Conference 7.286::digital

Sounds like someone got drummed out of the corp. liesl

    Is PCBU on track for making Top 5 PC vendors during 1995 ?  

    
    I don't think so, at least not by December. Sounds like he left
    rather "suddenly" though. None of the usual, "We appriciate all the 
    dedication of service...... I bet he had a "philosphical difference"
    with Enrico, or someone else high up.
    
    Mark

  I too find the lack of a statement of appreciation for his service to be
suspicious. My guess is that he resigned on very short notice and they wanted
to get the word out quickly, without taking the time to compose a statement of
appreciation. But Auer was highly appreciated by a lot of people, right?
  Please keep up posted. I doubt we will hear any more about this on Livewire.

    Financially speaking, the PCBU got into some trouble with notebooks
    this last quarter and lost money overall.  There was already a
    shakeup with the notebook VP.  It seemed to have also been enough
    to do in Auer.  Pesatori hired him; Pesatori fired him.  The PCBU
    won't reach #5 with the current limited reseller model, especially
    with the corporate mindset of pushing Alpha over Intel (and larger
    margins on Alphas for the resellers).  We make great servers that
    get lots of great magazine reviews, for example, but they don't
    sell if they're not bid.  .02 KB

    
    	And they're not bid when a sales type doesn't get credit for
    selling them. World's dumbest sales plan. If Auer was the author of
    that, this was long overdue. Our PCs are not COMPAQ, IBM, etc. If
    you want to break into the Top 5 you better have *all* feet on the
    street pushing them. One in twenty is NOT the way.
    
    
    		the Greyhawk

    Here's the story I heard (from a "usually reliable source"):
    
    Enrico asked for the resignations of both Auer and the head financial
    person in the PCBU.  Supposedly, even late in the quarter, they were
    still reporting sales estimates that were wildly higher than the real
    numbers.  This had been an ongoing problem with Auer, and Enrico
    finally got fed up with it.

    The Greyhawk is right.  When you are Compaq and selling PC's the model
    is you have a hammer in your right hand and every rock you flip over is
    looking for nails.  We flip rocks and say, "Hmmmm, there are the nails,
    look at all those nails!!!!  But wait Bullwinkle, you don't get paid to
    hit those nails!  Ahh shucks Rocky, I guess it's back to nothin' up my
    sleeve, and onto more rocks!"
    
    Let's see according to our latest statement of earnings....
    
    "After 12 quarters of explosive market share gains, revenue growth in
    the personal computer business moderated in the fourth quarter. " With
    our Digital PC business at an annual run rate of $2.5 billion, we
    expect both continued progress and to capture additional market share
    in the 1996 fiscal year," Palmer said." " During the quarter we took
    steps that were necessary to position Digital's PC business
    infrastructure for its next growth phase, which requires a balance of
    profit improvement, cash utilization and market share gain."
    
    And Bernhard catches a bullet for the numbers.  Tsk...Tsk...this big
    company stuff is sure interesting
    
    

    Oh man, I hope BP is reading this string!  Customers want Alpha AND
    Intel - compensate us on both - watch it grow!

    Here's my 2 cents as a Sales Exec calling on the US Fed. Govt:
    
    After selling over 2,000 PCs (OK, not all them were ours), I'm now
    told I can *only get credit* if the sales goes through a reseller.
    this was DEVASTING NEWS, as most of our business goes through "contract 
    vehicles" like the one we won in 1991 worth $150 mil called "PC LAN."
    These contracts are not exactly a "license to steal" but they are the 
    "cat's meow."  (We still have to sell/configure/support/promote.)
    
    There is an increasing use of these contracts by the US Govt, and we
    in the field have been screaming for them.  Now they tell us we can't
    get credit!
    
    Last week two sales peers resigned to go to the competition because of
    this and other reasons, adding to the Fed Govt. Group leading the
    corporation in attrition.
    
    Then in Q3 I learn from a customer that we "no-bid" the $500 mil
    successor contract (which most assumed we would win as the incumbant).
    A month later the Bid Team Leader resigned.
    
