Update from Hewlett-Packard
by Zoe Andrews, HP
November sees the beginning of the new Hewlett- Packard fiscal year and inevitably brings with it some organisational changes. This year is no exception, perhaps only in the scale of the changes that have taken place. We would like to take this opportunity to highlight HP's approach and direction for the new year.
Hewlett-Packard: The Company
HP stays nimble and responsive to user needs based on a decentralized management philosophy that places responsibility for business strategy with the company's individual product groups.
No single, over-arching business strategy would make sense for all of HP. At the same time, the company benefits from sharing expertise across its product groups in its three areas of technological strength: measurement, computing and communications. This combination of capabilities - what HP calls MCı - gives the company a special advantage in addressing growth opportunities, such as the Internet.
Since the 1980s, HP's vision has included the Internet phenomenon. The company has described the coming of a content-rich, digital, information "utility" formed by the convergence of data communications, telecommunications and broadcasting. With the rise of the Internet, this vision is coming to pass.
In 1997, the Internet has been a key area of focus for many parts of HP, particularly HP's Computer Organization - which makes up 80 percent of HP's business. The company's computer strategy, called the "Extended Enterprise," has the Internet at its center - harnessing the power of the Internet and other technology advances to make customers' businesses more competitive.
CO's strategy for delivering the Extended Enterprise to customers consists of the following five elements:
Another important tenant of this strategy is that it is operating-system-neutral so HP can help its customers manage mixed computing environments cost effectively. This is a natural extension of HP's open-systems philosophy, which the company has championed since the mid 1980s.
HP grows by applying its expertise in measurement, computing and communications to real customer needs, making the company a leader in many of the markets it serves. This combination of capabilities positions the company superbly to capitalize on business opportunities inspired by the Internet and the global thirst for information- management products and services.
HP's Computer Organization comprises more than 80 percent of the company. The HP businesses that make up the Computer Organization include the LaserJet Solutions Group, InkJet Products Group, Personal Information Products Group, Computer Systems Organization and Worldwide Customer Support.
The Reorganisation
The reorganisation creates a single Computer Organisation, moving to a more customer-focused organisation, simplifying our processes and making us easier to do business with, for customers, partners and channels.
HP is strengthening it's solutions partners program in a dynamic way and creating an organisation that is focused on selling solutions to real customer problems in a more integrated manner. This has numerous real business benefits to the customer;
The HP Vision
Our Purpose is to deliver solutions and services which enhance our customers' business.
Our Value Propositions reflect that we are the company that will most effectively:
Our overall strategy is to consolidate and expand our market position in UNIX and take a major segment of the NT server market. We will do this by continuing to develop our focus on our customers. At the same time, we will ensure that our people are well trained and best-in-class whilst maintaining a healthy work/life balance. The three key objectives behind this strategy are;
Business Outlook
The HP approach and vision becomes real when set upon the strong financial performance of the company. We finish with comments from Lewis E. Platt, HP chairman, president and chief executive officer, on the results for the second half of our last financial year.
"We're encouraged by the pickup in growth during the second half of 1997," said Platt, "and pleased with a solid profit improvement for the year as a whole. As we start 1998, we have a strong position in many markets. We'll be very aggressive in pursuing and creating opportunities in several arenas, including electronic business, telecommunications and the home. An example is our new initiative designed to strengthen HP's presence in the broad consumer market."
"In the coming year, we'll intensify the efforts we have under way to manage operating expenses. We have to reach a better balance between investing for growth and controlling spending. We'll also work hard to reinvigorate growth in businesses that have slowed. In addition, we'll remain focused on improving supply-chain management, executing product introductions and transitions smoothly, and broadening our vital relationships with channel partners. We believe that HP's ability to innovate, our understanding of customers, and our outstanding people will help us continue to achieve profitable growth."
Information about HP and its products can be found on the World Wide Web at:
http://www.hp.com/Sysadmin at 10.x Tutorial - Review 
