Hewlett Packard Case Study

Hewlett Packard result StudyHewlett-Packard or HP is an American multination information technology corporation that that sells hardware, package and other think business overhauls. The product line of HP includes a wide range such as PCs, servers, software, imagining products and scanners sightly to name a few. Hewlett-Packard also provides services and consulting business around its products and partner products. In 2013 under Lenovo, Hewlett-Packard was the earths second giantgest PC vendor.But with so numerous product lines and options for such a bounteous company such as Hewlett-Packard what problem would it run into? This issue is this would cause a high comprise of design manufacture, and introduce a new product, feature, or option exceed the additional revenue it is believably to feed. Not to mention this also what apostrophizes would be related with in any case little or too much inventory of such a product. You also want to consider the additional supply chai n of mountains intricacy along with how does this all effect the customer satisfaction.Kathy Chou who is vice president of Worldwide commercial message Sales, responsible for growing HPs worldwide commercial business through direct and verificatory channels, saidWhile revenue grew course of instruction over year, our profits were eroded due to unplanned useable cost, She later stated that As product variety grew, our forecasting accuracy suffered, and we ended up with excesses of both(prenominal) products and shortages of others.Constantly growing product variety would need to meet the increasing customer needs was the panache HP took. The problem at hand is was between marketing and operations. Marketing and sales always treasured more, more SKUs, more features, and more configurations where as supply chain mangers always wanted slight, less to forecast, less inventory and less complexity to manage.Analysis and EvaluationHewlett-Packard has always been within the top 5 of marketer market mete out over that last 10 years, as you can see from the chart beneath of its Global laptop market share by units, percent from 2006-2013.Global laptop market share by units, percent (2006-2013)Rank2006200720082009201020112012201311Dell15.9HP18.1HP18.2HP19.1HP17.9HP16.6HP16.1Lenovo16.92HP15.9Dell14.2Dell14.1genus genus Acer12.9Acer13.9Lenovo12.5Lenovo14.9HP16.23Acer7.6Acer9.7Acer10.6Dell12.1Dell12.0Dell11.7Dell10.7Dell11.64Lenovo7.0Lenovo7.4Lenovo7.5Lenovo8.0Lenovo10.9Acer10.8Acer10.2Acer8.15Toshiba3.8Toshiba4.0Toshiba4.6Toshiba5.0Asus5.4Asus5.7Asus6.9Asus6.3Others49.846.544.942.840.042.841.240.8If HP wanted to stay on top each and every year it would need an answer, a beast, a way to fix all problems at hand and continue to change each and every year.RecommendationsHP wouldnt be anything if it didnt innovate and Kathy Chou was fully certified of this. With the rising cost and in cleverness associated with managing millions of products and configurations this p roblems took their toll she stated which soon she followed with and we have no idea how to solve it. So what would it take to solve these issues? HP would need a tool that would use a procedure or formula for solving a problem. HP combined a team within its company which would dwell of HP Business Group, HP labs and HP Strategy Planning and Modeling and also individuals from a smattering of consultancies and universities in order to prevail on the problems. Over the year the team would produced an analytically driven make for evaluating new products, created a tool for prioritizing existing products in a portfolio and developed an algorithm that solves the problem many clocks unwavering than previous technologies, which advancing the theory and practice of network optimisation. With all the hard work done over the years the team would be reward in 2009 with an Edelman award (worlds leading lever for excellence in operations research practices) in developing what was called a revenue coverage optimization (RCO). This tool would allow HP to offer customers significantly improved service and at the same time save the company tons of money in improved efficiencies. Once this tool was implemented, HP would be improved customer service and saved the company a shell out of money. Also this improved efficiency with HP business with their customers.ReferencesTurban, Efraim, and Jay E. Aronson. Decision Support Systems and Intelligent Systems. 9th ed. Upper Saddle River, NJ Prentice Hall, 2001. Print.Hewlett-Packard (HP). What Is ? Web. 14 Nov. 2014. .Executive Biography. HP. Web. 14 Nov. 2014. .Gartner Says PC Vendors Experienced a Happy Holiday Season with Fourth guide Worldwide Shipments Increasing 12 Percent. Gartner Press Release. January 14, 2004.Questions for the CaseWhen offering to many product lines and options that a big company such as HP might face areA high cost of design, manufacture, and introduce a new product, feature, or option exceed the ad ditional revenue it is likely to generateThe cost associated with too much or too little inventory for such a product, non to mention additional supply chain complexity, and how does all that impact customer satisfaction.The possible conflict between marketing and operations is that marketing and sales always wanted more, more SKUs, more features, more configurations where as supply chain mangers always wanted less, less to forecast, less inventory and less complexity to manage.HP combined a team within which would consist of HP Business Group, HP labs and HP strategy Planning and Modeling and also individuals from a handful of consultancies and universities.Produced an analytically driven process for evaluating new productsCreated a tool for prioritizing existing products in a portfolioDeveloped an algorithm that solves the problem many times fast than previous technologies, which advancing the theory and practice of network optimization.Whatis.com defines algorithm as a procedur e or formula for solving a problem. An HP Senior Fellow Robert Tarjan has developed algorithms useful in everything from meliorate chip design to routing telephone calls, from optimizing deliveries in transportation networks to improving searches of large data sets. A software tool Revenue Coverage Optimization (RCO) was been developed that allowed HP to offer customers significantly improved service and at the same time save the company tons of money in improved efficiencies. This tool in 2009 won the Franz Edelman Award, the worlds leading prize for excellence in operations research practices. Robert Tarjan has received such major national and international awards as the ACM Turing Award, known as the Nobel Prize of computing, the Nevanlinna Prize and most recently, the Blaise dada Medal in Mathematics and Computer Science.ReferencesAlgorithm. What Is ? Web. 14 Nov. 2014. .Robert Tarjan. HP Labs. Web. 14 Nov. 2014. .The benefits HP gained from implementation of this sticker ove r all resulted in improved customer service and saved the company a lot of money. Also this improved efficiency with HP business with their customers.