Document Advisors | IDeAs blog, for better document strategies.

Document Advisors | IDeAs blog, for better document strategies.

Also on Twitter | @DocAdvisors

HP Discover event: is there another logic driving the split?

Introduction here, and the previous market growth tendancies there.

Next was a clear recognition of the trend towards contractual sales and MPS, and a strong commitment grow HP’s share and revenue in this sector, but also to ’move up the stack’, with more value-added solutions. HP acknowledged that they were currently only second in the MPS sector (not stated, but this is behind Xerox). However, they have set themselves the target to be No. 1 within a relatively short time frame.

The new products will help with this, but HP knows that in addition to selling large MPS contracts to its direct Enterprise clients, it needs to engage its channel partners much more effectively in selling and delivering HP MPS solutions to smaller Enterprise and SMB clients.

The third pocket of growth in business printing was in the MPS related area of document solutions. Although smaller than the first two opportunities, this one has much the fastest growth. To help achieve growth here, HP announced that some of the Autonomy assets relating to content management will reside in HP Inc., rather than in Hewlett Packard Enterprise. In addition, HP also demonstrated a number of interesting vertical market workflow solutions, where they integrate PC and Printer solutions with content management and process related software.

If that were not enough, HP identified two further huge opportunities for future growth, beyond consumer and office printing. These were.

  1. Graphics, which is ten times the size of office printing, and still dominated by traditional analogue printing presses. Here HP has a big opportunity to grow market share, riding on the trend towards digital print, and exploiting its wide array ink-jet printing across a range of formats and applications, as diverse as books, packaging and car wraps – to name a few.
  2. 3D printing, where HP has leveraged its PageWide ink-jet printing technology to come up with its new HP Multi Jet Fusion concept. The products will be in prototype by 2016, and ready for launch by 2017. The concept promises better, faster, stronger, more cost effective 3D printing. If HP can deliver on this, in a market which is still in its early stages and highly fragmented, then the growth potential could be truly transformative for the company.

 

IDeAs Comment

Many of the strategies and new product ideas presented by the new HP Inc. were very exciting and held out the prospect for major growth potential. As ever, with HP, the key issue will be whether the execution and delivery can live up to the dream. For example, in the area of MPS, HP will need to pay special attention to ensuring continuity and support for its channel partners, if it is to achieve its growth ambition. This implies real attention to detail – not just looking at the big picture – and being willing to seek outside help where needed.

One final observation. While the restructuring and split into two companies appears to have released significant new energy, ideas and commitment, was it really necessary to divide the company to achieve this? Could it have been done within a more autonomous PPS Division under an integrated HP structure? Or is there another logic driving the split?

One Comment

  1. Jean-Michel Kozlowski
    2 July 2015

    “Or is there another logic driving the split?” Looks like.

Leave a Reply

To subscribe to our monthly DocLetter, simply add your email below. A confirmation email will be sent to you!

Information

This article was written on 25 Jun 2015, and is filled under Business Forecast, Event, Point of View.

Shortlink

Current post is tagged

, ,