Hewlett-Packard, Leadership in Wholesale Distribution Computing in the 1990s Introduction This customer presentation is designed to provide an overview of HP's overall computer strategy and HP's commitment to the wholesale distribution industry. The target audience is wholesale distribution executive management operations, and DP/MIS. This presentation includes a limited amount of product information. You may choose to supplement these slides with specific product slides, depending on the sales situation. There are a few slides on the HP 3000 and 9000 systems for use in specific customer situations, but there are not any workstation, PC, or peripheral slides. Also substitute product slides with current ones when appropriate. You may also choose to add information on specific local experience with this market, familiar big deals, or specific regional issues your customers face. The customers listed in the presentation should not be used as reference sites. They are certainly good customers, and the information on them is accurate, but it is important to verify the current status of any account with the sales rep if you expect to use them as a reference site. Finally, this presentation contains a significant amount of detail. It is extremely critical to your success to take the time to familiarize yourself with the material before you attempt to present it to customers. .PA HP Leadership in Wholesale Distribution (Introduction) *********** WSALE01.GAL *********** ..picturea:\wsale\WSALE01.GAL,65535,49151,1,43,13, Good morning, I'd like to thank you for giving us the opportunity to discuss HP's computing strategy for the wholesale distribution industry. Introduce self o Job Description o Experience in the industry o Years at HP My objective for today is to provide you with an overview of HP's computer strategy in wholesale distribution. NOTE: State a clear objective for the presentation and your particular plan with the customer (questions, action items, and next step). This is a suggested slide script. Please feel free to interject and revise where you feel necessary. We recognize that what is appropriate for one customer situation, may not necessarily be for another. .PA Wholesale Distribution Computing in the 1990s (Agenda) *********** WSALE02.GAL *********** ..pictureA:\WSALE\WSALE02.GAL,65535,49151,1,43,13, We are going to cover several topics during the next 30 minutes or so. First, the overall environment faced by wholesaler-distributors in the 1990a. As you know, the state of the industry provides you with many challenges for the future. Then we'll talk briefly about the computing environment and some of the obstacles facing wholesaler-distributors today. Next we will cover the importance of open systems and cooperative computing and what this means to you and your organization as users of computers. Specifically, we will talk about the three keys to implementing cooperative computing. Finally, we will discuss HP's leadership in implementing cooperative computing in cooperative computing in the wholesale distribution industry, and how it benefit you in the 1990s. * Key points: This slide can be customized to fit specific agendas. .PA Wholesale Distribution Environment of the 1990s *********** WSALE03.GAL *********** ..pictureA:\WSALE\WSALE03.GAL,65535,49151,1,43,13, Wholesaler-distributors across the U.S. and Canada are facing similar pressures in a mature industry characterized by slow growth and diminishing profit margins. As you know, the industry is undergoing major restructuring, which is changing the ways distributors do business. And never before, wholesaler-distributors are turning to technology to help them with the challenges they face, not only to create a competitive advantage, but as a means of survival. Competition is increasingly intensifying among distributors; this has resulted in the following key business trends: (highlight a few) o Drive to reduce operating costs o High level of merger and acquisition activity (industry consolidation) o Race to improve productivity o Emphasis on value-added services for customers o Tighter distributor-vendor and customer partnerships o Evolution of channels (retail, warehouse clubs, catalog) o Powershift from manufacturers to customers A prime example of globalization and acquisition activity in the wholesale industry is demonstrated by the largest plumbing/electrical distributor in Canada--Westburne. In 1991 Westburne acquired the largest independent wholesaler of electrical products--Wehle of Buffalo, New York. The Schneiver Groupe of France acquired Square D--one of the largest electrical products manufacturers. Never before has it been so important to be able to easily integrate multi vendor computer systems and applications together quickly, without impeding customer satisfaction. * Key message: Think global, act local, according to Arthur Andersen's "Technology Maze." .PA Goals of the Distributor of the 1990s *********** WSALE04.GAL *********** ..pictureA:\WSALE\WSALE04.GAL,65535,49151,1,43,13, Given the state of the wholesale distribution industry today, the wholesaler-distributor basically has five key goals for the 1990s. This is based on the experience we have had with our customers and working with wholesaler-distributors. They are: o Profitability--To remain profitable in an industry of shrinking margins o Increased marketshare--Grow existing business to obtain more share of the market o Satisfied customers--Customer satisfaction is key with the focus on quality and service in this competitive environment (value-added services, next-day delivery). o Maximum productivity of resources--With a key focus in