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-------------------------------------------------------------- This story was printed from ZDNet Australia. --------------------------------------------------------------
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Intel launches broad reorganisation By Michael Kanellos, CNET News.com January 18, 2005 URL: http://www.zdnet.com.au/news/hardware/soa/Intel-launches-broad-reorganisation/0,130061702,139177707,00.htm
Intel on Monday announced a company reorganisation that will create five new divisions, including two to focus on technologies in digital health care and its distribution channel. The chipmaker also said that Jason Chen, vice president and director, sales and marketing group, plans to leave Intel at the end of January due to a family health matter. The reorganisation will also create divisions to focus on platforms for mobility, the digital enterprise and digital home. "The new organisation will help address growth opportunities by better anticipating and addressing market needs, speeding decision making, and ensuring world-class operational excellence," Paul Otellini, Intel president and COO, said in a statement. "Each operating unit has the autonomy to allocate computing and communications resources to be successful, making Intel's entire structure consistent with our platform products strategy." The company reorganisation encompasses five divisions: Organising the company around platforms versus products like flash memory or processors builds on the sales success the company achieved with Centrino, the bundle of chips that go into notebooks. With Centrino, Intel sells a processor, a chipset, a Wi-Fi chip and often other parts to a computer maker, which otherwise might have been inclined to buy different parts from different manufacturers. Potentially, the reorganisation around platforms will give Intel an opportunity to sell processors to the cell phone companies that currently buy its flash memory. Intel sells a lot of flash memory to cell phone makers but few processors. Bundling chips into a platform, however, doesn't guarantee success. Intel has sold different chip bundles for cell phones for about four years but has yet to seriously challenge Texas Instruments in the market for cell phone processors. The regrouping will also likely give it an opportunity to allow Intel to get into new markets, such as health care. Already, Intel has hired social scientists to conduct studies to determine where hospitals or health care workers could integrate PC technology. The Digital Home Group was created last year. The reorganisation introduces few new faces to the upper level of company management. Except for Eric Kim, who joined Intel from Samsung last year, all of the executives have been at Intel for years and held various positions. Intel's statement made no mention of a possible successor to Otellini, who will be promoted to CEO in May. However, the three leading contenders to succeed Otellini as COO and president -- Sean Maloney, Louis Burns and Pat Gelsinger, also all figure prominently in the reorganisation.
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