Agilent Technologies Organizational Study Presentation Dan Lindquist, Michael Foss, & Sara Schwalbenberg

History Agilent is Hewlett-Packard spin-off (1999) Agilent is Hewlett-Packard spin-off (1999) Strategic move to re-image themselves as “testing & measurement” company Strategic move to re-image themselves as “testing & measurement” company Wanted to respond better to customers Wanted to respond better to customers Improve testing & measurement worker morale Improve testing & measurement worker morale Largest IPO in Silicon Valley history, raising 2.1 billion dollars Largest IPO in Silicon Valley history, raising 2.1 billion dollars

Company Facts Corporation Corporation 30,000 employees around the globe 30,000 employees around the globe Sell to customers in over 110 countries Sell to customers in over 110 countries More than half of Agilent’s revenue is generated from outside the United States More than half of Agilent’s revenue is generated from outside the United States

Strategy “ Agilent focuses on high-growth market opportunities in the communications, electronics and life sciences industries. Continuing a legacy of technological innovation, Agilent leverages the benefits of scale and global presence to capture and create business opportunities.”

Milestones Specific financial milestones have been set for next 2-3 years Specific financial milestones have been set for next 2-3 years Operational excellence Operational excellence

Departments  Life Sciences and Chemical Analysis  Semiconductors  ATG: Automatic Test Group  EPST: Electronic Products and Systems (original part of HP)

Life Sciences and Chemical Analysis Drug testing to genomic researchDrug testing to genomic research Mostly the tools to do those thingsMostly the tools to do those things

Semiconductors Sells integrated circuits on the open marketSells integrated circuits on the open market Duplexer chip allows same antenna to be used for sending and receiving signalsDuplexer chip allows same antenna to be used for sending and receiving signals Makes the LEDs for newfangled traffic lights, taillights, and carsMakes the LEDs for newfangled traffic lights, taillights, and cars Searching for the holy grail of replacing the light bulb itselfSearching for the holy grail of replacing the light bulb itself

EPST: Electronic Products and Systems (original part of HP) Voltmeters, oscilloscopes, basic testing equipmentVoltmeters, oscilloscopes, basic testing equipment Helps people put systems together - Agilent supplies the toolsHelps people put systems together - Agilent supplies the tools

ATG: Automatic Test Group Make the testers for large manufacturersMake the testers for large manufacturers New tester that works on things that use both analog and digital signalsNew tester that works on things that use both analog and digital signals ICs getting so small that you can’t just connect to it to test it, so new ways of testing are neededICs getting so small that you can’t just connect to it to test it, so new ways of testing are needed X-rays are one of the methods that are used X-rays are one of the methods that are used

Intellectual Property Pretty much the same throughout corporate America Pretty much the same throughout corporate America Patent belongs to the company, & the employee gets some sort of reward Patent belongs to the company, & the employee gets some sort of reward Many thousands of patents at Agilent Many thousands of patents at Agilent When the split with HP happened, the patents split as well. When the split with HP happened, the patents split as well. Typically there is a bonus for when someone is able to file a patent Typically there is a bonus for when someone is able to file a patent

Spinoff Problems Inefficient because they had been under the HP “umbrella” Inefficient because they had been under the HP “umbrella” HP had infrastructure Agilent didn’t even know they were using HP had infrastructure Agilent didn’t even know they were using Expensive rebuliding Expensive rebuliding 2000 major software packages were being used internally (most use 20) 2000 major software packages were being used internally (most use 20) HP masked Agilent’s profitability when they were together HP masked Agilent’s profitability when they were together

Was the spinoff beneficial? Agilent has made incredible leaps in business efficiency Agilent has made incredible leaps in business efficiency November 17th will show if it really paid off November 17th will show if it really paid off In the distant future, Agilent will definitely benefit In the distant future, Agilent will definitely benefit Now they can run their business the way they want to run the business Now they can run their business the way they want to run the business

Agilent Today Agilent is the #1 supplier of testing equipment in the world Agilent is the #1 supplier of testing equipment in the world Suffering because of sagging sales in key markets Suffering because of sagging sales in key markets Had to lay off 8,000 people in 2002 Had to lay off 8,000 people in 2002 Net losses in 2002 was 1.3 billion dollars Net losses in 2002 was 1.3 billion dollars Focus on restoring profitability through innovative products Focus on restoring profitability through innovative products Initial goal for Agilent is to become profitable Initial goal for Agilent is to become profitable November 17th a big date for Agilent - earnings statement comes out November 17th a big date for Agilent - earnings statement comes out

Company Atmosphere Marketing and R&D are almost inseparableMarketing and R&D are almost inseparable Strong technical confidence in marketingStrong technical confidence in marketing Never can quite get back to the garage cultureNever can quite get back to the garage culture People are impressed by how coworkers will help out other coworkersPeople are impressed by how coworkers will help out other coworkers Attitude that if someone needs something, you help themAttitude that if someone needs something, you help them

Marsh Faber  EPST: Electronic Products and Systems (original part of HP) department  Marketing in an area called System Components  Marsh has no experience working at any other companies

Questions?