Analog Devices – Renewing a Technology Leader
Analog Devices is a $50 billion market cap global technology firm.
The company is a global leader in the design and manufacturing of analog, mixed signal, and DSP integrated circuits to help solve the toughest engineering challenges. Analog Devices’ technologies bridge the physical and digital worlds, taking information from the real world, like touch, movement, and sound, and converting it into digital signals computers can read.
CEO Vince Roche has pivoted the company away from a component-led strategy towards delivering end-to-end product solutions. This shift is enabling Analog Devices to leverage its technical expertise to solve complex problems that sit at the intersection of physics, chemistry, and biology. Rather than just selling silicon chips, Analog finds solutions to these problems, moving ‘up the stack’ to higher value opportunities. The enterprise supplier offers solutions ‘beyond silicon’ – leveraging not only components, but also an ecosystem of software, data analytics, and services.
Analog was not a traditional user of consulting services. Vince Roche sought a non-conventional partner, one who would be more of a critical friend and ally, than service provider.
Change Logic’s Role
Change Logic advised the senior team on developing and executing the ‘up the stack’ strategy. During our engagement with Analog Devices, we have facilitated, challenged, and provoked the company’s thinking for over five years. We provided Analog’s managers with structured methodologies for leading innovation and change that helped to stretch their thinking and build capability to address new markets.
Initially, we led a forum for the top 100 leaders to develop a transformational agenda for the business. From our Strategic Leadership Forum emerged a fundamental reorganization of the business unit structure, various capability developments in support of the new strategy and, most importantly, a design for a new innovation unit: The Analog Garage. The Garage builds new value propositions and capabilities for the company, creating a bridge between the core business and new algorithms, data analytics, and artificial intelligence markets and solutions.
Analog Devices understood that their ability to deliver ‘up the stack’ value propositions required a new approach to strategy development. They had to learn how to drive innovation from customer priorities, using ‘outside-in’ insight, rather than a traditional technology push. We applied Change Logic’s Ideate-Incubate-Scale methodology to support Analog as it explored new market areas. We designed and led a series of sprints that investigated customer needs and executed experiments with different value propositions. As a result, Analog Devices incubated new business proposals for condition-based monitoring of industrial equipment, digital healthcare, and platform-based business models.
Change Logic also deployed its agile sprint approach to assist Analog Devices in transforming its positions within business new ecosystems, such as automotive, industry 4.0, and data centers. We helped Analog Devices move from engaging with engineers and component buyers to creating deeper engagement with their customers. This enabled Analog Devices to engage earlier with customers and solve more important problems, further up the technology stack.
Impact
- Analog Devices revenues doubled, and its value increased threefold since Change Logic first began its relationship with the firm.
- New ambidextrous business units, such as those in digital health and machine condition monitoring, are building the company’s ‘up the stack’ revenues.
- New ecosystem relationships and partnerships have created opportunities to trial advanced solutions and business models, as well as having commercial value.
- The Analog Garage is a vital asset for innovation, connecting the company to startups and advanced research, and also providing a showcase for exciting customers about Analog’s capabilities.
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