Only the Paranoid Survive - Book Presentation

Only the Paranoid Survive

How to Exploit the Crisis Points that

Challenge Every Company and

Career

Andrew Grove

Quotes on Paranoid

• Paranoia:

Paranoia is the belief in a hidden order behind the visible.

Paranoia is heightened awareness.

The Year “I994”

•

Intel in 1994:

A $10+ billion company

the largest producer of computer

chips

Pioneers of two important building

blocks of technology– memory chip

and microprocessor.

Growing at a rate of 30% per

annum

“Something went wrong”

• Floating Point Flaw in Pentium

Processor

Intel’s Response

• Initially Intel became defensive:

Replacement of processors for only

those who do a lot of Math on their

computers

The Horror of Dec.12

• IBM stopped shipments of all

Pentium-based computers!

Dec 19- a “New” Intel

Company

• Intel decided to replace anyone’s

parts who wanted it replaced– which

cost them $475 million!

• Suddenly, Intel found itself involved

in the consumer business.

• A shift from “ We” to “ Them”

What Happened to Intel

• Why did Intel faced such strong

reaction from its customers?

“Intel Inside”- the biggest marketing

campaign computer industry has

ever seen!

Size – the World’s Largest

Semiconductor Manufacturer.

Poor CEO- the last Guy to

know!

• CEO is the last guy to know that “

something has changed” because he

lives in an insulated and isolated

palace.

• Middle Management- especially

people from sales- are the first to

know.

Six Forces

•

1.

2.

3.

4.

5.

6.

5 forces as described by Michael Porter

The power of competitors

The power of new entrants

The power of customers

The power of suppliers

The power of substitutes- the deadliest of

all

the power of complementors- the new

force

What is “10X” Change?

Strategic Inflection Point

(SIP)

What is SIP?

• Strategic Inflection Point is when the

balance of forces shifts from the old

structure, from the old ways of doing

business and from the old ways of...