Brandname: SMC
Company Name: Shell Electric Manufacturing (Holdings) Co. Ltd.
 
Management Function Analysis
SMC provides an impressive example for the so-called "Convergent Technology." Convergent technology is an innovative and effective approach of product design, which is getting more and more popular in modern society. For example, today's mobile phone is an outcome of convergent technology, to the extent that it not only has the telecommunication functions, but also can be used as a calculator, MP3, game player, PDA, and even a digital camera. Back to the 1970s, when the home electric appliances were relatively simple and basic, SMC had managed to integrate the decorative and lighting functions of electric lamp with the ventilation function of electric fan, leading to the renowned "Ceiling Fan."

As SMC's case shows, customer-centered mindset lies at the heart of convergent technology approach for product design; and it is equally important that the management and the product designers should be able to command sufficient market intelligence. In this connection, market intelligence could be the inference from past experience, deductions from the performance of similar products, or researches by some professional institutions.
 
Implications for SMEs

SMEs may not have the resources to engage in the type of convergent technology adopted by this company, however, they can learn from the concepts underlying the success in using convergent technology. Success in convergent technology brings out the need to add value to your product or service, thereby satisfying the allied or related needs and wants of your customers. In service industry, it would be similar to the "One-Stop Service" concept and in manufacturing industry; it means focusing on and specializing in a specific product line.