stephen marlow executive vice president toshiba america electronic components, inc. advisory board...

Stephen MarlowExecutive Vice President

Toshiba America Electronic Components, Inc.

Advisory Board MemberCenter for Unconventional Security Affairs

Considerations for Going GlobalAn Electronic Component Company Perspective

Fiduciary ResponsibilitiesStakeholder

Brand

Regulatory & ComplianceImport & Export

Sox

Safety & Security Assets

Information Security

IP Protection

Employee

Considerations when Going Global

Why TAEC went Global?

Source: Michael Porter, Oracle Presentation 2008

To Support the Needs ofOur Customers

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Cellular Manufacturer

D – Customer Design Site M – Customer Mfr Site

M – 3rd Party Mfr Site

TD – Toshiba Design Site

D – 3rd Party Design Site TM – Toshiba Mfr Site

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Computer Manufacturer

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D – Customer Design Site M – Customer Mfr Site

M – 3rd Party Mfr Site

TD – Toshiba Design Site

D – 3rd Party Design Site TM – Toshiba Mfr Site

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Printer Manufacturer

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D – Customer Design Site M – Customer Mfr Site

M – 3rd Party Mfr Site

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D – 3rd Party Design Site TM – Toshiba Mfr Site

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Software/Firmware Development

D – Customer Design Site TD – Toshiba Design SiteD – 3rd Party Design Site

Global Business Overlay

• – Customer Sites • – Toshiba Sites• – 3rd Party Sites

Understanding the Business Environment

Which factors need to be considered?

Beyond the physical flow of product

What credible sources of information exist?

What are the real risks?

Risks are unique to each entity

Source: GlobalIncidentMap.com, 10/08

Global Incidents

Country Threat Rating

Source: Air Security International

Water Scarcity

Source: IMWI report, Insights from the Comprehensive Assessment of Water Management in Agriculture, 2006

World Hunger

Source: United Nations World Food Programme, 10/31/08

Life Impact of Climate Change

Source: Center for Sustainability and the Global Environment (SAGE)

Global Business Overlay

• – Customer Sites • – Toshiba Sites• – 3rd Party Sites

CONCLUSIONS:

Increasingly, business (not just manufacturing) is migrating to “low cost” areas of the world:

most densely populated on the planet

Population, Poverty & Malnutrition are the perfect petrie dish for geopolitical instability:

these same areas have the greatest climate and political risk.

highest risk for personnel

Crisis management and business continuity planning is essential:

establish “sensory networks” (accurate, relevant & timely)

prepare for the worst, but (practically) minor incidents are much more common