HP 2012 Annual Report Download - page 4

This foundation includes assembling a strong leadership team and investing in systems and tools that
make it easier for us to manage our business, allocate resources, and prioritize investment dollars.
For example, to better empower and enable our sales teams, we successfully rolled out a new customer
relationship management system to almost 30,000 HP employees.
To bring more focus back to the business, we implemented a series of organizational changes, such
as consolidating our personal computer and printing businesses under the same senior executive
leadership. We also combined our global accounts sales organization with our enterprise servers,
storage, and networking business and our technology services business to create a new Enterprise
Group. Finally, we centralized all of our marketing and communications activities.
In May, we announced a multi-year restructuring program to streamline the company and create the
capacity to invest in innovation. As of the end of scal 2012, we are on track to realize the savings that
we outlined in that announcement.
We began working to optimize our supply chain, reduce the number of stock-keeping units (SKUs) and
platforms, rene our real estate strategy, improve our business processes, and implement consistent
pricing and promotions.
We have also taken steps to refocus our research and development eorts to extend HP’s technology
leadership in our core markets. Our product and service development teams have moved aggressively to
better understand customer needs, align our portfolio, and speed our time to market.
Finally, scal 2012 was a landmark year for product announcements, including our rst new line of
multi-function printers in seven years, an impressive new line of Windows 8 PCs, such as the Spectre XT
TouchSmart and ENVY x2, and the HP ElitePad, the world’s rst tablet optimized for the enterprise. In addition,
we introduced a comprehensive cloud strategy and a number of new cloud products and services.
And we updated our enterprise security portfolio with scalable solutions that give customers
the 360-degree view they need to protect the 21st century enterprise.
Multi-Year Journey
We began scal 2013 with a stronger nancial foundation, an empowered leadership team, and a clear
strategy, but we have more work to do on the multi-year journey ahead of us.
Fiscal 2013 is going to be a x-and-rebuild year as we focus on working through the anticipated
disruptions expected to accompany the organizational changes we made in scal 2012. We will continue
to implement our cost-reduction and operational initiatives, make investments in our business –
particularly in tools, systems, processes, and instrumentation – and maintain our focus on disciplined
capital allocation. We will also continue to drive product innovation in our core markets; improve our
commercialization strategy with a focus on cloud computing, security, and information optimization;
and rebuild our go-to-market capability.
We are working hard to accelerate the timing of this journey. Success hinges on consistency of
leadership, focus, execution and, most importantly, great products and services delivered in the way
that customers want to buy them.
$2.6B
returned to
stockholders in
the form of share
repurchases and
dividends
2
We modified our incentive compensation structure for senior executives to increase the focus on the underlying
drivers of stockholder value, including an increased emphasis on cash flow and the addition of a new return on
invested capital performance metric.