LISA SUE BRINGS SUCCESS TO AMD AS PREDICTED IN BLOG #101 – #103

Trend meetings are a must on a weekly schedule at AMD – in order to identify the trends that zero-in on market opportunities, identify gender shifts, present and future competitive equipment plus a total competitive overview, and trend shifts that are creating an impact on the overall business and capabilities of AMD. Outsourcing is a major contributor in AMD’s success of being in 19.2% of personal Computers from 7.3% in 2015 – these meetings determine where AMD stands relative to it biggest competitor INTEL, and AMD closely monitors every key factor of data regarding competition and INTEL the leader – AMD is a close 2nd with the stock increasing 80% this year, ranking it among the best large tech companies, while INTEL has almost slumped 20%. Lisa Sue indicates that when she got to AMD, she was faced with two choices that required major decision making – but as AMD grew, she now is faced with 10 or more choices.

First, she bet that personal computers would increase in use, aided by a pandemic causing stay-at-home increase in speed or usage. Second, she signed of on a new design – the tiniest and most efficient transistors in a bid to make them faster than INTEL’s, which allowed her to make an approach to Taiwan Semiconductor Manufacturing and secure a selling agreement. The new chips have been selling fast, largely because they have measured up to their performance and price promise and have been delivered on time. She met the first and second “R’s” of the Marketing Formula (Right Product-Right Price) leaving the last two R’s (Right Promotion – Right Place) to TSM to implement. Meanwhile, INTEL is struggling along faced with recent shakeup of Engineering Team as a result of a major misstep.

It’s a real pleasure to be following AMD’S successes, since I also stay close to IBM and watch it closely due to Ginny Rometty the former CEO is still hanging around until Jan. 1st, 2021. Ms. Su is an IBM veteran and was being mentored by Lou Gerstner CEO and John Kelly a Sr. Officer who Lou had appointed to be a mentor to Ms. Su. Lou recognized the talents of Ms. Su and Ginny Rometty and was grooming both for the position of First Female CEO at IBM.  When Ms. Su saw the message that she was not the choice, she left IBM, and the rest is history.

Ms. Su is left with a challenge to get AMD’S share of the server market that is consumed by the end-users of HP and Microsoft products. AMD has to improve – they have only captured 5.8% of the market.  They have the products and might have to improve this share by relooking the methods of getting to market – distribution. the other factor would be – the area of promotion.

The hot graphic-chips market also has been difficult where the major competitor is Nvidia where the CEO finds Ms. Su and intense competitor in product execution. Intel has total revenues $72 Billion annually vs. AMD’s $6.73Billion – she has a tendency to run towards problems. We will be watching Ms. Su.

Lesson To Be Learned:

Trend Meetings represent a key factor in Ms. Su’s success. You need to have Trend Meetings to be running towards challenges and opportunities. If you are not having trend meetings you are missing a very unusual opportunity or your employees and Managers to contribute. How many trend meetings have you attended lately?