Intel’s Innovation to Create

Competitive Advantage
Agenda
 Innovation@Intel

 Revolutionizing Life Style

 Product Innovation
 Product – Oriented & Market – Oriented Development
 Mix of Market & Product led innovation

 Research and Development

 Product Development for Specific User Groups

 Manufacturing

 Competitive Advantage

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Intel for Digital Age

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 Innovation@Intel
 Intel is world’s leader in Silicon Innovation Improvements in technology enabling
product and process improvements.
 Moore’s law focused on shrinking the transistors

so that more can be fit on smaller chips hence describes a long-term trend in the
history of computing hardware; the
making them powerful number of transistors that can be placed
inexpensively on an integrated circuit
 Breakthrough in developing a new transistor approximately doubles every two years

material which worked faster and produced less

heat
 Processors now have new transistors of only 45
means over 2000 transistors can fit on a
nanometer in size full stop

Intel® Centrino®
Intel established mobile
technology
Gordon Moore 45nm
Intel386 released with
Publishes technology
microprocessor Intel® Pentium®
Moore’s Law Tick-Tock processors
released M Processor
model
1965 1968 1970 1985 1993 2003 2006 2007 2008

First Arrival of Intel Core 2 Intel®

Microprocessor Pentium Duo; Intel® Centrino®2 w/
Produced Processor Core™2 Extreme WiMAX; Intel®
Quad-core Atom™ for
Processor Mobile intenet
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Innovation@Intel (Revolutionizing life style)
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Product Development

Market – Oriented Dev. Product – Oriented Dev.

Market Research Inventors develops
finds out what new Product or
Consumers want Prod’n process

This info is passed Sales & Mkting find

to New Prod ways of selling this
Devlopment prod

New Intel Intel’s S&M worked

Technology is with IBM to create
launched personal comp

“A rapidly evolving approach is to encourage

“Managers need a new philosophy of
consumption and choice at the BOP is to make
innovation and product & service delivery for
unit packages that are small and therefore
BOP markets” C.K. Prahalad
affordable” C.K. Prahalad

Intel’s products are ‘user centric’. It has anthropologist who study how people use
technology in their lives.
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Mix of Product & Market led Innovation
Extreme mobile performance
Intel® Core™2 Duo processor, Intel Centrino 2 processor technology
50% more performance when multitasking.

Amazing battery

Advanced wireless connectivity

Extreme Gaming
Intel® Core™ i7 processor Extreme Edition
Intelligent multi-core technology that responds to your workload

Incredible breakthrough in gaming performance

Digital Office
Intel® Core™2 Quad processor
Get the performance you need for the hottest new digital media

Content creation

Massive throughput you need to handle the most processor-hungry applications

Intel applies ‘Creative Destruction’ principle of Economics. They believe in killing their
own invention before the competitor does it
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Research & Development
More Transistors, More Power to Innovate
Here’s how it works.
 Count
Create New & Better
 The more Intel’s designers can integrate on a
Products chip, the greater the potential for higher
performance and new capabilities
 Complexity
 With more transistors available, engineers can
use their “transistor budget” more creatively.
Within the traditional realms of logic and
memory, these new and more complex uses
Getting closer to include dual core architectures, which provide
Customers and develop greater application flexibility, and the
new markets for incorporation of air gaps, moving parts,
consistent growth antennae, or other new structures to add
functionality through silicon
 Convergence
 Convergence brings diverse new functions and
Improve the methods for heterogeneous technologies onto a single chip
making the products to maximize
 integration and functionality.

Intel’s leadership in silicon technology, combined with the R&D capability to develop new
products and new ways of making products, makes it one of the leaders in its field.
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Intel’s R&D enabled development of
products for specific user groups
2000—Approximately 35 million Americans listen to music online, 45 million
play games online, and the number of people worldwide connected to the
Internet passes 400 million.

Intel introduces the Pentium® 4 processor designed for Internet audio and
streaming video, image processing, video content creation, speech, 3-D
games, multimedia, and multitasking user environments.

2003—Tom Anderson and Chris DeWolfe found MySpace.com,

one of the world's most popular online social networking
services.

Intel introduces Intel® Centrino® processor technology for

notebook PCs, enabling breakthrough mobile performance with
built-in wireless connectivity to provide everything mobile
lifestyles demand.

2006—Intel launches the Intel® Core™2 Duo processor for drastically

improved performance and energy efficiency. The Intel Core 2 desktop
processors provide up to a 40 percent increase in performance and are
more than 40 percent more energy efficient versus Intel's previous best
processor.

Intel estimates that there are close to one billion Internet-connected PCs
worldwide.

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Leading-edge practices in Manufacturing
‘manufacturing monster’- It can develop and bring a product to
market faster than anyone else.
‘copy exactly’- Factories are built in exactly the same way,
which gives a consistent approach in manufacturing such sensitive
and highly complex devices.
‘clean environments’- Manufacturing sites are thousands of times
cleaner than an operating theatre. Intel’s employees wear special
suits to ensure no dust or hair falls onto the wafers.
‘vertical integration’- Intel is continually developing new
approaches to keep it ahead of the competition. This means Intel
does not outsource any of its work for research, development or
manufacturing.
‘capital-intensive’- Manufacturing process is because of the
specialist equipment. Intel believes this investment is
worthwhile, as this highly competitive approach gives it a
competitive edge by ensuring quality, protecting its ideas,
meeting its timescales.

Productivity is Output – Input ratio with due consideration to Time & Quality. Intel achieves
this with high focus on quality, ideas and meeting timescales
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Tick – Tock Strategy Product Development before Tick-Tock

TICK year, the company will focus on die shrinkage,

enabling it to produce a larger number of processors
per wafer of silicon. This will significantly reduce
costs so that the company can continue to generate
attractive margins even when the product is sold at
lower price points.

TOCK year, the company will introduce a completely

new processor microarchitecture. The new platform
will be designed to offer additional functionalities and
greater energy efficiency.

The tick-tock strategy entails a 2-year development program, wherein the odd years are
referred to as the tick years and the even years the tock years.
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Intel’s R&D Advantage over Competitors
 Reasons
 IBM’s failure to provide G5 3GHz processor
 Heat produced by IBM’s chip in laptops
 Intel’s performance per watt (i.e., the speed per
unit of electrical power) projections in roadmap
 Benefits of move
 Can run four classes of software at native
speeds(Mac OS X bins, Java/.NET apps, Unix
apps, and Win32/x86 apps)
 Earlier DOSBox or MS VPC reqd to run x86 s/w on
MAC

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Adit Garg, Ankur Garg, Ankur Jain, Bhanu Sharma, Harmanpreet Singh, Neha Arora
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