In a keynote address to the information technology industry at COMDEX Tuesday, November 19, 2002, Hector Ruiz, AMD president and chief executive officer, asserted that all technology industries must refocus on delivering solutions that are truly driven by customers and their unique needs.
"All of us here today must make a choice," said Ruiz. "We can continue to do business the old way, or we can choose a new direction to move the technology industry as a whole forward. I urge you to demand that those companies who are currently serving you today begin developing technology not for its own sake. Not in isolation from the real world. But in line with what you are really trying to do."
To illustrate the value of AMD's customer-centric approach, Ruiz was joined by partners Epic Games, Gibson Guitar Company, IBM, George Lucas' JAK Films and NVIDIA, along with customers Cray Super Computing, China Basic Education and Northeast Utilities. Executives from each of the companies joined Ruiz in demonstrating how close collaboration with AMD has increased their revenue opportunities by maximizing the relevancy of their products for end users.
Ruiz's presentation further outlined AMD's strategic focus in light of today's manufacturing economics. With the average transistor costing approximately one-millionth of a penny, and approximately 100 million transistors now fitting on the upcoming AMD Opteron microprocessor, semiconductor strategies can no longer be defined solely by making transistors smaller and cheaper. According to Ruiz, the primary value proposition now rests with the customer.
The shift to a customer-focused value proposition is driven by a growing majority of consumer products that are now mini-computers dependent on software and silicon to define their usefulness, such as the latest cell phones, personal digital assistants (PDAs), digital television and automotive telematic systems.
Further, the growing importance on connectivity is accelerating the movement towards a new, "connected business model" in which success is determined by the number and quality of partnership relationships. Ruiz argued that Metcalfe's Law which says the overall value of a network increases exponentially as devices are added to it is the new rule of engagement that will set the standard for excellence in the industry in coming years.
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