    My point?  Without credit for these vehicles, we in the field will work
    against them.  Simple human behavior.  We will down-play a easy to use,
    low cost, high volume selling vehicle in order to get credit for PC
    sales.  We will spend our time filling out allowance forms, tracking
    DECnumbers, and doing paperwork.  We will spend our time coaching,
    nudging, tracking, and recruiting resellers.  Time that I used to spend
    with customers.
    
    I can only conclude that we still have a long ways to go to learn
    marketing and selling.  And a longer ways to go to eliminate
    stovepipes.
    
    
    

There is no excuse for the PCBU having a flat 4th Quarter...the products
they build are second to none.  Heads SHOULD roll IMHO.  As always with
Digital, we just don't get it...our marketing is a joke.  The way I see it,
there have been some very interesting and at times ingenious marketing
initiatives recently, but they are not sustained...for example, what happened to
the flashy holiday ads?  They opened peoples eyes but we never delivered
the knock-out punch!!

To me, it appears that Digital is the least mentioned PC maker in the entire
Industry in the trade press...but is number 1 or 2 in terms of product.  I
understand that it's a vicious, low margin battle for the PCBU but we MUST take
on Compaq and HP aggresively for the consumers mind-share...

As always, JMHO.

-Stephen

    .. and in the UK, I *still* can't go buy a Digital PC from the large PC
    specific chains. IBM, Compaq, Dell, Toshiba, Packard Bell, (Apple),all
    stocked and ready to sell.
    
    UK is a *large* PC market. Retail sales are a large and growing part of
    the market. Any chance we can get on this train ?
    
    

    >UK is a *large* PC market. Retail sales are a large and growing part of
    >the market. Any chance we can get on this train ?
    
    Why not ask the U.K. PCBU manager directly (in the remote case that
    the person in question is not reading this conference ;-)?
    
    ...petri

    I can assure you that you will see a much stronger push for Intel
    servers and high end PC's coming very soon.  Especially running NT.
    In addition, people are very aware that there are compensation issues
    for people selling pcs v. alphas.  
    
    We in NT land have become much more attentive to promoting both
    architectures.  I know NT isn't the volume product for the pcbu, but
    it's an example of how things are being fixed.
    
    ken b.
    

    The problem with our PC's and sales policies certainly precedes Bernard
    Auer. In large measure, the perceived success in FY94 of the PCBU was
    due to the cost of sales being born by the system's business unit.
    Enrico gets promoted and then the PCBU is made accountable. In essence,
    the smoke and mirrors were removed!

    I hope this is relevant ...   I recently got a new PC Compleat catalog
    in the mail.  I flipped through it cover to cover.  (Wow, they're
    charging how much for a 1G drive?)  This is from memory since I don't
    have it with me.  Lots of Digital's PC offerings ...  but no Alphas.
    I remember seeing Digital Alpha PC's running NT in previous catalogs I
    got along with the Intel-based PC's.  What gives?  Is this another
    example of Alpha not being marketed well?  
    
    I assume that what's happened is some sort of charter change or that 
    I am confusing catalogs.  I remember getting catalogs that featured
    both Alpha- and Intel-based PCs from Digital.  It seems to me that 
    when the family of Digital PCs are advertized the Alpha boxes should 
    usually be included.  The impression the PC Compleat catalog left me 
    with was that Digital doesn't make Alpha PC's anymore.  Of course, I
    could have missed something, but I went over the catalog cover to cover
    a couple of times.
    
    Steve

    The problem of the PCBU's struggles are multi-dimensional but there is
    one glaring issue.  We are running a simple sales model in this company
    today.  It has two vectors if you will, one a pull and one a push and
    it looks like this:
    
    
    		PUSH				PULL
    
    		Resellers			Digital Sales
    		Distributors			Digital Marketing
    		VARS				Digital Engineering
    		ISV's				Dibitial BU's
    		----------> Customers---------->
    
    Customers are simulatenously pushed and pulled through the buying
    cycle.  It is our job(s) here to design, engineer, manufacture,
    assemble, distribute, market, sell and support the SBU's and the other
    business units (PCBU too) products.  It is the job(s) of our resellers
    to perform a number of efforts on our behalf, from delivering value
    added solutions to order fulfillment for comodity products (like  PC's)
    to the marketplace.  PC's need a unique push-pull combination, that is 
    we have to advertise and market to the world that our PC's are the best
    for the money, we also have to build and distribute them cost
    effectively and fast (which we do with marginal success), and we have
    to support them once they are in our customers hands.  That's the pull
    part. 
    
