1. Executive MBA Students Philadelphia University, PA
Hewlett-Packard
Czech Republic
Stanislav Havel ESG Marketing Manager
Prague, March 13, 2003
Prepare alternative seating CPQ/HP
Speaker: JAN
Time keeper: MAUD
Timing: start 10.00
Material ready:
Flipchart, stiften, plakband,
Voor elke deelnemer: papier & balpen
Beamer, laptop

2. hp vision to be the world’s leading IT solutions provider
simplifying IT for superior business results
                                                
Hp mission
Q: is it different from HP’s previous corporate mission?
Q: is it different from CPQ’s earlier corporate mission?
till 2001: ‘Everything to the Internet’
since 2001: ‘to become the top IT solutions provider’….

3. hp mission
In the words of Bill and Dave, HP exists to "invent the useful and significant."
"Useful" in that our contributions free businesses and consumers to focus on what matters most to them.
"Significant" in that we intend not only to make a profit, but to make a difference.
Hp mission
Q: is it different from HP’s previous corporate mission?
Q: is it different from CPQ’s earlier corporate mission?
till 2001: ‘Everything to the Internet’
since 2001: ‘to become the top IT solutions provider’….

4. 4 Groups: Corporate Functions Imaging & Printing Personal Systems
HP Labs
Global Brand &
Communications
Imaging
& Printing
Information
Technoology
Personal
Systems
Group
HP Services
Finance &
Administration
Corporate Affairs
Enterprise
Systems
Group
Human Resources
Office of Corporate
Strategy & Technology

5. Enterprise Systems Group (ESG)
Business overview
Industry consolidation expected to accelerate
Intensive focus on ROIT (return on IT) and cost reduction by CIOs
Focus on improved management tools due to of IT complexity increase
The unbeatable portfolio of products for enterprises
Business Critical Servers, NT Servers, Storages, management SW
Focus on specific industries
FSI, Telco, extended manufacturing; government
35,000 employees worldwide
Information management is complex. This complexity is not going to go away - it is only going to increase as the number of systems, servers and web services expands.
Today, enterprise customers enterprises are focusing on doing more with the IT infrastructure they already have -- a goal that is often difficult to achieve
Enterprises invest, but they invest carefully. They expect a real and fast return.
Given today’s environment, they also want and deserve help in cost reduction -- whether that is server and storage consolidation, or reduction in managing the IT environment through better software management tools or managed services.

6. HP Services Business overview #3 IT services business worldwide
Ranked #1 outsourcer by our customers
Comprised of three lines of business: customer support, managed services and consulting and integration
Biggest growth area is managed services
65,000 employees worldwide
#3 position is defined by total revenue

7. Imaging and Printing group
Business overview
#1 in Americas, Europe and Asia Pacific
#1 in 18 of 20 categories including ink, laser, scanners, designjet, print servers
Technology leadership in inkjet, laser and liquid electro photography (LEP)
238 million printers shipped during 17 years of industry leadership
23,000 employees
The Imaging and Printing business is a $20 billion (US) business. We are No. 1 in 18 out of 20 product categories, and our business model is very simple. We leverage the installed based, which we call sockets, enjoying an annuity stream with supplies.
Our installed base of printers is over 238 million – 176 million inkjets and 62 million LaserJets – and we add 30 million inkjet printers every year, and 7 to 8 million LaserJets.

8. Personal Systems Group
Business overview
Broad portfolio – from handheld devices to multi-way, Itanium® workstations
More than 85 million PCs in installed base
Products for multiple markets, including: vertical/industrial, business/office, mobile professionals and family/personal/entertainment
12,000 employees
PSG Overview:
There are few places we are NOT. We’re commercial and consumer. We’re handheld PCs to Itanium workstations. We’re stand alone and we’re connected.
>85 million PCs installed base with the new HP.
More than $20B worldwide (adjust based on Nov 20 earnings)
vertical/industrial: environment is often critical for certain industries. We have experience designing specific form factors and application support for industries such as financial services, the manufacturing shop floor, airlines, fast food, the military and retail.
business/office: we provide products that satisfy the needs of the individual user, as well as the IT professional responsible for the hundreds or thousands of clients on their network.
mobile professional: we’ve innovated new ways of working and getting business done on the move with handhelds like the iPAQ, notebooks and the new Tablet PC
family/personal: hp has the unique ability to draw on both business and consumer customer needs to develop personal solutions that address both. The fact is, most of our “business” customers become “consumer” when they’re at home on nights and weekends. And this convergence of experience influences their expectations. Look at amazing new products like the Media Center PC with built-in TV tuner and that comes with a remote control.
The result is that our business customers have a higher standard for their personal computing experience. We understand that, and we deliver solutions to meet your expectations. No other company has this perspective. No other company innovates based on this perspective. And no other company has such a remarkable portfolio of products and services that span consumer and business customer environments.

