This is the fifth digest in a series of ongoing updates to keep you informed about progress we’re making as the new ADI and the integration of our two companies. These updates are intended to let you know what’s happening, what we’ve accomplished and what’s next.

Leader Update:

Integrating two large complex manufacturing operations with a combined employee base of more than 9,500 people across a global footprint, while ensuring that we remain a sophisticated global operation that can effectively and efficiently deliver ADI’s incredibly broad portfolio of products at world-class quality levels, on time, with a very competitive cost structure, is to say the least a complex challenge! That said, I’m very pleased with the collaboration we are seeing across legacy ADI and LTC, and the progress we have made thus far.

Since the close in March, the Global Operations and Technology teams have been focusing on two key areas in order to meet this goal: first and foremost - executing on our revenue plan, while ensuring no deterioration to our customers’ experience in the areas of service and quality; and secondly - defining and implementing the first steps of our integration process.

Here are some highlights that these collaborative initiatives have achieved to date:

In support of these focus areas, our Front -End (FE) Operations from Camas, Hillview, Limerick, and Wilmington have conducted multiple operations reviews, shared common and best practices across the fabs, and established common metrics for the future. In addition we have already started to extract cost synergies from our combined operations as we leverage our scale and purchasing power across our FE supply chain.

During the quarter, we brought all the fabs into a single Wafer Fab organization led by Denis Doyle. A key guiding principle for the combined front-end is that the fabs operate, deliver, act and be seen as a single entity -- as one cleanroom, a single equipment set and capabilities and, most importantly, as a combined talent pool. A simple illustration of this to date has been the delivery of a single capital plan for FY18, whereby the priorities to meet the overall needs of the combined ADI have taken precedence over local site needs.

This was our first step in defining a unified FE strategy for our combined operations. Denis and Alex McCann, VP/GM of Linear Operations, continue to make progress on our medium- to long-term internal and external front-end strategy, which we will detail with the teams over the coming months.

The legacy LTC Penang team has now established linkages with our legacy ADI package development engineering groups to explore future leverage of the micro module capability. The Test Operations in Singapore and Philippines have initiated a “Best Practices” sharing exercise between the Operations, Engineering, Finance, and Quality Teams. As you would expect, there was much curious energy unleashed when these two traditional rivals got together to share their recipes for success. Multiple opportunities have been identified for standardization, supporting the integration, as well as cost reduction. We have now established multiple work streams that are focused on best practices between sites, including measurement of service, ATE hardware design standards, test limit setting, and outgoing sample plans.

Our Quality organizations are now fully integrated, and we have a defined site model to support our Business Units and Manufacturing operations. The teams are actively engaging on reviewing capabilities on Reliability and Failure Analysis and establishing key customer-facing support.

In addition to these engagements, we have established a cadence on consolidated revenue planning, capex management, and expense planning -- key elements necessary to manage the business. However, we won’t be fully integrated until we have a unified order to cash process with SAP implementation, which will be completed mid-2018, as well as an integrated advanced planning system (JDA) slated to be completed by end of calendar year 2018.

These are just a few examples of the progress our 28 integration teams have made in a short time. While there is still a lot of work to be done, we are well along the path to creating an agile and scalable Global Operations and Technology team to drive the combined company to greater success in the future.

• Organizational Announcements: Additional organizational announcements about the Power Products Organization, the IOT and Security Solutions BU, and the Emerging Sensors Group have been announced. Memos may be found on the Organizational Announcements page.
• Quarterly Videos: In case you missed this quarter’s video message from President & CEO Vincent Roche or the feature segment about how the combined Power Group is developing in innovative solution that integrates legacy ADI and LTC technology, cutting months off the development timeline … go to:
  From the ADI network: 3Q17 Message from Vincent Roche and Power Group Feature Video
  From the LTC network: 3Q17 Message from Vincent Roche and Power Group Feature Video
• ADI Integration Updates: Important updates have been provided in previous Integration Digests. Go to the Thoughts from ADI & Linear Executives page of this microsite to find all monthly digests.

