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