wholesale distribution on quality and the quality process being implemented in several companies' productivity of all resources is vital for survival. o Attraction/Retention of quality people--To maximize productivity it is extremely important to have good dedicated employees on board in a tight economy. NOTE: Keep in mind that the wholesaler-distributor knows his business well. Interject comments wherever possible that demonstrates this. At the same time, it is important for HP to convey that we understand the distributor's environment, and how information technology can give distributors a competitive edge. The customer may have the same goals and CSFs outlined in this presentation. .PA Key CSFs of the Distributor of the 1990s *********** WSALE05.GAL *********** ..pictureA:\WSALE\WSALE05.GAL,65535,49151,1,43,13, In order to be successful in such a competitive environment and to meet their goals, wholesaler-distributors must continue to streamline and modernize their operations, focusing on those activities that will reduce their costs, improve productivity, and increase the level of customer service. Quality customer service is essential with the focus being market driven rather than operational. This is reinforced through the theme at most industry association conferences such as "customer driven service and quality." Wholesaler-distributors must have access to information that will enable them to accurately track and manage their inventory and make better management decisions. Reducing customers' order cycles and increasing order fill rates will be priorities. Finally, investment in employee training, and consistency of procedures and information flows among departments and branches is a key ingredient for survival. This outlines the things that must go right in an effort for the wholesaler-distributor to differentiate from the competition and be successful in the 1990s. NOTE: Position it so it helps us establish credibility, but don't pretend to know more about the customers' business than they do. .PA The Challenge for the Distributor of the 1990s *********** WSALE06.GAL *********** ..pictureA:\WSALE\WSALE06.GAL,65535,49151,1,43,13, We talked about the key goals and critical success factors of the wholesaler-distributor. Therefore, the wholesaler-distributor's challenge is: to maximize customer service, manage costs, and remain competitive in an industry of slow growth and declining margins. .PA Wholesale Distribution/Key Technology Trends in the 1990s *********** WSALE07.GAL *********** ..pictureA:\WSALE\WSALE07.GAL,65535,49151,1,43,13, For the wholesaler-distributor to meet that challenge, we need to look at some key technology trends. We pointed out the key industry trends which affect the wholesaler's business activities. Technology trends are driven from key business trends. An increased investment in technology is expected to be the key weapon to fight gross margin pressures and to solidify the wholesaler-distributor's position in the pipeline. As a result, automation expenditures are expected to increase to 1.5 percent of sales, a 50 percent increase over current levels. Due to the significant trends outlined, sales/marketing and logistics applications will receive an increased share of the EDP budget along with expenditures for PCs, communications, bar code equipment, and EDI. Since customer service is a key differentiating factor, computers will play a critical role in helping wholesaler-distributors deliver more value-added services, such as monitoring customer inventory levels, handling orders with greater speed and efficiency, and frequency of delivery. .PA Information Systems/Benefits Desired by Wholesalers *********** WSALE08.GAL *********** ..pictureA:\WSALE\WSALE08.GAL,65535,49151,1,43,13, We've looked at some of the major technology trends in wholesale, now we are going to talk about some of the major benefits desired through information technology by wholesaler-distributors according to a market research survey of distributors across several market segments done by Ernst & Young for HP. Ernst & Young asked executives, operations managers, and MIS managers to state the benefits they expect from their investment in information systems. The results of the top benefits are listed here. Again, these benefits were consistent across several market segments, whether it is an office products wholesaler or a food distributor. .PA Key Obstacles to Maximize System Productivity *********** WSALE09.GAL *********** ..pictureA:\WSALE\WSALE09.GAL,65535,48559,1,44,13, Now that we've covered the benefits, it is important to understand what is getting in the way of maximizing system productivity. Ernst & Young also asked in their survey, "What are the key obstacles to maximizing system productivity you face today?" One of the key issues is "the inability to manage information." How many times have you wondered, if there is so much good information in my system, how do I use it to enhance decision making in a timely fashion without sifting through pages and pages of computer print-outs? In other words, how can my users get at pertinent information, quickly and efficiently to make decisions? Also, how can they look at data in a variety of ways without waiting a week for a report to be written? Personnel issues are also significant. Well-trained employees on a computer system are essential to the success of obtaining timely and accurate information. .PA Reasons Wholesalers Implement Technology *********** WSALE10.GAL *********** ..pictureA:\WSALE\WSALE10.GAL,65535,49151,1,43,13, We've examined the key technology benefits, obstacles, and technology trends of system productivity. Now