Can legacy LTC employees access ADI’s intranet, The Circuit?

Yes! Please see below for supported access methods:

* An ADI PC is a new PC deployed, or a legacy LTC PC that has been converted to ADI standard
** Supported while network integration continues in 2017
*** These locations have the ADI wireless network (ADIWLAN)

If you are a legacy LTC employee, please click here for information and instructions that were sent to you via email. Please note that not all content, links, and tools available on The Circuit are visible or accessible to legacy LTC at this time. Additional details may be found in the email. Over time, as legacy LTC and ADI processes become more fully integrated, and we bring our two intranets together, all content on The Circuit will be accessible to employees of the combined company.

Selling the Best of Both

By Product Marketing Managers Jon Hall, Mike Hennessy, and Alison Steer

By now we are all aware that the combination of Analog Devices and Linear Technology created the industry’s most comprehensive suite of high-performance analog offerings, including best-in-class converter, signal conditioning, RF and microwave, power, and sensor products and technology.

As President and CEO Vincent Roche said recently, our primary focus now is to leverage and cross-sell this powerful portfolio to generate revenue growth for ADI. In support of that goal, our team worked together to integrate our legacy LTC and ADI precision and high-speed analog-to-digital converter (ADC) portfolios, creating the optimal combination of ADCs from both companies that would position ADI well against competitors. Equally as important, we are creating impactful sales and marketing materials to communicate the value of this combined portfolio to customers.

First up was a comprehensive review of both ADC portfolios. As LTC had traditionally targeted different converter performance optimizations versus ADI in the precision area, we found that there was a good deal of complementarity between the two ADC portfolios. There was more overlap between the two high-speed portfolios, which led to some challenging discussions. Where there was overlap – similar converters offered by both ADI and LTC – we worked together to evaluate all of the offerings. While performance specifications were important, factors such as yield, cost structure, and whether a converter was part of an established product family also were considered. At the end of the day, we selected the best ADC for inclusion in the combined portfolio, regardless of whether it was a legacy LTC or ADI part.

Next, with the expert help of graphic artists Linda Roberts and Al Apicella from Marketing Communications, we created visually appealing and easy-to-use selection guides that effectively convey the amazing breadth and variety of precision and high-speed ADCs now offered by ADI. [View the high-speed ADC selection guide and the precision ADC selection guide, which are available on analog.com and Hyperion.]

The guides will help ADI’s Sales force effectively leverage and cross-sell our combined ADC portfolio. Using a color key and symbols, the best ADC from our combined portfolio can be easily selected for a customer’s application using a range of criteria such as resolution or input type. In every category, the best ADC is delineated and in performance areas where more than one converter is available, customers can clearly distinguish which product will deliver advantages based on size, power, or performance.

Already, our Sales force is telling us that these guides are a tremendous help in engaging with customers and cross-selling our combined precision and high-speed ADC portfolio. In particular, the legacy LTC Sales force, which was previously focused primarily on selling the LTC Power portfolio, has found the guides to be invaluable for helping customers make informed converter product selections.

There was no established process to guide us in this work. We had to trust each other and rely on the philosophy of taking the “Best of Both” to create the optimal ADC portfolio. By doing so, we have provided ADI’s Sales team with a powerful tool – a precision and high-speed ADC portfolio that positions ADI extremely well against our competition and can be leveraged to increase market share and generate revenue growth.

The work of leveraging our combined technology portfolio and engaging in effective cross-selling will continue. Among the next steps will be enhancing our ADC marketing materials to incorporate recommended ADC drive amplifiers, reference circuity, clocking solutions, power management, etc. and link these signal chains to proven CFTL’s to enable ADI’s Sales force and customers to quickly identify complete solutions that can be built from our technology portfolio. Work is also underway to create similar materials for our combined digital-to-analog converter portfolio, as well integrating our comprehensive converter resources on analog.com.

While these types of integration activities are challenging, by staying true to the philosophy of taking the “Best of Both” we can truly demonstrate that 1+1>2.