Technology and information management HW2

Plan to Complete ‘TIM 105: HW Assignment #2’

PROBLEM 1-DISK DRIVE INDUSTRY

1. Define

Disk Drive Industry:

a) Problem: Identify value and apply function of select functional maps provided in the “Disk Drive” handout

b) Establishing sub-problems: solve for each functional map

i. SP1: What is the significance of this map? Identify what information the map is directly relaying, in terms of data.

ii. SP2: Establish ways in which a disk drive company would utilize the map(s) and what purpose they would serve.

iii. SP3: Asses overall meaning and utility that can be drawn from each map, establish high-level personal conclusions and elaborate on the given provided conclusions using research from SP1 as well as SP2

iv. SP4: Identify the functional map that can be used to predict the nominal price that disk drive manufacturer would charge for 1MB, and convert the 1982 cost to “2016 dollars”; determine how this price contrasts to some existing manufacturer’s price.

2. Plan

a) Information Available:

· SP1:

· Functional Map 1.3:

· disk drive price decreasing in relation to total terabytes produced

· line has a slope of 53%

· Functional Map 1.4:

· new read-write technologies aided in sustaining the trajectory of improvement in reading density

· measured by year vs. the areal recording density-millions of megabits per square inch

· shows data over the range of time entailing transitions from ferrite-oxide read-write heads to thin-film heads to magneto-resistive heads

· when newer technologies surpass the old; graph resembles intersecting tech S-curves

· movement along this curve is are a result of incremental improvements within an existing technology approach while jumping onto the next technology curve implies implementation of a whole new technology

· Functional Map 1.5

· Entails sustaining impact of Winchester Architecture on the Recording Density of 14-inch Disk Drives

· 14-inch Winchester drive was used in place of the removeable disk pack which was the commonly used design from 1962-1978

· Areal recording density increases over the years and more so when Winchester technology is introduced

· Functional Map 1.7

· Documents intersecting trajectories of hard disk drive capacity (MB) demanded vs capacity supplied

· In all cases over time supply and demand for capacity both steadily increase

· slopes between the different sized drives vary

· discrepancies in intersections of the demands and supply lines- there isn’t always only one supply fulfilling one demand line; the needs and consequent uses intersect

· i.e.- since 5.25-inch drive technology was first rejected by minicomputer manufacturers, who had a need for higher MB capacity, its primary utility become integration into the desktop PC market due to attributes such as smaller physical size and weight, as well ruggedness

· eventually as technological advancement lead to higher capacity in the 5.25-inch disk drives, the drives were able to penetrate the microcomputer and even mainframe computer markets as well

· Information Assumed:

· problem solver aka my hypothetical role in this problem: data analyst or business analyst employed with some disk drive company in charge of extracting, collecting, assessing and presenting useful conclusions and big-picture data from the functional maps provided

· audience: could potentially be any entity involved in using data to facilitate operational and developmental decisions; will use presented data and conclusions perhaps to determine pricing or to predict future industry trends: i.e.- CTO, CEO, the Dev Team

· Issue Tree

Interpret data

Identify direct significance of data

Utilize functional map data (as a disk drive company)

Draw high-level conclusions, overall takeaways from data

Utilize conclusions to make business decisions

Identify ways in which a disk drive company could use this data

· Information Needed:

· SP1

· General knowledge and ability to decipher functional map data

· SP2

· Disk drive industry market needs of today

· Details on how analyzing previous trends can assist in facilitating business/tech decisions for the future

· SP3

· SP1 & SP2

· SP4

· Some sort of American currency exchange rate between 1982 and 2016

· a current real disk drive manufacturer’s cost for 1 MB

· Analysis/Steps Required:

· SP1

· Identify and state direct conclusions that can be drawn from interpreting the data on a basic level

· i.e.- “This graph shows how a college student who studied 14 hours a week received higher test scores than one who studied 7 hours a week”

· SP2

· Perform some basic research on the disk drive industry

· Find current industry and market needs

· Identify how the maps would potentially assist companies in the industry

· SP3

· Using research, data analysis and reasoning, state the high-level conclusions that can be extracted and expanded upon

· SP4

· Determine which functional map I need to use for the SP

· Identify the cost for 1MB from 1982

· Using the obtained “exchange rate,” convert to 2016 dollars

· Find existing manufacturer’s rate and compare

· How to present information:

· SP1-SP3: matrix format table

· SP4: bullet points

3. Execute:

· SP1-SP3:

· SP4:

· Using functional map 1.3: approximate cost per MB: $70

· According the Bureau of Labor Statistics: prices in 2016 are 148.7% higher than prices in 1982

· $100 in 1982 = $248.7 in 2016

· Therefore, 2016 price for 1 MB using conversion rate: $174.10

· According to ‘StatisticBrain’ the average cost of 1 MB of hard drive storage in 2016 is $0.000019

· The 1982 to 2016 converted price is 9,163,157 times the actual 2016 price per MB

PROBLEM 2-INTEL

1. Define

Intel:

a) Problem: Assess Intel’s competitive, technology, and product/market strategy from the company’s inception to 1997. How have Intel’s technology strategy, product market strategy, and developmental goals changed from its inception in 1968 to 1997?

b) Establishing sub-problems: solve for each functional map

v. SP1: Use Porter’s six forces model to perform a competitive assessment of Intel’s market landscape.

vi. SP2: Identify relationships between the entities in the industry, from the previously created Porter analysis, and elaborate

vii. SP3: Analyze Intel’s technological and business evolution from its inception to 1997. Identify the primary forces that triggered major turning points in the evolution.

