Expert tips: three major steps for HP's transformation

Generally, solving a complex problem is divided into three steps: dividing the problem into components, diagnosing and analyzing which components are fixed and discarded, and finally prioritizing which components are processed, and invest resources to solve the problem.

If you do not break the problem and follow these steps, it will always be a permanent cure.

HP is now facing this problem. Several CEOs adopt different strategies and use different methods to solve the company's problems. This makes simple problems more complicated.

Now, Hewlett-Packard's leader, Megan wask, has to clean up the mess, but every time she makes the move, the company is experiencing a new crisis. The recent crisis is Autonomy, which was acquired by a huge investment last year, revealed a financial scandal. In the face of Autonomy false accounting charges, Hewlett-Packard announced the reduction of the company's $8.8 billion assets.

The NetworkWorld website invited Rob Enderle, Chairman and first analyst of Enderle Group, to resolve how HP should turn over.

First, remove the question of HP: too many industry Competitions

Generally, a successful company is blooming in an industry. HP has entered at least four industries, and each industry is struggling. Its Printing Department spans two industries. There are consumer printing and business printing, the former is gradually dying, and the latter, the third party has successfully used the ink to fill for benefits. There is also industrial printing, working with semi-finished materials such as books, logos, covers and magazines. traditional printing is in decline, and industrial printing is emerging because of the potential growth potential of the market.

At the same time, the PC Department belongs to the HP Electronic consumption business. With the impact of smartphones and tablets, the PC market is growing slowly and profits are weak. In short, the consumer market is dominated by Apple, Lenovo, and Samsung.

Other HP departments focus on enterprise computing. In this case, the execution power is different. The hardware is doing well, but the service and software are struggling for various reasons. It is a little difficult to solve. On the surface, HP's competitors seem to be encroaching on HP's customers, but they are not.

Diagnosis: Saving Hp from PC and personal business

Two of HP's four industries are on the rise. The first is industrial printing. In the early stage of the industry, HP's scale allowed it to take a dominant advantage. However, this will consume a lot of the company's resources. It is best to sell the industrial printing business and use the money to strengthen other HP businesses.

Enterprise computing is the second largest industry and the main business of HP. This field is IBM's strength and well done. Hewlett-Packard provides technology in the network, storage, server, and even software fields and has potential competitive advantages. However, due to past mistakes, Hewlett-Packard still needs to strengthen its software and services.

To solve this problem, HP should learn from IBM, but if HP is now starting to transform, it will be more advantageous than IBM. Based on HP's existing product portfolio, this business is likely to become the core of the new HP.

The remaining two businesses are either in recession or poorly executed. The personal and business print market is declining, and the supply of HP is greatly affected by cheap third-party suppliers. HP's consumer electronics business is not dominant in the market, because many development companies are pure players and focus on consumer electronics.

Lenovo is the fastest growing consumer electronics company. Through the acquisition of the ibm pc Department, both IBM and Lenovo have been successful as independent units. The PC and the consumer both want to capture Sony at the same time, and everyone knows the consequences. That is to say, the consumer electronics company focuses mainly on splitting for HP.

Sort and execute: Image is everything

First, the most important thing is that there is a problem with HP's image. Too many negative messages have plagued investors, employees, and users with doubts about the company's capabilities.

CEOs of Apple and IBM are working hard to improve their image during their tenure. They all succeeded, because the good image made the company live in memory for five to seven years. Therefore, it is imperative for HP to improve its image.

Next, HP should package other departments instead of selling or splitting them as the core of HP. This will improve HP's asset load table, reduce the complexity of the problem, and enable new companies to focus on a specific industry.

HP can learn from Apple and IBM

Both Apple and IBM have achieved success through the transformation. Many companies are faced with transformation challenges. People in power are not smart, but overloaded. If the problem cannot be solved first, the transformation will be useless. This is not just a problem for CEOs. In fact, it is difficult for HP to change its CEO to fix the problem.

The problem arises from the board of directors. On the surface, HP's board members are world-class, but they must contribute to the success of HP's transformation.