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HP – Company Study
                     Nakul Patel
Overview


                HQ at Palo Alto, California, US
                Operates in more than 170 countries
                Ranked #10 in Fortune 500 list in 2011
                Ships 48mn PC units annually
                50mn customer stores worldwide
                Shares more than 4bn photos online
                More than 1bn customers
                349,600 employees

Nakul Patel, PGDIM, IM-19                  2
Origin
     The Founders –




     The Mentor –




Nakul Patel, PGDIM, IM-19     3
Origin


             The Story –
                     Great Depression
                     Terman convinced Bill & Dave to come back
                     Go to business together
                     Set up shopn in GARAGE
                     First product – an audio oscillator based on negative feedback
                     Name – HP Model 200A (Suggested by Dave)
                     First victory – The Big Customer – Walt Disney Productions in
                      1940
                        8 no. of HP Model 200B to fine-tune soundtrack of movie – Fantasia
                        US patent # 2,268,872 – for this oscillator to Bill – on Jan 6, 1942

Nakul Patel, PGDIM, IM-19                              4
History & Milestones


                1939 – HP set up in The Garage
                1940 – First Big Sale (Walt Disney)
                1940 – HP moves out of Garage
                1942 – HP designs open floor plan
                1957 – HP goes public
                1958 – Acquired Mosley & Co.
                1959 – HP goes global
                1961 – HP on NYSE
                1962 – HP in Fortune 500 list
                1964 – HP’s atomic clock sets standard
                1966 – HP Labs Opens
                1966 – 1st HP computer


Nakul Patel, PGDIM, IM-19                           5
History & Milestones


                1968 – 1st PC
                1972 – HP-35 calculator; HP enters computer industry
                1977 – Birth of Silicon Valley
                1981 – HP moves to China
                1983 – Introduces Touchscreen
                1984 – ThinkJet printing
                1988 – HP DeskJet Launched
                1989 – Garage named Landmark
                1993 – 10mn LaserJet
                1998 – 1ST PDA
                1999 – HP invent born
                2002 – HP & Compaq merge


Nakul Patel, PGDIM, IM-19                           6
History & Milestones


                2004 – HP #11 in Fortune 500
                2005 – Named Most Trusted
                2006 – 100millionth LaserJet shipped
                2008 – Acquires EDS
                2009 – Receives prestigious IEEE award




Nakul Patel, PGDIM, IM-19                7
Vision & Mission


             Vision –
                   “To view change in the market as an opportunity to grow;
                   to use our profits and our ability to develop and produce
                   innovative products, services and solutions that satisfy
                   emerging customer needs.”

             Mission –
                   “To provide products, services and solutions of the
                   highest quality and deliver more value to our customers
                   that earns their respect and loyalty”
Nakul Patel, PGDIM, IM-19                    8
Vision & Mission

            Corporate Objectives
                   Customer loyalty
                   We earn customer respect and loyalty by consistently providing the
                   highest quality and value.
                   Profit
                   We achieve sufficient profit to finance growth, create value for our
                   shareholders and achieve our corporate objectives.
                   Growth
                   We recognize and seize opportunities for growth that builds upon our
                   strengths and competencies.
                   Market leadership
                   We lead in the marketplace by developing and delivering useful and
                   innovative products, services and solutions.
Nakul Patel, PGDIM, IM-19                             9
Vision & Mission


             Corporate Objectives
                   Commitment to employees
                   We demonstrate our commitment to employees by promoting and
                   rewarding based on performance and by creating a work environment that
                   reflects our values.
                   Leadership capability
                   We develop leaders at all levels who achieve business results, exemplify
                   our values and lead us to grow and win.
                   Global citizenship
                   We fulfill our responsibility to society by being an economic, intellectual
                   and social asset to each country and community where we do business.


