Friday, September 13, 2019
Value Innovation at AMD Essay Example | Topics and Well Written Essays - 750 words - 1
Value Innovation at AMD - Essay Example As of today, 99% of computers operate using 32-bits. As technology improves and software applications become more demanding there will be a transition to 64 bits. The K8 processor was a complete revamp of the x86 architecture for 64-bit processing, giving AMD a leadership position. Industry acceptance of the AMD64 standard has forced Intel to enter into an agreement with AMD to use the AMD64 standard on their own 64-bit based EMT64 processors. In their essay Ã¢â¬Å"Strategy, Value Innovation and the Knowledge EconomyÃ¢â¬ Kim and Mauborgne characterize value innovators as Ã¢â¬Ëthose who make their competition irrelevant by providing buyers with a quantum leap in valueÃ¢â¬â¢. This description fits perfectly with AMDÃ¢â¬â¢s strategy for the K8. Until the release of the K7, AMD was a company that focused Ã¢â¬Ëon matching or beatingÃ¢â¬â¢ Intel. They chose a Ã¢â¬Ëdistinctive costÃ¢â¬â¢ position and innovation was considered exogenous with cost and product performance trad eoffs. The new economics theory, which heralds the arrival of the knowledge economy, claims that Ã¢â¬Ëinnovations are no longer exogenous and can be created with the ideas and knowledge within a systemÃ¢â¬â¢. Again, a perfect match to AMDÃ¢â¬â¢s strategy of first giving the NexGen team their own building to develop the K6 and subsequently roping in a Ã¢â¬Ëworld-class-enterprise-level processor design teamÃ¢â¬â¢ for the K8. Admitted that IntelÃ¢â¬â¢s stumbles with their processor design and production yield have given AMD an opportunity window.