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Sunday, April 11, 2004

Carly Fiorina on HP's adaptive strategy

The Adaptive Enterprise looks at an entire business' organization. This is about process, application and infrastructure. Carly explains,"Most customers tend to realize that they are adaptive enough as an enterprise because one of three things happens. Either they realize that they are not utilizing the technology investment they've already made. So, they kind of look around and say, 'Gee, I'm only using 50 percent of the capacity I've invested in.' Secondly, they look around and they say, 'I can't get a hold of the information I want, and because I can't get a hold of the information I want, I can't make decisions fast enough, or I can't execute effectively the decisions I'm going to make.' Example: 'I want to introduce a new product. I want to introduce it in every country in which I have business, and I want to do it all at the same time.' A lot of companies literally can't do that because they don't have the information to support that. So, that's another kind of revelation that people have. And the third revelation that people have is that they're spending too much money because they are duplicating investments. They're duplicating investments, they've built more complexity into their system than they need to. I was speaking with a CIO who said, 'You know, I have 23 supply chains; I probably need nine.'" Carly also says that Linux-based PCs, are going to be an application for developing markets with very stringent price point requirements, and they're going to stay there for some time and it would be sometime before this happens in the US.
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