Until recently, many high-tech manufacturers - especially small and medium-sized businesses - have been able to survive by the 80/20 rule, where they applied 80% of their operational focus to 20% or less of their critical customers and suppliers. That was then.

The new mandate from channel masters is for more intense, collaborative relationships with fewer suppliers. They are driving to a new demand-driven value network. In this environment, suppliers must increase performance in product development, lifecycle management, quality and total cost of ownership.

Prepared by Industry Directions Inc.; Sponsored by Microsoft Corporation.