Market-Inspired, Experience-Driven

A Tale of Transformation in the Semiconductor Industry

bernhard.ries@intel.com

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A Culture Of Innovation

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1969

1959

1981

1991

1996

$60BIN FACTORIES

$10B+R&D

43KENGINEERS

TOP 5SOFTWARECOMPANY

4Mft2

MANUFACTURING

107KEMPLOYEES

14nmTECHNOLOGY

3DTRANSISTORS

170SITES

66COUNTRIES

75%of biz outside

of US

$11BCAPITAL

INVESTMENTS

7FABS 5,000+

SKUs

4

Intel Today

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In Pursuit Of Moore’s Law

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Hi-K Metal Gate

Strained Silicon

3D Transistors

65 nm 45 nm 32 nm 22 nm 14 nm 10 nm 7 nm90 nm

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Competition And The Pace Of InnovationAre Accelerating

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Being Market-Inspired

TECHNOLOGYDRIVEN

MARKETDRIVEN

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Becoming Market-Inspired

New market innovation separate from the core4

Outside-insensing process

1Lead with

User Experience2

Innovation portfolio managed by

CEO-led team3

Executives set vision, drive process, and define incentives5

Key Trade-Off: Investing for long-term growth vs. short-term gains

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Outside-insensing process

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Outside-In Sensing: Market Watch

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• Sense

• Interpret

• Trigger Action

CompetitionCustomers

Ecosystem End Users

Becoming Market-Inspired

New market innovation separate from the core4

Outside-insensing process

1Lead with

User Experience2

Innovation portfolio managed by

CEO-led team3

Executives set vision, drive process, and define incentives5

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The search for the next big thing….

Creating Enduring Experiences:Find some users and make them happy

User Experience

UserExperience

Systems&

Software

AmazingSiliconAmazing

Silicon

Systems&

Software

UserExperience

Past Today

No Wires No Passwords Voice and 3D

Becoming Market-Inspired

New market innovation separate from the core4

Outside-insensing process

1Lead with

User Experience2

Innovation portfolio managed by

CEO-led team3

Executives set vision, drive process, and define incentives5

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Innovation Pipeline FrameworkHorizon 4

Develop & test business ideas

Horizon 3Prove

business concept

Horizon 2Scale business

Horizon 1Defend & extend

business

• BU owned via protected incubation fund

• Engage customers, POCs, trials

• 90% failure rate

• Validate market opportunity via pilots & limited launch

• 50% failure rate

• Rapidly expandfootprint & grow position

• 10-20% failure rate

• Optimize profit /op ex

Separating New Market Innovation From The Core

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Intel Architecture Group

Then:

Now:

Executive-Led Vision & Strategy

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Intel CEO Brian KrzanichIntel Investor Day, Nov. 2013

Becoming Market-Inspired

New market innovation separate from the core4

Outside-insensing process

1Lead with

User Experience2

Innovation portfolio managed by

CEO-led team3

Executives set vision, drive process, and define incentives5

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Results

Strong Push into Ultra Mobile

Accelerated Growth in Data Center

New Products to Expand MarketsPC Innovation

Continued Silicon Leadership

14nm

Lessons Learned

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• Big changes rarely come at you with a bullhorn, more often as a whisper

• Connect decision makers with the market

• Break down silos between market-facing functions and engineering

• Implement a system to become more market-inspired: Processes, Leadership, Culture

• Being more market-inspired unleashes innovation, creates new value, and helps get to market faster

Market-Inspired, Experience-DrivenOur Journey Has Just Begun

TECHNOLOGYDRIVEN

MARKETDRIVEN

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