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Unformatted text preview: at does that say when times get tough? We think the high-priced consultant
model is a value proposition of the past and will not translate well into the future.
Preparing for the Compaq Acquisition
These lessons, along with the changing forces acting on the entire technology industry, shaped
Fiorina’s perception of what was needed and what was possible for HP. Fiorina said that ever
since her arrival at HP, she and the board spent most of their time together considering the
strategic choices for the company:
We examined strategic choices across a number of different vectors. So that by
the time we actually landed on the Compaq acquisition, we had, as a board,
examined several different alternatives. I say it that way because some of the
companies we considered, which never became publicly known, were along
different vectors. Broadly speaking, we examined companies along four different
• Continuation along our current path
Scope- and scale-intensive options We obviously ended up on a scope- and scale-intensive play, but we looked very
hard at various alternatives along the lines of status quo-intensive, servicesintensive, and imaging-intensive acquisitions. Included in the imaging intensive
vector was spinning out the imaging business, but that certainly wasn’t the only
option we looked at.
In considering actions along the services-intensive vector, we concluded that
making some of the obvious acquisitions in the services-intensive space was
buying a backward-looking value proposition and cost model. I have been asked
numerous times and have answered publicly that I would not and will not buy
EDS believe they have a backward business model, a backward-looking value
proposition. It is a backward value proposition in the sense that we don’t think it
is any longer about throwing people at technology to make it less complex. We
think it is about using technology to make technology less complex. And
therefore, we think it’s a huge deal that our managed services business is attached This docum...
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This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.
- Spring '14