    PC resellers have to do the push part, the configuring of servers,
    inventory of desktop units for fast delivery, and the installation and
    support at the end-user side, plus perhaps sell any other value added
    services like LAN integration, or set up a server with Pathworks or
    Novell or NT Server to host customer applications.  That's the push
    part.
    
    In order for this to work the push-pull model has to be in balance.  If
    it's out of balance then you hit the wall.  For example, we did a great
    job through new advertising campaigns to market our Ultra notebooks to
    the world (remember when the little things fits easily into an
    inter-office envelope in the persons briefcase) and promote the living
    heck out of them in our accounts.  Everyone starts to take notice and
    the orders coming roaring in but guess what?  We don't have the product
    to ship in a timely fashion.  We have the customers full attention,
    they have the cash and we can't ship.  Like Al Unser Jr. would say,
    "Hello wall" at Indy.  So we miss the window, the customer flips the
    page and whalla, on his/her desk in 48 hours or less is a brand new
    Compaq lite notebook, working, and helping them do the work they need
    to do.
    
    Another case, the ABU reps. spent time on the pull side, promoting the
    products to our top 1000 accounts, and we in the SBU promote them to
    our VAR's to integrate into their unique value added applications
    running on Alpha's and Vax's in the world.  So we do the educating, the
    hand holding, the configuring, the distribution and logistics order
    nightmare after we receive an order and for what?  Zippo.  You want to
    know why we had a flat Q4 with PC's.  One of the reasons was that the
    Digital sales force finally figured out that if we spend time selling
    PC's we will fail on our overall metrics.  So we don't anymore.  They
    aren't even on the radar screen for most rep.'s with the exception of
    those who work for the PCBU.  As such an important part of our pull
    model is broken, that is we are not promoting the products face to
    face with those who buy because no one get's credit for those goods
    sold.  It's simple, it's about choices and we are choosing to go where
    we can maximize our revenues for Digital and get our W-2 statements
    big.
    
    Mav
    

    re .16
    
    PC's come from PCBU (PC Business Unit). Alpha's (at this time) come 
    from SBU (Systems Business Unit) [don't ask me what ABU is exactly].
    
    I think PC Compleat is fed from the PCBU stovepipe therefore no
    Alpha's.
    
    Rob who-now-lives-on-the-pcbu-side-of-the-fence Wall
    
           

    re: .18
    
    Thanks for the explanation.  Sounds plausible to me.  It seems to me
    that Digital should make some effort to make folks think of Alpha PCs
    when they think of PCs.  I know that a lot of folks doing, for example,
    3D animation work are thinking of stepping up to Alphas from their
    Intel-based PCs running their favorite PC applications on NT.  Seems to
    me "we" should always dangle Alpha PCs in front of Intel-based PC
    users.  Going by the PC Compleat catalog, Digital doesn't appear to
    court PC owners as potential Alpha PC buyers.
    
    Steve

    Kris, there was reason for no bidding the pc lan contract.  we could
    not meet the technical requirements using nt and as of then unavailable
    exchange on alpha.  i know we put a lot of effort in before giving up.
    i don't know why we didn't fall back to a novell strategy.  one of the
    people involved will be in town later this week, i'll ask him what
    really happened.
    
    ken
    

From:	GENRAL::EXPAT::VNS "The VOGON News Service  07-Aug-1995 0440"  7-AUG-1995 02:39:58.10
To:	VNS-Distribution
CC:	
Subj:	VNS #3364  Mon  7-Aug-1995

VNS COMPUTER NEWS:                            [Tracy Talcott, VNS Computer Desk]
==================                            [Nashua, NH, USA                 ]

