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American Electronics Association (AEA) |
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Plexus Consulting Group, LLC |
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Vital Stats: The American Electronics Association (AeA) has more than 3,000 member
companies whose offerings span the spectrum of electronics and information
technology products, from semiconductors and software to mainframe
computers and telecommunication systems. The Challenge | The Solution | The Process | Unforseen Benefits | Measurements & Results | Lessons Learned
How to provide reliable data on New Economy industries and measure
the impact of these industries on the US economy?
To build a research powerhouse from scratch and create a systematic source of reliable industry data to leverage the policy efforts of AeA and its member companies. In 1996, AeA created a research department that has produced unprecedented data on the economic impact of high-tech industries on U.S. as well as global markets. Staffed by just three professionals, AeA research has provided the industry with a foundation for remarkable, bipartisan legislative victories. Just over two years ago, a highly charged congressional debate erupted on the issue of whether to grant visas to foreign nationals who possess the technology skills that U.S. companies desperately need. While Congress then dealt a blow to the industry in an effort to protect American workers, AeA set out to inform the debate. Using in-house research, AeA turned the debate on its ear and built an overwhelming bipartisan mandate in Congress to support the industry's legislative objectives. AeA's research initiative enabled the association to:
To address the lack of data on high-tech industries, AeA hired Michaela D. Platzer in March of 1996 to establish Research and Industry Trends, the in-house research department. Together with Christopher Novak and Matthew F. Kazmierczak, AeA's new research team took the following steps to create an award-winning enterprise:
The resulting Cyber report approach was aimed at policymakers with very limited time to absorb information. AeA's goal was to make the data presentation as user-friendly and "manifestly obvious" as possible for a wide audience of policymakers, industry lobbyists, the media and general public. Needs Assessment and Data Gap The creative process began with an assessment of the industry's and AeA's in-house information requirements. Association members would frequently call to find statistics on high tech workers and their salaries. An efficient information management system was needed to consolidate such data. With a shoestring budget, AeA set out to produce a systematic framework of comprehensive data eventually covering "cyber" education, cities, states, national and international trends. AeA worked with two staff to collect and sort through digitized data available from US government databases. Once the preliminary criteria and data were established, AeA fed this information into a feedback loop of trusted local offices and industry advisers to ensure the relevance of both the data and the presentation format. The Methodology To abide by the operative principle "close calls don't count", AeA actually takes the risk to understate results that may show industry bias. AeA uses government databases, which report statistics provided directly by companies, and does not rely on survey information. To show how stringent AeA's research parameters are, biotechnology data had been excluded from industry statistics, resulting in a significant undercount in areas with heavy biotech activity, prior to the establishment of specific SIC codes for that industry. While biotechnology activity could have been reported under SIC code subsets, AeA considered that such an evaluation would have been too subjective to be credible. Design and Production AeA's pioneering research deliverable focused on CyberStates, a state-by-state overview of the high technology industry. The success of this effort piqued NASDAQ's curiosity and resulted in Nasdaq's underwriting of Cybernation, one of AeA's flagship research deliverables. AeA hired a designer to develop the initial graphic and desktop presentation. Ultimately, AeA hired an additional research team member responsible for in-house desktop publishing, which provided greater control of the project and reduced project costs.
AeA's Cyber Series resulted in significant unintended benefits for AeA as an institution generally and through its government and media relations programs in particular. The Series resulted in:
Methodology For the first time in the history of the New Economy, AeA provided a comparative data methodology to enable effective state-by-state comparisons of high technology statistics. Previously, it was impossible to compare high-tech statistics between Maryland and Virginia, for example, because totally different methodologies are in place and there is always some skepticism that this data is presented to promote state economic interests. Congressional Recognition Approximately 90 House and Senate staff members participated in a
luncheon briefing to celebrate the publication of Cybercities, which
achieved wide acclaim in congressional circles. Pursuant to the briefing,
AeA was asked to brief half of all US congressional delegations on
Cyberstates, a state-by-state overview of the high-tech industry. Grassroots Leverage AeA's research forms the backbone of SPAN, its key grassroots lobbying initiative, in which 55-90 member companies participate. AeA's monthly news letter and state election monitoring system helps member companies to plan effective legislative strategies in an environment where standards are grossly fragmented and vary widely. Publicity For example, the Wall Street Journal recently profiled AeA's Cyber Series, focusing on high-tech's impact on local areas. Increased Recognition and Revenues AeA's recognition as a high-tech research authority has resulted in a presentation to ASEAN ministers and a conference on investing in Malaysia, scheduled for February 2001. Also, it has resulted in significant opportunities to develop a stream of non-dues revenue from sales of its research material. The ultimate result is a comprehensive view of the high technology industry that "tells the complete story" about the industry in cities, states, nationally and internationally. Through its efforts to develop a solid, reliable knowledge base on New Economy industries and their economic impact, AeA was able to use in-house research to:
For example, here are some statistics that turned the tide in the congressional debate on immigration of high-tech workers:
AeA's research efforts culminated in an award-winning cyber report series designed to "celebrate and quantify the economic importance of the U.S. high-tech industry." CyberNation, a key report in the series, won the ASAE Gold Circle Award in December 2000. The series is also comprised of the following reports:
AeA research concludes that the most innovative countries now attracting high-tech industries are those with an abundance of venture capital, such as Ireland, the Netherlands, Malaysia and Israel to name a few, rather than traditional, more risk-averse establishment countries like Germany and Japan. Also, research shows that areas likely to attract high-tech industries have the following in common:
Data Matters - PACs vs. Facts Despite the cynicism that might on occasion prevail in Washington, data matters and has a profound impact on the government relations initiatives of trade associations and their members. It is critical to "focus on the basics." A major lesson from AeA's experience is that reliable, basic facts have significant power to persuade. Companies equipped with such facts have an enormous advantage. Credibility Counts When AeA first established the research group in 1996, management was keenly aware that the press and Members of Congress were highly skeptical about trade association data. Invariably, such statistics are considered skewed in the industry's favor. AeA's rigorous research methodology ensures objectivity and AeA research has been well received on both sides of the aisle as a result.
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