let's look at the reasons as to why technology is implemented. According to Arthur Andersen's findings in "The Technology Maze" 1991, panelists were asked why wholesaler-distributors implement technology; the responses are summarized in this chart. Of the four categories listed, "improve productivity" was the most common reason for implementing new technologies. This result is somewhat predictable because of the four categories, productivity gains are the easiest benefits to quantify in a cost/benefit analysis. The effect of increased sales would seem easy to quantify, but the amount of increased sales attributable to a new technology can be much harder to estimate. This is certainly something we can see over time. .PA Outside Pressure to Implement Technology *********** WSALE11.GAL *********** ..pictureA:\WSALE\WSALE11.GAL,65535,49151,1,43,13, Having reviewed the key reasons for implementing technology, it's equally important to address the outside pressures wholesaler-distributors face to implement it. According to the same study, panelists indicated that among wholesaler-distributor's customers, suppliers, or competitors, clearly the customers are putting the most pressure on them to implement technologies, as shown in this chart. An example of this could be EDI and bar-coding where customers as well as suppliers have put the pressure on the wholesaler to implement these technologies to streamline business in the pipeline. .PA Barriers to Implementing New Technologies *********** WSALE12.GAL *********** ..pictureA:\WSALE\WSALE12.GAL,65535,49151,1,43,13, According to Arthur Andersen, "The Technology Maze," 1991, wholesaler-distributors are lagging behind in implementing technology. Additionally, in the same study, the panelists were asked to name the most significant barriers to adopting new technology. One might expect that cost would be the most prohibitive factor. While cost was viewed as a significant barrier, especially to the smaller distributor, the most significant roadblock to new technology was resistance to change. In fact, five of the top seven barriers were people-related. Panelists also indicate that in the next five years, their resistance to change will decrease dramatically, signaling that significant change still lies ahead. In summary, the industry as a whole recognizes that the marketplace is gradually forcing it to adopt a technology and become more productive. Successful wholesaler-distributors will use technology as a weapon to strike against competitors and sustain a competitive advantage. .PA Wholesale Distibution/Evolution of the Industry *********** WSALE13.GAL *********** ..pictureA:\WSALE\WSALE13.GAL,65535,49151,1,43,13, So now that we understand the importance of technology in wholesale, let's look at the evolution of the industry and technology used. As we can see, the most dramatic shift took place in the 1980s and the 1990s. In looking at the historical model of computing in wholesale distribution it is important to understand the evolution of the industry as a whole. (Highlight main areas listed). This is important in terms of technology because the wholesaler-distributors' organizational changes affect their business activities and how technology is used. .PA Investments in Computing Technology *********** WSALE14.GAL *********** ..pictureA:\WSALE\WSALE14.GAL,65535,49151,1,43,13, With the evolution in the wholesale distribution industry there has also been an evolution in computing. Simply put, we have gone from many users accessing one computer system to single users having access to many computers. You may remember that in the 1960s, centralized mainframe and batch-processing was the typical computer environment--an expensive, not very flexible environment. In the 1970s, distributed data processing gave users more flexibility and accessibility, but application development was still an issue. The 1980s began with the personal computer revolution--in many cases, workers had to "sneak" a PC into the workplace to perform stand-alone work such as spreadsheet applications. As the power of the PC grew and specialized applications were developed, desktop computing exploded. The 1980s ended with powerful PCs and workstations in local area networks communicating with some larger systems. The results are "islands of automation." Today, in the 1990s the computing model has evolved to cooperative computing. Before we define cooperative computing and what it means to you, it is important to look at the organizational structure changes of the wholesaler-distributor from the 1980s to the 1990s. Then we can discuss how the cooperative computing model fits within that framework. .PA The Wholesaler-Distributor of the 1980s *********** WSALE15.GAL *********** ..pictureA:\WSALE\WSALE15.GAL,65535,49151,1,43,13, Through the 1980s, wholesaler-distributors typically organized their businesses in a "compartmentalized structure"--activities or functions were segregated among natural departments, such as sales and marketing, purchasing, warehousing, or transportation (refer to chart). Typically, management and administration were broken down into smaller groups of activities such as planning, reporting, and cash management. These activities could then be managed individually for better control over each function. However, the internal segregation caused by the departmentalized structure often puts different activities at odds with each other. Over the last several years, as the types of services performed by wholesaler-distributors have become more complex, the success of each function has become more interrelated. Several companies invested in either one