Monthly Archives: March 2015

adapting tech to a new world

It’s always been difficult for older tech companies to adapt to new and setting trends. More recently though, there has been a bit of positive news for them. If it’s something they are willing to listen to, then it may just help them survive and possibly even prosper in the near future. Recently, the chairman (who is also the president and chief executive) of Texas Instruments joined Cisco in a San Francisco conference. The company is old, and long standing with a good reputation. They were the first to produce a silicon transistor. Unfortunately, they have been experiencing a bit of trouble with their wireless products and their ability to sell digital chips.

Finally, they refocused. Their sights have now been set on producing less sophisticated (and subsequently less expensive) non-digital chips. What can this mean for Texas Instruments? Well, there is an enormous profit margin if they are able to pull these off. Even now, their stock is steadily increasing and have risen to over 140 percent. These have proven to be a great profit, and it’s good that this decision was made when they did. These days, all equipment seems to be harboring electronic intelligence. They are reporting a huge improvement in performance, thanks to their mechanical engineering (which was developed with very close monitoring, and a bit of computer analysis.

It was time to Texas Instruments to begin targeting a large base of small manufacturers. Very small. We are talking the types of companies that have roughly 30 to 50 employees, which turn out only a couple a products at a time. The kind of companies that have never seen his business before. It’s smart, considering that nearly every manufacturer in the world (from producers of complex computers to people who make noisy novelty items) are going to require some degree of machine intelligence to monitor the performance of their products. They are making it easy by providing their chips via catalog which many of these companies can access, while sales people manage the larger businesses.

This is such a complete switch from the contemporary concept of finding the largest account possibly, and selling a majority of what they make to them. They have attempted to explain it to bankers on Wall Street, but it’s a hard route to analyze accurately. After finally releasing many of these ideas and beginning to implement them, earnings have already exceeded what Wall Street was even expecting. The revenue rolling in has already pushed pass 11 billion, which a larger dollar amount per share than they previously thought. The change in Cisco’s leadership certainly helped. While they may have fired over 5 thousand people in an attempt to begin the company in a new light, they promptly created new and relevant positions, and hired another 5 thousand more. It’s time for them to finally take everything into a new direction.

They want to become the top Information Technology company, which is no easy task. Though bringing in an entirely new generation of workers and with the development of new partnerships… it doesn’t seem to be too far off.

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