Tm-5

Shared Value

Analog Devices (ADI) values their employees greatly. This can be seen by their treatment of employees when it comes to decision making, as well as compensation. Low ranking employees are trusted to collaborate on decision making, ensuring most people are on board. The fact that profits are shared among all employees rather than just the executives reinforces the shared value that all employees are valued and vital to the success of the organization. ADI also believes in setting aggressive goals because they are confident in their abilities.

These shared values influence all of the other nodes in the 7S model. Most notably, the structure of the organization is fairly flat, as all employees are deemed responsible and capable of guiding the company in its agreed direction. This in turn affects the processes, which take longer than usual, since more parties are required to give input during the decision making process. The shared values also influence the strategy by ….

Strategy

ADI’s strategy was to offer customers complete solutions that provided them with the most innovative and high-quality technology.

The approach that will work best for this process is introducing a Design Lab section to provide a more personalized client experience and increase sales. This strategy might establish new channels of connection with its audience by utilizing the adaptability of digital settings. It prioritizes app development as part of its digital transformation strategy. Customers' feedback should assist the supplier in modifying the product's functional specifications, changing the design to reduce production costs, or developing a solution to the specific problems that the client has.

Structure

The management team was always setting high goals to challenge it’s team and not be compleasant with their past success. The funder Ray Stata was setting ‘high aggressive goals and make them happen. Without this structure of setting high goals, the company would never have taken such gamble such as shifting market and join the market of semi-conductors.

But to achieve those goals they had to hire the right people to do it, the structure ultimately impacted the style as ADI style was very democratic. They were always asking for the peoples reviews and opinions, which resulted in a flat organisational structure. Systems also had to be revised. They consisted of more meetings, and a slower process of decision making. 

Systems

ADI Typically low in organisation hierarchy. Leaders would set cross functional teams. A lot of meetings and a slow pave decision making. They have a pricing model that is fluid to the market and therefore give them room to improve and adapt. They were typically focus on a combination of innovation and growth, allowing them to adapt their systems to the market and the given strategy at that time. 

This kind of systems are not for every company as some can be taken aback from the amount of meetings and the approach to pricing that is not fixed but rather flexible. The style of the “asset-lite’ strategy asked for the systems to be focused on the design of new processors and semi-conductors, with highly skilled engineers, and low to none manufacturing lines. 

Style

The working style at ADI included several sessions with set agendas and outcomes. They worked on maintaining a supportive atmosphere with coordinated activities, pooled resources, and external assistance existed there. A concierge-level service was put in place with a sole purpose of assisting designers and developers in any situation as compared to the ‘do it yourself’ style with LTI. Decision making process was typically collaborative with bottom of the organisational structure. Leaders also gave the staff an opportunity to create their own action plan to achieve the decided goal. 

Staff

ADI had a sizable workforce, most of whom were accomplished professionals in their fields. 

Because ADI values its employees, 

While equity and incentives were determined by individual achievements, all of these employees were qualified for for-profit sharing on a quarterly basis.

Skills

ADI has a small number of sales representatives, but they generally have a long history in the industry. ADI's key innovative platforms include data communications, data converters, amplifiers, power RF, microwave, MEMS, and DSP technologies. To reduce the time to monetization of new products, ADI ensures that everyone in the organization has access to the best technologies, processes, partners ADI's manufacturing was "asset-light," or focused on engineering-driven product development prior to manufacturing and ongoing product development afterward ADI's focus was on the development phase of the value chain, the testing phase of critical products, and the marketing and sales phase. ADI's products were primarily manufactured by third parties.