Nakul Patel, PGDIM, IM-19                              10
Awards & Recognition


                2004 – IEEE Corporate Innovation Award
                2009 – IEEE Milestone (for HP-35)
                2005 – IEEE-ISTO Corporate Award
                2010 – Top Corporate Citizen
                2011 – Named 2nd on Computerworld’s 2011 list of Top
                 Green Companies



Nakul Patel, PGDIM, IM-19                 11
Product & Services


                Printer
                Digital Cameras
                Scanners
                PDA
                Pocket Computer
                Digital Calculator & Computer
                Business Desktop
                Thin Clients
                Personal Desktops
                Business Notebooks
                Personnel Notebooks

Nakul Patel, PGDIM, IM-19                        12
Product & Services


             Workstations
             Servers
             Enterprise Storage
             SAN (Storage Area Network)
             Videoconferencing
             External Storage Devices
             Networking (Service)
              Cloud Computing (Service)
             Enterprise Security (Service)
             Data Center Tramsformtion (Service)
             Defense, Logistics, National Security (Services)

Nakul Patel, PGDIM, IM-19                    13
Market Share


             Personal Computers –
                              Market Share (%)

                                                 HP
                                                 DELL
                                                 Lenovo
                                                 Acer
                                                 ASUS
                                                 Others
Nakul Patel, PGDIM, IM-19             14
Market Share


                                         Percent Share (%)
              25

              20

              15

              10                                                       Percent Share (%)

                5

                0
                        2006   2007   2008   2009        2010   2011
Nakul Patel, PGDIM, IM-19                           15
Market Share


             Server Vendor Market

                            Vendor               % Revenue Share
                                          2011                 2010
                             HP           29.8                     32.2
                             IBM          29.8                     30
                            DELL          15.1                     13.9
                            Oracle        6.0                      6.5
                            Fujitsu       4.8                      5.0
                            Others        14.6                     12.5
Nakul Patel, PGDIM, IM-19                        16
Market Share
            Cloud Services

                                       % Market Share
                  25

                  20

                   15
                                                              % Market Share
                  10

                    5

                    0
Nakul Patel, PGDIM, IM-19   HP   IBM   DELL    CISCO ORACLE
                                              17
Capacity


             PC Units
                  2nd Quarter of 2011 – 14.8 mn PC’s
                  2011 – Estimated over 50mn
             Server Products
                     Shipped more than 684,000 servers in 1st quarter of 2012
                     Market Share of 34.6 %
                     Ships 1 server every 11 seconds
                     1 in every 3 servers shipped worldwide is of HP

Nakul Patel, PGDIM, IM-19                      18
Plants & Location


             HQ –
                   3000 Hanover Street,
                   Palo Alto,
                   California
                   USA
             Presence in more than 170 countries worldwide



Nakul Patel, PGDIM, IM-19                 19
Plants & Location


             Headquarters of Geographic Operations
                   The locations of HP headquarters of geographic operations at
                   October 31, 2011 were as follows:
             Americas
                  Houston, United States; Miami, United States; Mississauga,
                   Canada
                  Europe, Middle East, Africa
                  Geneva, Switzerland
             Asia Pacific
                  Tokyo, Japan; Singapore

Nakul Patel, PGDIM, IM-19                      20
Plants & Locations

        Worldwide Locations
                Aguadilla, Puerto Rico
                Bangalore, India
                Cupertino, Roseville, San Diego, and Woodland, California
                Leixlip, Ireland
                Beijing, China
                Kiryat-Gat, Nes Ziona, and Netanya, Israel
                Bristol, United Kingdom
                Fort Collins, Colorado
                Fusionopolis, Singapore
                Boise, Idaho
                Haifa, Israel
                Indianapolis, Indiana
                Sant Cugat del Valles, Spain
Nakul Patel, PGDIM, IM-19                       21
Plants & Locations

     Worldwide Locations
               Palo Alto, United States
               Andover, Massachusetts
               Erskine, United Kingdom
               St. Petersburg, Russia
               Corvallis, Oregon
               LaVergne, Tennessee
               ChongQing and Shanghai, China
               Houston, Texas
               Sandston, Virginia
               Udham Singh Nagar, India
               Vancouver, Washington
               Tokyo, Japan
               Singapore
Nakul Patel, PGDIM, IM-19                   22
Organizational Structure


