1 Introduction 4
1.1 Teradyne 4
1.2 Motivation 4
1.3 Analyzing Aurora 5
2 Research Conducted 5
3 Innovator’s Dilemma 6
3.1 Who Does the Innovator’s Dilemma Apply To? 6
3.2 Why Do These Firms Fail? 6
3.3 How Can Firms Succeed? 8
4 Teradyne 10
4.1 Teradyne Organization 10
4.2 Alex d’Arbeloff 11
4.3 Teradyne Culture 12
4.4 Fitting the Innovator’s Dilemma Framework 13
5 Semiconductor Testing Technology 14
5.1 ATE Hardware: CMOS vs. Bipolar 14
5.2 ATE Software: Windows NT vs. UNIX 16
5.3 CMOS and Windows NT as Disruptive Technologies 17
6 Aurora Project 18
6.1 Motivations 18
6.2 Overview and goals 19
6.3 Implementation 20
6.3.1 Challenges facing d’Arbeloff 20
6.3.2 Solutions 20
6.4 The INTEGRA J750: The Success Story 23
6.4.1 A Technical Success 23
6.4.2 A Financial Success 24
6.5 Solving the Innovator’s Dilemma 25
7 Internal Resistance 26
7.1 Emigration of Talent 26
7.2 The Customer is Always Right 28
7.3 Technical Considerations 30
7.4 Past Failings 31
8 Extensibility of Aurora Project 32
8.1 Kinetrix 33
8.1.1 Market Opportunity 33
8.2 J401 Tester 34
8.3 The Alex d’Arbeloff Factor 36
8.4 Aurora’s Extensibility: Conclusion 36
9 Conclusion 37
10 Bibliography 39
10.1 Documents 39
10.2 Interviews 39
11 Figure Credits 40