How To Reinvent a Technological Giant

HP Inc.’s president explains the company’s new overhaul

04/04/2016 Barcelona

Enrique Lores

Enrique Lores, president of imaging printing and solutions at HP Inc: “We want to put the focus on the emotional experience of printing.” / Photo: Quim Roser

Last November, Hewlett-Packard carried out a major organizational restructuring – one which left the 77-year old company divided.

 

The American technology giant, one of the biggest in the Fortune 500 list, split into two completely separate and independent companies: HP Inc. and Hewlett Packard Enterprise.

The former is focused on PC business, printers and devices for both professional and home clients. The latter provides services such as servers, storage and networking to businesses. Each has a turnover of 50 billion euros and annual profits of around 4 billion.

“It was one of the most complex corporate splits to date. We were a company with 200.000 clients and partners, more than 300.000 employees in 170 countries,” explained Enrique Lores, president of imaging printing and solutions of HP Inc.

Speaking to MBAs at IESE, Barcelona this month, Lores is the man responsible for the division process of the legendary Silicon Valley company.

Are Two Better Than One?

Lores says that the split into two different business models – with distinct competitors – is designed to “regain the startup spirit;” a spirit that can be traced to the company’s roots, which go back to a garage in Palo Alto in 1939.

“It was our opportunity to create a new company to last over time. And – at the same time – create value for our shareholders.”

,Last November, Hewlett-Packard carried out a major organizational restructuring – one which left the 77-year old company divided.

The American technology giant, one of the biggest in the Fortune 500 list, split into two completely separate and independent companies: HP Inc. and Hewlett Packard Enterprise.

The former is focused on PC business, printers and devices for both professional and home clients. The latter provides services such as servers, storage and networking to businesses. Each has a turnover of 50 billion euros and annual profits of around 4 billion.

“It was one of the most complex corporate splits to date. We were a company with 200.000 clients and partners, more than 300.000 employees in 170 countries,” explained Enrique Lores, president of imaging printing and solutions of HP Inc.

Speaking to MBAs at IESE, Barcelona this month, Lores is the man responsible for the division process of the legendary Silicon Valley company.

Are Two Better Than One?

Lores says that the split into two different business models – with distinct competitors – is designed to “regain the startup spirit;” a spirit that can be traced to the company’s roots, which go back to a garage in Palo Alto in 1939.

“It was our opportunity to create a new company to last over time. And – at the same time – create value for our shareholders.”

“We wanted the heart of a startup with the muscle and brains of one of the leading technology companies in the world.”

,“We wanted the heart of a startup with the muscle and brains of one of the leading technology companies in the world.”

,Enrique Lores, president of imaging printing and solutions at HP Inc. and responsible for the division of the technology giant