Getting to the top is not easy and staying there is even tougher


Sep 23 - 29, 2002



Reaching the top of FORTUNE's annual list of the world's most admired companies is not easy. To make it, a company needs managers of genius, innovative products, financial stamina, global reach, and a fanatical devotion to the shareholders. And if getting to the top of the list is hard, staying there is even tougher. Every year the businesses moves just a bit faster, the competition gets a little more menacing, and the world seems slightly smaller. How does Intel of the Fortune's most admired companies manages to stay ahead? It's not luck. No, try the other L word, leadership.

For more than three decades, Intel Corporation has developed technology enabling the computer and Internet revolution that has changed the world. Founded in 1968 to build semiconductor memory products, Intel introduced the world's first microprocessor in 1971. Today, Intel supplies the computing and communications industries with chips, boards, systems, and software building blocks that are the "ingredients" of computers, servers and networking and communications products. Its mission is to be the preeminent building block supplier to the Internet economy.

The writing is on the wall at Intel Corporation. "Within five years, all companies will be Internet companies," says Intel chairman Dr. Andy Grove, "or they won't be companies." Intel knows a thing or two about collaboration. As the leading supplier of processors for desktop PCs, Intel over the past two decades has worked with companies like Microsoft, IBM, Compaq, and hundreds of others to establish the PC as a vital business tool. That effort helped evolve a highly flexible and open platform with unmatched economies of scale.

Intel has taken this track record to the Internet. The company has a community of developers, suppliers, and service providers that all work towards a single goal to provide superior e-Business solutions on the Intel platform. This multi-vendor model enables downward pressure on prices and an upward trend on features, tapping the capabilities of the greater community. Being a leader in semiconductor manufacturing and technology it has established a competitive advantage through its scale of operations, agility of its factory network and consistent acquisitions worldwide. In 2001, Intel spent US$ 3.8 billion on research and development (R&D). The investment in technology differentiate Intel from its competitors and provide the foundation for future growth.


In the age of e-Business, computing takes on a whole new meaning. Desktop PCs become more than productivity tools, to emerge as e-Business command centers that draw together an astounding array of applications, resources and data. From word processing and e-mail to knowledge management and business intelligence, the range of tasks powered by PCs is broader than ever. The Pentium 4 processor reflects the performance priorities. Powerful enough to perform the most complex analytic, the processor is tuned to perform administrative magic in the background.


When Intel designed the Pentium 4 processor, the objective was to create an engine that can do more. At the same time, Intel engineered new instructions that supercharge handling of graphics, video, audio and media operations. The technology gets a workout in the rich collaborative environments taking hold in many corporations. For example, workers are using video conferencing and application sharing software to conduct virtual meetings. Rich collaborative environment allows co-workers to better communicate around the globe.

A new generation of desktop applications is also emerging, fuelled by the race to integrate customer and vendor business processes over the Internet. Employees are turning to customer relationship management (CRM) and supply chain management (SCM) software to take control of vital relationships and activities. No surprise, this trend drives a renewed glut of information. To manage and capitalize on the data flow, companies are adopting advanced business intelligence and knowledge management solutions from firms like Autonomy, SAP, and SAS. Managers are performing complex data mining and analysis, enabling them to move quickly in response to measured trends and events.

According to an industry analyst firm Gartner Dataquest, the 1 billionth PC was shipped in April 2002. This epic milestone, which represents the combined desktop and laptop shipments of all chip and PC manufacturers worldwide, has special meaning for Intel Corporation. The rapid adoption of technology around the world is resulting in new challenges for creating and deploying the necessary technology to build an infrastructure capable of handling computing and communications on a global scale. Intel continues to work with companies around the world to address these challenges, and will continue to drive technology innovation to help support the many paths to reach the 2 billionth PC.