2. Plan:

a) Information Available:

· SP1

· Details on Intel’s market landscape in the case study

· SP2

· Info on ‘players’ from case study

· SP3

· Info on Intel’s technology strategy, product market strategy, and developmental goals

b) Information Needed:

· SP1

· Porter’s six forces model template

· Further details on computing industry in given time period

· SP2

· Context on players mentioned in case study, in order to properly assess relationships between Intel and its competitors, customers, etc.

· SP3

· Analysis on Intel’s technological and operational evolution, and identification of key triggers in said evolution

c) Information Assumed:

· Problem Solver: team of business analysts or high-level executives such as CTO

· Audience: executives in the company; such as CEOs and/or board members

d) Analysis/Steps Required:

· SP1

· Utilize data provided in “Intel” handout to complete a standard Porter’s six force model analysis based around Intel’s industry landscape

· SP2

· Using the aforementioned analysis; identify key relationships between Intel and the other entities involved, and elaborate on these relationships

· SP3

· Compile analysis based on information derived from case studies

· Create functional maps that properly relay changes in Intel’s various strategies from 1968 to 1997

e) How to present information:

· SP1: Porter’s six force model style graphic

· SP2: bullet points

· SP3: functional map

3. Execute:

· SP1: Intel’s Industry Landscape = Computing Industry circa 1968-1997

· SP2:

· Competitors: Intel enjoyed most of the market share in microprocessor technology due to licensing and business as well as tech strategy

· i.e. for the 80386 microprocessor chip, Intel was the sole source for all PC makers save IBM who produced their own 386 chips

· leading player in the “horizontal” niche within the computer market

· threat of competition such as RISC architecture spurred further development for Intel in order to expand fabrication capacity for these kinds of threats

· Buyers: Because Intel held about 90% of market share for chip production, there were interesting dynamics between the company and its customers

· Intel Inside – marketing campaign to increase brand recognition among PC users however computing companies feared such a campaign would undercut their own brand significance and convolute recognition

· Since Intel provided microprocessors for most PCs made, it began to be more involved in the overall system design and production rather than solely chips

· Allocation of newer chips when there were capacity constraints resulted in industry tensions as well

· Suppliers

· Intel hoped to standardize equipment in order to increase production and improve processes; however; sole-sourcing suppliers lead to decreased customer service with technical issues and betterment; they conquently switched back to permit dual-sourcing

· Due to innovation such as the internet, certain threats popped up to Intel’s dominance and necessity in the market

· i.e. Sun’s network computer was a machine that didn’t employ Intel’s microprocessor chips, thus threatening Intel’s indispensability in the market

· SP3 (evolution from [the inception] 1968 to 1997):

Buyers/Competitors

- Businesses

- Consumers (general population)

- Government

Substitutes

- Palm pilots

Suppliers

- Seagate (storage)

- Intel (microprocessor chips)

- Microsoft (operating systems)

Complements

- Since Microsoft & Intel control majority of complementary component market business world has dubbed 'Wintel'

New Entrants

- Asus

- Lenovo

- Toshiba

- Acer

Competitors

- IBM - Fujitsu

- Apple - HP

- NEC - Dell

-Compaq - Gateway

Technology Strategy

- Intel heavily invested in manufacturing equipment, and stayed on the leading edge of process technology in order to maintain the complex processes involved in semiconductor manufacturing

- Across 4 gens of DRAMS- Intel produced devices and processes that consistently beat out competition

- Created microprocessor but originally didn't see the reaching potential and power it possesed

-Focused on gaining an overwhelming performance edge over competitors coupled with efforts to be cost-effective in production and using latest developement technology

-Became involved with other parts of computer design and production as well

Product Market Strategy

- Intel implemented aggressive and innovative techniques of product design in order to be able to market with the newest devices and stay on the constantly evolving cutting edge of technology

- Intel was able to charge premium prices due to indispensibility, until Japanese competitors began premiering the newest products earlier

- In order to maintain market share, Intel began agressive marketing campaigns against competitors such as T-Mobile

- Liscenced certain chip technology such as for the 80386, in order to retain the majority of PC makers as customers

- "Intel Inside" - aimed to foster brand recognition and individuality

Developmental Goals

- Intel maintained strong capabilities in product design, however, production yields would drop everytime new processes were introduced, and would rise as Intel dealt with the learning curve each time

- Employed new methods of tech innovation such as collaboration; joined with Busicom to create a set of chips for an electronic calculator

- Invested in major R&D for DRAMS- product area where new process techniques were applied first

- Also poured finances heavily into R&D in order to increase fabrication capacity in the face of threats such as RISC

- Invested half a billion dollars in venture capital with Internet involved companies in order to reduce the risk posed from the introduction of Internet technology