Unveiling Business Strategy: Intel

October 18, 2019

The corporate sector is amid of most significant technological transformations and tech giants like Intel are in progress to achieve the ultimate supremacy in digital evolution. Intel has made key investments and decisions to enter a market that is data-rich and deploys its IP and manufacturing technologies to redefine and expand its target market. The company has evolved from a PC-centric company with a server business to a data-centric company that addresses customer needs across the platform, storage, connectivity, and software. The year 2018 and beyond has witnessed such strengthen transformation-generated revenue half of which was earned from data-centric businesses, and the expansion of its TAM.

Intel’s customers are looking forward to solutions having the capability to process, analyze, store, and transfer data—turning it into actionable insights, amazing experiences, and competitive advantages. Its architecture platform facilitates the company for new solutions that take advantage of such growth of data.


Innovation Strategy to Lead World of Semiconductors

Intel makes vital investments and innovations in its silicon manufacturing technologies and platforms. The company’s proprietary technologies increase the possibility of integrating products and platforms that address evolving customer needs. Intel’s innovation strategy encompasses investments in advanced manufacturing processes and packaging, architecture, interconnects, and embedded security features. These are all a part of the company’s efforts to be the leading end-to-end platform provider.

The strategic priority of Intel will continue to imbibe – the possibility of innovation of new high-performance products while improving the user experience at exponential rates and balancing performance, cost, and power to meet its customers’ needs.

Using its proprietary process technologies, Intel primarily focuses on developing and manufacturing its products in its own facilities. The company possesses the scale and expertise quintessential for enabling deep engagement with its customers. This subsequently provides it with a competitive edge.

The company optimizes performance, shortens time-to-market for the introduction of new products and controls essential elements of its supply change through its manufacturing. By sharing architectural innovation and IP, the company spreads its investments over a large manufacturing base of products, which lessens the costs and increases its return on capital.


Driving the AI and Autonomous Revolution

Intel is already working as a driving force of the AI and autonomous revolution. The company strategizes to meet the needs of its most innovative customers to –

•  advance and accelerate the AI industry’s open software stacks.

•  to deliver the best AI products.

•  to seed and drive the AI ecosystem.

The Israeli subsidiary of Intel Corporation, Mobileye’s EyeQ* is already the leading solution of the automobile industry for advanced driver assistance systems (ADAS). It is creating leadership for the industry to pursue higher levels of autonomy while developing Road Experience Management for real-time crowdsourced mapping, and the Responsibility Sensitive Safety model for autonomous vehicle safety.

Also, the Intel® Xeon® processors are used by customers for workloads such as image recognition, enhanced public security, and natural language processing, as the foundation of the AI revolution.

Intel® Nervana™ Neural Network Processors and Intel® Movidius™ Myriad™ Vision Processing Units (VPUs) enable a comprehensive suite of hardware and software technologies to deliver a wide range of capabilities and support diverse approaches for AI. This enables customers to infuse AI into everything they do.


Pioneering the Era of Data-Centric Market

Since a new era of data-centric computing has been led by growth in processing power and breakthroughs in connectivity, storage, memory, and algorithms, Intel has incorporated an unparalleled product portfolio that concerns the entire data-centric market. The company is inventing new solutions in the highest growth areas by investing across six engineering pillars including advanced manufacturing processes and packaging, new architectures to speed up specialized tasks like AI and graphics, super-fast memory, interconnects, embedded security features and common software to unify and simplify programming for developers across our compute roadmap.

The company is making significant investments and encouraging innovations in a variety of areas to drive advancement in technology and user experience while meeting the data needs of customers.


Strengthening Core with Diverse and Inclusive Talents

Intel at its core is strengthened with highly-skilled, diverse, and talented people who have the capability to accelerate in everything as a unified team. Its rich and powerful culture has maintained a fortified foundation from the last 50 years. The Intel culture is comprised of invention, product leadership, purposeful leadership in corporate governance practices, and partnership with suppliers, customers, regulators, and local communities which leads to the development and deployment of sustainable business practices.

The company takes proud in its employees who are rising above the challenges to transform the company’s methods, focus, and values to help every individual achieve his/her personal best. The talented and skillful team at Intel is winning in dynamic and competitive markets while making a positive impact on its communities.


Creating Value Through Capital Strategy

Intel leverages its capital in a variety of forms to execute its transformational strategy which reflects its corporate values, obliges its customer and creates value among its stakeholders.

The company is committed to its corporate responsibility to create value for Intel and its stockholders while providing mitigated risks, reduced costs, developed brand value, and opportunities in a new market. The company has set its ambitions to make strategic investment to advance progress in the areas of environmental sustainability, supply chain responsibility, diversity and inclusion, and social impact in order to benefit the environment and society.

Intel empowers and invests in attracting and retaining talented and skillful employees who influence the development of solutions and propel its intellectual and manufactured capital.

Through effective utilization of such resources, Intel strives to develop the world’s best semiconductors, deliver great customer experiences, while efficiently managing its supply chain. It also thrives to improve the communities in which the company operates, and, ultimately, generates financial capital that is reinvested in its business and returned to stockholders.

Moreover, the financial capital allocation strategy concentrates on developing stockholder value; firstly, by investing in itself and enhancing its capabilities through acquisitions and strategic investments; and secondly, by providing the return realized by such investments to its stockholders.

Additionally, Intel makes a significant investment in Research and Development work every year considering it as a critical factor in achieving its strategic objectives to make the world’s best semiconductors, lead the AI and autonomous revolution while providing leading end-to-end platform solutions. It is a well-known fact that successful Research and Development efforts can either lead to new products and technologies or drive improvements to the existing ones. The company may continue to augment its R&D initiatives by investing in or acquiring companies or entering into R&D agreements with other organizations, as well as by directly purchasing or licensing the technology.

Further due to its highly technical nature of the business, Intel’s success depends on its ability to attract and retain talented and skilled employees in order to create the technology of the future and delight its customers. The company also places value on providing a wide range of opportunities to aid and assist the ongoing career development of its employees. The company has tracked and publicly reported on key human capital metrics for more than 10 years, including workforce demographics, diversity and inclusion data, turnover, and training data.


Empowering Future with Strategic Propositions

The impact of Intel on the world can be realized through a progression of tech waves, including the personal computer, the Internet, and cloud computing. With its manufacturing and engineering expertise, the company will continue to deliver the products and technologies that are the foundation for the world’s innovation. Besides, it also aims at delivering the most disruptive and immersive technological experiences for its clients and customers through new-age drivers say, AI, ML, Deep Learning, Analytics, cloud computing – to name a few.

The current strategy of Intel serves the wave of digital transformation and the company will continue to innovate in its products while introducing leadership products that deliver more value to its customers. The company has significantly expanded beyond PC and server businesses with astonishing growth in adjacent products and gained share in an expanded US$300 billion TAM. Intel’s employees are driving its progressive strategy by developing compelling technology and delivering innovative products to its customers, enabling strong financial growth.