Technology

Intel is arguably a market leader in microprocessor technology. However, the development has been a result of numerous changes in its strategic platform and awareness on change in market preferences and technology. Leadership has also played a role in the adoption of Centrinos and Banias that have propelled Intel in a new strategic path. This paper will analyse some of the factors that have played a role in the success that has been attained by Intel.

Role of IDC as a Geographically Peripheral Centre
The Israel Development Centre (IDC) is home to some of the best computer specialists and software designers from Israeli Universities. It is noteworthy that though the IDC at Haifa played a role in the development of Centrinos and revolutionising microprocessor technology, the role played by  Intels Headquarter at Santa Clara cannot be downplayed. The IDC unlike the Santa Barbra headquarters is shown to be mainly involved in technological development whereas the headquarters was involved in ensuring that a business sense is incorporated into the developments made by Intel. It is also apparent from the number of failed or neglected projects that had been developed by IDC before the Bania that the IDC centre was highly innovative and aware of trends in technology development in its innovation. It is the IDC that anticipated the problem that would be caused by heat generation with the development of faster processors. This led to adoption of a somewhat different approach to microprocessor development by the adoption of an approach where the company paid more emphasis on the overall performance of the microprocessors rather than boosting speeds. This is reflective of the willingness to take a step back so as to analyze the implications of change in technology and take a path that others have not thought of. This brings out risk taking and awareness on development in technology as some of the attributes that have been central to the peripheral role played by IDC in the success recorded by Intel.

While other Intel development centres in Texas and California dropped their projects and started working on Pentium 4, the IDC kept working on Pentium III derivations. This is reflection of a willingness to better existing technology rather than just taking on a new approach. The work ethic and uncertainty associated with working in IDC has led to increase in the levels of commitment and input by scientists at IDC. The cancellation of the Chopaka and Timna project just before going to production served to fuel a sense of insecurity that has been channelled to creativity. The negative experience of the cancellation of the projects and the experience that the IIDC scientists gained from them played an important role in positioning IDC as one of the important research centres to Intel.

To fully appreciate the importance of the role played by IDC one has to consider the requirement in innovation. The IDC displayed resilience in that despite working conditions that did not relay a sense of security and cancelation of two major projects just before going into production, the scientists took these failures in stride and made the best out of their experiences. Relevance of innovation to development in technology is an aspect displayed by IDC that is in line with the need to consider relevance of any development to organisational needs to be considered for innovation.

External and Internal Forces Leading to the Bania Project
There are both external and internal forces that led to the development of the Banias project. Analysis of innovation shows that it is driven by internal factors, external factors and in some cases both the external and internal factors. The development of the Banias project was a result of both internal and external factors. A critical review of the conditions surrounding the project reveals that there was increased concern and awareness on the heat generated by high performing microprocessors at IDC. As machines were becoming smaller and customer needs for fast microprocessors increasing pressure on chip manufacturers, there was an increase in likelihood of heat generated by the microprocessors being problematic.

Another external factor that may have played a role in the development is increase in awareness on the need for developing energy efficient machines. The globe has been hit by an increase in awareness on the effect of global warming and the need to develop energy efficient machines. The Banias chip design is clearly a measure aimed at improving performance of the chips and their energy efficiency which brings out its relevance to increase in awareness on energy conservation by the market. Furthermore, speed was losing its efficiency as a differentiator thus there was need to develop other qualities that would ensure Intel maintains its competitive edge in the microprocessor industry.

A host of internal factors also played a role in the formulation and development of the Banias project. It is noteworthy that the Banias project is an extension to some of the projects and developments that did not make it to the production line. Existing knowledge on how micro-processors can attain high levels of performance while minimising their power consumption is an internal factor that triggered the Banias project. Furthermore, the failure of previous projects to make it to the production lines had a profound effect on the IDC considering their knowledge and interest on the heat generating effect of other fast processors. To put it plainly, the IDC had knowledge of a problem that had yet to be fully conceptualised by others, workers that had knowledge of the problem and a better grasp of how it could be addressed and support by their management. These factors played an important role in ensuring that the Banias project was formulated and implemented effectively. The background that the IDC team had in working on Pentium 3 processors and the failed project that were also aimed at improving the performance of the microprocessors chips also increased the likelihood of the IDC team adopting a project that was in line with their expertise.

Role of Different Levels of Management
Leadership plays an important role in providing a platform for innovation. In fact leadership is considered a key requirement in coordinating any innovative development. A critical review of the development of the Cetrino reveals that leadership played a central role at different levels of Intel management to bring the idea of age. Leadership played a pivotal role in shaping the operations of Intel and IDC through leaders like Otellini, Maloney, Perlmutter, Barret and MacDonald.

The operational managers played a role in coordinating the innovation activities. In particular Mooly Eden led the efforts to develop chipset codename Odem despite initial opposition by the California Chipset group. Another contribution made by Eden was in his role as a platform manager where he was required to coordinate across the Centrino platform to ensure that all components would be delivered. Eden is highlighted as having good people skills for he could confront the employees without offending them. Furthermore, his experience as an engineer placed him in a better position to handle his responsibilities as a platform manager. Guchman on the other hand believed that he could develop a more energy efficient and powerful processors than the Pentium 4 which eventually gave rise to the mobile segment.

