Intel: losing its core or struggling for innovation?

Andy Bryant, who is the chairman of Intel, has been scrambling frantically to find a new and innovative way to put the “chip” back into technology. In recent years, technology has evolved tremendously and nowadays, our society is more dependent on smaller forms of technology such as, our smart phones and our tablets. Unfortunately, this has taken a huge toll upon laptops and computers due to the fact that with smaller technology, there may no longer be a use for the computer chip.

Not only does declining PC sales affect this, but also the industry is constantly changing to the point where Intel has not been able to keep up. Recently the new and innovative Cloud technology has been creating a huge demand for basic servers, proving that there really is no need for the computer chip anymore.

While this is on the executives’s minds, they’ve also been in turmoil from the fact that their Chief Executive Officer, Paul Otellini had made an unexpected announcement in November that he would be resigning. He has been serving on the board since 2005. His reason being “It’s time to move on and transfer Intel’s helm to a new generation of leadership.” Intel has been looking for a new successor since. They’re expecting it to be an internal hire, although they are open to externals. So far, Otellini has about a month before he leaves and no one has been able to fill his position yet. Intel has been considering Brian Krzanich and David Perlmutter, who are supposedly their best candidates. They work very closely with the core business of Intel, both overseeing chip design and how it is made.

In the meantime, Mr. Bryant has been preparing his employees for a huge change within the company. He understands that now it is a new era, and that both the company and its employees must make the adaption to this change in order to hopefully continue making positive revenues in the future. He has admitted that “the customers have changed, and we have to as well…where the revenue is now is not where it is in the future.”

To try and keep up their revenues with their crisis in hand, Intel has recently been working with companies outside of the U.S. to create smartphones and tablets that they claim as their own. They are also creating a television set and a subscription service.

Noted in Chapter 1 of our management book, there are 10 crucial areas that operations managers must make their decisions on and the very first one listed is “design of goods and services.” Unfortunately Intel chairmen have run into this problem and need to find a way to either create a new product, or make their existing product better to be able to compete with other rival companies that are doing the same. With this decision, it also leads into the other decisions that must be made, such as “process and capacity design,” “supply chain management,” and especially “intermediate and short-term scheduling.” Although these are only a few other decisions that need to be focused on, they all contribute to what it takes to be a good manager.