Presentation on Case Study on Analog Devices Incorporated : MEMS

Presented By: Manish Kumar Lodha

Flow of Presentation

• Introduction

• Intrapreneurship at ADI

• The Evolution of MEMS

• Conclusion

• Questions

Introduction

• Analog Devices, Incorporated (ADI) is a company that

produce amplifiers and converters

• Mr. Stata was Chairman of (ADI) which he co-founded in

1965

• MEMS was one division

• ADI’s core products were amplifiers of analog signals and

converters that translated analog to digital and vice-versa

• The magic of MEMS was that they had microscopic moving

parts This enabled a wide variety of new applications for

semiconductor devices

Cont….

• The initial application for MEMS devices was an accelerometer, a

device for sensing motion

• ADI’s first MEMS product, the ADXL-50

• The role of MEMS devices was to control the movement of thousands

of tiny mirrors, enabling this switching process

• ADI had in fact reinvented its product line from manufacturer of

amplifiers to converters, digital signal processors (DSPs) and MEMS

• ADI also manufactured components of mobile phones and wireless

infrastructure equipment, and components for PC accessories such as

flat panel displays, CD and DVD players, and digital cameras

Intrapreneurship at ADI

• Voices of technical staff with entrepreneurial ideas have an

opportunity to be heard, Mr. Stata created the ADI Fellows program

• Less than one percent of ADI’s technical staff were Fellows

• Fellows had a direct channel of communication to the CEO and the

Board

• Mr. Fishman had come to believe that entrepreneurs always

underestimated the money and time required to reach profitability

The Evolution of MEMS

• Under Richie Payne and Goodloe Suttler (to 1992)

• Under Richie Payne and Franklin Weigold (1992-1997)

• Under Ray Stata (1997-2000)

• Under Franklin Weigold (2000-2002)

Conclusion

• By 2002, MEMS was approaching $100M in revenues, and had an

operating margin of approximately 12%.

• Income statements for most products in ADI’s catalog looked

strikingly similar

• The MEMS division had benefited from being a part of ADI, and

made contributions to the corporation in return

• MEMS is to be one of the important technologies to sustain ADI

long-term growth

Questions

• What do you suspect would have happened to the MEMS business and

to Mr. Payne had he negotiated an agreement with ADI that allowed him

to start a separate, venture-financed company to commercialize MEMS

devices in the late 80s?

• Is ADI an environment in which corporate entrepreneurs can thrive?

• What might you have done differently if you were Mr. Payne? Mr.

Fishman? Mr. Weigold? Mr. Stata?

• Was MEMS a success?

Thank You