Gaining a Competitive Advantage with Open Systems Executive Overview Addressing Business Challenges HP: Open Systems Leadership Proven Successes [Illustration Caption: Gaining a Competitive Advantage with Open Systems] Addressing Business Challenges It is vitally important for the continued success of your corporation to seek strategic alternatives to help your organization remain competitive and profitable in this challenging business environment. Today's business challenges span everything from a recessionary business climate and tighter budgets to increased global competition with smaller profit margins, all within the context of higher customer expectations. To help address these business demands, companies are reshaping business processes with creative innovative implementations of their information technology. The key to gaining a competitive edge in today's business climate is flexibility in responding to market conditions, which can be addressed via easier access to meaningful information. The flexibility of Open UNIX(R)-based Systems is the critical component which will enable change for your success. Thus, the primary advantage of an Open Systems approach to computing is that it has the capability to adapt your information systems quickly to a dynamic business environment. This allows for faster, better informed decision making, shorter product development cycles, and improved responsiveness to customers. Hewlett-Packard's business is open information systems. So for almost any challenge you're likely to encounter, we can help--with innovative Open Systems products and proven solutions, services, and support, while maintaining quality business relationships with customers and partners. We've been successful with businesses around the world in improving productivity and efficiency, controlling costs, increasing flexibility, and enhancing competitiveness. And your company can profit from our unequaled experience in open client/server systems. Reshaping business processes with information technology Many companies have found that the old ways of doing business do not apply to the highly competitive 1990s. The enhanced communication from Open Systems is conducive to a successful interdepartmental teamwork approach in solving business problems. At HP, we partner with our customers in applying Open Systems technology to improve these processes which form the core of their business operations. Aligning information systems with corporate goals Historically, computer technology has focused on automating repetitive tasks, such as payroll and financials. Today, executives are looking beyond automation, and into the information technology community to provide systems which augment the decision making process and proactively support the overall goals of the business. In short, using information as a competitive weapon. Because Open Systems can provide meaningful enterprise-wide information to the people that need it, they are better empowered to make well informed decisions. HP's comprehensive, yet modular approach to Open Systems allows companies to focus their IT investments toward creating and reinforcing a competitive advantage. Controlling costs while leveraging past IT investments A compelling benefit of the Open Systems paradigm is that businesses are no longer held hostage by computer vendors which try to "lock in" customers to their systems. The fiercely competitive nature of the Open UNIX Systems marketplace is driving the costs of computers down, yet does not require customers to sacrifice functionality. With the extensive scalability and interoperability of the HP 9000 platform, customers are free to choose the most cost-effective systems to meet current business requirements, while leveraging past investments in legacy systems. HP's best-in-class hardware, software, and support provide you with all the benefits of Open Systems and more: o Broadest range of compatible servers in the industry allows your business room to grow o Broad range of clients and peripherals provides one-stop shopping for single vendor purchase and support o Selection of thousands of software solutions enables you the choice of the perfect application o Industry-leading price/performance reduces your cost of ownership o Robust distributed network and system management capabilities streamline operations o Multi-level security safeguards your data assets o High availability solutions protect mission critical applications o Integrated office solution bundles increase end user productivity o Customized consulting ensures IT alignment with your corporate goals o Support services assures maximum uptime [Quote] "We feel HP is clearly the leader in Open Systems and we're very comfortable with their ability to deliver an excellent solution on time and within budget. With these solutions, the system can expand and adapt to meet our needs, which means our investments in hardware, software and training will be protected." --Jim Sage, VP of Information Systems, Camelot Music HP: The Open Systems Leader HP Is Open for Business HP's family of RISC-based HP 9000 Business Servers and workstations represents the most comprehensive Open Systems product line in the industry. Period. HP 9000 Business Servers can transform your complex network of information and resources into a single, coherent, and well orchestrated business enterprise--with exciting power and flexibility. You can select powerful systems from a single, compatible product line to meet the total needs of your business--from desktop computers, to workgroup or department servers, to high-performance mainframe class systems. Open operating system of choice UNIX has become the open operating system of choice as companies today are looking at issues such as vendor independence, Open Systems, client/server architectures, mainframe alternatives, and cost reductions with continued demands for increased performance. Because of HP's proven commitment to Open Systems and standards, we have paved the way for you to integrate old and new computer systems and applications, choose innovative products from a variety of vendors, and link everything into a cooperative network that supports your business goals. Proven Open Systems leadership Hewlett-Packard is the pioneer in developing and promoting Open Systems which bring together people and information from all corners of your organization. HP customers can benefit from our extensive experience in Open Systems leadership: o Customer preference for HP's top notch product offering has earned HP a position as the largest supplier of UNIX-based systems in the world (see figure 1). o HP's customized consulting services provide a comprehensive roadmap to Open Systems. o Datapro's newest survey, focusing on UNIX implementations from IBM, Sun, DEC, and HP, ranked HP-UX #1 in 11 out of 15 separate categories including maintenance and support, reliability and ease of use. HP-UX's highest UNIX implementation score in overall user satisfaction is indicative of the importance HP places on its customers (see figure 2). o For over six years, HP has been the most attractive major computing platform for Value Added Resellers (VARs) and ISVs, topping DEC, IBM, and Sun.