centralized computing system, or several computers either by department or branch. In the latter example, many systems were not integrated and the autonomous nature of the situation lent itself to inconsistency in procedures and operations across the company. .PA The Wholesaler-Distributor of the 1990s *********** WSALE16.GAL *********** ..pictureA:\WSALE\WSALE16.GAL,65535,49151,1,43,13, Let's take a look at the organization of the distributor of the 1990s. As you can see complete integration of departmental functions and information within the company has taken place. In the 1990s, wholesalers view themselves as a key member of the distribution pipeline. As most markets have matured, the inherent competitive pressures now place a premium on maximizing the efficiency of the channel. The wholesaler-distributor's function will be to manage the supply and demand forces within the channel to provide seamless service. As a result, the wholesaler-distributor's organization should minimize barriers within its organization and with channel members that inhibit a smooth flow of information. Activities that add value to the channel, such as those required to provide JIT (just-in-time) delivery should be emphasized. Technology, such as EDI ordering from customers or automated carousels in the warehouse, will help make the whole process more efficient in order to perform the activities to achieve JIT. In other words, technology can be used to cut across the old departmental structure to integrate these activities across the company. Due to the trends and the environment, to be competitive, a wholesaler-distributor has to implement technology that provides seamless integration. We will talk about how HP's computing strategy can address these issues, but first let's look further at the historical computing models that you are familiar with and the evolution to the 1990s model. .PA Traditional Centralized Computing in Wholesale *********** WSALE17.GAL *********** ..pictureA:\WSALE\WSALE17.GAL,65535,49151,1,43,13, The traditional computing strategy fit the compartmentalized structure of a wholesaler quite well, and still does in many cases. The centralized approach consists of a host/terminal computing architecture. There are both benefits and limitations to this architecture. In this environment all of the company's data is consolidated on one system. o Limitations: bad response time, load of CPU o Benefits: information consolidated on one system .PA Distributed Computing in Wholesale *********** WSALE18.GAL *********** ..pictureA:\WSALE\WSALE18.GAL,65535,49151,1,43,13, Let's take a look at the next computing architecture, distributed computing. In this example HQ and branches have their own CPUs onsite with online users on each system. In some cases, users can access other systems through dial-up or leased lines. The HQ computer is updated nightly with batch information from branch systems. Again, there are benefits and limitations to this computing architecture as well. Distributed processing could be computer systems in different departments of the same company or different computer systems in different branches geographically dispersed within the same company. Benefits of decentralization include: Off-load host, each department or branch has its own processing power to run its business, and through networking and batch updates this can act as one large centralized computer system. Information is closer to the user, and data can be sent back and forth. .PA Desktop Computing in Wholesale *********** WSALE19.GAL *********** ..pictureA:\WSALE\WSALE19.GAL,65535,49151,1,43,13, In the latter part of the 1980s, desktop computing became popular. The benefits of the PC and personal desktop computing were realized and rapidly implemented. At this point, users began to realize the benefits of both desktop and host/terminal-based systems. It is important to understand this evolution in computing before we talk about HP's cooperative computing model. Because of users' wish-list for a better solution than that provided by just desktop computers or centralized systems, academia, industry, and users developed what is called the "client/server" model. NOTE: We feel that this model allows wholesaler-distributors to gain a competitive advantage rapidly, given the environment. It is not to necessarily to replace existing systems, but rather to enhance/add functionality to an existing architecture. .PA The Evolution to Client/Server Computing *********** WSALE20.GAL *********** ..pictureA:\WSALE\WSALE20.GAL,65535,49151,1,43,13, As you can see by this slide, this has been a gradual but natural evolution of computing technology. The evolution is occurring in response to new technologies and changes in the capabilities of existing systems. (Refer to the slide for explanation of model.) New developments in networking, more powerful desktop devices, graphical user interfaces (GUIs), and newly developed client/server applications have made client/server computing possible. We will talk more about client/server computing later. .PA Cooperative Computing Through Open Systems *********** WSALE21.GAL *********** ..pictureA:\WSALE\WSALE21.GAL,65535,49151,1,43,13, To take advantage of this new computing architecture, HP's strategy for computing in the 1990s is what we call cooperative computing. There are two parts to the strategy: cooperative computing and open systems. Our objective is to give customers the benefits of cooperative computing: o Easy access to information o Networkwide control o Integration of applications The reason we chose open systems as the foundation of our strategy is simple. The reality is that