Business Modeling Business Model Hewlett Research Proposal

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6. Business Model Evolution

As the company's 2008 annual report points out, the company's business model is focused on ensuring the appropriate instruments that can help the consumers "capture, store, process, share, print and view"

information. From that perspective, one can understand the core of the HP business model. However, in its medium and long-term strategy, it also needs to consider an additional factor that is likely to have an impact on the evolution of the business model: more and more, information is either online or, even more plausible, it needs to be readily accessible to the client at any moment in time. As all technology has encouraged this approach, the presence of information online seems to be a necessary development of the HP business model.

The company could use the newly acquired software companies to move more towards the online environment, which is where the core of the information business today seems to be. The company does not necessarily need to aim to be the next Google, but rather to increase its presence over the Internet, improve its capacity to connect with potential and future customers over this environment and expand its basis as an online company.

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At the same time, the company can also develop more towards the ERP-type solutions, which would allow it to enter the enterprise management niche that can help diversify its activity and its revenues in the future. This can also help in targeting one of the potential strategies that has been previously mentioned. The company does have, at the moment, services and solutions in the enterprise it management software market, but this can also be expanded as mentioned.

7. Best it-Supported Proposal

The best it-supported proposal is not necessarily a single one, but rather a combination of these previously mentioned that could be unified under the following description: diversification in the software solution industry, with an additional, more significant extension in the online industry and a cost leadership through outsourcing in Central and Eastern Europe and other cheaper parts of Europe, but with the EU legislation implemented.

As it has been previously shown, such an approach would allow the company to retain its market leadership, but also think a long-term strategy that would enable it to continue its revenue and market share growth over the next decades......

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