[1] Thus, HP customers can choose from more than 5,000 best-in-class applications for their HP 9000 Business Servers (see figure 3). o In the commercial multiuser RISC/UNIX market, customer preference for HP solution has merited HP the number one vendor position, well ahead of DEC, IBM, Sun, and others, with a 46.5% market share (see figure 4).[2] o HP has been endorsed by the industry as the technology and Open Systems leader with their adoption of HP's innovative technologies such as those included in the Common Open Software Environment (COSE) unified-UNIX desktop standard. [Illustration Title: Top UNIX Vendor] [Illustration Caption: Figure 1 As the top UNIX vendor, HP brings you the unmatched expertise and safety of a leader.] [Illustration Caption: Figure 2 Datapro's most prestigious award recognizes HP's superior UNIX offering.] [Illustration Title: HP Receives Top Honors from HP Channel Partners] [Illustration Caption: Figure 3 HP received top honors for overall score and overall impression from VARs in the 1992 VARBUSINESS Annual Report Card Review.] [Illustration Title: #1 RISC/UNIX Vendor in Commercial Multiuser Environments] [Illustration Caption: Figure 4 HP dominates the market for commercial UNIX.] 1 Based on survey of 1,250 VARs. The overall winner in 18 categories on products, pricing, support, and partnership. Varbusiness, 1987-1992. 2 Based on 1992 worldwide commercial multiuser RISC/UNIX revenue. Aberdeen Group Market Viewpoint, "Commercial Multiuser RISC/UNIX: Hewlett-Packard Leads the Downsizing Transformation in 1993," February 1993. Committed to standards With the emergence of distributed, client/server computing environments, HP's pervasive commitment to standards is more relevant than ever for multivendor integration and application migration. HP believes that the best way to protect our customers is to carefully innovate new technologies with business benefits that best meet our customer's needs, while driving them into wide usage through licensing and standards. Coupling this approach with HP's compliance to hundreds of industry standards, our track record is indisputable. HP's leadership in standards not only portrays our corporate commitments, but further demonstrates our ability to transform innovative technology into mainstream products that solve IT problems. o HP technologies are consistently selected as industry standards (i.e. components of DCE, DME, OSF/Motif(TM), CORBA, etc.). o HP systems are among the first to be compliant with new standards, such as X-Open and POSIX. o HP has over 300 employees on standards committees to drive the development of new standards with HP contributed technology and ensure compliance to new standards. o Founding sponsor of Open Software Foundation (OSF) and contributing member of the COSE initiative. In support of our long-term commitment, HP continues to recognize future computing trends and contributes technologies to support them. HP is a leading contributor of technology to develop standard building blocks for distributed computing, such as the OSF Distributed Management Environment (DME) for simpler management of distributed, multivendor networks. HP also played a key role in the development of foundation technologies for OSF's Distributed Computing Environment (DCE), which provides transparent interaction of applications in multivendor and client/server environments. Superior multivendor integration HP's extensive multivendor experience and networking products enable you to easily link HP 9000 Business Servers into many vendors' networking environments including those of IBM, DEC, Novell, Banyan, and more. This allows you to take advantage of HP's superior reliability and performance in multivendor computing environments. The completeness of HP's networking products and services is sure to support your broad spectrum of applications and systems. Industry reports consistently note that HP offers the widest range of network protocols in the industry, which enables interoperability with your existing computer networks and helps eliminate costly customization. Forging cooperative partnerships At HP, we're committed to forging successful and cooperative partnerships with our customers. We understand organizations use information technology to solve business problems. As such, HP has organized itself around key industries to develop the expertise to team with you in identifying your business goals, inhibitors, and critical success factors. Our field sales force has been extensively trained to understand not just our products, but your business challenges, and to offer long-term solutions that leverage your existing data and applications, while providing a solid foundation for your future. Best-in-class applications In order to ensure our customers have the best application to run their business, HP works closely with key software providers to equip our customers with the leading business applications. Implementation services Through its Professional Services Organization, as well as relationships with key systems integrators with specialized expertise, HP ensures you of a successful and creative implementation. Channel of choice To leverage our capabilities to your further advantage, we've also aligned ourselves with a team of HP Channel Partners that includes distributors, dealers, value-added businesses, systems integrators, and consultants. All because we're interested in developing a mutually beneficial long-term relationship with your company. Consequently, you can acquire the HP product you want from the source that provides you the best combination of price, availability, service, and support. Providing the safety of a leader We've built a strong company by devoting ourselves to high- quality products, customer relationships, and support. And the evidence of our success is well documented. With computer companies today facing insurmountable difficulties, having a financially stable computer partner like Hewlett-Packard