4. Executive Summary
Situation
The Commercial (B2B) PC Services market is fast-paced and
those who do not quickly innovate become obsolete. As they
age, millennials are rapidly taking over key decision-making
roles. These new leaders come with different priorities and
preferences than those of their predecessors. HP must adapt
both their products and services, as well as the way they interact
with businesses to meet the needs of this new generation of IT
decision-makers.
Complication
HP has consistently been a top choice for enterprise IT solutions.
Its innovative DaaS Cycle fits the specific demands of modern
businesses. However, its full potential is not being recognized by
millennial IT decision makers. HP must develop a novel strategy
to capture the profitability that the DaaS cycle offers in the B2B
market and to differentiate from competitors who may copy the
service.
Resolution
When the agility of DaaS meets simplicity, HP will begin to
realize the full potential of this market-disrupting service.
Through simplicity online, simplicity in sales, and simplicity in
values, HP will effectively differentiate itself and become the
brand of choice for millennial IT decision makers.
4
6. Agility is essential
Scalable with growth
Adapts with innovation
Allows for customization
Modern Industry Needs
In an industry where last year’s “cutting edge” soon becomes obsolete, HP
must constantly reinvent itself. Agility is necessary to compete.
6See Appendix I
7. Simplicity is key
Instant Service
Authentic Interaction
Shared Values
Millennial IT Wants: Meet Chris
When it comes to technology, millennials are faced with more options
than ever before. They will adopt technologies that make their life easier,
simpler and more productive, and ignore those that don’t. 2
See Appendix I 7
8. 8
MECE Analysis: How should HP move forward?
Change services
portfolio
Change
Perception
? ?
9. Change Services Portfolio?
DaaS Satisfies Industry Needs
Scalability with growth
Adapts with
innovation
Allows for
customization
See Appendix IV
9
10. 10
MECE Analysis: How should HP move forward?
Change services
portfolio
Change
Perception
See Appendix II
11. Simplicity is Key
Instant Service
Authentic Interaction
Shared Values
DaaS vs. Millennial Wants
Millennial IT decision makers are looking for simplicity in researching,
purchasing, and using products. The lack of simplicity in the following
millennial wants will prevent adoption by millennial ITs.
11
13. Al Ries & Jack Trout
The 22 Immutable Laws of Marketing
13
“The most powerful concept
in marketing is owning a word
in the prospect’s mind.”
See Appendix III
19. DaaS Specific Sales Force
Phase 1: Online Browsing
See Appendix I
Simplicity in Sales:
Authentic Interaction
Phase 3: Purchasing Process
19See Appendix VI
Phase 2: In-depth Research
20. Simplicity in Sustainability: Shared Values
Outsource Disposal
HP retains DaaS data wipe
Millennial
values
DaaS data wipe
Outsource
disposal
Increase
visibility
Charitable Computer Reuse & Recycling
Increase Visibility
20
22. Implementation Timeline
Revamping of
website and
acquisition of
sales team
InterConnect
partnership &
initiate sales
team training
Launch new
website and
sales team in
trial region
Debug,
evaluate,
& improve
Begin scaling
to worldwide
coverage
2 month 4 months 6 months 9 months 12 months
22
23. Risks & Resolutions
DaaS Simplicity Risks
General DaaS Risk
● Competitors replicate
DaaS
● Website changes don’t
attract millennials
● IT buyers don’t react to
sales force
● Partnership isn’t
scaleable
Testing phase
First mover
advantage
23
28. Conclusion: Key Takeaways
DaaS meets Simplicity
Simplicity
online
Simplicity in
sales
Industry needs agility
Millennials want simplicity
Simplicity in
sustainability
28“The most powerful concept in marketing is owning a word in the prospect’s mind.”
