HP Details Multiyear Roadmap to Turnaround the Company
In addition, the group is focused on simplifying the business by reducing the number of SKUs in the printing business by 30 percent and the number of platforms in the PC business by 25 percent by the end of 2014.
The PC group within HP PPS has been refocused around customer needs. The group also completed a major refresh of its product line with a focus on design. In addition, the group launched the HP ElitePad 900, the first tablet specifically designed for businesses big and small, and is reinvesting in mobility with a dedicated leadership team.
The printing group within HP PPS has been focused on developing new business models such as Ink Advantage, a program targeting price-sensitive customers in emerging markets that has expanded to 82 countries, and the Ink in the Office initiative, which is targeting business customers. The group has expanded differentiated services and solutions by leveraging HP’s portfolio of hardware and software, including combining multifunction printers with Autonomy management solutions to develop cloud-based document management services.
HP Enterprise Services
Mike Nefkens, acting global HP Enterprise Services leader, and JJ Charhon, senior vice president and chief operating officer, HP Enterprise Services, will give an overview of the turnaround plans for HP’s Enterprise Services group. Due to several factors, including exceptional runoff in four major accounts and selective pursuit of deals to ensure the appropriate margin structure, HP anticipates revenue declines of 11 to 13 percent in fiscal 2013 with operating margins between 0 and 3 percent.
Nefkens and Charhon will outline a detailed turnaround plan for HP Enterprise Services with the objective of driving margin improvement over time. The four pillars of the strategy are: improving the portfolio through innovation in the core and expanded offerings in higher-growth services such as cloud and information management; strengthening accountability and empowering account executives; optimizing the cost structure with a focus on account performance and improving account performance; and improving operating excellence with tools and processes and a formalized operating cadence.