Important Announcement #25 and Happy Holidays

DATE: December 15, 2006

TO: Industry Colleagues And Friends

FROM: Stiernberg Consulting

SUBJECT: The New Industry Events Calendar, 2007 Megatrends White Paper, and More

Greetings and Happy Holidays! We wish you, your family, and your company a joyous holiday season and a prosperous year in 2007.

A lot has happened here since Important Announcement #24. Here is a quick look at the contents of this newsletter:

Trends To Watch In 2007
The New Industry Events Calendar
News from Stiernberg Consulting
News From You
Faxback Survey and Grand Prize Drawing

Looking Ahead to 2007: Our Annual Megatrends Report

Business was wild in the converging entertainment technology, music products, and electronic systems industry in 2006. Despite the risks and vagaries of the current world situation, 2007 is likely to be another strong and volatile year. Here are five of the fifteen trends we are watching with interest:

Third-Stage Convergence. Convergence is not a new trend. Stages One (technology convergence) and Two (product and market convergence) are already mainstream. Stage Three Convergence focuses on the need for integration of internal operations--business vs. technical factors.
The Experience Differentiator. With the increasing commoditization of service--from DIY system design to outsourced technical support--the new competitive differentiator is your customer's experience. Do you treat your customers in a way that builds your brand?
Role Reversal. Not so long ago, the professional and commercial side of the AV/IT industry lead the consumer and residential side in terms of product innovation and market cachet. Now the roles have reversed, with the consumer electronics industry creating more new technology, products, and industry buzz worldwide.
Nurturing Ringers. Our industry has a perennial talent shortage, especially in engineering, marketing, and management roles. Some companies experiment with bringing in "ringers" (outside talent) from other industries. However, after experiencing mixed results, many are now nurturing their own talent from within by providing focused training and mentoring to existing industry talent--rookies and veterans alike.
Re-Intermediation. As margins get squeezed, the temptation is to dis-intermediate: take out the middleman. Ironically, there is growing emphasis on two-step distribution, including the mainstream brands offered by AVAD, Electrograph, Full Discount, and others. Two-step is hot and getting hotter, as these distributors innovate ways to add value to their customers and to their suppliers.

We discuss these five megatrends plus ten more in our annual Megatrends White Paper for 2007 from Stiernberg Consulting. Please request your free copy of this timely report by replying to this newsletter via the enclosed faxback form or e-mail.

The New Industry Events Calendar for 2007

http://www.stiernberg.com/events.html

The calendar now includes many event listings beyond 2007 so you can plan even further ahead. Please suggest additional events, and feel free to download the full calendar in PDF form. Please tell us how you use the calendar, and let us know if we've missed any key national or international events.

News From Stiernberg Consulting

Stiernberg Consulting is completing its 14th year in business. We have served over 120 clients since 1993. We continue to expand our consulting service offerings and are doing more merger and acquisition work in addition to strategic planning and market intelligence. Please visit www.stiernberg.com for more details.
Jeanne Stiernberg is the principal consultant and analyst for the NSCA Market Intelligence Briefings Series, now in its sixth year. We are privileged to collaborate with NSCA on the quarterly series that focuses on business issues facing the electronic systems industry.
John Stiernberg's book Succeeding in Music: A Business Handbook for Performers, Songwriters, Agents, Managers, and Promoters (published by Backbeat Books) continues to sell steadily. John presented Business Chops seminars at several music industry conferences, including Grammy Camp.

News From You?

We enjoy hearing from you and want to stay abreast of your activities. Let us know about what you are doing, including key projects, job changes, new contact information, or other news.