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Historically, Seagate's design centers had been organized around function, with one product line manager in charge of tracking the progress of all programs.
Seagate Technology - Wikipedia
InLuczo and CTO Tom Porter characterized the organizational redesign of design centers into core teams organized around individual projects to meet the corporate objective of faster time to market. He decided to implement a highly automated platform strategy for manufacturing.
Between andSeagate reduced its headcount from approximatelyto approximately 50, rationalized its factory footprint from 24 factories to 11 factories and reduced design centers form seven to three.
During this period, Seagate's output increased from approximately 9 million drives per quarter to approximately 20 million drives per quarter.
Technology developed by the center would include devices like the hard drive disk for Microsoft's first Xbox. Luczo led a management buyout of Seagate, believing that Seagate needed to make significant capital investments to achieve its goals.
He decided to turn the company private, since disk drive producers had a hard time obtaining capital for long-term projects. After two failed attempts to increase Seagate's stock price and unlock its value from Veritas, Seagate's board of directors authorized Luczo to seek advice from Morgan Stanley in October In addition, several leading management books have cited the Seagate turnaround in the contents.
Re-emerging as a public company — [ edit ] Luczo became the Chairman of the board of directors of Seagate Technology on June 19, This led to a trend of digital devices being created with progressively more and more memory, especially in cameras and music devices.
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At the beginning ofForbes magazine named Seagate its Company of the Year as the best managed company in the United States. Forbes wrote that, "Seagate is riding the world's gadget boom.
Its 1-inch drives are the archives for cameras and MP3 players. According to CNetit took 17 years to ship the first million and 15 years to ship the next million.
Luczo revamped the entire management team, and quickly reorganized the company back to a functional structure after a failed attempt to organize by business units in By the end ofthe company had refinanced its debt and had begun to turn around its operations. They did well especially Paradise, which produced one of the best VGA cards of the erabut storage-related chips and disk controllers were their biggest money makers.
That year saw the rise of Western Digital's Caviar drives, brand new designs that used the latest in embedded servo and computerized diagnostic systems.
Eventually, the successful sales of the Caviar drives resulted in Western Digital starting to sell some of its divisions. Paradise was sold to Philipsand since disappeared.
Aroundthe technological lead that the Caviar drives had enjoyed was eclipsed by newer offerings from other companies, especially Quantum Corp.
Products and ideas of this time did not go far. Western Digital's drives started to slip further behind competing products, and quality began to suffer; system builders and PC enthusiasts who used to recommend Western Digital above all else, were going to the competition, particularly Maxtorwhose products had improved significantly by the late s.
The Good Things Add Up
The result was the Expert line of drives, introduced in early The idea worked, and Western Digital regained respect in the press and among users, even despite a recall in which was due to bad motor driver chips. Western Digital later broke ties to IBM. Western Digital advertised the JB models for cost-effective file servers. InWestern Digital redesigned its logo for the first time sincewith the design of new logo focusing on the company's initials "WD".
As of [update]the Western Digital Raptor drives have a five-year warranty, making them a more attractive choice for inexpensive storage serverswhere a large number of drives in constant use increases the likelihood of a drive failure.
InWestern Digital introduced its My Book line of mass market external hard drives that feature a compact book-like design.