Munich Study Abroad - Research on Intel (and Intel OpenLab Munich). Application to three HBR articles.

1. Intel Open Lab
Munich, Germany
Jessica Hittner
Carrie Martinelli
Innovation & Marketing Systems
Dr. Bohlmann

2. Corporate Overview
Overview - www.intel.com
• Founded in July 1968 as Integrated Electronics Corporation
• Silicon Technology and Manufacturing
• Inventor of the x86 series of microprocessors, the processors found in most personal computers
• World's largest semiconductor chip maker, based on revenue
Our mission
“Delight our customers, employees, and shareholders Geographic Spread (Sales)
by relentlessly delivering the platform and technology
advancements that become essential to the way we
work and live.”
10% Japan
2009 Revenues $35.1 Billion Net
15%
Europe
2009 R&D Dollars $5.7 Billion 55%
Asia-
Employees Pacific
20%
79,800 people worldwide, with just over Americas
half in the United States

3. Corporate Overview
Major Customers - OEMs, ODMs, Consumers
• Computer Systems
• Cellular Handsets
• Handheld Computing Devices
• Telecommunications
• Networking Communications Equipment
• Industrial Equipment
Sale through distributor, reseller, retail and OEM channels
throughout the world
Product Lines
• Microprocessors
• Chipsets
• Motherboards
• Wireless and wired connectivity products
• Platforms that incorporate these components
Competitors
AMD, nVIDIA, QualComm, IBM, Sun Microsystems, Freescale Semiconductor, Inc. , and Texas Instruments

4. Innovation System
Intel’s Tick-Tock Model
Innovation Driven By Manufacturing Process and Microprocessor Advances
Year 1: First the "Tick"
Intel delivers new silicon process
technology, dramatically increasing TICK TOCK TICK TOCK TICK
transistor density while enhancing
performance and energy efficiency
within a smaller, more refined version
Silicon Silicon
of our existing microarchitecture.
Process Process
Technology Technology
Year 2: Then the "Tock"
Intel delivers entirely new processor
microarchitecture to optimize the value Microarch- Microarch-
of the increased number of transistors itecture itecture
and technology updates now available.
Fuels Performance, New Capabilities,
Energy Efficiency, and Form Factor
2008 2009 2010 2011 2012
Advances, Moore’s Law

5. Marketing Systems Growth
Mass/Ingredient
MPU 3 Branding
PHASES
MPU 2 Total Solution
MPU 1 Architecture/Technology
PRE MPU Delivery Speed, Price
1970 1980 1990 2000 2010
TIME
Source: “Microprocessor Marketing Wars: Chip Makers Discover the Consumer,” Computer History Museum Lecture Series,
November 2009, http://www.youtube.com/watch?v=pLzBYfNhRF8

6. Intel Open Lab Munich
Overview
http://www.intel.com/corporate/techtrends/emea/eng/labs/index.htm
• Established: March 2009
• Intel Labs Europe - ILE was formally established as a central means of coordinating activities across Intel’s
diverse network of labs and to further strengthen Intel’s commitment to and alignment with European R&D for
best resource allocation
Mission
• Foster cooperation between Intel, global industry segment leaders and
academia through joint research and innovation programs
• Enhance synergies that can be converted into commercial opportunities,
strengthening existing businesses and creating new ones.
Technological Focus Areas
• Automotive - In-Vehicle Infotainment • Education and Sustainability
• Automation - Embedded Computing
Munich Joint Innovation Research Programs
• FOCUS: ITC - Information and Communications Technology
• University Partnerships
Technical University of Munich - Power and Automation Technologies
Saarland University - Interactive Computer Graphics and Natural Interfaces
German Research Center for Artificial Intelligence

7. EXAMPLE
OpenLab In-Vehicle
Infotainment (IVI) Technology
Intel® Atom™ Processor microarchitecture, a very low–power implementation of Intel
architecture, Intel continues to meet the design requirements of mobile computing and
small form factor embedded applications
http://www.intel.com/design/embedded/infotainment/products.htm

8. IVI Technology Ecosystem
OpenLab In-Vehicle Infotainment (IVI) Technology
Driving Technology: Open Infotainment Platforms (OIP) based on Intel® Atom™ Processor microarchitecture
Network Effects: Common hardware and software architecture, scalable across product lines/generations, greatly
reduced R&D costs, greater debug/validation efforts , simplifies product upgrades, speeds time-to-market, firms can
reallocate resources to new app/service development that can be downloaded onto already-validated IVI systems
Intel Embedded and Communications Alliance
http://www.intelcommsalliance.com/roster
A broad 3rd-party ecosystem - robust and interoperable
development environment of hardware/software vendors KEY
NICHE
STONE
Consumer Electronics
Automotive
Vendors
Manufacturers
Consumers
IVI Application PHYSICAL
Developers IECA In-Vehicle Service COMMODITY
DOMINATOR
Providers
Automotive Suppliers (OEMs)

9. Experience Innovation
OpenLab IVI Technology Experience EVENT
• Navigation
• Entertainment
• Communication
EVENT CONTEXT
• Location/Destination
• Internet Connection - limitless
• Business or Leisure
INVOLVEMENT
• Setting location, adjusting directions
• Freedom to choose
• Home Entertainment Sync
• Instant Messaging, Hands-Free
PERSONAL MEANING
• Safety, Stress Relief
• Enjoyable
• Productivity

10. Holding Hands Strategy
OpenLab IVI Technology Value Chain
RESEARCH DESIGN SOURCE MANUFACTURE MARKET SELL SERVICE
VOLUME OPERATIONS COMPLEX SYSTEMS
Research - High volume of Atom™ Processors distributed Research - Working with ecosystem
to OEMs > Must be scalable! (industry leaders, academia) to develop
and further customized solutions
Design - Must fit as a component to be incorporated into
many OEM-specific end solutions > Must be simple and Market - Large supplier network (Intel
flexible! IECA) plus complicated upstream eco-
system > Collaboration is critical!
Source - OEMs take on majority of engineering costs >
Price is important! Sell - Must bring together the IECA to
facilitate the buying decision > Relation-
Manufacture - One component of a variety of complex
ships are critical!
systems > Standards-based uniformity in manufacturing is
critical for compatibility across end solutions! Service - Pre-sale solutions and post-sale
upgrade consultations > High-touch

11. Suggested Questions
Q1. Considering the “Holding Hands Strategy,” what are some of the specific challenges that Intel
faces in the hand-offs between operations and sales/marketing? How is Intel working to resolve
these issues?
Q2. How does OpenLab Munich specifically contribute to continuing Moore’s Law?
Q3. Are there additional IP protection concerns when employing an open-platform strategy such as
Open Infotainment Platforms (OIP)? If so, what is Intel’s response?
Q4. Intel often rotates between niche and keystone roles in technological markets. How does Intel
identify and develop these niche market opportunities?
Q5. Is ingredient branding important for the IVI market as it was for the PC market? If not, do you think
it ever will be? Does Intel intend to use this strategy in other (future) consumer electronics markets?
Q6. Provide more program details on the Joint Innovation Research Programs- current university
projects and industry collaborations. What is the biggest breakthrough achieved by this program
(OpenLab Munich) to date?