             7 business segments
                     PSG – Personal Systems Group
                     Services
                     IPG – Imaging & Printing Goup
                     HP Financial Services
                     Corporate Investements
                     ESSN – Enterprise, Storage Servers, Storage &Networks
                     HP Software

Nakul Patel, PGDIM, IM-19                     23
Organizational Structure




Nakul Patel, PGDIM, IM-19          24
Financial Performance




Nakul Patel, PGDIM, IM-19             25
CSR Activities

       Global Citizenship
            As one of the world’s largest IT companies, HP believes, what
             it does and how it does matters.
            1940 – First charitable contribution
            1991 – Laserjet Cartridge Return & Recycle Program
            2003 – Supply Chain Social & Environment Responsibility
            2006 – International Climate Change Initiative with
             conservation of WWF (World Wildlife Fund)
            2007 – PVC eliminated from HP Packaging


Nakul Patel, PGDIM, IM-19                26
CSR Activities

       Energy & Water Conservation
            HP Products made from 50% recycled plastics and SAVES 30%
             energy
            Skinless Server Trays – Can save energy enough to power
             4600 average US households
                  Material saved is equivalent to 4.3 Boeing 747’s
            At end of 2011, HP reduced energy consumption of HP
             products by 50% (surpassing original goal of 40%)
            Reduced water consumption by 5% compared to 2007
            20% Reduction in Green House Gas emission

Nakul Patel, PGDIM, IM-19                      27
Observations – Factors of Success

          Knowing the business & markets perfectly
          Expand – Diversify – Judge The Nerve of Market
          Neither Specialist Products Nor Generalist
          Continuous Innovation
          Acquisitions and Spin-off’s
            Acquired More than 125 companies since 1986, latest
             being Autonomy in 2011
            Successful spin-off’s like 1999 – Agilent Technologies


Nakul Patel, PGDIM, IM-19                 28
Coming Up…


             Computer That Can Learn
                  MEMRISTOR – 4th basic element

             Flexible Display
                  SAIL – Self Aligning Imprint Lithiography

             CeNSE (Centeral Nervous System for the Earth)

Nakul Patel, PGDIM, IM-19                   29
Suggestions



             Market for Mobile PC
                  Get over WebOS fiasco


             Autonomy
                  After acquiring, let it be independent
                  Small & Dynamic – Rapidly growing
                  No need to integrate into HP straightaway
Nakul Patel, PGDIM, IM-19                  30
Thank You for Reading!

