Publications
Publications
- October 2009
- HBS Case Collection
Low-k Dielectrics at IBM
By: Willy C. Shih and Giovanni Carraro
Abstract
Innovations at the frontiers of technology carry enormous risk of making wrong choices. This case examines a decision made by IBM in its semiconductor process technology strategy: a material to use as a dielectric insulator in its leading edge silicon chip technology. While at the time of the decision it looked like a good choice, subsequent issues with material properties caused the company to have to switch to an alternative. Though a major disruption, the company was able to recover relatively quickly. The case probes the organizational capabilities and problem solving approaches that enabled that recovery. Missteps when making huge bets at the forefront of scientific innovation are increasingly costly, and the company in effect purchases real options for its R&D strategy by allowing a measured level of concurrent investment in competing alternatives.
Keywords
Competency and Skills; Decision Choices and Conditions; Technological Innovation; Product Development; Science; Creativity; Semiconductor Industry; United States
Citation
Shih, Willy C., and Giovanni Carraro. "Low-k Dielectrics at IBM." Harvard Business School Case 610-023, October 2009.
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