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Follow UsWhat would your focus area be in the near future?
The SMB market continues to be an important segment for HP and it will always remain as one of the fastest growing sectors for us. In fact, this market has witnessed continuous growth for over 20 years and small business is one of HP's largest segments, representing one-third of the company's global revenue. Our new product and solutions portfolio aims to bridge the gap for over 8 million SMEs in India for whom technology is the key enabler for achieving global competitiveness. This sector contributes to 30 per cent of the total IT spend in India and we are sure that it will continue to grow further. This year, we have launched technology solutions, specific to vertical segments like business, education and retail. By partnering with some SPs, HP wants to do meaningful product innovations and understand its customers deeply. We are ready to make a real measurable impact to the businesses across India in various segments through different solutions.
In the business segment HP's new range of business notebooks, PCs and workstations make the most innovative remote computing, virtualization, digital signage and client manageability solutions work for any business. In the education segment we make low-cost expansion of computer seats in classrooms through shared resource computing with solutions like Multi-Seat Computing, Teach Now, Microsoft Multipoint Server and Digital Signage. Lastly in the retail sector, HP solutions available are POS Solution and Digital Signage which will transform retail operations to efficiently attract, serve and maintain customers and improve business efficiency
Do you have a manufacturing set up in India?
Yes, HP has a manufacturing unit at Pantnagar in Uttarakhand which has acquired a prominent position in India's IT roadmap, through a mixture of innovation and application of cutting edge manufacturing process. The state-of-the-art set up in the Pantnagar factory is designed for excellence and optimizing use of technology as a differentiator at each step of the manufacturing process. It was set up with an initial investment of Rs 100 crore, the plant commenced operations in March 2007, and has an installed capacity of 5.7 million units per year for manufacturing desktops, workstations and notebooks. In 2009 it rolled out the one millionth unit from its manufacturing facility.
It has been noticed that the retail segment is witnessing a growth. Do you want to concentrate on this sector?
The retail segment is witnessing growth because of expansion, consolidation, acquisition and also the entry of international chains are giving further fillip to the overall growth of organized retail.
According to Technopak Analysis and Estimates, consumption is likely to double in India in the next five years. In the next five-ten years, the scale of business opportunity and pace of changes would be fundamentally different. This will require almost every company to go back to the strategy drawing board. Dramatic changes are taking place in India's consumption basket of 'Roti, Kapda, aur Makaan', leading to the emergence of new categories and inter-category competition.
Aligned to this, HP announced solutions that will help retailers to transform their traditional retail environments into enriched retail environments through game changing solutions that would enhance customer experience, optimize business efficiencies and improve sales. HP has outlined how an enriched retail environment is closely mapped to a customer journey starting from the point-of-attraction, moving on to the point-of-entry, various points-of-consideration and finally the point-of-purchase. In-store technology solutions have the potential to transform the retail sector in 2010. HP's broad portfolio of flexible end-to-end retail solutions will now include digital signage solutions, touch-enabled PCs and retail point-of-sale (RPOS) systems so that retailers of all shapes and sizes can use one trusted vendor for simple, easy installation and maximum impact.
HP's overall plans for the year 2010? What do you plan to launch next?
The global and regional economies are emerging from the slowdown blues. 2009 was a period where many businesses and governments slowed down their acquisition of IT. 2010 has presented HP PSG with an opportunity to catch up with businesses and the public sector to renew their investment in the ICT space, as well as to start fresh withon their IT infrastructure spending.
Now there is an opportunity for HP PSG to demonstrate the total envelopment in the commercial systems and solutions space with its ability to deliver value to businesses and the public sectors, based on the understanding of the needs and demands, through innovative solutions and disruptive technologies.
In India the spirit with which business and entrepreneurs cities are unleashing new possibilities and setting up an example for their counterparts across. This is the new age India, and it is changing the process business was done before to reach the big league. Hence the stage is set and we at HP believe that technology can boost business to the next level in the long run. HP's strategic framework is built on HP, continuing to invent and develop technology solutions for the customers we serve, capitalizing on industry trends. It is becoming best-in-class in the industry. Made up of three major components, the operating framework represents the interconnected levers. The things we must focus on are, cost efficiency, targeted growth and capital strategy because it would act as a catalyst for HP to perform to its full potential.
HP's operating framework requires us to work on three interconnected levers at the same time. These levers are growth, cost efficiency, and our capital strategy. We also need to be as efficient as we possibly can. We will work on lowering our expenses to improve not only our financial performance but to also improve our capital position.
We want to be in markets that can scale and grow since we are now so large that we can't invent our growth. We have elected to follow a strategy that capitalizes on our existing strength. In this way we can feed the $90 billion revenue stream that we have to sustain and grow.
Besides this, we need to align our resources with the capability we want to build and the best opportunities that we see in the market that will allow us to scale the company. In some cases, we will spend money to save money and will spend money to grow. An example is reducing our 85 internal datacenters to six new ones with greater efficiency in everything from data-warehousing to power and cooling costs.