most organizations already have a multivendor environment and open systems are the only way to integrate those multiple vendors to achieve cooperative computing. First, let's take a look at what open systems means. .PA Open Systems for Wholesale Distribution *********** WSALE22.GAL *********** ..pictureA:\WSALE\WSALE22.GAL,65535,49151,1,43,13, Here we see the definition of open systems, the components of open systems, and finally, the benefits. Portability, interoperability, scalability and availability means products that can be used on or with multivendor systems. This means products that can communicate and interact with other systems, products that can be sized to fit specific requirements and products that are easily accessible. The components of open systems are more than operating systems. They include databases, languages, networks, and hardware. They are all based on industry standards. The benefits are fairly obvious and they map directly to the issues and obstacles we discussed earlier. The most immediate and clearly the most important to wholesaler-distributors are cost reduction and investment protection. .PA Open Systems Standards *********** WSALE23.GAL *********** ..pictureA:\WSALE\WSALE23.GAL,65535,49151,1,43,13, The key message in this graphic is that there are many components to open systems, there are many standards. What is important to you, as a user, is that your vendors conform to standards so that you can focus on the applications, whether it's payroll, order entry, or financials. Standards drive and even define the "openess" of open systems and are critical to realizing the goal of implementing cooperative computing. Now, let's look at the cooperative computing environment in which we will further define client/server computing. .PA The Cooperative Computing Environment *********** WSALE24.GAL *********** ..pictureA:\WSALE\WSALE24.GAL,65535,49151,1,43,13, Before we talk about the keys to implementing cooperative computing, let's take at look at the environment. From a user's perspective, the cooperative computing environment enhances real-time decision making. .PA Wholesale Distribution/Open Client Server Computing ************ WSALE25.GAL ************ ..pictureA:\WSALE\WSALE25.GAL,65535,49151,1,43,13, If the term client/server is new to you or perhaps has not been clearly defined, it means maintaining desktop computing as you currently know it along with transparent access to files and compute power from a variety of other computers in a distributed networked system. It uses applications designed to take advantage of the combined processing power of your desktop computer and other computers in a networked system. It combines the personal computing capabilities of PCs or UNIX workstations with the file and processing power of larger, more capable computers called servers. To put it simply, client/server computing combines the strengths of individual desktop computing with the established capabilities of larger centralized system. In other words, it takes advantage of the dormant power residing on most desktops. The move from centralized to true distributed processing puts computer resources closer to the information source and away from the centralized approach. In cooperative computing it does not matter what the computer topology is, rather that all systems work together seamlessly in one integrated whole. Client server is a piece of cooperative computing, as is distributed processing or centralized computing. HP can offer solutions to your business computing needs. Client/server technology allows you to implement new systems to an existing computer architecture and to add functionality. Client/server technolgy reduces the time necessary to give you a competitive advantage that no one else has with a strategic business application. For instance, a strategic application in wholesale distribution may be a customer information system. Given the industry environment, distributors need to get closer to their customers and suppliers. They need information about their customers and what their customers are doing to be effective. Adding value to service "customer-driven solutions" is key. Distributors need to make it easier for their customers and suppliers to do business with them. Information needs to be tracked through the pipeline from supplier to to distributor to customer. Client/server technology makes it easier to accommodate this and to make changes as business needs change. Furthermore, by tying the customer/supplier chain into your computing architecture, you give them access to valuable information to enhance the value of the system for the whole chain. A strategic application involves taking different types of information from inside and outside the organization and processing it in a form that is readily accessible to the right people. This seamless integration can be achieved with client/server computing. To be competitive and gain a strategic advantage, you need an architecture that will allow you to easily add and integrate new systems to an existing environment. Key benefit: Provides productivity gains to wholesaler-distributors by combining responsive local processing with efficient centralized data coordination. The configuration enhances system performance through the separation of front-end (client) and back-end (server) processes. .PA Cooperative Computing Environment in Wholesale for the 1990s *********** WSALE26.GAL *********** ..pictureA:\WSALE\WSALE26.GAL,65535,49151,1,43,13, This shows a typical example of a cooperative computing in a multivendor environment. In wholesale, it is simply being able to look into the whole computer