 Digital - PC chief Bernhard Auer quits, apparently under pressure
	{The Wall Street Journal, 4-Aug-95, p. B8}
   Digital Equipment Corp.'s personal-computer chief resigned in a move that
 insiders said reflected management's dissatisfaction with the unit's failure
 to become a leading player in the exploding PC business.
   Digital, based in Maynard, Mass., said Bernhard Auer, vice president and
 general manager of the personal-computer business unit, resigned "to pursue
 other plans."  Mr. Auer, 54 years old, couldn't be reached for comment.
   Individuals close to the company indicated Mr. Auer was moved aside because
 the company wasn't satisfied with his performance.  The PC division has made
 sharp market-share gains over the past two years, becoming the 11th biggest
 player in the U.S. compared with No. 27 in 1992.  Digital's chairman and
 president, Robert Palmer, had set a goal of breaking into the top five in
 1995.
   The division's sales grew 56% in the latest fiscal year, ended June 30, to
 an estimated $2.05 billion.  But in the fourth quarter, growth slowed to just
 20%, about the same as the industry growth rate.  Profits have been elusive as
 the company pushed for market share.  The unit made a few missteps as well,
 failing to have enough supplies of its lightweight HiNote notebook computer
 ready early this year when rave product reviews stimulated demand.
   John Logan, an analyst with Aberdeen Group in Boston, said "Bernhard did an
 excellent job, but not excellent enough."  He said that Digital has hired Bain
 & Co., a Boston management consulting firm, to advise it on improving
 performance, and Bain has forced company managers to compare their performance
 with that of Hewlett-Packard Co.  H-P, the No. 2 computer maker after IBM, is
 expected to be in the top six in PCs this year and has maintained solid
 profitability.  "Bernhard went head-to-head with H-P, and he simply lost," Mr.
 Logan added.
   Jay Stevens, an analyst with Dean Witter Reynolds Inc., said he was surprised
 by Mr. Auer's departure.  "They were refocusing the unit to get a little more
 profitability and a little less growth.  I though he was going to be
 responsible for implementing the plan," he said.
   Enrico Pesatori, vice president and general manager of Digital's Computer
 Systems division, will serve as acting vice president and general manager of
 the PC unit until a successor to Mr. Auer is named.
   Mr. Auer came to Digital in 1993 from Compaq Computer Corp. and was hired by
 Mr. Pesatori, who was then general manager of the PC division.  When Mr.
 Pesatori was promoted last year, Mr. Auer succeeded him as the division's
 head.

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<><><><><><><><>   VNS Edition : 3364      Monday  7-Aug-1995   <><><><><><><><>

re: .9
    >  Oh man, I hope BP is reading this string!  Customers want Alpha AND
    >  Intel - compensate us on both - watch it grow!
    
    There's an idea for us:  Offer an Alpha with an Intel coprocessor.
    Buyers have an instant migration path from 16/32 bit applications 
    to *real* 64 bit - no half-vast emulations for a bridge.  
    [dale - who still, on occasion, has use for a Rainbow.]

RE: .22

	God, what a hack. And the cost would be expensive and it
	would be very hard to support.

	Software solutions are coming.

							mike

And rather than trying to use technical solutions to solve a non-technical
one, simply lowering the price of ev5 systems would have exactly the same
effect without a lot of additional overhead (in terms of designs, software,
manufacturing, etc.).

    re: .22
    
    Now, you know that's not what I meant "Offer an Alpha with an Intel
    coprocessor..."
    
    I mean in terms of client-server computing - the mother of all servers
    should be an Alpha implementation and workstations or clients could and
    mostly are either Alpha workstations or Intel pc's.  One large database
    server can promote a pretty hefty sale if you tack on the clients as
    Intel clients ..... WHEN the customer is asking for INTEL clients.
    
    So, we're not measured or compensated on the Intel pc's ..... Hmmm now
    lets think .... do I waste cycles on the PC stuff or .... wham, bam,
    next?

08Aug95 USA: DIGITAL FIRED AUER FOR FAILING TO MEET FINANCIAL TARGETS. 

