Hp Cso Team2

8/10/2019 Hp Cso Team2

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Hewlett Packard-Computer Systems OrganizSelling to Enterprise Customers

Team 2

Bharat Arava(13pgp010)Monika Sakkarwal(13pgp031)Piyush Mohit(13pgp042)Rajendra Shahane(13pgp050)Shreesti Rastogi(13pgp054)Aniruddh Mukerji(13pgp063)

Kunal Kumar(13pgSumit Ranjan(13pgAshish Mehta(13pgSamkit Jain(12pgpRajakumar r b (11

Submitted by


2/23


3/23

Timelines

Robust Sales and Long lifecycles. Higher prices on thebasis of strong productfeatures and superior

reliability

HP was stuck in the downand middle stream businesssegment. Diaz look for newways to reduce costs in salesand support

While succesproduworkin

appro

DiaDuCopro

1980

1992

1996

Latest


4/23

HP selling costs are higher than the industry average.

The compensation plan is short term

Increasing pressure on the Representative who are not effectivemonitoring the process.

Case Facts

Indian Institute of Management Raipur4


5/23

HP sellers are not business developers but just order takers.

There is a severe need for cost reduction.

The amendments that the company intends to make for costreduction, should not erode the brand equity.



6/23

Customer-in perspective on the purchasing process and buyingvalues of HPs enterprise.

Accurate documentation of the sales processes currently executeHPs sales force and analysis of the productivity

Identification of potential breakthrough paths at the field andheadquarters levels

Initiation of both fast-start and long term productivity improvemactions by the sales teams involved in the study

Sales Process Audit Stages



7/23

Doing well in capturing downstream business and increasingmidstream business.

Migration strategy causing trouble.

Modification in requisite critical success factors in moving frommanaging downstream to upstream.

Need to prioritize opportunities and choose Projects based on potential and Competency

Findings



8/23

Q1)Is this the time forHP-CSO to institutemore changes?



9/23

HPs current sales strategy and sales process did not optimizetotal sales opportunity from the customer

Sales regions were measured as cost centres. Sales forceconcentrated on achieving sales target without worrying aboumaking profits and spending time in non-core activities

Selling efforts in the enterprise customer segment specially secosts was very high as 30 cents to every order dollar in 1990

HP Employees spent more time trying to sell inside HP than tocustomers

80% of the customer sales were initiated by the customerthemselves



10/23

Although HP was a preferred vendor, customers doubted its ato deliver in case of Innovation projects

Customers were moving towards consolidating their supplier bincreasing pricing pressure on HP

The sales process (specially the qualifying and post-sales servsteps) had enormous time drains

Sales force was having difficulty in converting sales opportunitreplacement and expansion projects

Sales team was spending less time in the early stages of the scycle for Innovation projects



11/23

Sales team lacked prioritization of opportunities for Innovativprojects

HP was not good at transferring knowledge from one opportuanother

Much emphasis was on how to run faster and just sell boxes

move up the relationship curve

replacement sales were often extremely expensive, involvingsignificant price concessions up front



12/23

Q2) Would benefitsoutweigh the cost ofImplementation?



13/23

Based on customer portfolio management and alignment withresources.

Greater sales volumes due to specialised sales force.

Optimised returns to sales efforts.

Superior value delivered at every stage

Greater insight into customer buying behaviour.

Creation of platform for long standing relationships.



14/23

Training cost of sales force

Loss of Enterprise customers and time to get them back

Overburdening of sales force and hence loss of motivation

Cost of researching into the requirements of the customerorganisations



15/23

Q3) Why does HP trSales force as cost cen

and what are implications?



16/23

Sales force as cost center

Regrouping of divisions within HP with each group having its sales force

Sales force- responsible for revenues, field marketing and cuservice

HP focused on additional profits, making sales force strive haincrease number of orders



17/23

Implication

Sales force can concentrate on the achieving sales target witthinking about making profits for itself

Need not spend time in non-core activities

Pressure on sales force to cut cost, bring down its numbers

Added pressure on individuals to perform & deliver



18/23

Q4) What were

advantages and disadvanta

of the new structure?



19/23

Improved segmentation - facilitates better targeting

Competition among divisions improve performance

Better control as each division can act as separate profit centThis decentralizes decision making and provides accountabilit

Advantages



20/23

Duplication of functions would add redundancy and drop efficie

Too much competition can blur long term vision for overallprofitability

Decentralization can loosen the grip of higher management ondifferent aspects of the companies decision making

Disadvantages



21/23

Recommendations

Standardized process for downstream purchases

Automated ordering systems to reduce unproductive time

Collaboration with customers to implement online ordering port



22/23

Educate & encourage customers to use tech support executivesinstead of sales reps for problem solving

CRM application will facilitate knowledge and information transfabout the customer within the various departments of HP

Train the tech support executives to leverage CRM for cross se

of the products

Form collaborative partnerships with tech consulting firms tocapture innovation opportunities



23/23

Thank You


Hp Cso Team2

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