network through one window. Being that acquisition and consolidation are key trends in wholesale, this computing strategy makes sense for the 1990S. To be competitive and gain a strategic advantage, you need an architecture that will allow you to easily add and integrate new systems to an existing environment. The point is that cooperative computing takes advantage of the computing topology to best fit your needs, whether centralized, or decentralized. .PA The Keys to Implementing Cooperative Computing in the 1990s *********** WSALE27.GAL *********** ..pictureA:\WSALE\WSALE27.GAL,65535,49151,1,43,13, Now that you know a little bit more about cooperative computing, we're now going to look at the three key components of implementing cooperative computing. .PA What's Required for a Client/Server Solution? *********** WSALE28.GAL *********** ..pictureA:\WSALE\WSALE28.GAL,65535,49151,1,43,13, First, let's look at what's required for a client/server solution. .PA HP's Open Systems Expertise *********** WSALE29.GAL *********** ..pictureA:\WSALE\WSALE29.GAL,65535,49151,1,43,13, We know that open systems is a required component of cooperative computing; let's look at HP's background in open systems. In terms of technology, HP's first commercial computer system, the HP 3000 was initially released almost 20 years ago. Since then, HP has invested significant resources in providing industry-leading functionality and performance in the OLTP marketplace. Our first UNIX system was released 10 years ago, well ahead of major competitors. HP made a commitment long before our competition. Our first reduced-instruction-set computer system was released more than five years ago--well ahead of our major competition. .PA HP 9000 Broadest Systems Offering in the Industry *********** WSALE30.GAL *********** ..pictureA:\WSALE\WSALE30.GAL,65535,49151,1,43,13, Our product line today consists of the broadest family of computer systems in the industry from PCs and X-terminals to workstations and servers. HP offers a full line of scalable, standards-compliant products, specifically tuned for the commercial marketplace. .PA Top Midrange UNIX System Manufacturer *********** WSALE31.GAL *********** ..pictureA:\WSALE\WSALE31.GAL,65535,49151,1,43,13, In terms of market share, HP is the worldwide leader in midrange UNIX systems. .PA HP 3000 Family *********** WSALE32.GAL *********** ..pictureA:\WSALE\WSALE32.GAL,65535,49151,1,43,13, The HP 3000 family of multiuser computer systems provides a broad range of compatible systems based on HP's PA-RISC architecture. The HP 3000 provides superior distributed OLTP performance with industry-leading cost of ownership and ease of use. The smooth upward growth path of the HP 3000 assures you of low-cost upgrades which means your investment in technology is protected. The HP 3000 also provides you with open systems capabilities such as support for ARPA services and Novell networks for multivendor networking, support for 4GLs and RDBMS standards as well as open, client/server development tools. NOTE: Emphasize the specific product range and capabilities of interest to your customer. .PA HP 3000 - UNIX and OLTP Applications *********** WSALE33.GAL *********** ..pictureA:\WSALE\WSALE33.GAL,65535,49151,1,43,13, Through the support of POSIX on the HP 3000, HP offers the functionality and strengths of OLTP performance as well as the applications availability of UNIX. We are fully committed to support POSIX.1 and POSIX.2 and will fully support future standards for POSIX as they evolve. NOTE: Focus on the benefits of open systems. .PA Strongest Commitment to Standards *********** WSALE34.GAL *********** ..pictureA:\WSALE\WSALE34.GAL,65535,49151,1,43,13, Standards are the requirements for open systems technology implementation. HP provides active leadership in worldwide standards organizations with over 300 HP professionals. That is a serious commitment to standards. We have also been very successful in driving HP product innovation into industry standards. These are a few of the HP technologies submitted and accepted as standards by internationally recognized standards bodies. .PA Technology - HP's Leadership *********** WSALE35.GAL *********** ..pictureA:\WSALE\WSALE35.GAL,65535,49151,1,43,13, To summarize HP's technology leadership, I'd like to make a few points. We've talked about HP's commitment to standards, broad product line, the fact that our technologies are becoming standards, and our number one position in the UNIX system markets. We're also a leader in multivendor networking, and our commitment to industry standard extends to networking as well--HP OpenView, licensed by IBM. Beyond the hardware and networking leadership, HP has formed alliances with many leading suppliers of additional technology. These are some of the companies HP has invested in, either financially or through technology investments. .PA Right Vision, Strategy, Products *********** WSALE36.GAL *********** ..pictureA:\WSALE\WSALE36.GAL,65535,49151,1,43,13, It's easy for HP to tell you that we are leaders in cooperative computing technology. But, industry analysts agree with us, and consistently describe HP's leadership position in industry publications. Now, I'd like to talk about the second of the three key components of implementing cooperative computing--applications. .PA Applications -- HP's Leadership *********** WSALE37.GAL *********** ..pictureA:\WSALE\WSALE37.GAL,65535,49151,1,43,13, In a world of standards, HP is concentrating on providing value-added software development that will increase the productivity of system managers, end users and software developers. We believe that industry-specific