Analyzing Intel's IT Transformation: Strategies and Implementation

This case study examines the IT transformation at Intel, a global IT leader. The study delves into the various strategies implemented to achieve business objectives. Key strategies discussed include managing IT budgets through various levels, optimizing IT assets and the value chain to improve productivity, aligning IT with business value by shifting focus from total cost to business value, and managing IT like a business by creating new business models. The analysis highlights how Intel leveraged these strategies to create value for their business. The case study concludes that Intel successfully applied and implemented these strategies, which led to major transformations in their operations. The study provides insights into how Intel evaluated product and service costs and reduced them. The provided references include books and journals that support the case study.

The IT Transformation at
Intel

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Strategies adopted in IT to transform Intel.................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Today's world is entirely dependent on modifications in Information Technology (IT). Without
IT, it is impossible for organisation to survive in the market. This helps in bringing change to
every sector where the business is operating (Abjanic,. and Marlatt, , 2000). It entirely
transformed overall business goals and objectives by implementing effective strategies. This case
study will throw light on different strategies that were followed and implemented by Intel in
order to achieve their goals and objectives. It will show that how these strategies were developed
and how they were adopted in the overall organisation.
For undertaking this case study, the organisation selected is Intel. The cited firm belongs
to IT sector and operates worldwide. The existence of company on such a great level requires
effective adaptation of strategies. Thus, this case study will help in understanding how strategies
helped in transforming (Schwalbe, 2015).
TASK 2
Strategies adopted in IT to transform Intel
It was not possible for Intel to transform their business without having effective IT plan. It
helped them to focus on their business and making transformation by adopting innovation in
business strategies. So, they focused on some few major strategies that enabled them to
transform. It is described as under: -
1 Managing IT budgets- First of all, they made a budget that was needed to achieve their
desired goals and objectives. It helped them to have an insight in guiding them towards success.
The main purpose was to have control over the spending that was done to enhance productivity.
It aimed at creating a model that optimised the business value of IT. This contained various
levels in which strategy was made. At initial level, it consists of only budget controls methods.
At basic, the budget was defined and it was monitored. It helped employees to work harder as
they know their performance was measured. In intermediate level, cost reduction techniques and
controls were developed that was helpful in reducing cost (Jeppard and Ward, 2016). At advanced

level, various other options for funding was introduced to make the budget flexible. In
optimising level, a complete model was ready to meet the demand of enterprise. It was useful for
lower segment to focus on services that was delivered to customers. It encouraged them to work
according to budget set and to identify the areas were cost was wasted. Furthermore, this helped
in developing cost management system (Venkatesh and et.al., 2003).
2 Managing IT assets and value chain- In this, the assets are managed with value chain. It
determines how production will function and improvements will be done by identifying the gaps.
Plans are given priority according to their value and it is done with the help of certain tools. At
initial level users used their system for their own use. At basic level, IT was viewed as external
supplier that provide no input to business. In intermediate level, track records of IT were
maintained that provide management to think over it and deliver some services. At advanced
level enterprise reputation was increased that helped them to build positive brand image. At last
operations and information was frequently increased that helped to compete in the market. With
use of new system, it helped staff to increase their productivity by effectively communicating
with others (Costan and Devadas, 2016). They found out problems and issues that was arising and
solved them with the help of others. More flexible working allows them to improve their
performance. Due to improvements in staff, various others areas were also improved. Its core
focus was to develop IT as corporate competency.
3 Managing IT for business value- It had a great impact on business. In this the focus was
shifted from total cost to business value. This helped in making huge IT investments and
measuring the value of it. A repeatable process was made to allocate resources including people,
money in these priorities. In initial level no process was made. In second level measures were
taken to control direct and indirect cost that provided supported IT solutions. At intermediate
level business value was created through solutions. In advance level techniques was used to
make portfolio to evaluate group performance instead of individual. At last return from IT
investment was calculated by analysing various techniques (IChrysos,2014). A program was
launched to measure IT value. It motivated employees to support IT programs to increase
business value. By measuring value of each IT product, it provided a method to choose
investments. It helped in optimising business value of IT. It was useful for them to focus on their

core business value that helped them to innovate its systems and process. Managers and staff
were given targets to achieve and they were forced to adopt these changes in business operations.
4 Managing IT like a business- It focused on creating new business model that included finance
model which evaluated cost of each product or service. It was useful in delivery and pricing of
customer oriented products services (Schwalbe, 2015). In first level it has no cost management
system. At level 2, some cost management practices are found out and implied that helps in
reducing costs. In intermediate level, staff focuses on delivering of services and generating more
business value. In advance level, methods like ERP is implemented for effective operations and
business strategy is focused more by budget. In last level, through innovative use of technology
new products and services are created that enhance business value. It was useful in adopting a
business practices and standards to improve performance and process. IT plan was created to
manage implementation of business and proper practices. Its goal was to run Intel in the market
as IT driven service organisation. Thus, it became possible to achieve their goals and objectives
by running IT effectively and efficiently. With this Intel created it vision of transforming IT
with developing strategies that focused on creating value for business.
CONCLUSION
From this case study, it is concluded that Intel effectively applied and implemented its
business strategies that helped them to have transformation in their operations. It showed that
how they were able to adopt these strategies and how they evaluated each product or service cost
and reduced it (Curley, 2006). Therefore, it leads to major transformation that was happened.

REFERENCES
Books and Journals:
Abjanic, J. and Marlatt, D., , 2000. Network apparatus for transformation. U.S. Patent
20030069975A1.
Chrysos, G., 2014. Intel® Xeon Phi™ coprocessor-the architecture. Intel Whitepaper. 176.
Costan, V. and Devadas, S., 2016. Intel SGX Explained. IACR Cryptology ePrint Archive. 2016.
p.86.
Curley, M., 2006. The IT transformation at Intel. MIS Quarterly Executive. 5(4).
jeffers, J., Reinders, J. and Sodani, A., 2016. Intel Xeon Phi Processor High Performance
Programming: Knights Landing Edition. Morgan Kaufmann.
Jeppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Laudon, K.C. and Laudon, J.P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
venkatesh, and et.al , 2003. User acceptance of information technology: Toward a unified
view. MIS quarterly. pp.425-478.