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Hewlett-Packard geeks aspire to inspire

By Richard Morochove

First published November 20, 1997

SAN FRANCISCO -- If Hewlett-Packard was a person, he'd be a trustworthy but boring computer geek wearing a turtleneck and sandals. That was the sobering conclusion of a recent market research study conducted by the company.

As North America's second-largest computer technology company (after IBM), Hewlett-Packard has a solid track record of innovation, but consumers don't perceive HP as inspirational or innovative.

Co-founders William Hewlett and the late David Packard built the business by designing superior products at a competitive cost. Good prices won the fledgling company an early order for audio oscillators from Walt Disney for use in developing sound effects for the classic animated movie Fantasia.

I've found HP to be a business run by its engineers. While they care passionately about developing more capable and faster products such as laser and ink jet printers, they lack pizzazz in the marketing department. If HP engineers invented sushi, they'd call it cold, raw fish on rice.

While this approach served the company well when HP engineers sold computers and scientific test equipment to business techies, it isn't the best way to sell home technology products to consumers.

So, with some trepidation, the techies at Hewlett-Packard are reshaping their image so you'll feel comfortable inviting them into your home.

In a splashy launch MC'ed by actress Cybill Shepherd, HP unveiled its new approach to the home technology market last week at The Galleria, an airy converted warehouse in San Francisco's fashion district.

There's a redesigned corporate logo, revamped package design and a slogan, "Expanding Possibilities." The new TV advertisements remind me of some early Apple Computer commercials. Yet is there anything of substance behind the hype?

There are several new ways the company hopes to make it easier for consumers to use technology.

Ever run out of printing supplies late at night? HP is introducing automated vending machines for inkjet printer supplies such as ink cartridges and paper. The vending machines will be placed in high traffic areas such as grocery stores and university campuses.

If you're into digital photography, I saw a demonstration of a nifty Internet "shoe box" for digital photos that HP is developing. You'll be able to store your photos on the Web. You can share the images with family and friends by telling them the Web address of your shoe box. Your friends will also be able to print photos from the site.

In the longer term, 15 HP divisions that sell products to home consumers, ranging from printers to PCs to digital cameras, will work to design and promote their products in concert.

It's similar to the way Microsoft and Intel have marketed themselves to consumers and built their brands into household names.

Decentralization has long been one of HP's strengths. In the past, each business unit has taken its own path to sell its products. I suspect the process of getting 15 divisions to agree on any one thing is as easy as herding cats. So I'll be watching with interest to see how HP's new co-ordinated approach to consumer marketing pans out.

The computer company that's perhaps the most successful at presenting a friendly yet innovative image is Apple Computer. Apple's recent troubles haven't held back the innovation.

About the same time as HP's announcement, Apple introduced new computers based on the fast G3 PowerPC processor. The PowerBook G3 is based on the 250 MHz. PowerPC chip and is loaded with high-end components including 32 MB EDO RAM, 5 GB hard drive, 12.1-inch active matrix colour display and 20X CD-ROM. As you would expect, it isn't cheap, with an estimated retail price of $8,199.

The desktop models based on the G3 chip are much more affordable. Prices range from $2,899 for one based on a 233 MHz. chip to a $4,399 minitower model that uses the 266 MHz. G3 processor and comes with a 100 MB Iomega Zip drive in addition to a 6 GB hard drive.

As I predicted in an earlier column, Apple Computer will now sell certain computer models online through its Web site. You can review different model configurations online and even request a computer built to order with a special configuration tailored to your needs.

Unfortunately, while Canadians can access the new Apple Store site, we won't be able to order computers for delivery in this country. Apple Canada hopes to set up a Canadian online order site within the next 12 months. CW

Richard Morochove, FCA, is a Toronto-based computer consultant.

Copyright ©1998 by Morochove & Associates Inc. All rights reserved. This work may not be copied or distributed by any means without our prior written permission.

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