AMD Global Consumer Advisory Board Identifies Critical Issues to Improve End Users' Technology Experience

Business Wire, May 6, 2002

Business Editors & High Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 6, 2002

First Meeting Tackles Growing Gap Between Technology Innovation

and End User Adoption

The AMD (NYSE:AMD) Global Consumer Advisory Board (GCAB) recently held its inaugural meeting to identify and seek to resolve key challenges in computing technology facing home and small business users.

The first meeting tackled the growing gap that exists today between technology innovation and adoption by end users. Members identified five critical issues that influence the consumer and small business users' technology experience: simplicity, relevance, trust, a holistic approach and socio-economic costs.

"Technology moves at such a rapid pace that if we do not take proactive measures, many individuals and small businesses will find themselves at a severe disadvantage," said Pat Moorhead, AMD's vice president of Customer Advocacy and chairman of the GCAB. "By addressing some of these issues through the collective brainpower of the GCAB, the group plans to develop solutions that benefit the industry and technology users worldwide."

The AMD GCAB consists of 14 leading consumer and small business experts, academics, journalists and technology futurists from around the world. The GCAB is part of AMD's Customer Advocacy Initiative (CAI), which represents the company's commitment to put end users -- whether home or business -- at the forefront of the industry's technology discussions. The GCAB plans to validate and prioritize findings through further research and seek resolutions to these critical issues. The group met April 30 at AMD corporate headquarters in Sunnyvale, Calif.

Five Critical Issues

The GCAB identified simplicity as an important factor influencing the widespread adoption of certain technologies. Common problems prohibiting simplicity include the industry's use of technology nomenclature and jargon and the need for better end-user training and support. Many users are also often confused by complex buying decisions and installation.

"Technology companies need to simplify their communication," said Dr. Bernd Skiera, chair of Electronic Commerce in the School of Business and Economics at Johann Wolfgang Goethe-Universitaet in Frankfurt, Germany. "Consumers do not understand the techno-language that is often used to name and describe products. Consumers would better understand the technology if the products were named for the benefits provided and not the features."

Second, the GCAB identified that many end users do not understand why certain technologies are necessary or relevant. Consequently, many users may not be motivated to invest time into learning how to use such technologies.

"We must understand what truly motivates people to use technology on a global basis," said Enrico Mercanti, a management consultant in Milano, Italy. "Different people, different cultures, different demographics find different benefits or relevance in technology."

Third, the GCAB identified the significant challenge technology providers face in gaining and keeping the end users' trust and fulfilling their expectations. Many users remain concerned with privacy and security in using the Internet.

Fourth, the GCAB agreed that the industry needs to take a holistic approach in developing new technologies. Ensuring that products are designed with a well-supported infrastructure can lead to a better end-user experience.

"The entire value chain must be aligned for the benefits to be perceived," said Dr. Carlos Scheel, professor at the Monterrey Institute of Technology. "Many developing countries do not have the infrastructure in place to support broadband access, so they do not see as much relevance in owning a computer."

Finally, the group felt that throughout the world, socio-economics is a major area impacting the adoption rate of technology. The group determined that in many global regions, while costs have decreased for technology, end users still can not afford to invest.

The GCAB plans to meet four times annually. Consumers or small businesses with questions or comments may email the GCAB at amd.gcab@amd.com.

About AMD

AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE:AMD).

AMD on the Web

For more AMD news and product information, please visit our virtual pressroom at www.amd.com/news/virtualpress/index.html. For more information regarding the GCAB, visit www.amd.com/GCAB.> AMD, the AMD Arrow logo, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other product names are for informational purposes only and may be trademarks of their respective companies.

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