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HP - Company Overview

  • 1. HP – Company Study Nakul Patel
  • 2. Overview  HQ at Palo Alto, California, US  Operates in more than 170 countries  Ranked #10 in Fortune 500 list in 2011  Ships 48mn PC units annually  50mn customer stores worldwide  Shares more than 4bn photos online  More than 1bn customers  349,600 employees Nakul Patel, PGDIM, IM-19 2
  • 3. Origin  The Founders –  The Mentor – Nakul Patel, PGDIM, IM-19 3
  • 4. Origin  The Story –  Great Depression  Terman convinced Bill & Dave to come back  Go to business together  Set up shopn in GARAGE  First product – an audio oscillator based on negative feedback  Name – HP Model 200A (Suggested by Dave)  First victory – The Big Customer – Walt Disney Productions in 1940  8 no. of HP Model 200B to fine-tune soundtrack of movie – Fantasia  US patent # 2,268,872 – for this oscillator to Bill – on Jan 6, 1942 Nakul Patel, PGDIM, IM-19 4
  • 5. History & Milestones  1939 – HP set up in The Garage  1940 – First Big Sale (Walt Disney)  1940 – HP moves out of Garage  1942 – HP designs open floor plan  1957 – HP goes public  1958 – Acquired Mosley & Co.  1959 – HP goes global  1961 – HP on NYSE  1962 – HP in Fortune 500 list  1964 – HP’s atomic clock sets standard  1966 – HP Labs Opens  1966 – 1st HP computer Nakul Patel, PGDIM, IM-19 5
  • 6. History & Milestones  1968 – 1st PC  1972 – HP-35 calculator; HP enters computer industry  1977 – Birth of Silicon Valley  1981 – HP moves to China  1983 – Introduces Touchscreen  1984 – ThinkJet printing  1988 – HP DeskJet Launched  1989 – Garage named Landmark  1993 – 10mn LaserJet  1998 – 1ST PDA  1999 – HP invent born  2002 – HP & Compaq merge Nakul Patel, PGDIM, IM-19 6
  • 7. History & Milestones  2004 – HP #11 in Fortune 500  2005 – Named Most Trusted  2006 – 100millionth LaserJet shipped  2008 – Acquires EDS  2009 – Receives prestigious IEEE award Nakul Patel, PGDIM, IM-19 7
  • 8. Vision & Mission  Vision – “To view change in the market as an opportunity to grow; to use our profits and our ability to develop and produce innovative products, services and solutions that satisfy emerging customer needs.”  Mission – “To provide products, services and solutions of the highest quality and deliver more value to our customers that earns their respect and loyalty” Nakul Patel, PGDIM, IM-19 8
  • 9. Vision & Mission  Corporate Objectives Customer loyalty We earn customer respect and loyalty by consistently providing the highest quality and value. Profit We achieve sufficient profit to finance growth, create value for our shareholders and achieve our corporate objectives. Growth We recognize and seize opportunities for growth that builds upon our strengths and competencies. Market leadership We lead in the marketplace by developing and delivering useful and innovative products, services and solutions. Nakul Patel, PGDIM, IM-19 9
  • 10. Vision & Mission  Corporate Objectives Commitment to employees We demonstrate our commitment to employees by promoting and rewarding based on performance and by creating a work environment that reflects our values. Leadership capability We develop leaders at all levels who achieve business results, exemplify our values and lead us to grow and win. Global citizenship We fulfill our responsibility to society by being an economic, intellectual and social asset to each country and community where we do business. Nakul Patel, PGDIM, IM-19 10
  • 11. Awards & Recognition  2004 – IEEE Corporate Innovation Award  2009 – IEEE Milestone (for HP-35)  2005 – IEEE-ISTO Corporate Award  2010 – Top Corporate Citizen  2011 – Named 2nd on Computerworld’s 2011 list of Top Green Companies Nakul Patel, PGDIM, IM-19 11
  • 12. Product & Services  Printer  Digital Cameras  Scanners  PDA  Pocket Computer  Digital Calculator & Computer  Business Desktop  Thin Clients  Personal Desktops  Business Notebooks  Personnel Notebooks Nakul Patel, PGDIM, IM-19 12
  • 13. Product & Services  Workstations  Servers  Enterprise Storage  SAN (Storage Area Network)  Videoconferencing  External Storage Devices  Networking (Service) Cloud Computing (Service)  Enterprise Security (Service)  Data Center Tramsformtion (Service)  Defense, Logistics, National Security (Services) Nakul Patel, PGDIM, IM-19 13
