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Are HP's claims over internal IT mess justified?

When HP announced its financials Meg Whitman said part of the blame for the company under-performing was internal IT. More specifically she blamed the lack of compelling sales and customer relationship management (CRM) systems within the company for some of HP’s problems.

I have since spoken to someone that used to work at HP in quite a senior position. My source told me that decisions at HP might have caused it some problems.

“Massive slashing of applications and datacentre infrastructure resulted in a business that was less able to cope with the demands it faced. Whether the business units just didn’t have the quality of data any more to know properly where they were and what was needed to run the business. We know what happened to HP.”

It was quite interesting because the former HP CIO who made these decisions, Randy Mott, is now the CIO at General Motors. GM is going through the process on insourcing large chunks of IT work that is outsourced to HP. So he is probably not that popular at HP.

Are there any other HP employees that can shed light on this? If so please comment.

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EDS lost a lot of deals, ostensibly because of price, but a combination of poor reputation and absolutely catastrophic employee moral contributed to losing many deals. When the management is as incompetent as EDS senior management was (some have left, but with huge cash, stock and pension payments), most of the employees act incompetent. When sales and sales support people are routinely threatened with unemployment, when bonuses, commissions and raises fail to happen, then they dont really do much more than go through the motions. I suspect that many of the managers have left before being exposed, but the damage has been done. It is interesting to note that one of the offerings of EDS was a CRM system, but they never implemented it themselves. My suspicion is that the thought it would be an easy sale, but dont bother with this customer focus themselves. Ross Perot must be absolutely amazed at how far down the food chain EDS has slipped. HP reputation is about the same.

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