2. Introduction
Nearly everyone is aware of Intel. Most of the world's
personal computers are driven by Intel
microprocessors.
Intel's vision involves giving people access to easy-to-
use technologies through these platforms. It is seeking
to continually satisfy customer requirements by
producing a range of new and exciting products.
3. The Intel Case: observations
• Successful shift from memory to processors - 1974 to 1984
(Burgelman, 1991; 1994)
• Top-management continued to consider Intel a memory
company even though market share in memory (DRAM) was
in steep decline
• Innovation enabled Intel to lead the market with new products
• Manufacturing scale came to dominate process technology design as basis for
competitive advantage
• “Innovation culture” empowered middle management to
invest in innovative products w/o explicit executive consent
• Competences in circuit design (CD) and process technology
design (TD) were transferable to microprocessors
4. Intel DRAM Strategy
• Strategy: push product design, be first to market
– Design & process technology leader
– Investment in plant & equipment
– Costs drop over production volume (scale) growth
– Prices drop with competitive capacity
– DRAM generally not protectable with patents
– Japanese started introducing products more rapidly
• Invested more heavily in production (44% vs. 22%)
– 1986 Intel decided to exit DRAM business
• 1/3 of R&D, but only 5% of Revs, was small player in market
• Japanese beat Intel on process technology (of commodity)
5. Intel Corporation: Entry to Microprocessor
• Market share in memory chips (DRAM) was in steep decline
• Existing capabilities, Circuit Design (CD )& Technology Design (TD) did not match
competitive dynamics
• Exploration did not focus on manufacturing scale (& large market)
• Middle management empowered to invest in innovative products
• Exploration led to microprocessors without a top-down initiative – an example of sustained
investment
• Competences CD and TD were transferable to microprocessors
• Avoiding timing delay associated with absorptive capacity build-up – “priming” investment in
exploration came through investment in DRAM
• Internal selection environment favored microprocessors
• Did production rule save the day? No, the market saved the day -microprocessor market provided
higher margins in self-reinforcing cycle
• Production rule reflected transactional leadership efficiency: go for the highest return on
incremental assets!
6. Developing a new strategy
Intel is an 'ingredient brand'. Its products and processors form part of the products that
consumers purchase. Building key relationships with leading electronic firms such as Sony
and Philips is an important strategy.
The aim is to provide the manufacturers of products such as laptops, mobile phones and
entertainment personal computers with integrated packages of chips and software - in
other words a complete solution.
Systems are continually updated giving the user greater freedom. Intel's strategy is to be
at the heart of new developments in home entertainment, security, medical care, etc. Its
new strategy is about:
•working with customers to share a vision of future technologies
•developing new customer focused technologies
•giving people new products that are easy to understand and use
•communicating clear messages about these new products.
7.
8.
9. Developing new products
In our fast changing modern world, it is essential to find out what consumers want
and need. It is possible to predict trends and developments. Because Intel is at the
leading edge of technological developments it is well placed to anticipate consumer
requirements.
Their aim is to create joint standards, improve interoperability and ease of use
between different products in the home. Intel was one of the key founders and still
sits on the Board of Directors.
A key part of Intel's more integrated platform strategy involves
the development of several technologies. These improve processor efficiency
and allow computer users to take better advantage of:
multi-tasking
security
reliability
manageability
wireless computing capabilities.
10.
11. Conclusion
ERP transformation has resulted in enterprise platform that can adapt
to the speed of business and ERP system has helping make this magnitude
of business scaling possible
Transformed Intel's Erp environment into a system that provides
increased business and velocity, improved reliability and support and
enhanced cost efficiency.
Transformation was necessary for us support business growth and ever
changing business needs.
Intel is one of the success stories of the high-tech world. It provides
vital components for personal computing. Now the company is moving
forward into a range of new and exciting products and markets with a
much stronger focus on marketing