Motorola 2001 Annual Report Download - page 7

MOTOROLA, INC. 5
BCS has made strategic acquisitions to strengthen its leadership role in the
cable equipment industry and to support its growth strategy of building its Internet
Protocol (IP) business to deploy the “triple play” of video, voice and data services
on a worldwide basis.
Our Commercial, Government and Industrial Solutions Sector (CGISS) continued
to maintain strong market share and technology leadership in the two-way radio
market. Motorola became the first company to deliver IP technology on a digital
trunking system that complies with the Project 25 U.S. public safety standard for
digital radio communications. We also began shipping new-generation portable
and mobile radios compatible with Project 25 and TETRA, the European standard
for digital radio communications.
CGISS divested non-strategic elements of its business and intensified its focus
on growth opportunities in integrated communications and information solutions.
As government-funded programs for Homeland Security become solidified, Motorola
is very well positioned to participate.
In our Semiconductor Products Sector (SPS), we have implemented a new busi-
ness model intended to improve substantially its long-term financial performance.
We are sharpening the focus of the sector on the wireless communications, network-
ing and transportation markets, which we believe have a tremendous future. This
business model, which we refer to as “Asset Light,” consists of three major elements:
1. An increased focus on proprietary, higher-value products providing silicon-
to-software solutions;
2. A new more efficient approach in manufacturing to reduce fixed asset
expenditures. We have already announced and begun to implement factory
closures and consolidations.
3. A much more aggressive approach to licensing intellectual property. Included
in this initiative are patent cross-licenses, process technology licenses and agree-
ments with partners to commercialize manufacturing invention and know-how
that we have created.
In the highly competitive automotive market, our Integrated Electronic Systems
Sector (IESS) enjoys a strong market share in driver information systems, known
as Telematics, that make cars smarter and safer. The Energy Systems Group within
IESS provides energy system solutions for a wide variety of portable products.
What’s relevant?
The summary annual report that follows shows examples of how – in reality – right
now – our businesses are doing some spectacular things with our customers that
give us a glimpse of the opportunity we have for profitable growth in exciting arenas.
As CGISS focuses its growth strategy
on integrated communications, as
SPS implements its new “Asset Light”
business model, as IESS works to
build upon its leadership in Telematics,
Motorola is, across the entire organ-
ization, intensely focused on what’s
most pressing and relevant right now:
becoming as successful financially
as it is technologically.