Only Paranoid Survives: Andy Grove
In the earlier Gyans, we talked briefly about the Software companies who changed the world – Microsoft and Apple. Today, it’s about the Hardware, especially the Brain of the computer. If OS = Windows (?), then there is only one name that can come to your mind when it comes to Microprocessor and it’s Intel.
In July 1968, Intel (from Integrated Electronics) was founded by Robert Noyce, Gordon Moore and Andy Grove. They were earlier working with “Fairchild Semiconductor Corp.” The invention of Transistors and their use in making Micro chips was a major breakthrough in late 60’s and 70’s. Noyce, Moore wanted Fairchild Corp. to cash on this potential opportunity but Fairchild was reluctant to change. Hence, annoyed, Noyce, Moore along with Andy Grove left Fairchild to found Intel.
Gordon Moore and Robert Noyce went on to become Big Shots in the micro processor industry. In fact, many of us might have heard of the Moore’s Law which states that “After every 18 months or so, the size of the chip will be halved and its speed would get doubled.” And so far, it has proved true!
Andy Grove was a refugee born in Budapest. He fled from Nazi Government in Hungary to the Land of Dreams– America! In US, not only did he learn English, but he went on to pursue Chemical Engineering at the City College of New York. He acquired his Ph.D. from Berkeley and joined the R & D lab of Fairchild Semiconductor. After founding Intel, he became its President, CEO and Chairman in 1979, 1987 and 1997 respectively.
Right from the start, Intel faced stiff competition from other companies in Silicon Valley and mainly, from the Japanese. The market for Intel was primarily in Memory and because of constant research, this market was rapidly changing. In these times of turbulence, Andy Grove successfully captained Intel.
With time, most of the Intel’s domestic competitors either went bankrupt or moved on to another business. Under the leadership of Grove, Intel was fighting hard with Japanese for the Memory Market. But like the automobile industry, the Japanese managed to sell their products at such a lower price that it became almost impossible for companies like Intel to stay in business. Their motto was “Sell it at any price 10% less!” This was a difficult situation for any company who is losing its niche market. Grove tried every trick of the business but to no avail. Grove wondered how a newly joined CEO would handle the situation and in the quiet moments with Moore, the answer that came to his mind was:” He’ll simply move out of the market and find some other”. So finally, Grove took a tough decision to move out of the Memory market. All this resulted in him being named as “The Toughest Boss” in 1984 by Fortune. Gordon Moore
So after moving out of the Memory business, Intel jumped into the Microprocessor business, thanks to the earlier efforts spent by Intel’s R & D on the Microprocessor. Microprocessor was quite nascent, untouched market at that time. And as it happened, Japanese were slow to understand the changing market and to react fast. Intel manufactured world’s first microprocessor in 1971. In the race of producing faster Microprocessors with Motorola, Intel came up with ever improving and faster chips like 8080, 8086, 386 and so on. Intel made its brand name and became a major player and trendsetter in Microprocessor industry. Intel, together with Microsoft, contributed to the personal computing world in a major way. The informal alliance is called “Wintel”!
After the launch of 586, one fine day, a Virginia professor called up Intel to complain that the processor is making mistake while performing a certain calculation. Intel was prompt to fix it and came up with a press release that stated that such kind of a mistake can happen once in a million. But the media got a wrong impression and soon Intel bashing started.
There were jokes floating all around the valley and market about Intel. One joke goes like: Why Intel named this chip as 586? The answer: They added 10 to 486 and got an answer 585.9999999!!!
This was such a strong movement that Intel had to take back all the processors from market and replace them with new ones, costing them hundreds of millions. This was a major setback to their image, too.
Meanwhile, Andy Grove was also diagnosed with a severe Prostate Cancer. Still, to regain the image and brand name, Intel, again, under Grove’s leadership, came up with Pentium series which became and still is one of the most popular brands. (An Indian named Vinod Dhum was a key designer of Pentium II) Intel managed to remain the biggest Microprocessor manufacturer and supplier. Rest all as you know is history. (How I love this line!!)
Today, Intel is the 4th most respected company in the world and ranks 53rd in Fortune 500, with a headcount of 91000. The revenues are sky high at $34.2 Billion in 2004. Intel now boasts a healthy product line of 450 products and services including microprocessors, motherboards, etc. Grove stepped down as Chairman of the company in 2005 and is, now, serving as an Advisor. He also heads the Prostate Cancer Organization. He has penned around 40 papers and many books. No wonder, a man like Grove who was always racing – first against the Nazis for his survival and then against Japanese corporations and domestic competitors, has written a bestseller named “Only Paranoid Survives!” in which he details about Inflection Point and how important it is to look out for coming changes and adapt to them quickly. Those who get complacent with their success and are reluctant to change would soon be out of business.
Regards,
Abhishek
P.S.:
All these companies and individuals are so great that it’s really hard to capture them in a page or two. In fact, lots of thick books are written on the Management strategies these companies/persons used and their progress over the years. This is just an humble effort to portray briefly what they have done.
