Amplify 2023: HP Tackling Tough Market with ‘Realistic Optimism’
HP CEO Enrique Lores has outlined a seven-point plan to navigate current market challenges.
![HP's Enrique Lores Amplify 2023 HP's Enrique Lores Amplify 2023](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt833d0620b77e42b8/652401c69e569b6e667660c3/Enrique-Lores-HP-Amplify-2023.jpg?width=700&auto=webp&quality=80&disable=upscale)
First, HP is to modernize its core businesses and respond to new customer use models.
For example, CEO Enrique Lores at HP Amplify 2023 said PCs have become communication tools rather than creation tools, with a focus now on collaboration and videoconferencing. This, he said, is a “very different use model that drives significant changes in how we design our PCs.”
As such, HP is announcing more than 150 new products and services at HP Amplify this week.
“Most of them modernizing our core, providing new solutions in this space,” he said.
HP is also expanding its services portfolio. This, said Lores, helps HP “offer a stronger value proposition to our customers. [We can] really focus on the lifetime use of our products, our services and offer a more complete solution.
“We are always thinking about how to engage with our channel partners. We are not doing that to compete with you,” Lores told partners. “We are doing that to offer you additional services that you can package as your own solution.
“HP is channel-oriented company. We do the majority of our business in the channel. As we expand into services … making sure that our partners can benefit from that is one of our key priorities.”
The vendor is expanding adjacencies. Here, Lores emphasized the opportunity around hybrid systems.
“Enabling our customers to work efficiently through headsets through better videoconferencing systems. The opportunity in videoconferencing is one of the most exciting that we have,” he said.
HP estimates that there are around 90 million meeting rooms. However, only 10% have videoconference capability today. It’s is a very small percentage if you think about the need that our customers have. Lores thinks that penetration is going to increase significantly during the next few years.
“You can just do the math: Ninety million rooms, 10% penetration. Imagine this goes to 20, 30, 40%. $3,000 per system, $5000 per system. We are really talking about a multibillion-dollar opportunity for all of us.”
In terms of creating new categories, Lores pointed to HP’s growth in printing in the packaging market. He also talked of opportunities in 3-D printing in both metals and plastics.
“Only a few months ago we launched our first metal 3D printing printer,” he said. “Now we not only have a very strong portfolio … on the plastic side, now we have a leading technology and a leading set of products on the metal side.”
However, Lores acknowledged that HP can’t rely on its portfolio alone.
“Something that has been driving all our efforts is the need to continue to innovate with purpose,” he said.
The chief exec said customers want to work with partners that can help them meet their sustainability goals.
“We continue to believe that sustainability is a fundamental part of our strategy. It is a fundamental driver of our growth and of our competitive differentiation in the future. We are focused on that, not just because we think it is the right thing to do … but also because it’s helping us to win business.”
Lores said three years ago, HP estimated it had won more than $1 billion in business because of its sustainability practices. It put that figure last year at $3 billion. As such, “this is an area where you should expect us to continue to double down,” he said.
HP is also willing to work to improve its operations. Lores acknowledged that the vendor has work to do. However, the last two or three quarters HP has “improved drastically our turnaround time. We have improved and reduced significantly the time it takes to get quotes,” he said.
“But we also know we aren’t perfect, and we want to continue to get your feedback to continue to improve,” he added.
Lores said that one of HP’s largest investments is in its digital infrastructure.
“We have now a super strong backbone that supports all the activities of the company, from manufacturing to finance to support. I know we have the opportunity to expand that to offer new capabilities.”
To continue to drive its digital transformation, HP said it needs to be faster and more aggressive.
“We know we need to be faster that we need to be simpler to deal with … and that we need to be more aggressive. And that combination is what you are going to see from us,” explained Lores. “The HP that you can rely on, but a faster and a more aggressive HP that will drive success for all of us.”
To continue to drive its digital transformation, HP said it needs to be faster and more aggressive.
“We know we need to be faster that we need to be simpler to deal with … and that we need to be more aggressive. And that combination is what you are going to see from us,” explained Lores. “The HP that you can rely on, but a faster and a more aggressive HP that will drive success for all of us.”
HP AMPLIFY — HP is approaching challenging trading conditions with “realistic optimism,” said CEO Enrique Lores.
Lores (pictured above) was speaking Wednesday at the HP Amplify Partner Conference 2023 in Chicago. Channel Futures is attending the global event — the first since 2019.
The CEO acknowledged the “tough market,” which includes shrinking demand for PCs.
“Many of our key markets are clearly not growing, and we don’t expect them to grow in the near future,” said Lores.
However, Lores said the company remains positive.
“It’s important not to lose perspective. In 2023, we may not grow,” he noted. “But if you look at what has happened since 2017, we clearly show a key growth trajectory.
“It is critical for all of us is to make sure that our companies are ready for whenever the recovery will happen. We don’t know when it will happen. But we need to make sure that our companies are ready whenever it happens,” said the CEO.
Lores then laid out a seven-point plan to weather the current storm. They include modernizing core businesses, accelerating services, expanding adjacencies and creating new categories.
See the slideshow above for more from HP Amplify in Chicago.
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