accounted for 40% of its sales. The European market for data communications equipment had increased from $3.3 billion in 1999 to $8.0 billion in 2006. Forecasts for 2007 and beyond, predict growth from increased sales to currently installed networks rather than from the installation of new networks. The maturity of the technology means that product lifecycles are becoming shorter. Success comes from producing large volumes of relatively low priced reliable components. However, all new components have to be approved by the relevant government approval body in each country being supplied. Approval for new data communication equipment is both costly and time consuming.
NMS’s second product area was network management systems – hence the name of the company. Fault detection systems were supplied directly to a small number of large end users such as banks, public utility providers and global manufacturers. NMS recognised the unique configuration of each customer and so it customised its product to meet specific needs and requirements. They have pioneered a 'modular building block' design, ...
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