| Business leaders and engineers often see the potential | | | | This dual focus led TriQuint to become the leader in |
| for higher performance by solving problems with new | | | | applying its technology to those applications. |
| technologies. At first, only technical achievements | | | | Developing knowledge about the end market issues |
| occur. Finally, practical benefits become available. | | | | was critical to TriQuint's success because these |
| At that point, adventuresome customers begin to toy | | | | circuits are designed to optimize certain kinds of |
| with the results. Many have small applications. | | | | communications performance. By being the first to |
| But the bulk of potential customers are skeptical and | | | | focus on many of these problems with its technology, |
| want to see more proof. | | | | the company was able to make quick progress in |
| Many promising technologies stall at this point. How can | | | | learning and creating products that provided helpful |
| more progress be made? It usually takes a different | | | | solutions. |
| business model. Let's look at an example. | | | | TriQuint's example is a good model for what many |
| In 1991, TriQuint Semiconductor had learned how to | | | | technologists must do: |
| make high quality, low cost gallium arsenide | | | | 1. Specialize in one or two applications where there is |
| semiconductors, which was an emerging technology in | | | | high potential for benefits and lots interest among |
| the electronics industry. | | | | potential customers, where success will enable you to |
| The company made major strides beginning in 1991 to | | | | apply effective expertise into other large applications. |
| improve its business model: Expertise was bolstered in | | | | 2. Add the expertise needed to understand what's |
| that year by having merged together three pioneering | | | | needed for those applications. |
| firms in the field, Gazelle Microcircuits, Gigabit Logic, and | | | | 3. Learn everything you can about what must be done |
| TriQuint. But there were still few established uses for | | | | from the customers' perspectives before they will |
| this new technology. | | | | want to use your offerings. |
| Rather than try to provide for all potential applications, | | | | 4. Develop new offerings in conjunction with your most |
| the company decided to specialize in two applications, | | | | enthusiastic customers. |
| high performance wired optical networks and wireless | | | | 5. Have continuing conversations with less enthusiastic |
| communications. For optical networks, TriQuint looked | | | | potential customers to find out how their needs differ. |
| at how to speed up traffic. For wireless | | | | 6. Continually explore what business model |
| communications, TriQuint espected that the new, higher | | | | adjustments are needed to succeed in the initial target |
| frequencies that regulators made available would | | | | applications and future, related ones. |
| require better electronics to provide clearer signals. | | | | Copyright 2008, Donald W. |