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Hewlett Packard Computer Systems organization: Selling to Enterprise Customers
The choice of the alternative 3 was done in response to Diaz aspirations to increase sales revenues. The alternative 1 appears as conservative. It may not be a solution to accelerate sales growth. The alternative 3 is better positioned for the sales growth objective. It implies fewer changes in the sales organisation, as only a small part of salesmen will be in the special sales force. However, we recognise that the implementation may be very endangered by the human aspect and the resistance and lack of collaboration some salesmen could demonstrate. For these reasons, whereas alternative 3 requires deeper changes in the organisation and may be costlier to be implemented, we thought that it was worthy for Diaz to lead CSO through this radical migration. The expected return over investment is also greater than in the two other solutions, as alternative 3 tends to develop the three businesses.
We are aware that customers interested in innovative projects can ask for discounts for machines and equipment. This risk is high. Therefore, developing the upstream business lower margins in the down and midstream businesses. One solution would be to create to business unit within CSO. On one hand, there would be HP-CSO, where salesmen will deal with downstream and midstream businesses and on the other hand HP-services-CSO, where will work salesmen that deal with upstream businesses and the consultants. The division between the two businesses, HP-CSO and HP-services-CSO will act as a psychological brake to prevent the client from asking discounts on equipment for upstream projects. …
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