>> have you worked with MU a decent amount? I wouldn't mind any
>> insight into their atmosphere, etc. I agree they need to get out
>> of the commodity atmosphere. Maybe Microstamp will enable them to
>> do it, I don't know.
I have worked with MCC. I consider it significant. They might
consider it insignificant. Two factors have now caused me seriously
downgrade the potential for MicroStamp. One is marketing and the
other is technical/software.
1. Marketing. This is a subsidiary that is 85% owned by MU. The
parent company is into selling commodity items. i.e. The market
for the product already exists. Someone else has already beaten
a path to it. Basic innovation and proof of concept has already
been done.. etc. Manufacturing and selling in this requires
a different mind-set. Different organization structure, marketing,
management, incentives, etc. In other words: a different culture
than what MCC requires. It is possible to have a different
culture at MCC. My impression is that it is not different enough.
Company culture is not an easy thing to change. Usually it just
happens.
MicroStamp is a new product, an innovation that needs a different
type of marketing. Creating a new market is a tough business.
Only some companies can success in it. There are several ways to
tackle this kind of market. But I dont want to go into a
Marketing 201 lecture here.
My Conclusion: Serious deficiency here.
2. Technical/Software.
I am not comfortable going into details here. Just looking at
software aspect of it, I have to conclude that this is another
hardware company that thinks lightly of software. Hardware
companies in general have a very dismal record of succeeding in
any software enterprise, let alone base their future on it.
My conclusion: Doesn't look good.
As far as Micron stock is concerned, if my analysis is correct, then
the impact is only long-term (since no-one was hoping that this
would have any impact in revenues in the short-term). With the DRAM
revenue in a serious decline because of price drops in the short
term, and low hope for successful long term initiatives, I have now
turned bearish.
BTW, I do have significant software developed for MicroStamp, that
is now available to use with other RFID devices. Anyone interested,
please send me mail at prasad-assoc@worldnet.att.net.
Bipin Prasad |
