Meg Whitman has called 2013 a "Fix and Rebuild" year for HP due to the worsening macroeconomic environment and company-wide capital allocation discipline. But as Meg and her executive team strategically prepare for accelerated growth in the near future, we haven't forgotten that HP maintains leading share positions in all of its priority business areas.
For instance, the Enterprise Group is a $32 billion business with the potential for fast growth and margin expansion over time. Excellent assets, experienced leadership and top R&D and engineering capabilities are all reasons for optimism. With an eye towards cloud leadership and increased innovation in the software-defined world, the Enterprise Group is just one of HP's many bright spots for today and tomorrow.
Across the portfolio, the executive team has created road maps to optimize the Printing and Personal Systems, Enterprise Services and Software businesses. Although these three business units generated a combined $91 billion in revenue in the last full fiscal year, leadership has implemented tactical plans to produce steady across-the-board growth.
But what are the ingredients for achieving growth and operational excellence? According to Meg, the following elements will help lead the pan-HP turnaround:
- Focus- Identify key products, services and geographies.
- Go to Market- Leverage world-class partnerships, customer connections, sales force effectiveness and reignite consistent sales models in key geographies like China.
- Cost Leverage- Leanness through IT and business process optimization, supply chain effectiveness and platform rationalization quality.
- Operations- Utilize the benefits of new metrics-focused operating model; accountability and compensation linked, centralized marketing and communications, and an improved cash conversion cycle that includes inventory management.
- Culture- Maintaining the right people, direction and transparency.
As the turnaround continues, HP is confident that its diversified business portfolios and unmatched economies of scale will lead the way.