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Wednesday, September 29, 2004

Andy Grove on Intel's spirit at the heart of innovation

Businessweek has published an excellent interview with Andy Grove in the Voice of the Innovator series. Andy Grove reminiscences,

- From the beginning of the LSI era, the large-scale integrated-circuit era, to today, there are very, very few companies that have navigated it.It's very hard to sustain, adapt, and prosper in the cross currents of a developing technology. If it's hard to make a success out of something, it's an order of magnitude harder to sustain the success for exactly the kind of thing we're talking about. It's a testimony to Intel's institutional character that by dealing with each of these technology twists and turns and market twists and turns, we fought our way out of this pitfall and that pitfall -- and we're still alive and kicking. We're arguably doing better than that. But surviving and thriving in that business might have been the hallmark of a great company.

- On Intel's innovation - "We're reasonably comfortable with technology innovation,We're also reasonably comfortable in innovations in organizational approaches, innovations in management philosophy,Centralized manufacturing [of chips] didn't exist in the late '60s. It was an innovation in manufacturing organization that's sort of on par, in my opinion, with just-in-time manufacturing of the '80s that Intel put-in-place,Intel Inside is a marketing innovation on par with the manufacturing and technology innovation that we're talking about" Innovation is the driving spirit inside Intel..

-On Strategy -"Strategically, the most important learning that I have summed up in the years of teaching and studying our strategies, other people's strategies, is: Strategy is what you do, not what you say. You want to find out what some company is doing, look at what they do and infer it from this. Forget their strategic talk". Nice one - must read for all interested in High Tech industry and modern management techniques.

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