A senior manager that played a role in the development of the Centrino is Chandrasekher. Chandrasekher was charged with heading the centralised planning and marketing group that was charged with a host of activities that ultimately played a role in the development of the Centrino. In general, Chandrasekher was charged with heading a group that would centralise marketing, provide an outside perspective and help determine what the market really cared for. As head of general managers and chief coordinator of market research activities, Chandrasekher played a central role in ensuring that the Centrino developed as a product that would meet the expectations and needs of the market. In general, the senior managers shaped the development of the Centrino by addressing various technological and marketing issues that would face it as a brand through coordinating meetings and facilitating sharing of ideas between the general managers.

The executive managers also played a role in the development of the Centrino. Barret as an example is credited for providing clarity and direction to both the Johnson and mobile team concerning the importance of the wireless feature that has played a role in differentiating the Centrino as a brand. It is noteworthy that such definitive leadership is important in ensuring that divisions prioritise their activities and deliver products or goals that are important to the overall development of a project. Moreover, Barrett and Otellini as executive managers showed much belief in the Banias project when they approved a 300 million budget to launch the Centrino. It is noteworthy that the level of belief that leaders bestow on their employees goes a long way in affecting their motivation which is critical to innovation and meeting deadlines for product development. Leadership played a central role in the success of the Banias project and the resulting Centrino brand.

How Banias Changed Intels Core Microprocessor Roadmap
Strategic roadmaps are often developed in response to market needs. In general, the view adopted by a firm though affected by the actual expectations and needs of the market are affected by the variables that a firm considers a being critical in predicting market trends. It is therefore not surprising that the strategic plan before the adoption of the Banias was aimed at developing high performing microprocessors with little emphasis on ensuring energy efficiency. It is noteworthy that the strategy is basically aimed at addressing the speed needs of the market. In general, Intels strategies are developed with the market in mind though it had failed to incorporate energy efficiency in its initial strategic roadmaps. More emphasis was being placed on the development of fast processors with little efforts being channelled on addressing their energy rates of energy consumption. A critical review of the initial strategic roadmap reveals that there was emphasis on the market needs and little consideration on the environment and energy. Energy conservation is an issue that is first gaining relevance in the modern society and the failure by the previous strategies to effectively handle this issue would have been detrimental to Intel. Banias changed Intels microprocessor roadmap by integrating an aspect of energy efficiency that lacked in the previous roadmaps that had been adopted by Intel. It is noteworthy that the initial strategies relating to improving microprocessor speeds are still being sought though there is an element of energy efficiency that has been incorporated. The new strategic roadmap ensures the development of products that are not only relevant to the speed requirements of the market but also address energy requirements which is fast gaining relevance in different markets. Another effect of the Banias on the strategic roadmap adopted by Intel is integration of development in mobile and desktop technology. The Banias and the resulting Centrinos aided the adoption of an integrated approach to innovation which helps in improving the efficiency of both mobile and desktop processors whereas improving the penetration of Centrino as a brand name. It is noteworthy that the energy efficient processors can be used by both mobile and desktop technologies which bring out the integration aspect.

Implications for Pursuing a Platform Strategy
There are various requirements that Intel will have to port in its operations to fully support the adopted platform strategy. First, it is important to note that the platforms strategy was a move aimed at dealing with multiple practical issues that hindered the success of Intel as an organisation by affecting the level and nature of interaction between employees. Adoption of a platform strategy was a move that was clearly aimed at improving internal system by differentiating Intels operations into three groups. It is noteworthy that the platforms approach is defined by highly specialised role and development of groups or teams that have clearly defined roles for instance the centralized planning and marketing group. Such specialisation is important in improving the level of efficiency displayed by the different groups and Intel as a whole. However, to ensure that the platform strategy is well supported Intel must incorporate a myriad of strategies aimed at improving its communication systems. Furthermore, interaction between the different platforms has to be strengthened to improve the level of sharing between different groups. Though the groups are different they are all aimed at developing Intel and Centrinos as brand names. For the different groups to maintain focus Intel must ensure that it communicates a strong vision and develops strong leadership. The existence of multiple divisions requires strong leadership to ensure that each division is aware and appreciative of Intel goals and strategies.

Conclusion
The development of the Centrino into a world renowned microprocessor is a development that reveals a number of positive strategies and systems that were developed and implemented by Intel. The good innovative spirits and commitment displayed by the IDC, the good leadership and willingness to take risks displayed by leaders at different levels of Intel and appreciations of the need to be in touch with the needs and expectations of the market all come out as contributing variables to the success that has been recorded by Intel. It is evident from analysing Centrinos development that innovation within organisations requires considerations on the needs and expectations of the market, awareness on the external environment and a host of internal measures to be effectively carried out.