Hewlett Packard Computer Systems Organization: Selling to Enterprise Customers

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Group 8: Chetan Krishna Veer Korra Prachi Chouhan Prasoon 11 Mazumdar

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Case overview
Timeline

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Problem Statement
The case has stressed two main problems for CSO: 1.Sales processes and sales support system are lagging present sales strategy. 2.Sales department organisational structure is not designed to look for opportunities.

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Review Aspects

From managing accounts to managing a portfolios of sales opportunities From viewing the sales process from the inside out to viewing it from the customer in From trying to grow sales by adding sales activities to accelerating sales growth by improving the efficiency and effectiveness of the sales process.
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Fact File

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Q.1: Is this the time for HP-CSO to institute more changes? What are your recommendations to Diaz?

are consistent The findings from Robert Dudley

but these suggestions may lead up to higher incremental cost

Sales representatives require a total structural change in terms of their training and remuneration to improve motivation to achieve The selling staff should be trained to be able to approach bigger clients instead of just restricting it to meager accounts

Paretos priciple: Top 5% customers are 40% revenues 5/2/12 Business to Business 66

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Q.2.1: How is selling instruments (HPs traditional business) different from selling computer systems?

Unfocused in selling instruments and focused on a small number of industries for selling computers Value for customers: Through differentiation in selling instruments and through services offering and customer relationship in selling computers Distribution channel

Direct for instruments Indirect for computers

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Customization: Business to Businesscustomization in High degree of 77 computers but Marketing absent in the instruments remain Group 5

Q.2.2: Why does HP treat its sales force as a cost center? What are the implications of such a structure?

it becomes a cost The major implication is that

reduction activity rather than a revenue earing head

Costs are very easy to measure, in particular by benchmarking with the standard cost It is important to try to achieve the goal of reducing the expenses to industry average. Those changes dont have to impact on the service quality.
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Q.3.1: What is HP- CSOs approach to building relationships with enterprise customers?

HP has different enterprise customers in different industries Few customers account for most of the profits Three teams structure: Red team has industry wise focus, Green team deals with channel partners, Blue team focus on Tvsales and geographically organized accounts.
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Q3.2: What are its strengths and weaknesses?

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Q.4: Do you agree with the findings of the two audits as well as the consultants recommendations? How is the new approach different from HP-CSO current approach to managing enterprise customers?

There are different points of accordance with the consultants recommendations:

- The compensation plan is not enough motivating sales Reps because its not following the companys changes. - The sales department is not actively looking for opportunities
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The brand equity is well established and the customers know it and appreciate the fact that the company is putting so much effort to improve the performances. The new
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downstream by

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 Thank you

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