THE US computer maker Hewlett-Packard has formed a new Financial Services Business Unit (FSBU) to give the firm greater focus on the fast-growing global finance market.
The semi-autonomous new venture is a part of HP's computer system organisation, which last year accounted for 78 per cent of the firm's US$25 billion revenue. ($208.7 billion) The unit, headed by general manager Ruann Ernst, will design, build, customise and integrate computer products and services, as well as provide consulting services, specifically for the worldwide financial services markets, targeting banks, broking houses and insurance agencies.
It is a familiar strategy for Hewlett-Packard, which has successfully decentralised operations in recent years, allowing various industry-focused divisions freedom to pursue their own business in a manner which is usually associated with entrepreneurial start-ups.
'Although we are a part of a very big company,' said Ms Ernst, 'we all feel like a relatively small company. The key is (market) focus.' Financial services is one of the fastest growing markets for HP's computer systems organisation, and Ms Ernst said the timing was right for efforts in the finance market to be channelled into a separate division. Global deregulation of the financial services markets, particularly in the United States, presents immediate opportunities for companies which are able to provide the kind of flexibility in information infrastructures that allows institutions to cope with rapid market changes.
'These companies are looking for stable partners because they know the rate of change is going to continue,' Ms Ernst said.
The FSBU expects to grow at least double the market average, she said, so that growth, 'translates to us taking market share from others. Over the long term, we want to become the dominant open systems supplier in the financial services market.' The new unit was officially formed last week, with the global announcement of the restructure being made in Asia for good reason. Ms Ernst was in Hong Kong last week to announce the news, and she said the firm was targeting developing countries where competitors such as IBM and Digital do not have the kind of dominant market positions they have in more economically mature areas.