TriQuint Semiconductor was formed by combining three companies with complementary technologies in specialty semiconductors. The company decided to emphasize two applications, high performance wired optical networks and wireless communications. For optical networks, TriQuint looked at how to speed up traffic. For wireless communications, TriQuint anticipated that the new, higher frequencies that regulators made available would require better electronics to provide clearer signals.
This dual focus helped TriQuint to become the leader in applying its technology to those applications. Developing knowledge about the end market issues was critical to TriQuint's success because these circuits are designed to optimize certain kinds of communications performance. By being the first to focus on many of these problems with its technology, the company was able to make rapid progress in learning and creating products that provided helpful solutions.
TriQuint Semiconductor found that by creating more specialized knowledge of customer needs, it could create even more solutions through designing its analog circuits. Early on, the company hit on the idea of continually splitting its organization into smaller and smaller units to help focus its design talent more closely on specific application opportunities. By 2003, the company's work in these areas was provided by a wireless communications division for products like cellular telephones, a telecom/datacomm division for fiber optics, and one for higher frequency applications such as satellites and wireless data links that was acquired from Texas Instruments.
The wireless communications group could be further split along the lines of the different components. For example, one division could just work on designing technology for European versus American cellular telephone handsets, since the two continents use different technologies. Undoubtedly, that focus would further drive innovation and product improvements.
The principle behind these organizational splits is to focus on an ever narrower set of applications that many customers have. In effect, the company is operating like it is spinning off these units by making them more focused and autonomous while maintaining the combined strength of manufacturing the semiconductors.
In order to succeed with this approach, the company would also need to maintain or build its fundamental strength in its manufacturing processes. To increase the likelihood of building on that strength, the company moved to take on the designs of customers and manufacture them as a foundry. This added volume and diversity of designs would inject new challenges and skill development opportunities.
Copyright 2008 Donald W. Mitchell, All Rights Reserved
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Donald Mitchell is chairman and CEO of Mitchell and Company, a strategy and financial consulting firm in Weston, MA. He is coauthor of seven books including Adventures of an Optimist, The 2,000 Percent Solution, and The Ultimate Competitive Advantage. You can find free tips for accomplishing 20 times more by registering at:
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