3/14/2005

Better Computer Chips

In this world of growing technology it is important for computer companies to keep up. The article titled "Super Cell", http://biz.yahoo.com/fo/050127/e77d9f1fe84a7208eec1dd0d6df251c4_1.html, talks about the new generation of computer chips. The new chip will power the new Playstation 3, and will be produced by Sony, Toshiba, and IBM. It will make computers go "so fast there no point in talking about the number". I think the technology is an interesting industry in that is changes rapidly and if companies are not able to keep up with technology they will be left in the dust. Companies such as Dell who use JIT inventory will be the most successful in the long-run, because they can adapt easily to the changing industry.

4 comments:

Tom said...

Definately, in this day and age it is very crucial for companies to stay up with technology. If companies do not stay up with the latest information they will in fact be left in the dust.

Marie said...

How true it is, companies really have to stay up with the technology that is going to last. Companies can be split on what technology venues to use and be completely destroyed. It will be facinating to see what will happen to a lot of companies in the future.

C-Dizzle said...

I agree that Dell will do well. And from what I’ve been reading, many other computer producers are ing their operations after Dell. Seems that Dell must be doing something right.

Also, as mentioned in the blog, technology is changing so fast that it is imperative that technology companies have a small inventory. (Hence the JIT inventory) This allows for great flexibility as the demand for technology changes.

Dr. Tufte said...

-1 on Ann's post for a poorly formatted link, and on Tom's and MEG's comments for spelling errors.

This is a good post for delineating two effects of technology (this is more of Macro. topic, but that's OK).

It turns out that technology both helps and hurts firms. They are helped by the aggregate level of technology - how much is out there in the society around them. For the most part, technologies that are not pervasive don't help a firm that much. Alternatively, firms are hurt by their investments in technology - it costs a lot of money. So managers have to be thinking about buying what will be adopted by everyone else before it is clear what everyone else will actually buy.