In July 1968, Intel (from Integrated Electronics) was founded by Robert Noyce, Gordon Moore and Andy Grove. They were earlier working with “Fairchild Semiconductor Corp.” The invention of Transistors and their use in making Micro chips was a major breakthrough in late 60’s and 70’s. Noyce, Moore wanted Fairchild Corp. to cash on this potential opportunity but Fairchild was reluctant to change. Hence, annoyed, Noyce, Moore along with Andy Grove left Fairchild to found Intel.
Gordon Moore and Robert Noyce went on to become Big Shots in the micro processor industry. In fact, many of us might have heard of the Moore’s Law which states that “After every 18 months or so, the size of the chip will be halved and its speed would get doubled.” And so far, it has proved true!
Andy Grove was a refugee born in Budapest. He fled from Nazi Government in Hungary to the Land of Dreams– America! In US, not only did he learn English, but he went on to pursue Chemical Engineering at the City College of New York. He acquired his Ph.D. from Berkeley and joined the R & D lab of Fairchild Semiconductor. After founding Intel, he became its President, CEO and Chairman in 1979, 1987 and 1997 respectively.
Right from the start, Intel faced stiff competition from other companies in Silicon Valley and mainly, from the Japanese. The market for Intel was primarily in Memory and because of constant research, this market was rapidly changing. In these times of turbulence, Andy Grove successfully captained Intel.
With time, most of the Intel’s domestic competitors either went bankrupt or moved on to another business. Under the leadership of Grove, Intel was fighting hard with Japanese for the Memory Market. But like the automobile industry, the Japanese managed to sell their products at such a lower price that it became almost impossible for companies like Intel to stay in business. Their motto was “Sell it at any price 10% less!” This was a difficult situation for any company who is losing its niche market. Grove tried every trick of the business but to no avail. Grove wondered how a newly joined CEO would handle the situation and in the quiet moments with Moore, the answer that came to his mind was:” He’ll simply move out of the market and find some other”. So finally, Grove took a tough decision to move out of the Memory market. All this resulted in him being named as “The Toughest Boss” in 1984 by Fortune. Gordon Moore
So after moving out of the Memory business, Intel jumped into the Microprocessor business, thanks to the earlier efforts spent by Intel’s R & D on the Microprocessor. Microprocessor was quite nascent, untouched market at that time. And as it happened, Japanese were slow to understand the changing market and to react fast. Intel manufactured world’s first microprocessor in 1971. In the race of producing faster Microprocessors with Motorola, Intel came up with ever improving and faster chips like 8080, 8086, 386 and so on. Intel made its brand name and became a major player and trendsetter in Microprocessor industry. Intel, together with Microsoft, contributed to the personal computing world in a major way. The informal alliance is called “Wintel”!
After the launch of 586, one fine day, a Virginia professor called up Intel to complain that the processor is making mistake while performing a certain calculation. Intel was prompt to fix it and came up with a press release that stated that such kind of a mistake can happen once in a million. But the media got a wrong impression and soon Intel bashing started.
There were jokes floating all around the valley and market about Intel. One joke goes like: Why Intel named this chip as 586? The answer: They added 10 to 486 and got an answer 585.9999999!!!
This was such a strong movement that Intel had to take back all the processors from market and replace them with new ones, costing them hundreds of millions. This was a major setback to their image, too.
Meanwhile, Andy Grove was also diagnosed with a severe Prostate Cancer. Still, to regain the image and brand name, Intel, again, under Grove’s leadership, came up with Pentium series which became and still is one of the most popular brands. (An Indian named Vinod Dhum was a key designer of Pentium II) Intel managed to remain the biggest Microprocessor manufacturer and supplier. Rest all as you know is history. (How I love this line!!)
Today, Intel is the 4th most respected company in the world and ranks 53rd in Fortune 500, with a headcount of 91000. The revenues are sky high at $34.2 Billion in 2004. Intel now boasts a healthy product line of 450 products and services including microprocessors, motherboards, etc. Grove stepped down as Chairman of the company in 2005 and is, now, serving as an Advisor. He also heads the Prostate Cancer Organization. He has penned around 40 papers and many books. No wonder, a man like Grove who was always racing – first against the Nazis for his survival and then against Japanese corporations and domestic competitors, has written a bestseller named “Only Paranoid Survives!” in which he details about Inflection Point and how important it is to look out for coming changes and adapt to them quickly. Those who get complacent with their success and are reluctant to change would soon be out of business.
Regards,
Abhishek
P.S.:
All these companies and individuals are so great that it’s really hard to capture them in a page or two. In fact, lots of thick books are written on the Management strategies these companies/persons used and their progress over the years. This is just an humble effort to portray briefly what they have done.
posted by Gyan for the Day! | 4:27 am
|
0 comments
