giAgilent - The Way Forward
Subhashish Baruah – 151
Subhendra Nath Mohanty – 152
Sundar Raj Venkatakrishnan – 153
Surabhi Agrawal – 154
Surabhi Sharma – 155
Suvradeep Mukherjee - 156
Whenever the people are well--informed, they can be trusted with their own government. ~ Thomas Jefferson
The purpose of existence of an organization is to create value. Value begets trust and vice-versa. Trust and Value are of prime importance for an organization to grow in a sustainable manner. The following summary explains the importance of the same in a holistic manner, where-about a case of “The way forward for Agilent Technologies Ltd” is discussed upon. Hewlett-Packard (HP), an American multinational information technology corporation, was founded in a one-car garage in Palo Alto by William Bill Redington Hewlett and Dave Packard in 1935. As a startup, their main presence was in the test and measurement (T&M) industry. In the due course, HP diversified its product portfolio by venturing into the semiconductor products, printers, imaging equipment, computers and servers, health-care solutions and chemical analysis industries. The entrepreneurial culture which prevailed amongst its employees helped the startup grow into a multinational corporation. The founders, Bill and Dave, developed a unique management style that came to be known as “The HP Way”. In Bill's words, the HP Way is a core ideology which includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility, and a view that the company exists to make technical contributions for the advancement and welfare of humanity. In the late 1990s, HP decided to have a major restructure in its business verticals and opted for a spin-off. This decision marked the birth of Agilent Technologies. The move helped HP (the parent company) to focus more on its B2C market. Agilent Technologies has 4 different business interests. They are as follows.
Test and Measurement
Automated Test Group Semiconductor Product Group
Life Science and Chemical Analysis
Today, Agilent operates in 40 different countries and caters to the needs of customers from 120 different countries. Its customers include Fortune 500 companies such as Cisco, Dow Chemical, Glaxo, Intel, Merck etc. The sound research base of Agilent helps it to stay abreast with the changing needs of the customers. The industry that Agilent is into is governed by technological advancements. The evolving nature of the same, demands for a rich technology portfolio and a robust financial strength. The values inherited from HP and also those cherished by Agilent helps it to stay in-line to the demand. Agilent manages to hold on to the No. 1 or No. 2 position in the segments it competed. Though the business portfolio of Agilent is greatly diversified, T&M continues to be the main revenue generator. In 2002, this group constituted for 55% of the total revenue. Again, the T&M sector is classified into two different streams namely the Electronic products and solutions group (EPSG) and communications solutions group (CSG). Its customers were AT&T, Boeing, Hitachi, General electric etc. The main competitors were Anritsu, Tektronix, Advantest, Fluke Corp, National Instruments and Rhode Schwartz.
The strategy for growth of this group was fivefold:
1. To identify customers’ business and technology needs, then leverage across the value chain 2. To introduce emerging test technologies to accelerate customer progress 3. To satisfy customers through operational excellence
4. To focus on leading-edge customers
5. To build new capability in solutions, systems and services.
Capitalizing on the innovative strengths of the research lab, Agilent came up with 100 new products in the year 2002. In 2002, the proportion of revenue from the new products...
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