We wondered what was behind the resignation of Digital Equipment Corp 
personal computer chief Bernhard Auer, but the Boston Globe is in no doubt 
that he was fired: company sources told the paper he was forced to resign 
for failing to meet financial targets - DEC had planned to join the world's 
top five personal computer companies this year, but it failed even to get 
into the Top 10 according to the first quarter figures put together by 
International Data Corp; DEC in public is insisting that Auer's departure 
had nothing to do with the personal computer unit's performance, saying 
that he simply left "to pursue other interests."
(c) APT Data Group plc 1995. 
COMPUTERGRAM

 Compaq - Maintains hold on PC market; Hewlett-Packard closes in on Packard Bell
	{The Wall Street Journal, 8-Aug-95, p. A2}
   Dataquest analysts say HP likely will overtake Packard Bell next year.
 Having grown primarily by making inroads into large corporate accounts, HP
 recently launched a limited offensive into the home market through Circuit
 City Stores.  The computer maker announced a planned broad distribution in a
 multitude of retail stores, positioning itself to cash in on what analysts
 expect to be a strong Christmas season.  According to Dataquest, 2nd quarter
 PC shipments increased 25% over the same period in 1994 on the strong U.S.
 home market as well as growth overseas.  Dataquest concludes, in fact, that PC
 markets in Asia and Europe are growing faster than that of the U.S.  Analysts
 expect overall 1995 growth in shipments to exceed 1994 by about 20%, putting
 pressure on manufacturers to keep up with demand.  U.S. market share estimates
 are to be released soon by both Dataquest and IDC.  Packard Bell has led that
 segment the past few quarters.
   Top PC Vendors. Based on world-wide PC shipments, in thousands.
 Vendor			2nd Quarter 1995	% Change from 1994
 Compaq			1,450			+25.0%
 IBM			1,060			+24.7
 Apple			1,010			+19.5
 NEC			  645			+38.7
 Packard Bell		  585			+31.5
 Hewlett-Packard	  520			+55.2

    It's not all bad news:
    
    Digital's HiNote CT475 has made front page news on the cover of PC
    Magazine, September issue.  There is some excellent editorial within
    the journal and the CT475 has been selected as the Editor's Choice in
    its notebook category.
    
    This is the first time that Digital's PCs have appeared on the a PC
    magazine front cover and represents the industry's growing confidence
    in Digital as a leading player in the notebook market
    

    
    re .28
    
    The problem is that when customers are impressed by these magazine
    articles and want to buy them, the desirable models seem to be in
    short supply. On the other hand we seem to have supplies of
    non-desirable models (i.e., non 'ultra' Hinotes) aplenty. Looks like
    a forecasting/manufacturing or distribution issue.

It's more that customers can't go see one and try it out.  The stores are full
of Toshibas, Compaqs, etc.  Even the few dealers who carry HiNotes tend not
to have any on display "but they'll be glad to order one for you".

				Steve

    There were shortages; I think everything is [too] well stocked
    at this point.

    Sigh... 
    
    same point as before.....
    
    
    I CAN'T BUY THEM HERE IN THE UK.
    
    
    lousy business model  (anybody in the PCBU, please disagree.. !)
    
    
    If I can't buy these whizzo Dec PC's how can anybody else. ?
    
    AW

    >> I CAN'T BUY THEM HERE IN THE UK.
    
    eh? Can't buy what, all models except the Starion can be bought from a
    number of resellers in the UK.

back to the base note topic. Isn't this exactly what many of us
said we wanted? Top executives getting the boot when they don't
perform? liesl

    Whaddaya mean, "don't perform?"  
    
    What part of "resigned to pursue other interests" don't you
                                                      understand??
    
    :-)
    

    Note that the PC magazine editor's choice was the ordinary HiNote. They
    did not test the Ultra.
    
    Maurice

They _did_ test the Ultra, but they were not as impressed by the battery
life.

One magazine down, how many to go?

cheers,

mb

>    Whaddaya mean, "don't perform?"  
>    
>    What part of "resigned to pursue other interests" don't you
>                                                      understand??
>    
>    :-)


editorial license?  slander avoidance?    

    To keep the record straight. We (in manufacturing) did not build the
    Hi-note or Starion. Those models are build by outside vendors...... for
    better pricing and delivery.... I suppose.
    
