10 Updates
Google And Intel, Welcome To The New American Conglomerate

Google And Intel, Welcome To The New American Conglomerate

Jan 10 2014, 10:43am CST | by

Announcements from Google and Intel in the first week of 2014 confirm a trend that was already pretty solid but overlooked in 2013. The American Conglomerate is back (transparency note – I own a few...

Filed under: news

 
 
 

28 weeks ago

Google And Intel, Welcome To The New American Conglomerate

Jan 10 2014, 10:43am CST | by

Announcements from Google and Intel in the first week of 2014 confirm a trend that was already pretty solid but overlooked in 2013. The American Conglomerate is back (transparency note – I own a few shares in Intel).

It’s back and its more interesting than ever. Google and Intel are but two of the companies that believe they can take on more or less any sector and win (Amazon is the original new American conglomerate).

Let’s look at this, because historically conglomerates come into fashion only to fade away again.

The reason they fade is few executive teams can master multiple sectors. Fund managers wise up to that. They think they have a better handle on how different sectors function – and feel more confident they, not business executives, can pick sectoral winners.

But we have just entered a new age of business. All businesses now have to deal with mobility and with speed. The smartphone is about to be distributed around the body, the car, the office and the house. Google’s willingness to take on risk across these application areas has pleased the market who rewarded it with a significant stock price increase in 2013, from a low of just over $700 in January 2013 to $1100 now. Fund managers are hoping Google can second-guess and craft new markets better than they are able to spread innovation risk in their portfolios.

Google is trying with Calico – health; Motorola (connected device production); TV (Chromecast); the connected car (through the Automotive Open Alliance), and in robotics, where it may well extend its Android platform and ecosystem operating model to the robotics operating system.

Intel is hoping to ape Google in this, to date with very little impact on the stock price. It’s TV project is not looking great – in fact it is widely seen as a failure). That in turn could impact on people’s perceptions of its other major adjacencies, particularly wearables.

I’ve been writing about radical adjacencies for a couple of years now, and the enterprise trend is really firming up. It means companies have to take on a range of new competencies and it’s not clear that enough of them understand that.

At CES, Intel made a pretty good fist of projecting its wearables strategy as an ecosystem play, having already set up a partnership with retailer Barney’s, fashion label, Opening Ceremony, and the Council Of Fashion Designers of America.

Moneybuilder had this to say about it here on Forbes:

In a nutshell, rather than run as a “me too” smartphone manufacturer or mobile chip maker, Intel is taking the lead in making your appliances, gadgets and, yes, even your clothes talk to each other.  And their vehicle for doing this is Edison, a Pentium-class computer the size and shape of an SD card you might put in a digital camera.  Despite its small size, it has Bluetooth and WiFi connectivity.

It’s nowhere near enough because that’s all technology, and plenty of companies do good tech. It’s simply not clear where Intel’s ecosystem is for wearables and why Intel would be a draw.

The big difference between the conglomerate today and yesterday is that in 1970 conglomerates bought up assets whereas in 2014 they will be heavily involved in new areas of business, designing and crafting new industries in collaboration with complex ecosystems. Platform and ecosystem is key to that. So too is high-level talent as companies like Intel become multiple companies, each in need of inspiring leadership.

By way of contrast to Intel and Google, Apple hired the CEOs of Yves St Laurent and of Burberry and then went quiet! And Google has that in people like Andy Rubin, now in charge of robotics, having established Android as the global smartphone OS of choice.

In people like Rubin, and Paul Deneve and Angela Ahrendt, Google and Apple have proven winners, people who are at the top of their game. Intel needs to do likewise because wearables are not a simple adjacency. They are a fast evolving new line of business.

But more than that these companies now resemble old fashioned conglomerates and the market is betting on their success across a widening range of industries. That means many more people of CEO calibre are needed inside the walls. Message to Microsoft – one CEO is not enough. But it also means we need need new rules of business.

In the meantime welcome back to the new American conglomerate – it’s different this time around.

Follow me on Twitter @haydn1701 or join me on Facebook. I am here on Google

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was to ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was brok ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minis ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last mont ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million i ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datu ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) today. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Alcohol kills 15 Australians everyday
Canberra, July 31 (IANS) Alcohol causes 15 deaths and hospitalises 430 Australians every day with the numbers rapidly increasing over the past decade, a new study released Thursday said.
 
 
App that pays you for exercise
New York, July 31 (IANS) Will you miss your workout if you had to pay for it? If money motivates you more than fitness, an app is here to either reward or punish you.
 
 
Decreased carbon dioxide formed Antarctic ice sheet?
New York, July 31 (IANS) Turning a long-held climate shift theory on its head, researchers have found that decreased carbon dioxide (CO2) levels during a major climate shift 34 million years ago led to initiation of Antarctic glaciation.
 
 
Tidal forces gave moon its shape: Study
Washington, July 31 (IANS) What gave the moon its overall shape? Tidal forces.
 
 
 

Latest from the Network

Jessie J to move to US
Los Angeles, July 31 (IANS) Singer Jessie J says she is planning to move to the US within the next 18 months. The London-born singer, 26, is currently promoting new single "Bang Bang", a collaboration with Nicki Minaj...
Read more on Celebrity Balla
 
Alcohol kills 15 Australians everyday
Canberra, July 31 (IANS) Alcohol causes 15 deaths and hospitalises 430 Australians every day with the numbers rapidly increasing over the past decade, a new study released Thursday said. VicHealth and Foundation for...
Read more on Business Balla
 
Australia suspends athletics head coach
Glasgow, July 31 (IANS) Australia's head coach here at the Commonwealth Games Eric Hollingsworth has been suspended by Athletics Australia (AA) after his outburst at Olympic gold medallist and team captain Sally...
Read more on Sport Balla
 
Tom Hardy to play Marco Pierre White in biopic?
Tom Hardy wants to play Marco Pierre White in the Hollywood film based on his life. The 36-year-old actor is keen to star as the bad boy chef in the upcoming biopic, which is being directed by Ridley Scott, after...
Read more on Movie Balla
 
App that pays you for exercise
New York, July 31 (IANS) Will you miss your workout if you had to pay for it? If money motivates you more than fitness, an app is here to either reward or punish you. Pact is an app which uses money to track your...
Read more on Business Balla
 
Decreased carbon dioxide formed Antarctic ice sheet?
New York, July 31 (IANS) Turning a long-held climate shift theory on its head, researchers have found that decreased carbon dioxide (CO2) levels during a major climate shift 34 million years ago led to initiation of...
Read more on Apple Balla
 
Tidal forces gave moon its shape: Study
Washington, July 31 (IANS) What gave the moon its overall shape? Tidal forces. In the fresh look into moon's formation, researchers incorporated tidal effects into their analysis. They also took into account the large...
Read more on Apple Balla
 
Share domestic chores for super sex life
New York, July 31 (IANS) Do you often ignore sharing household chores with your spouse? Start helping her from now on as it comes with an extra incentive - better, hotter sex. According to an interesting study, "...
Read more on Celebrity Balla
 
Bees select best flowers even before landing
London, July 31 (IANS) For rearing their young, bees need to be able to select flowers providing the most nutritious pollen and they know it even before landing on the flower simply by looking at the colour of the...
Read more on Politics Balla
 
Kendall Jenner wants to win Harry Styles back
Kendall Jenner reportedly believes she and Harry Styles are ''meant to be together.'' The 18-year-old model has secured backstage VIP passes for several One Direction shows and is determined to use the band's 'Where We...
Read more on Celebrity Balla