March 18, 2016
Managing Director George Brasher referred to the saying “you eat what you kill” in regards to the company’s creation.
CBR Online interviewed Brasher about the split last year into HP Inc and Hewlett Packard Enterprise, with the UK Managing Director of HP Inc commenting that the split has provided “several new advantages”, including being “very focused on partners”, noting that “since the split people have said our split was seamless, and they feel better engaged with us. We’ve been able to be very clear and aligned with them on what our plans are”.
The new partner programme allowed more of the OEM’s partners “to be platinum partners. We were able to change our programme to support them because we’re a more focused company”, while this also applied to HP Inc’s channel strategy, Brasher added. With HP having “had everything from software to ink cartridges and service”, when it built channel programmes “we had to think about how we’d fit everything”.
Now however, it’s “more focused [and] we can put our money on things that matter to us”, Brasher adding that CEO Dion Weisler commented “when you are a focused organisation ‘you eat what you kill’. We’re able to make our own investments and choose where we want to innovate. From our perspective it comes back to the focus on where we can put our investment dollars. We can be very specific around what we do”.
CBR Online also mentioned HP Inc’s innovation, specifically in “its traditional market of printing”, including its recent release of new and updated ranges, but it is “working to address the issue of printer security” as well, alongside building a profile in 3D printing. Among the “secrets” behind the split, according to Brasher, were that they “had been operating as separate businesses in the UK since August”, with this extra time allowing it to “successfully manage the transition”.
The OEM “took a team, pulled people out of the business, and had separate teams focusing on driving the business. I think the teams did a good job of planning and looking at what were the key activities to do that. We got very close with our customers and partners, stayed on top of the process, and made sure that it wouldn’t impact them”.
Despite these positives, Market Realist reported that HP Inc’s supplies segment “is one of the major components of revenue for the company”, and the OEM “continues to monitor its supplies pricing” as a result of “factors affecting [the supplies business’] decline”. Revenue fell 20 percent for supplies in the latest quarterly results, with the analysts noting that the segment accounted for 67 percent of the whole printing segment.
Declines were blamed on “installed base erosion from declining hardware sales and channel inventory adjustments”, and Weisler stated that “the factors that varied from our plan were pricing and aftermarket share. Supplies pricing was up, given adjustments we made to offset some of the unfavorable currency, but not as much as planned given necessary discounting in the quarter to combat aftermarket alternatives […] aftermarket share was more pressured than expected for toner”.
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