    I hope someday we will build our product ourself.
    
    Mike

    re .33
    
    pick up a copy of, say, PCWorld (the magazine), then go to PCWORLD
    (the largest PC retail seller in UK).
    
    Then, look at PCWORLD's ad in PCWorld magazine. 
    
    We are missing a huge trick, by making it so hard for SOHO types to buy
    our stuff.
    
    [BTW, ad says '..we stock all the leading PCs....' then shows logos of
    all the companies whose products they stock. (IBM, Tosh, Dell, blah,
    blah... and you guessed, no Digital) ].
    
    I'm sure anyone *could* buy Digital, if they tried hard enough. But
    that is not how retail is supposed to work.
    
    AW

    Interesting article in this week's Business Week on our PC problems 
    and this departure.  The Digital article follows an upbeat 2-page
    article about HP and their PC success and strategy.
    
    Mark

    
    I have noticed that we seem to sign up new retailers for PCs
    regularly. However, they all seem to follow a predictable scenario.
    
    Retailer signs up.
    Many Ads in local paper
    Excitement created
    In-stock merchandise sells fast
    Wait for replenishment. Sales lost
    Wait for replenishment. sales lost .....
    
    Finally, retailer gives up
    No more Ads; back to Packard Bell, IBM etc.
    
    In my local area, this has happened with CompUSA, and now ABC
    Warehouse. Is this only Detroit or universal?
    
    
    

    
    	The rumour I heard was that the PC group has going to launch a
    *new* retail unit and no more Starions were being shipped ever to
    anybody. We OEM'd the Starions (don't know from who). But then this
    is only August, and as par for the course, we do not get our act
    together until late December.
    
    	 the Greyhawk

	re: .43

	that's interesting, since elsewhere there has been thorough 
	descriptions of the new "fall" line of Starions...but I guess
	I wouldn't be totally suprised ;-)

	_kelley

    .43's rumor source is clueless.

    Bruce Claflin will join Digital as vice president and general manager
    of the Personal Computer Business Unit, effective Monday.  Claflin will
    be responsible for all aspects of the company's PC business, worldwide. 
    He will report to Enrico Pesatori, vice president and general manager,
    Computer Systems Division.
    
    "Bruce's broad and diverse management and business experience
    will help lead Digital's PC business into its next phase of growth,"
    Pesatori said. "His leadership, combined with the skills of our talented 
    PC organization, will insure that Digital continues its drive to a 
    leadership position in the PC industry." 
    
    Claflin joins Digital from the IBM Personal Computer Company.  For 
    the past 18 months, he was general manager, Product and Brand Management, 
    responsible for worldwide PC product marketing and development as well
    as brand management, advertising and promotion.  Previously, Claflin was
    president, IBM Personal Computer Company-Americas and general manager, 
    Mobile Computing, responsible for the IBM PC Company's worldwide mobile 
    computing business.  
    
    Claflin began his 22-year career with IBM in sales and marketing,
    progressing to a variety of senior management positions, including 
    responsibility for IBM's hardware and software marketing and customer 
    satisfaction in Asia; for operations in Asia/Pacific; and for marketing 
    strategies for PC and RISC workstations in IBM's Personal Systems Line 
    of Business. 
    
    "I look forward to the opportunity to build on the successes and momentum 
    that Digital's PC business has enjoyed," Claflin stated.  "Digital has 
    top-notch products, excellent channel partners, the best service and 
    support in the industry, a large and loyal customer base, and an 
    outstanding team of people -- all ingredients for a leadership position 
    in the industry."
    
    

    Does this mean we will start building PCs that run OS/2 and
    use microchannel?  (just kidding, (I hope))
    
    I wonder if he will be as successful here as Ed Lucente.
    
    Jim

How come we hire so many people from IBM ?

Alan

    so we can pay them more.
    

    
     We bring people in from IBM because IBM is a profitable company.
    Repeat after me, I want to be like IBM, sing it now,
      I want to be an I..B..Mer,
      where our profits are more and merrier,
      and our software grows and gets scarier,
      
    Just imagine Notes and zen!
     
