Innovation and Business Transformation. Chuck House. SIRS August 19, 2009
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1 HEWLETT-PACKARD Innovation and Business Transformation Chuck House SIRS August 19,
2 $10B Tek $1B HP $100M Powers of Ten The Rodney Dangerfield of the Computing World
3 Powers of Ten Charles and Ray Eames x10 x x x x :35-5:58
4 Moore s Law = 50%/year
5 Steve Blank, Lockheed et al, Terman Waves of Innovation in Silicon Valley Facebook YouTube Yahoo 57 Google 07 Cisco XeroxPARC Oracle Genentech Intel SRI Apple Sun Lockheed SGI Sylvania Shockley TWITTER Stanford s pact with the Devil Shockley, the Traitorous Eight and Intel
6 Some Unwritten Stories in Silicon Valley Facebook YouTube Microwave Commun & Satellite Dishes Yahoo 57 Google 07 Laser Technology Cisco Oracle Genentech Apple Intel Storage Technologies Sun Lockheed SGI Sylvania XeroxPARC SRI Printing Technologies Shockley
7 The Valley of Heart s Desire The Garage Aside from the Garage though, it s almost like the Valley has forgotten HP, if indeed they ever knew Back East, there is surprisingly little interest
8 Waves of Innovation in Silicon Valley US Forestry Radio US Navy Ship-to-shore US Forestry signed by Teddy Roosevelt Stimulated by John Muir, David Starr Jordan Marconi, GE failed! Navy commandeered First Broadcast Radio Station San Jose, CA Fed Telegraph & Radio 1910 First Si Valley Venture Capitalist kids hire De Forest who moves west DeForest 1906 Invents the Audion (amplifying Vacuum Tube) in Menlo Park, NJ
9 39% 0.2% 40% National Lands, 600 people in the Forestry How about Shortwave Radio? 1950 the small area had more towns of any given size than the large area
10 Waves of Innovation in Silicon Valley US Forestry Radio US Navy Ship -to-shore HARVARD RADIO RESEARCH LAB Varian Bro s 07 HP 57 1 st BROADCAST RADIO STATION DeForest Fed Telegraph & Radio MIT PhD Farnsworth HEWLETT is ARMY liaison MIT / Harvard leaders delist Stanford Eng g Fred Terman HEWLETT Japan
11 The Frequency Spectrum KLYSTRON Microwave Xmission Trimble Nav UHF Television GPS frequencies 10 GHz 1 Ghz FM Radio 100 MHz 10 8 Shortwave Radio FORESTRY 10 MHz AM Radio 1 MHz Navigational systems 100 KHz DISNEY FANTASIA Hi-fidelity music 10 KHz 10 4 Audio systems 1 KHz for Music & Movies 100 Hz
12 The Valley of Heart s Desire The Garage Richard Foster s Creative Destruction 10x in 10 years = 27% per year (1000x in 30 yrs; 1,000,000x in 60 yrs)
13 The CHM timeline will include HP HP 2116A 1966 Laserjet
14 The CHM timeline won t include World s most popular financial calculator World s 1 st successful PC World s best-selling mini in history World s s most popular Inkjet printer
15 The essence 10, 25, ,000+; 500,000; 700,000,000 The HP Way 6 Morphs
16 HP vs General Radio $K Annual Revenue HP GR The Key What People Key On
17 HP vs General Radio $ M $10M GR Mfg Failure HP bought Varian μwave grp HP hired a key Research ldr HP Strategic Shift $1M 1000 $100K GR Strategic Failure HP hired 4 Rad Lab folk Audio 10 4 AM Radio Shortwave FM Radio UHF Microwave
18 A small Palo Alto firm Idaho injury = $10 Million = 10 7 KOREAN WAR HP Let s EXPAND! The staff mutinied 1000 MICROWAVE TEST THEN YOU RUN IT! We re gonna Ranch Board Seats And become MEN of LEISURE
19 A major competitor arises 1954 Revenue growth HP (2) 23% TEKTRONIX Profit growth (29%) 108%
20 What was going on? Frequency Domain Telephony, Music, Radio, TV New technologies Advocates AT&T 5,000, Bell Labs, RCA DoD, FCC Stanford, Terman Stimulus/Response Test: Spectrum Analyzer Time Domain Radar, Sonar, Computers New technologies Advocates RCA 240, IBM 119 ARPA MIT, V. Bush Stimulus/Response Test: Oscilloscope
21 The Watershed for Bill n Dave UN-RETIRED, didn t t IMMERSE DELEGATED MBO scope business lost badly, but pioneered codified an explicit HP Way went public
22 Unrecognized contribution? The ASR-33 Teletype a lot of people were very negative about using CRT s. The argument was oh well, the paper tape gives you a printed copy and you could punch out a tape and that s good enough. now everybody uses a CRT. A scope for Near-sighted Long-armed Engineers
23 The Watershed for Bill n Dave UN-RETIRED, but they didn t t IMMERSE went truly international wildly decentralized out of Palo Alto major acquisition program Scientific Instrumentation
24 The Watershed Decade REVENUE DIVISIONS INTERNATIONAL REVENUE 1x 3x 10x 30x 100x
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