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New HP’s New Horizons

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DQC Bureau
New Update

After all those court battles, shareholder votes and newspaper campaigns for

and against the merger, HP finally merged with Compaq to form the new HP on 7th

May, 2002.

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According to Balu Doraisamy, President, HP India, there is no uncertainty for

partners any more. Says he, partners are key to HP’s growth strategy and will

continue to be a critical competitive differentia-tor in the new HP."

The new HP is looking at partners to extend HP’s reach; to augment HP’s

capabilities to provide complete solutions; and to provide local presence,

services, delivery, customization, and "customer intimacy." The

company is moving towards a model in which it will compensate partners for the

varying levels of value they add, versus a "one-size-fits-all"

approach to partner compensation.

Balu

Doraisamy: Committed to partners

Milestones

Product and brand choices made to minimize disruption and confusion 
Compensation for partners for varying levels of value they add

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WRONG NEWS AT A BAD TIME



The merger news had come at a wrong time in September last year when sales

were going down the hill. Compaq partners in particular felt let down because by

the sweat of their brows, they had built up the brand with the commendable

support of the vendor.

According to Balu, the new HP has studied world-class examples and adopted

the best thinking for the integration. During the integration planning, an

"adopt-and-go" strategy has been thought about, taking the best models

and methods rather than trying to create hybrid processes.

The new HP claims to have managed the integration planning with the rigor,

process control and governance of a huge development project, and will manage

the actual integration the same way. The partners will be given full access to

the entire range of HP and Compaq products and will work with them to drive

business.

Be that as it may, what the new HP now needs to do is drive this message on

the field taking partners into confidence. It need to take extra care of Compaq

partners whose insecurity is greater than that of HP partners.

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