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IBM MICROELECTRONICSJOINT DEVELOPMENT
ALLIANCES
Group 5
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Agenda
How does the shared innovation model work at
IBM? Are there particular aspects in the choice
of partners that are important in the success of
the model?
What are the implications for industry structure
& how competition might evolve due to the
above approach?
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Industry structure
Designers
Fabricators
IDMs
Fab-lite and Fabless
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Industry Outlook
Industry Economic Equation:
Production Yield of a good Die and Physical size
of each Die
Shift from Vertical integration to horizontalecosystem of specialist
Design rules and process standardization
Modularizations Heavy investment industry
Increasing pressure from Japan industry
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Challenges to Designers
Technology obsolesce
Heavy investments in R&D
Dependencies on Fabricators
Fabricators need to keep pace with designers
in terms of process enablement
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Implications for Industry structure
Industry Structure
Implication of structure & challenges
Environment for collaboration
Effect on competition
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Innovation model work at IBM
IBM Radical Collaboration Model
Presence of group in value chain
Benefit & Challenges
Partner selection criteria
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IBM Radical Collaboration model was an innovative approach toaddressing the huge R & D investment and capital that are necessary to
remain competitive in the global semiconductor industry. This model
requires a rethinking of what is proprietary and what is common, and
where the boundaries of the end of the cooperation and competition
begins. IBM and its partners have managed to remain competitive, for
example, 45 nm node, at a much lower cost than the firms that alone,
and there is great benefit from the large funnel ideas and different points
of view. It also changes the shape of that firms can use to create a
competitive advantage, or it requires rethinking the very least
Innovation model work at IBM
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The mantra
The strength of the team is each
individual member. The strength of
each member is the team.
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Challenges and Issues
Sharing of resources and efforts
Sharing of IP and proprietary knowledge
Governance issues
Cultural issues
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Thank You
