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TECHNOLOGY STRATEGY EXAMPLE

RAHUL SINGH MBA II A

INTEL
TECHNOLOGY STRATEGY BY INTEL

Amid increasing competition from Advanced Micro Devices (AMD), Intel is changing its chip-making philosophy: it's paying more attention to the power requirements of its microprocessors. In July 2006, the chip-making giant released a new microprocessor, called Core 2 Duo, designed for laptops and desktops. The new chip was based on Intel's chip architecture, which replaced traditional single-core processing with two processing centers on a single chip. The company says that the Core 2 Duo will perform better than its dual-core chip, and will be more energy-efficient, which could make laptop batteries last longer and desktop towers run cooler. AMD has been working on more-efficient microprocessors for several years, and now Intel is trying to level the playing field. Both Intel and AMD have tackled part of the problem by converting their chip line-ups to dual-core processors, which turns out to be one way to increase efficiency Three aspects of multicore chips make them more efficient. First, when a chip has more than one core, the speed at which each core computes can be slowed down without impeding the speed of the entire chip. By slowing down the clock speed, engineers can decrease the computational rate of a single core by a factor of five, from one gigahertz to 200 megahertz, and the core consumes only one-30th of the power. Then, even if five of those cores are assembled onto a single chip, only onesixth of the power is consumed, yet the total computational rate of one gigahertz is maintained.

TATA MOTORS
Structured Market-driven Product Development Processes in Tata Motors
The product development literature has emphasized the importance of structured product development processes for many years now. However, the use of structured product development processes is a relatively recent phenomenon in Indian companies. The development of the light commercial vehicle Ace by Tata Motors is a good example of how the use of structured product development processes and other product development best practices improves the probability of product success. In the development of the Ace, the first important step was the identification of a sizeable opportunity. With increasing traffic congestion and curbs on the movement of heavy vehicles in Indias cities, the company realized the need for a safe and comfortable lastmile vehicle to transfer goods. The product concept, while addressing this opportunity, also provided for differentiation and meeting the upwardly mobile aspirations of the country. The company decided to create a 4-wheel vehicle as against the commonly used three-wheelers that currently service this application because market feedback suggested that a four-wheeler would enhance

the status of the owner. Aesthetics of the vehicle was stressed upon to reinforce this boost to status. At the same time to be competitive, the vehicle could not afford to be much more expensive than 3-wheelers.The Marketing department was involved right from the beginning of the product development process. The identification of user needs was a market-driven process involving interviews with 600 drivers, owners, end-users, mechanics and opinion-makers over six months. User needs were captured in customer use statements. These customer use statements were translated into specifications rather than starting with technical specifications. Customer inputs were taken at subsequent stages of the product development process as well. Yet, throughout the process the key design objectives such as cost per tonne per kilometer were emphasized to ensure that the product would have a good acceptability in the market. Realizing that the creation of a vehicle like the Ace would need fresh thinking and a break from past practices, Tata Motors deliberately created a young team with good leadership capabilities who networked well within the company to undertake this project. Their passion and new ways of thinking were expected to facilitate the exploration of new concept ideas. The Tata Motors team realized that product innovation needs to be complemented with innovation in other parts of the value chain for the product to be successful. Several new approaches such as co-location of suppliers, on-line bidding by suppliers, reduction in the number of suppliers, partnerships with vendors, and a dedicated Suvidha service network in small towns were followed.

Technology Resources
R & D establishments at Jamshedpur, Pune & Lucknow over 1400 engineers. Indias only certified crash test facility for cars and hemi anechoic chamber for testing of noise and vibration. Tata Motors European Technical Centre (TMETC) set up in 2005 primarily involved in design engineering and development of products, supporting Tata Motors skill sets. Tata Daewoo Commercial Vehicle Co. has its R&D facility in Gunsan, South Korea. Hispano Carrocera has its R&D facility at Zaragoza in Spain.

Technology Strategy

International strategy based on the competitive advantage: New product (eg. Tata Nano, the cheapest car in the World). Acquisitions (eg. Land Rover and Jaguar brands from Ford Motors). Partnership with established companies (eg. Alliance with Fiat since 2006) to enhance the product portfolio and knowledge exchange. Facilities for learning from other companies. Developing programmes for intensive management development. Consolidate position in India by exploiting opportunities: New mobility of young Indians. Governments substantial road-building program GDP growth