Hewlett-Packard CSO Strategy: Enterprise Sales Case Study

Introduction

Hewlett-Packard is a force to be reckoned with in the enterprise computing realm, but the company has certainly faced significant challenges — from competitors, from clients, and from within. Overall, Hewlett-Packard has weathered these storms and faced its challenges head on. However, a Harvard Business Review case study authored by Das Narayandas and Robert Dudley reveals cracks in the Hewlett-Packard facade that must be addressed. Even if the response is largely a public relations effort on some fronts, Hewlett-Packard needs to tackle its client buy-in and concern issues with the full force of the robust resources available to it.

CSO Trade-Offs and Competitive Landscape

As explained in the twelfth page of the case study, Hewlett-Packard's CSO division has been experiencing a notable trade-off. Even with its purported success in upstream and mid-stream business sales, those successes were being achieved at the expense of gains in other areas. The primary loss cited was the division's ability to present itself as a "value-added" supplier rather than simply a seller of computer hardware — and there is a significant difference between the two. Selling a computer to a company is one thing, but demonstrating specific and tangible ways to improve and grow that company's business is quite another. The latter gives the client a far greater incentive to stay with a vendor rather than switch to a competing firm like Dell (Narayandas and Dudley).

It is not just Dell and similar competitors that Hewlett-Packard's CSO team should be concerned about. IBM, which has exited the computer hardware sales market entirely, has chosen to focus on software solutions. Enterprise resource planning (ERP) giants like SAP are also marketing to many of the same customers as Hewlett-Packard, even though they are not in the hardware business at all and do not require a specific hardware set to implement their software — not unlike Microsoft Windows and other operating systems or software suites. Microsoft itself changed the competitive landscape by bringing its productivity suite Microsoft Office to Mac-based machines (Foley). As a further example, newer Windows and Mac machines have run on Intel motherboards and processors — a shift that was not always the case for Mac, though Apple has since explored moving in a different direction (Satariano).

Recommendations for the CSO Division

If there is one core recommendation to offer Hewlett-Packard's CSO division, it is to establish and maintain a clear value chain with each client. The explanation and illustration of the value chain — one that a customer can quantify, realize, and verify — should be introduced during initial sales efforts and reinforced at every selling and renewal opportunity. If a client openly questions the value they are receiving, or if follow-up communications reveal a deficiency, any problems can be identified and resolved by the sales and/or operational team. For this to work, the two groups must operate in tandem and must not undermine each other.

The common tactic of puffery and over-selling is harmful to salespeople and clients alike. Operations staff must back up the legitimate service claims that salespeople make. While puffery is not typically actionable in a legal setting, it still requires a defense if a lawsuit is filed and, more broadly, it is simply bad business practice (Schroeder).

Conclusion

Hewlett-Packard needs to remain vigilant and must actively avoid discord with and indifference toward its clients. Different people and departments must work together to keep problems as infrequent or as brief as possible, minimizing their impact on the client. Some clients will overreact and make mountains out of molehills, but they remain the reason Hewlett-Packard is in business and should be treated accordingly — just as is true for any company that serves customers. Maintaining strong client relationships is not optional; Hewlett-Packard ignores this imperative at its own peril.

Works Cited

Foley, Mary Jo. "Where are Microsoft's next versions of Office for Windows and Mac?" ZDNet. N.p., 20 Feb. 2014. Web. 24 Feb. 2014.

Narayandas, Das, and Robert Dudley. "Hewlett-Packard — Computer Systems Organization: Selling To Enterprise Customers." Harvard Business Review 1.1 (2005): 1–19. Print.

Satariano, Adam. "Apple Said to Be Exploring Switch From Intel for Mac." Bloomberg.com. Bloomberg, 6 Nov. 2012. Web. 24 Feb. 2014.

Schroeder, Caitlin. "Indiana Supreme Court Reaffirms Rule that Puffery is Not Actionable as Deception or Fraud." Barnes & Thornburg LLP. N.p., 2 Dec. 2013. Web. 24 Feb. 2014.