31. Appendix I: Suggested Readings
1) How Fast is Technology Changing?
http://theemergingfuture.com/speed-technological-advancement.htm
2) The Everything Guide to Millennials. Vision Critical, 2016.
https://www.visioncritical.com/wp-content/uploads/2016/07/The_Everything_Guide_To_Millennial_eBook.pdf
3) Millennials: Coming of Age. Goldman Sachs, 2016. http://www.goldmansachs.com/our-thinking/pages/millennials/
4) To buy or not to buy? How Millennials are reshaping B2B marketing. IBM Institute for Business Value, 2015.
http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=GBE03658USEN
5) 2015 is the Year Of The Millennial Customer: 5 Key Traits these 80 Million Consumers Share. Forbes, 2014.
http://www.forbes.com/sites/micahsolomon/2014/12/29/5-traits-that-define-the-80-million-millennial-customers-co
ming-your-way/#50b4a202a81f
6) How millennial IT pros differ from “old IT guys” and what it means for tech vendors. Vision Critical, 2016.
https://www.visioncritical.com/millennial-it-pros/
7) The 22 Immutable Laws of Marketing, Al Ries & Jack Trout, 1993.
8) 5 Ways Millennials are Redefining the Customer Experience. Sales Force, 2015.
https://www.salesforce.com/blog/2015/04/5-ways-millennials-re-defining-customer-experience- gp.html
9) 12 Statistics that Show Millennials Expect Even More from Customer Service. Parature, 2016.
http://www.parature.com/12-millennial-customer-service/
31
32. Fatal Flaws:
● Puts all of HP’s “eggs in
one basket”
● Not sustainable
solution
● Easily replicable
● A really great product
doesn’t sell itself (ex:
Microsoft Zoon). It
needs an idea to back it
up (ex: Ipod)
Appendix II: In Depth MECE Analysis
Corporate Partnership University Partnership Next Big Thing
Fatal Flaws:
● Our success banks on
that of the partner
● Expensive
● Millennials will
question authenticity
● Doesn’t impact IT
decision-making
criteria
Fatal Flaws:
● Impacts too late
● Contracts are difficult
to negotiate
● Doesn’t target future
IT decision makers
● Makes users price
sensitive, not product
sensitive
HP should change
DaaS marketing to
allow potential
millennial IT buyers to
associate the service
with simplicity.
Capture Simplicity
33. Appendix III: Competitor Analysis
Millennial IT Boomer/Gen Y IT
Boring Traditional, quality
Fun, creative Arrogant, Fun, Untraditional
Boring Ordinary, Common
Straightforward, old Traditional, Boring
No strong association High Quality
33
34. Appendix IV: IT Criteria vs. HP Offerings
Millennial IT Criteria DAAS Capabilities
Adapts with
innovation
“Enhance your PC environment with HP’s suite of
support services including... staff augmentation, HP
Proactive Intelligence, and security for data and devices.”
Scalability with
growth
“Manage devices efficiently with services that span the
lifecycle...Through a consolidated dashboard, gain
analytical insight on your fleet’s inventory, location, and
condition to maintain better security.”
Allows for
Customization
“Any device in the HP portfolio works with HP
DaaS...Let HP manage all your devices—even non-HP
ones—with a mix of services that is ideal for you”
34
35. Appendix V: Current online experience &
Proposed changes
Current Site Millennial IT Reaction Proposed Changes
Minimum of 6 clicks
required to find DaaS Cycle
information on website.
Millennials are a two-click
generation.
Maximum of two clicks to
find DaaS online from the
homepage.
DaaS Cycle information is
presented in an 8-page
brochure.
Millennials won’t be
immediately engaged.
Use media content: show a
2-minute video highlighting
features of DaaS.
Sales representative request
is generic.
This generic contract too
slow and impersonal,
Millennials want answers
fast.
Make a DaaS quote form
giving buyers immediate
feedback on pricing and
services included.
35
36. Appendix VI: Benefits of direct sales
- Control the vision of how the product/ service is sold
- Customers desire seamless experiences
- Allows adjustment as further understanding of the customer is gained
- Ex: Nike plans to increase Direct sales by 250% in the next 5 years
- Allows control of Brand Story
- Relay Messaging directly to consumers
- Allows collection of consumer data
- Winning companies of the 21st century are those with the best data
(WSJ)
- Direct and Authentic engagement enables company to understand the WHY
behind consumer behavior.
- Millennials want to engage with brands on social media (Forbes)
Note: HP first launched a Direct Sales initiative in June 1999. However, in 2015, HP
began making large shift toward partner/ channel sales forming HP Partner First and
HPE Partner Ready