Hewlett Packard-Computer Systems Organization: Selling to Enterprise Customers

Hewlett Packard-Computer Systems Organization: Selling to Enterprise CustomersGroup 5

Chythra T C (14PGP014) Swati Khobragade (14PGP023)Pranav kumar (14PGP031)Surya kant (14PGP048)Devanshu Kulthe (14PGP078)Shishir (14PGP098)Leena Bodo (14PGP106)Ronit jena (14PGP111)

Case overviewHP has to change the current industry-focused approach to selling to enterprise customersLeap Consulting Inc. to audit HPs enterprise customer management approachAudit objectivesIdentify the gapsWeaknessesOpportunities

HP wish to identify market and organizational opportunities that might provide growth while further reducing sales and support costs

HPWayHewlett-Packard founded in 1939 by Bill Hewlett & Dave PackardMarket leader price/performanceHP is engineering driven, competing on the basis of technological featuresWas not good in marketing3 larger business sectors: measurement systems, computer products, computer systemsDont have organization wide culture.Product division focused on long-term profit objectives & in the field it focused on meeting short-term sales quotasProblemsBuying pattern shifted to VARs & OEMs caused increase in cost of salesWasting so much time on sales force treadmill (exhibit 2)Have to optimise the return on sales effortsSelling cost of 30 cents to every order dollar should be reduced to 10 cents to every order dollar (cost reduction from 30% to 10% of sales)Change the current industry-focused approach to selling to enterprise customersCSO CustomersComputer systems organization(CSO) Sales process auditSamplesLargest customerIndustry where HP is strong

ObjectivesFind how HP sales actions aligned with buyer requirementsSuggest ways to optimise current approach to enhance return on productive selling time

Four stage audit process with two samplesAudit resultObservation: HP current sales strategy & process did not optimize the total sales opportunity Typology of sales opportunity: Customers business potential broke down into four types Customer initiated Assigned budgetSignificantly influenced by IT 4 stages

Continued.. average 6 months long project2400 work hours per annum per sales repTotal $120 million turn over$60m in repurchase, replacement, expansion$59m in hardware$1m in consulting

1 year for 4 stages and 1or 2 years for 5th stage $22 million turnover20% sales from leadThe next stepsHP has price/performance advantage. It enters an account through downstream opportunity. Then migrate to midstream & upstream by moving up.HP good at capturing downstream and increasing midstream customers. But not at upstreamHave to reconsider the current migration strategyAlternate modelDownstream - Continuously improve operational efficiencyMidstream Shift from efficiency to selectionUpstream Ability to sell conceptsPortfolio managementEnter an account at multiple levels with a sales approach that is tailored to the dynamics of the different types of sales opportunities Optimization of return on sales effort by matching sales resources to sales opportunitiesMore training to sales teamThank You!