software is best provided by independent value-added businesses which can specialize in application-specific software. So, our objective is to provide the tools to make software developers, system managers, and end users more productive. To that end, HP provides products such as the HP OpenView network and systems management software which enables intelligent network management for the most complex multivendor environment. For end users, products such as HP NewWave, a user environment designed for the cooperative computing world of the 1990s, help make the system more intuitive to use. For software developers, HP offers products such as SoftBench, a CASE environment that integrates software development tools from multiple vendors. We also offer data management software, databases, reportwriters, and languages. HP's software solutions for wholesale distribution are extremely broad. Through partnerships with value-added business partners, HP is able to provide high quality solutions designed specifically for the fragmented wholesale distribution market. HP currently has software applications from more than 200 value-added business partners in wholesale. HP groups these industry-specific solutions in three major categories: o Distribution management o Order management o Warehouse management .PA Applications -- HP's Leadership/Wholesale Distribution Solutions Providers *********** WSALE38.GAL *********** ..pictureA:\WSALE\WSALE38.GAL,65535,49151,1,43,13, Listed are some of our leading applications by market segment in the wholesale distribution market running on both our HP 3000 and 9000 business servers. HP has several of the best-in-class, top-tier wholesale solutions on board. HP also maintains strong relationships with large system integrators such as Andersen Consulting and EDS. We work in cooperation with systems integrators on very large, customized applications when our customers prefer an outside vendor to develop, install, and even manage the entire implementation. NOTE: Refer to Quickfinder for solutions. .PA Applications -- HP's Leadership/Wholesale Distribution Solution Providers (Cont'd) *********** WSALE39.GAL *********** ..pictureA:\WSALE\WSALE39.GAL,65535,49151,1,43,13, .PA HP Rated Number One in VARBUSINESS Survey ************ WSALE40.GAL ************ ..pictureA:\WSALE\WSALE40.GAL,65535,49151,1,43,13, One of the reasons HP has been able to attract high-quality Value-Added Businesses is our reputation in the industry. For 5 consecutive years HP has been rated by value-added businesses well ahead of our major competitors in overall performance and satisfaction. We've talked about HP's technology and application leadership. Now we're going to talk about the third, and possibly most important, component of implementing cooperative computing. .PA Support -- HP's Leadership *********** WSALE41.GAL *********** ..pictureA:\WSALE\WSALE41.GAL,65535,49151,1,43,13, A major challenge in the world of open systems and cooperative computing is to provide quality support in a multivendor and, in some cases, multinational environment. Hewlett-Packard is recognized as a worldwide leader in customer support and customer satisfaction. .PA Support -- Customer Satisfaction *********** WSALE42.GAL *********** ..pictureA:\WSALE\WSALE42.GAL,65535,49151,1,43,13, In fact, for eight consecutive years HP has been rated number one in overall customer satisfaction, by DataPro, an independent research company. The numbers recently released for 1991 show that HP is again a leader in customer satisfaction. .PA HP Multivendor Network Support Program ************ WSALE43.GAL ************ ..pictureA:\WSALE\WSALE43.GAL,65535,49151,1,43,13, HP provides a complete portfolio of support services, from systems planning and requirements analysis, to implementation and operations support. We have customer training facilities throughout the world to help maximize your investment in HP products. .PA HP Rates Number One in Support -- Worldwide ************ WSALE44.GAL ************ ..pictureA:\WSALE\WSALE44.GAL,65535,49151,1,43,13, In fact, HP's support reputation goes beyond the U.S. We have been rated number one throughout the world by various international industry. .PA Cooperative Computing Leadership ************ WSALE45.GAL ************ ..pictureA:\WSALE\WSALE45.GAL,65535,49151,1,43,13, I'd like to summarize a few of the key points we've just covered. We talked about the three key components of implementing cooperative computing -- technology, applications, support,and HP's leadership in those three components. In technology: Our commitment to standards and our key technologies becoming standards. HP's broad line of compatible systems, networking leadership and strategic alliances. In applications: 200 solutions from several value-added businesses, number one rating in VARBUSINESS. In support: HP's number one in customer satisfaction rating, our superior reputation, and our multivendor support capabilities. .PA Wholesale Distribution Strategic Focus *********** WSALE46.GAL *********** ..pictureA:\WSALE\WSALE46.GAL,65535,49151,1,43,13, Now we are going to talk about HP's strategic focus and commitment in the wholesale distribution market. HP focuses on eight target markets in wholesale due to their size, sales opportunities, experience, and best-in-class solutions targeting these segments. NOTE: HP has the key solutions for the top largest segments, however HP also has solutions that target many other wholesale segments. .PA HP's Leadership in Wholesale *********** WSALE47.GAL *********** ..pictureA:\WSALE\WSALE47.GAL,65535,49151,1,43,13, From a corporate level down to the individual sales offices, HP