  • 14. Market Share  Personal Computers – Market Share (%) HP DELL Lenovo Acer ASUS Others Nakul Patel, PGDIM, IM-19 14
  • 15. Market Share Percent Share (%) 25 20 15 10 Percent Share (%) 5 0 2006 2007 2008 2009 2010 2011 Nakul Patel, PGDIM, IM-19 15
  • 16. Market Share  Server Vendor Market Vendor % Revenue Share 2011 2010 HP 29.8 32.2 IBM 29.8 30 DELL 15.1 13.9 Oracle 6.0 6.5 Fujitsu 4.8 5.0 Others 14.6 12.5 Nakul Patel, PGDIM, IM-19 16
  • 17. Market Share Cloud Services % Market Share 25 20 15 % Market Share 10 5 0 Nakul Patel, PGDIM, IM-19 HP IBM DELL CISCO ORACLE 17
  • 18. Capacity  PC Units  2nd Quarter of 2011 – 14.8 mn PC’s  2011 – Estimated over 50mn  Server Products  Shipped more than 684,000 servers in 1st quarter of 2012  Market Share of 34.6 %  Ships 1 server every 11 seconds  1 in every 3 servers shipped worldwide is of HP Nakul Patel, PGDIM, IM-19 18
  • 19. Plants & Location  HQ – 3000 Hanover Street, Palo Alto, California USA  Presence in more than 170 countries worldwide Nakul Patel, PGDIM, IM-19 19
  • 20. Plants & Location  Headquarters of Geographic Operations The locations of HP headquarters of geographic operations at October 31, 2011 were as follows:  Americas  Houston, United States; Miami, United States; Mississauga, Canada  Europe, Middle East, Africa  Geneva, Switzerland  Asia Pacific  Tokyo, Japan; Singapore Nakul Patel, PGDIM, IM-19 20
  • 21. Plants & Locations  Worldwide Locations  Aguadilla, Puerto Rico  Bangalore, India  Cupertino, Roseville, San Diego, and Woodland, California  Leixlip, Ireland  Beijing, China  Kiryat-Gat, Nes Ziona, and Netanya, Israel  Bristol, United Kingdom  Fort Collins, Colorado  Fusionopolis, Singapore  Boise, Idaho  Haifa, Israel  Indianapolis, Indiana  Sant Cugat del Valles, Spain Nakul Patel, PGDIM, IM-19 21
  • 22. Plants & Locations  Worldwide Locations  Palo Alto, United States  Andover, Massachusetts  Erskine, United Kingdom  St. Petersburg, Russia  Corvallis, Oregon  LaVergne, Tennessee  ChongQing and Shanghai, China  Houston, Texas  Sandston, Virginia  Udham Singh Nagar, India  Vancouver, Washington  Tokyo, Japan  Singapore Nakul Patel, PGDIM, IM-19 22
  • 23. Organizational Structure  7 business segments  PSG – Personal Systems Group  Services  IPG – Imaging & Printing Goup  HP Financial Services  Corporate Investements  ESSN – Enterprise, Storage Servers, Storage &Networks  HP Software Nakul Patel, PGDIM, IM-19 23
  • 26. CSR Activities  Global Citizenship  As one of the world’s largest IT companies, HP believes, what it does and how it does matters.  1940 – First charitable contribution  1991 – Laserjet Cartridge Return & Recycle Program  2003 – Supply Chain Social & Environment Responsibility  2006 – International Climate Change Initiative with conservation of WWF (World Wildlife Fund)  2007 – PVC eliminated from HP Packaging Nakul Patel, PGDIM, IM-19 26
  • 27. CSR Activities  Energy & Water Conservation  HP Products made from 50% recycled plastics and SAVES 30% energy  Skinless Server Trays – Can save energy enough to power 4600 average US households  Material saved is equivalent to 4.3 Boeing 747’s  At end of 2011, HP reduced energy consumption of HP products by 50% (surpassing original goal of 40%)  Reduced water consumption by 5% compared to 2007  20% Reduction in Green House Gas emission Nakul Patel, PGDIM, IM-19 27
  • 28. Observations – Factors of Success  Knowing the business & markets perfectly  Expand – Diversify – Judge The Nerve of Market  Neither Specialist Products Nor Generalist  Continuous Innovation  Acquisitions and Spin-off’s  Acquired More than 125 companies since 1986, latest being Autonomy in 2011  Successful spin-off’s like 1999 – Agilent Technologies Nakul Patel, PGDIM, IM-19 28
  • 29. Coming Up…  Computer That Can Learn  MEMRISTOR – 4th basic element  Flexible Display  SAIL – Self Aligning Imprint Lithiography  CeNSE (Centeral Nervous System for the Earth) Nakul Patel, PGDIM, IM-19 29
  • 30. Suggestions  Market for Mobile PC  Get over WebOS fiasco  Autonomy  After acquiring, let it be independent  Small & Dynamic – Rapidly growing  No need to integrate into HP straightaway Nakul Patel, PGDIM, IM-19 30
  • 31. Thank You for Reading!