This case analysis looks into Intel Corporations New Business Group and how successful the unit is and what Intel can do to improve that success. While Intel did have some positive ideas and philosophies about the importance of new ventures, the implementation and policies set into place were ineffective. It is important that Intel make some changes to the NBG in order to remain at the top of the industry, especially due to the fact that Intel faced the first lull in sales in many years.
The first issue that Intel must acknowledge in order to improve the success rate for new business ventures is gaining support from the entire organization. Some top execs took personal interest in NBI however, not very many did and often projects were scrapped due to the fact that there was little support by employees outside of NBI. One of the reasons there was little support for new business ventures is due to the structure of the organization. There was little alignment between how NBI management and Intel’s core business management was organized and run. Intel had set mature and formalized policies in terms of manufacturing, development, and marketing in the mainstream businesses, where as NBI ventures had little structure. Because these two different sides of Intel had such different processes and policies, there was little communication. Therefore, obviously, those outside of NBI did not know much about what was going on with the new ventures, thus, little support. However, it is difficult to integrate the policies and structures from the core businesses for the NBI because they are very rigid and expensive. However, by increasing communication about the importance of innovation, especially now that PC sales are slowing, top executives may potentially be more willing to spend extra money on NBI, thus allowing the more expensive processes being used on mainstream business units to be implemented with NBI ventures. This would solve the problems with communication and...
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