Case studies

14

Background:

Over discussions with the CIO of Unilever, it became apparent that Hewlett Packard was seen as little more than a storage and server provider; there was minimal perceived 'added value'. It had also come to light that Unilever was becoming increasingly frustrated by their incumbent provider, IBM. This presented HP with an opportunity to demonstrate the value they could add, and position themselves as an innovative and strategic partner. HP approached Consalia with a view to running its Winning Value Proposition program.

Objective:

The goal was to help HP develop a more client-centric and creative approach in responding to business opportunities. The hopeful outcome was an unsolicited deal process for the outsourcing of all data centers and end-user services worldwide.

Approach:

After an initial consultation process with the account manager, engagement lead, and retail analyst assigned to the project – Consalia identified a number of potential business drivers that Unilever was facing. These were:

• The development of emerging markets and the complex nature of supply chain management.

• Innovation in the use of technology for digital marketing. A group of 12 people came together from the US and Europe for a workshop, facilitated by Consalia in London.

These included experts from HP’s retail supply chain operations, individuals from HP's R&D laboratory, and presales and consulting executives with retail specialist knowledge. Following the workshop, win themes were agreed upon based on the business drivers of Unilever. These formed the basis of the value proposition that was taken to the client.

1. Supply chain: Leveraging HP technologies to deal with counterfeit issues, as well as providing better supply chain management.

2. Innovation: The co-creation of a retail digital laboratory and a proposition that both companies would co-fund the development of.

3. Governance: Governance around innovation in the development of the contract, so that Unilever could be assured that during the seven-year agreement, HP would continue to innovate as part of its contractual obligations.

Outcome:

As a result of the outputs of the workshop, Unilever was able to gain access to considerable resources of HP, and understand how these resources could add value to Unilever's business. Unilever granted HP an unsolicited process, and in February 2008 a $675 million outsourcing deal was announced between the two companies, which would position HP as a strategic partner over the following seven years.