Intel Corporation: The DRAM Decision

1689 WordsApr 16, 20087 Pages
Introduction Morison’s (2004) essay, “Gunfire at Sea: A Case Study in Innovation”, is a commentary on the social implications of technological change that surrounded the introduction of continuous-aim firing in both the British and American navies. Morison discusses (1) conditions that foster technological innovation, (2) reactions to the changes produced by innovation, and (3) the elements of an adaptive society. The Cogan and Burgelman (2004) case, “Intel Corporation: The DRAM Decision”, paired with the aforementioned reading, recounts Intel’s encounter with technological change and how they came to exemplify the idea of an adaptive society. Discussion DRAM Decision Throughout its history, Intel has centered its…show more content…
In other words, Dov Frohman’s discovery of EPROM, although unintentional, occurred while he was actively engaged in a search to remedy the faulty MOS process. Serendipity, as stated earlier, does not occur independently of the other factors. The unanticipated innovation of EPROM was adroitly recognized by the prepared minds of Frohman and Intel’s Chief Executive Officer (CEO), Gordon Moore. Even without any immediate market applications, Moore felt it incumbent upon the future of company to support the technology (Burgelman, 1994). The invention of the microprocessor also followed a similar path. The Japanese firm, Busicom, had hired Intel to develop a set of around 15 chips that would enable their calculators to perform advanced functions. A team of designers, under the direction of Ted Hoff, had suggested a more novel approach that involved a smaller set of four general purpose chips. In early 1970, the package of chips and the proprietary rights to the design of the 4004, the central processing unit (CPU), were delivered to Busicom for the contracted price of $60,000. At around the same time, a debate surfaced about whether Intel should attempt to renegotiate the rights to the CPU design. Eventually, Hoff was able to convince Intel to return to the bargaining table, where the company would, once again, encounter a twist of fate. Intel had decided to drastically cut the contract price in exchange for a the rights to sell the chip outside of the

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