15.912 Technology Strategy: Mit Opencourseware
15.912 Technology Strategy: Mit Opencourseware
15.912 Technology Strategy: Mit Opencourseware
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Intel Photolithography and
and Organizations
How will we
Create value?
Maturity
Performance
Discontinuity
Takeoff
Ferment
Time
Centralizing R&D permits Novartis to focus resources on common, underlying research topics. The Novartis
corporate senior leadership has traditionally been very technologically oriented (PhD/MD) and drives the
company to develop new blockbusters. Novartis acquires product rights from biotech firms to plug gaps in
their offering.
C D
Technology • Academia leads fundamental research in understanding disease mechanism
• Industry labs identify therapeutic targets based on basic science of disease mechanism
• Patents of composition provide strong competitive insulation for a single molecule product
Situation
Market and • Range of easily exploitable business opportunities is narrowing while the range of radical
Strategy new approaches (e.g. genomics) is expanding rapidly
• Pharma industry is driven by blockbuster products anticipated by street visibility through a
C D 10 year pipeline
• Novartis portfolio decision-making bodies include business unit representation
Organizational • Need high critical mass of researchers to advance the common scientific platforms supportin
Context multiple product categories
C D Early stage product development teams are highly cross-functional
Leadership • Corporate leadership is highly technical and closely involved with the research programs
and development projects.
C D
Novartis Global
• Centralized R&D provides critical mass of
businesses R&D Relevance specialized expertise and facilities to leverage
• Scientific platforms science across multiple product categories
Oncology Cardiovascular
support multiple • To offset the potential disconnect between
therapeutic areas (e.g. R&D and business, Novartis deploys research
immunology) C review including senior business,
D
development and manufacturing
representatives.
Intel: Decentralized R&D structure reflects availability of externally‐available
Summary
technology plus a strategic lock on industry standards
Intel’s strategy is distinct among semiconductor makers: Intel exploits externally-led basic research, and
concentrates on adapting it to get products to market quickly. Intel “free rides” on fundamental research from
competitors such as such as Lucent and IBM. They set the rules of the game through their control of
standards and architecture.
Technology • Major technology advancements are acquired from external sources
• Product life cycles are very short
• As current generation technology approaches theoretical performance limits, search intensifies
for radical new approaches
C •D Technology is modular, but Intel has a strategic lock on architectural control
Market and • Semiconductor industry is highly competitive and mature
Situation
Strategy • Intel competes on its ability to develop processes to bring products to market faster than
competitors; flexible production lines allow very efficient variations on existing technology
C • Relies on industry consortium (Sematech) to advance manufacturing state of the art
D
• Emphasis on building strong brand equity to project product “premiumness”
Organizational • High level of acquisition activity
Context • Strong ability to exploit both internal and external research
C •D Places paramount importance on time-to-market issues associated with technology transfer
Leadership • History of strong technological leadership from CEO (from DRAM chips to processors)
C D
• Business-unit
Intel Executive
Decentralized R&D Office • Intel relies on in-sourcing available
• Technology Council technology through an Decentralized
Structure
“Basic”
or “fundamental” Internal or External?
science
EXPLORATION
“Applied”
research
EXPLOITATION
"Research”
Spending $ IBM 1985
Intel, 1985
External Internal
Pharmaceuticals 1981-1997
Pharmaceutical Firms: Relevant Patents vs Basic Research Publications, 1981-1997
2000
Hoechst/MMD
No. of relevant patents
Patents
Bayer
1500
Ciba-Geigy
Eli-Lilly
Pfizer Warner-Lambert
1000
Abbott Hoffman-LaRoche
DuPont
Rhone-Poulenc B-M-S
500
Burroughs-Wellcome
0
0 500 1000 1500 2000 2500 3000 3500
No. of published articles in relevant basic journals
IBM
3500
Motorola
Toshiba
Patents
3000 Mitsubishi
No. of relevant patents
Tl Hitachi, NEC
2500
Fujitsu
2000
ST Micro Philips
1500 Siemens
AT&T
Natl semi
1000 Matsushita
Intel
500
NTT
0
0 1000 2000 3000 4000 5000 6000 7000
Publications
Source: Kwanghui Lim: “The Relationship between Research and Innovation in the Semiconductor and
Pharmaceutical Industries: Implications for Theories of Knowledge Spillovers “
Intel Summary and Take‐Aways