9. hp sales model: customer segmentation Consumer/MicroBusiness
in the Czech Republic
customer segments
revenue
hp objectives
Corporate
N/A
N/A
N/A in Czech Republic
Enterprise
10 named customers
Be trusted advisor to account
Be recognized as key strategic IT provider to the account
Commercial
named customers
(installed & emerging)
Generate large/profitable deals
Focus on products and focused solutions
SMB
TOP SMB 600 businesses (of 5000 existing)
Rest SMB aprox
Maximize productivity of sales touches
Optimize reach through blended channels
Corporate = ESG led
represents >$50m annual revenue opportunity
cross-company portfolio of products/services
fits into a target vertical
>20% of new hp revenues outside host country in >1 region (for global accounts)
>$25m in orders
named at associated geographic level (global, region, country), consulting with all groups
warrants dedicated cbm, services principal and assigned senior hp executive
required and rigorous account planning process
Enterprise = ESG led
sustainable it spending across products/services
strategic customer or target for it infrastructure solutions
large installed base customer
investment accounts
named at country level
less intensive account planning process (relative to corporate accounts)
Commercial = ESG led
diverse installed base and new deal-oriented opportunities
strong installed base renewals
identified opportunistically within territories
Smb = PSG led
highly diverse installed base and new deal-oriented opportunities
purchase decision typically by owner
lacks internal it expertise
price conscious & cautious
likes to buy direct if familiar with technology
uses resellers for more complex purchases
has some service needs
Give examples of local accounts for each segment!
Consumer/MicroBusiness
Individuals
& SOHO businesses
Stimulate demand through brand building
Optimize reach through blended channels

10. where we are today # 1 IT Company in terms of revenue # 1 in services
(IBM, PVT, Logica)
# 1 in Unix servers
(Sun, IBM)
# 1 in ISS servers
(Dell, IBM)
# 1 in storage (estimation)
(IBM, EMC, Sun, Dell)
# 1 in printers
(Cannon, Epson)
# 1 in access devices
(Dell, Acer (NB), AT (PCs), Toshiba, IBM, Fujitsu-Siemens)
# 3 in cameras (Olympus, Sony)

11. key strategies
to differentiate by inventing the next great technologies and developing distinctive solutions that offer ongoing value to our customers
to drive market-unifying, industry standards-based architectures and approaches where appropriate
to build a great services business and deliver our solutions via whatever channel the customer desires
to participate in markets at the intersection of information appliances, useful e-services and an always-on internet infrastructure
to build the next generation of imaging and printing technologies to help our customers collaborate and share
to build and maintain an effective partner network

12. Organizational model & key objectives for go to market
maximize coverage for all businesses across all customer segments
maintain and enhance leadership position in consumer channels
aggressive ramp up of pc direct sales in selected countries
dramatically increase services sales into selected, top accounts
investment into industry verticals
establish corporate relationship with top customers
partner of choice for key isvs, sis and service providers
maintain leading share position with key distribution partners
Organizational model & key objectives for go to market
Read the slide,
Point at the underlined key words

13. Market share ESG ISS - Year 2001 BCS - Year 2001 NSS – 2002 est.
new HP
51%
Others
11%
IBM
20%
Dell
30,9
10,63
6,91
11,99
18%
NSS – 2002 est.
BCS - Year 2001
IBM
30%
Sun
27%
Others 5%
new HP
38%
27,32
24,31
34,56
4,89

14. Q & A