HP_and_Compaq_Combined__In_Search_of_Scale_and_Scope

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Unformatted text preview: ent is authorized for use by Xiaolei Cong, from 11/30/2012 to 2/28/2013, in the course: MGMT 237: 001 Management of Technology - Chaudhuri (Spring 2013), University of Pennsylvania. Any unauthorized use or reproduction of this document is strictly prohibited. HP and Compaq Combined: In Search of Scale and Scope, SM-130 p. 5 to a technology business. In fact, we think about managed services as a technology business, not a people business. So to me, what customers are saying is we need everything that we used to be willing to make tradeoffs about. All these things that they used to be willing to trade off, they are not willing to trade them off anymore. We’ve got to have all of that. And part of that is driven by the fact that every physical process will become a digital process. Everything is networked and connected. Every physical process will not only become a digital process, but will also become a mobile process and a virtual process. Everything has got to be connected. That raises the bar so high that only companies with huge scope and scale and the ability to sustain meaningful innovation while also reducing total cost of ownership to customers will be able to compete. You’ve got to be able to deliver high-tech and low-cost, total customer experience. That’s a tall bar and we need scope and scale and huge capabilities to deliver that. So that’s what drove us [to acquire Compaq]. 2001-2002: HP AND COMPAQ DECIDE TO MERGE Compaq called HP Ostensibly, Compaq’s CEO, Michael Capellas, called HP’s CEO, Carly Fiorina, to discuss a joint research and development (R&D) deal, but the conversation turned to acquisition. It was a call that Fiorina said she was prepared for and awaiting. Fiorina said: The reason people sometimes think Compaq came along is because of the way the intensive discussion started, when Michael Capellas made a phone call saying ‘let’s collaborate on R&D.’ We [Fiorina and HP’s board] predicted the phone call would happen. We wanted the phone call to happen...
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This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.

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