IntroductionNearly everyone is aware of Intel. Most of the worldspersonal computers are driven by Intelmicroprocessors.Intels vision involves giving people access to easy-to-use technologies through these platforms. It is seekingto continually satisfy customer requirements byproducing a range of new and exciting products.
The Intel Case: observations• Successful shift from memory to processors - 1974 to 1984(Burgelman, 1991; 1994)• Top-management continued to consider Intel a memorycompany even though market share in memory (DRAM) wasin steep decline• Innovation enabled Intel to lead the market with new products• Manufacturing scale came to dominate process technology design as basis forcompetitive advantage• “Innovation culture” empowered middle management toinvest in innovative products w/o explicit executive consent• Competences in circuit design (CD) and process technologydesign (TD) were transferable to microprocessors
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)
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 matchcompetitive 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 sustainedinvestment• Competences CD and TD were transferable to microprocessors• Avoiding timing delay associated with absorptive capacity build-up – “priming” investment inexploration came through investment in DRAM• Internal selection environment favored microprocessors• Did production rule save the day? No, the market saved the day -microprocessor market providedhigher margins in self-reinforcing cycle• Production rule reflected transactional leadership efficiency: go for the highest return onincremental assets!
Developing a new strategyIntel is an ingredient brand. Its products and processors form part of the products thatconsumers purchase. Building key relationships with leading electronic firms such as Sonyand Philips is an important strategy.The aim is to provide the manufacturers of products such as laptops, mobile phones andentertainment personal computers with integrated packages of chips and software - inother words a complete solution.Systems are continually updated giving the user greater freedom. Intels strategy is to beat the heart of new developments in home entertainment, security, medical care, etc. Itsnew 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.
Developing new productsIn our fast changing modern world, it is essential to find out what consumers wantand need. It is possible to predict trends and developments. Because Intel is at theleading edge of technological developments it is well placed to anticipate consumerrequirements.Their aim is to create joint standards, improve interoperability and ease of usebetween different products in the home. Intel was one of the key founders and stillsits on the Board of Directors.A key part of Intels more integrated platform strategy involvesthe development of several technologies. These improve processor efficiencyand allow computer users to take better advantage of:multi-taskingsecurityreliabilitymanageabilitywireless computing capabilities.
Conclusion ERP transformation has resulted in enterprise platform that can adaptto the speed of business and ERP system has helping make this magnitudeof business scaling possible Transformed Intels Erp environment into a system that providesincreased business and velocity, improved reliability and support andenhanced cost efficiency. Transformation was necessary for us support business growth and everchanging business needs. Intel is one of the success stories of the high-tech world. It providesvital components for personal computing. Now the company is movingforward into a range of new and exciting products and markets with amuch stronger focus on marketing