Английский язык. Практический курс для решения бизнес-задач - стр. 33
HP also appears overmatched in its rivalry with IBM. Big Blue has put together a more lucrative portfolio of corporate computing products. They span everything from software to servers to chips, and they generate overall 11% operating margins. By comparison, HP’s non-printing businesses managed operating margins of 3% in 2004. The disparity is especially clear in the profit-rich software business. In IBM’s third quarter, its software biz generated $3.6 billion and operating margins of 25%. HP reported $277 million in software sales for its Q4, posting a small operating loss.
At times, HP’s push for synergies has gotten in the way. Take storage. After buying Compaq’s market-leading storage unit, HP integrated it into its enterprise group, which also includes servers and software. Along the way, HP fired many storage-sales specialists in favor of sales reps with a broad knowledge of HP offerings. Key storage execs followed them out the door. Soon, competitors such as EMC began to nab customers from HP. Storage revenues dropped 5% in 2003 and a further 7% in 2004. Even loyal HP customers chose EMC when buying storage gear earlier this year. Although HP recognizes the error and is hiring back storage specialists, it cautions that a turnaround in storage could take time.
Other customers have even more serious complaints. For instance, HP has developed customized Web sites for customers where they can place and manage orders. However, these business-to-business sites have frequently cratered – erasing accounts, losing orders, and shipping the wrong products. An HP sales representative complained to his superiors about the disappearance of 70 customers from the B2B systems: «I can’t even evaluate how many relationships… have been burned with this new site.» HP has no comment on the B2B issue.
Patchwork Quilt. Similar problems have hamstrung HP’s efforts to compete with IBM in large corporate computing deals. The technology supporting HP’s corporate-computing sales remains a patchwork of overlapping and poorly fitting systems despite recent efforts at streamlining. HP sales reps spend only 30% to 35% of their working time with customers and partners, compared with 55% to 60% at well-run organizations. «I would stress how difficult it is to do business inside HP,» says Paul Gerrard, HP’s former vice-president. «There are terrible inefficiencies in the system.»
To pull off a big sales deal at HP often requires delicate diplomacy. Putting together a package involving servers, printers, and software, a sales rep has to reach an agreement with each division. If one unit is unwilling to lower its price, the whole deal can fall through. The company lacks an effective process to resolve conflicts. Fiorina helps broker some deals, but she has time only for the biggest accounts.
These problems have fueled calls within HP for hiring a trouble-shooting operations chief. Fiorina is categorically against a COO, saying that a strong CEO should keep a grip on operations. Many analysts rate Fiorina very highly as an inspiring speaker and salesperson, but either lacking the skills or stretched too thin to solve HP’s operations challenges.
If Fiorina continues to struggle, pressure is sure to mount for her to spin off the printing and imaging division. It boosted its sales by 7% in 2004, to $24.2 billion. And it’s a cash geyser, providing 76% of HP’s operating profits, derived from just 30% of total sales. Analysts speculate that freedom from broad corporate management could improve the printer group’s performance. Separating from the printing division could protect HP from its most dangerous long-term threat in the printing business, Dell.