is essential to long-term IT competitiveness. With revenues at $16.4 billion in 1992, consistent profitability, and R&D expenditures an aggressive 10% of sales, HP's financial stability and technical innovation provide a reassurance that we will continue to provide solutions to help solve customers business problems, today and in the future (see figure 5). [Illustration Title: The Financial Strength of a Leader] [Illustration Caption: Figure 5 HP's financial strength makes us the safest choice for a UNIX system.] * Net earnings for 1992 exclude the effects of one-time accounting charges for retirement benefits. Open for business If you're looking for the one company that provides all of the advantages of Open UNIX Systems and solutions required to run your business profitably, choose HP. HP has demonstrated leadership with our broad offering of HP 9000 Open Systems, rich commercial environment for business applications, superior integrated solutions, premier customer support, and a corporate commitment to high quality standards. All of this proves that as your information technology partner, HP is open for business--your business. [Quote] "HP is not only defining the standards for excellence that its competitors--especially IBM--are trying to follow, but it has also gained the overwhelming acceptance of the most discriminating judges in the industry--real buyers reengineering their enterprises' mission critical applications to gain an increased competitive advantage." --Aberdeen Group, February 1992 [Quote] "And, simple as it sounds, it is easy to work with HP: the company knows how to develop and maintain successful business relationships with customers and suppliers." --InfoCorp, July 1991 Industry Leaders Partner with Hewlett-Packard for Success HP CHANNEL PARTNERS: Allen-Bradley o American Software o Andersen Consulting o Answer Computer o ASK/Ingres o Banctec o CAP Gemini o CGI Group o Cincom Systems o Collier-Jackson o Computer Associates o Computron o Comshare o Consilium o Cellular Technical Services o CyCare o Dun & Bradstreet Software o Datalogix o EDS o FileNet o Fourth Shift o HBO o Information Builders o Informix o Lawson Software o Legent o Manugistics o McHugh-Freeman o Micro Focus o Novell o Oracle o PDX o PeopleSoft o Plexus Software o PRC o Price Waterhouse o Progress o PSI o Ross Systems o SAP AG o SAS Institute o Software AG o Software Alliance o Software Alternatives o Sterling Software o Sybase o Symix Computer Systems o Systematics o TeleSciences o Texas Instruments o Unify o Wang o Xerox Computer Services o [Photo] TELECOMMUNICATIONS AT&T Application: Network Surveillance System Benefit: Revenue enhancement and protection through increased network availability, improved service quality, minimal service disruption, and efficient use of skilled resources. Capital savings through modular architecture, highly reliable equipment and multi-vendor network element support. [Quote] "Hewlett-Packard technology is ideal for a company like AT&T which does business all over the world. HP's wide range of compatible systems reduces time-to-market and gives us flexibility to offer a line of operations systems with varying capabilities and capacities." Linda Nardelli Manager, Operations Systems AT&T's TRANSVU II provides sophisitcated alarm tracking and network performance monitoring using HP 9000 Series 800 Servers with HP's robust high availability solutions. Also, the Datakit VCS provides flexible multi-host and inter-host communications. HP's state-of-the-art platform will support AT&T's evolving transmission network. [Photo] RETAIL Home Depot Application: Store Automation and Point-of-Sales System Network Gateway Benefit: Improved customer satisfaction from increased automation allows employees more time with customers. [Quote] "Proprietary systems can limit flexibility and growth. We want to keep our application cost-effective and our vendors competitively honest." "Home Depot is committed to the concept of Open Systems. We need store automation support and technology from a company that shares that commitment. That led us to select Hewlett-Packard." Andy McKenna Sr. VP, Information Services Home Depot selected HP based on Hewlett-Packard's systems flexibility, price/performance, value, and support. Advanced technologies like PA-RISC, RDBMS, client-server computing, and network management will streamline operations, improve customer service, and enable Home Depot to react more quickly to changing customer needs. [Photo] AUTOMOTIVE Ford Electronics Application: Inventory Management--Local Location Tracking System Benefit: Improved quality tracking and inspection, reduced work-in-process (WIP), parts substitutions, and fewer changeovers from inventory shortages. [Quote] "HP's leadership position in Open Systems is strategically right for us. Their hardware and software are very good at communicating with different vendor's equipment." Larry Granger Manager, Information Systems Reaching over 99 percent inventory accuracy allowed Ford's North Penn plant to move closer to just-in-time operation with its suppliers. Key to this success were the HP 9000 systems and an inhouse "Local Location Tracking System." Ford Electronics and Refrigeration Corporation has a well-deserved reputation for quality. Logically, it turned to another high-quality vendor for its computer systems and related expertise in configuring advanced computer technologies: Hewlett-Packard Company. [Photo] PACKAGED GOODS Chesebrough-Pond's USA Application: Consumer Information System Benefit: Aids in the effective resolution of all consumer issues, minimizes liability, contributes to operating division product support, and assists the corporation with an accurate assessment of consumer perceptions about their products. [Quote] "Chesebrough-Pond's USA recognized that in order to address the challenges that we face in utilizing information systems effectively, dramatic information technology changes were needed. We selected Hewlett-Packard to provide the Open Systems architecture and solutions, because they understood our business, and were willing to make the investment, creating a strategic alliance between our two companies to achieve a competitive advantage." Gene Goodmaster Director, Management Information Implementing HP's Open Systems client-server architecture, which embraces industry standards and adheres to the corporate IT policies, will improve customer service, brand loyalty, and the company image while providing critical information across the enterprise. 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