has a strong commitment to the wholesale distribution marketplace. HP's strengths include a commitment to understanding the unique needs of wholesale distributors and providing the best solutions to meet these needs. As you can see, these solutions include a wide range of industry-specific software solutions combined with HP products that are renowned for their quality and reliability--and solutions that will enable wholesaler-distributors to achieve their key business goals and remain competitive into the 1990s. HP is able to demonstrate this commitment to the industry with a solid reference base of over 2,000 wholesale customers and marketing sales/resources dedicated to meeting their needs. HP also claims membership in a number of regional and national wholesale distribution organizations. We participate in industry conferences and national and regional trade shows such as the NAED, IDA, NEDA, PHCP-Expo, and NOPA. (To tailor to audience, look up industry-segment associations in "The Wholesale Industry Fundamentals" book, P/N 22894-90016.) .PA HP Wholesale Industry Organization *********** WSALE48.GAL *********** ..pictureA:\WSALE\WSALE48.GAL,65535,49151,1,43,13, From a marketing perspective, HP has a strong commitment to the wholesale distribution industry demonstrated by this slide. As one of HP's target industries, the wholesale distribution market receives a high level of attention from all areas of our company. As an example, our product marketing teams consistently seek out the needs of our wholesale customers so that our R&D teams can work on future products with this market need in mind. Marketing programs in the wholesale distribution industry are closely aligned with the product groups and the sales organization working together to best meet a customers needs. In short, we believe very strongly in our commitment to the wholesale distribution industry. .PA Intelligent Electronics *********** WSALE49.GAL *********** ..pictureA:\WSALE\WSALE49.GAL,65535,49151,1,43,13, Here you can see HP's experience in some of the larger wholesalers in the U.S. and Canada across industry segments. Intelligent Electronics is a great example. They are customers of HP's equipment, specifically PCs and peripherals, and they are users of HP hardware and value-added business solutions. They chose HP. .PA Agropur/Natrel *********** WSALE50.GAL *********** ..pictureA:\WSALE\WSALE50.GAL,65535,49151,1,43,13, Agropur/Natrel of Quebec, Canada is one of the largest milk and dairy product distribution companies in Canada. They decided to develop a new, custom, state-of-the art computer system to meet their requirements in the sales and delivery area. They chose HP. .PA Unisource Corporation *********** WSALE51.GAL *********** ..pictureA:\WSALE\WSALE51.GAL,65535,49151,1,43,13, Unisource, one of the largest paper products distributors in the west coast needed a substantial computer system to help the company manage its business and distribute the 50,000 product lines it stocks. They chose HP. .PA Darter, Inc. *********** WSALE52.GAL *********** ..pictureA:\WSALE\WSALE52.GAL,65535,49151,1,43,13, Darter, a medium-sized industrial equipment and supplies distributor in the Midwest rapidly growing by acquisition needed a computer system flexible enough to manage its needs. They chose HP. .PA Experience -- HP's Leadership - Spectrum *********** WSALE53.GAL *********** ..pictureA:\WSALE\WSALE53.GAL,65535,49151,1,43,13, Here are some direct quotes from customers talking about their experience with HP solutions in wholesale. These quotes are typical of what HP's wholesale distribution customers tell us about their hardware, their support services, and their applications. .PA Experience -- HP's Leadership - IE *********** WSALE54.GAL *********** ..pictureA:\WSALE\WSALE54.GAL,65535,49151,1,43,13, A direct quote from one of our largest electronic distributors. .PA Experience -- HP's Leadership - HoneyBaked *********** WSALE55.GAL *********** ..pictureA:\WSALE\WSALE55.GAL,65535,49151,1,43,13, These customers are all focused on achieving maximum productivity. They are verbalizing some of the benefits of HP solutions. Scalable, cost-effective hardware and getting information to the people who need it. .PA Why Choose HP? (Summary Slide) *********** WSALE56.GAL *********** ..pictureA:\WSALE\WSALE56.GAL,65535,49151,1,43,13, In summary, I'd like to reinforce the key points as to why HP is the best choice as your partner in automation. HP is the leader in open systems. We have the strongest commitment to Open Systems and standards. We not only take an active role in setting standards, we are driving our own innovations into standards. We supply leading hardware and the broadest open systems solutions in the industry. Our hardware, networking, and strategic alliances put us in a good position to be the leader in technology in the 1990s. HP has a broad range of solutions available, including over 200 wholesale industry applications from our value-added business partners. We are the number one vendor in customer support, and have been for eight years. HP will also provide support for multivendor networks. HP has a strong commitment to the wholesale distribution industry. From the highest levels of our company, HP is committed to providing our wholesale-distribution customers with leadership in cooperative computing in the 1990s. .PA Hewlett-Packard...Leadership/in Wholesale Distribution Computing in the 1990s (Closing slide--call to action) *********** WSALE57.GAL *********** ..pictureA:\WSALE\WSALE57.GAL,65535,49151,1,38,13, Use this as an opportunity to thank your audience, and for your call to action (next steps). .PA