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Saturday, April 29, 2006
Innovation Myths
I saw a recent report from IBM talking about 3 myths of innovation. They are:
  • Myth 1: Innovation means coming up with a new product/service
  • Myth 2: Innovation happens from within (research or prod development)
  • Myth 3: Innovation is the responsibility of Brand/Product managers
In my view, the implications of these myths can be summarized in one sentence: The senior leaders of an organization are responsible for innovation in approach, business models, products, and services and at times, it is necessary to look outside the organization to find the best way to innovate.

I agree that senior managers are responsible and I agree that companies must look to partner for innovation. I think the toughest one is business model innovation. Trying to find the next "what GE did with aircraft engines" is difficult for every company and its leaders.
posted by Rob @ 11:21 PM   0 comments
Sunday, April 02, 2006
The Semiconductor Industry in India
If this was post was a description of what is happening in the semiconductor industry in India related to fabs, this would be a very short post. In short, there is no fab presence in India ( a few gov't controlled 6" lines...but, that's it).

A few data points:

  • The economy in Inda i s currently made up of services (52% of GDP), Industry (27% of GDP), Agriculture (21% of GDP). Manufacturing, a subset of industrial, is 16% of the GPD.
  • The government of India has shown no signs of investing in semi fabs (although, India's first 200mm facility will open in Hyderabad in 2006).
  • Chip deign in India was a $650M business in 2004, with CAGR of 26%.
Given all of this, plus the engineering graduation rates in India, etc, I can't help but wonder why anyone in this country would ever want to invest in a fab. This would seem to be in direct conflict to the notion of Comparative Advantage.

The value in semiconductors is clearly in design (especially if you weigh value/profit vs. capital requirements).

Again, why does India need a fab?
posted by Rob @ 11:37 PM   0 comments
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