Dimension Three: Execution for Strategy vs. Search for Innovation “Toothpaste Squeezing” Marketing / Pricing Strategy From 2001 to 2017, Intel’s chip intentionally exceeded AMD just by a notch, masking true capability Focused on pricing and profit True Innovation Needed A false sense of security, failure to account for “Tech Disruption” ^Did not pay attention Prof. Charm’s lesson 2019 to 2020, vastly outperformed by AMD and Apple Regain footing by true innovation
Dimension Four: Internal Innovation vs. External Collaboration Internal Innovation Intel is investing to accelerate new nodes and grow scale. They are leveraging their advanced packaging and “world class supply chain”. Potential Collaboration " From IDM to Fabless ”, refer to the collaboration system of AMD-TSMC
Dimension Five: Entrepreneurship vs. Intrapreneurship Effective Intraprenuership ”New business initiative", circa 1998, invest in own employee’s ideas. More than 400 ideas were pitched by employees with over two dozen receiving funding after a year of its creation. One of the results was Vivonic Fitness Planner founded by Paul Scagnetti , that functioned to control the body’s health through nutrition and exercise. Failing Intrapreneurship Intel acquired many companies for business expansion, but ordered them to strictly follow Intel's corporate culture and style of action after the acquisition Needs to create a more relaxed environment to promote i ntrapreneurship . Post-merger synergy realization unideal
Dimension Six: Experience-driven vs. Data-driven Management Experience-driven Client Computing Group (CCG), chip design should rely more on experience Intel Foundry Services (IFS) Data-driven Datacenter and AI Group (DCAI) Network and Edge Group (NEX) Mobileye (autonomous driving) Accelerated Computing Systems and Graphics Group (AXG) Should think about the nature of the business group, whether it has network effect and could harness the power of data.
Data-driven Examples Intel® Xeon® Scalable processors make it possible to analyze massive amounts of data at fast speeds, whether at the edge, in the data center, or in the cloud. Intel® Optane™ technology represents a revolutionary approach to memory and storage that helps overcome bottlenecks in how data is moved and stored. Intel® FPGAs provide acceleration within the data center to improve response times. Intel® Select Solutions are verified for optimal performance, eliminating guesswork and accelerating solution deployment.
Dimension Seven: Management and Culture [Cult vs. Culture] “Constructive Confrontation” At Intel’s Prime, Andrew Groves was famous for employing a decision-making philosophy called “ constructive confrontation ” in which ideas were vigorously debated by engineers with no feelings spared, a method adopted by mentees including Steve Jobs. The ideas that could survive the fierce scrutiny of a team of Intel engineers would be the best of the best, so the theory goes. Lost in Succession Such spirit was lost during management transition Became stiff and ineffective, afraid to speak out Adapt with time
Part III Suggestions & Directions
Suggestion One: Long-term Strategy Stay Competitive Remain Patient Make Real Innovation
Suggestion One: Long-term Strategy ( Cont ') Stay Competitive Don't miss the opportunity Don’t be stagnant
Suggestion One: Long-term Strategy (Cont.) Remain Patient Abandon Financial Short-sightedness Allow temporary falling behind competitors Apple spent 12 years to develop the M-series AMD took 10-15 years to catch up