    Thanks!
    -Mike Z.

re.48:

>How come we hire so many people from IBM ?

It's not that big a market, and the IBM stall has the largest choice.

Dave.

    re:-1
    
    <<It's not that big a market, and the IBM stall has the largest
    choice>>				      =====	
    
    Do you mean stable?
                ======

re.52:

Stall as in a 'market stall' which according to my dictionary is a bench or shed
where anything is exposed for sale. 

Dave.

>How come we hire so many people from IBM ?

Training.  

IBM is to the computer industry what Proctor and Gamble is to the consumer
products industry: an executive training ground.  At IBM, every employee of
Manager X is trained to take over Manager X's position.  This goes from the
bottom up to the top.


Is training a core competency of Digital Equipment Corporation's HR function?
Why or why not?  


- jeff

    you've gotta be kidding?  Right?

RE: .48

Let's do a LITTLE analysis.

Plug ex-IBM exec into the PCBU.  Ex-IBM exec heads up IBM PC division.

I get it.  We want to replicate the same success that IBM's PC division has.

[Disclaimer: For the humourously challenged...this is sarcasm.]

    If nothing else it appears from his background that he understands
    branding and advertising. Profitable or otherwise they have been
    successful in establishing and maintaining the brand. In my wife's
    company they call all laptops and notebooks, including Apple
    PowerBooks, "Thinkpads" 

    Perhaps the problems in IBM's PC division are NOT the problem of the
    person we just hired.  Perhaps he is the most capable person in the
    world, but was hampered in his efforts at IBM by forces (IBM senior
    management, politics, OS/2, their hate of Microsoft, etc.) beyond his
    control.  Where he came from should be of little concern.  The skills
    he posses should be what counts.  It seems that some of the people who
    replied to this string think anybody that comes from a company or unit
    that is having problems is somehow a "loser."  If this is how they
    really feel, then about two years ago everybody at Digital was a
    "loser".  I think you should cut out the crap that IBM is a company
    full of talentless people.  Nothing could be further from the truth. 
    Perhaps Digital has plucked one of the crown jewels away from IBM.  If
    it turns out that way, then you will be the beneficiary.

    Wasn't Ed Lucente  a "crown jewel " type person? I hope we have
    better luck this time.

>   Perhaps the problems in IBM's PC division are NOT the problem of the
>   person we just hired.  Perhaps he is the most capable person in the
>   world, but was hampered in his efforts at IBM by forces (IBM senior
>   management, politics, OS/2, their hate of Microsoft, etc.) beyond his
>   control.  Where he came from should be of little concern.  The skills
>   he posses should be what counts.  It seems that some of the people who

  If this were true, since all of that prevented him from using his skills,
  what did we use to determine he was right for this job?  Must not have
  been the whole criteria.

  	mikeP

    An article in the WSJ said he was bypassed twice for promotion.
    
    <Turn-cynicism-off>
    
    If IBM has a core competency it's in sales and marketing. Something
    we're solely lacking here at Digital. From that angle his appointment
    makes sense.
    
    Reb

>>    If IBM has a core competency it's in sales and marketing. Something
>>    we're solely lacking here at Digital. From that angle his appointment
>>    makes sense.
    
    Not trying to be cynical, but that sounds exactly like what was said
    about Ed Lucente.
    
    

    >>Not trying to be cynical, but that sounds exactly like what was said
    >>about Ed Lucente.
    
    Well, I think there's two pieces, the company and the individual. IBM
    excels at sales and marketing. 
    
    As for the individual, hiring is always risky, especially at the
    executive level. I found it interesting that one of the guys at the gym
    who used to work for IBM roundly excoriated Lucente upon his
    announcement and told me we'd be sorry we hired him. Unfortunately,
    I haven't been able to connect with him about the new guy.
    
    Reb
    

I'm sure this guy is good enough for the job, but why wasn't somebody in
PCBU promoted?

Even to a PC novice our PC strategy has often seemed weak. 
Harping back to the Rainbow and VAXmate days we seemed to have let some
real (flight challenged birds) out of the door. I know it's easy to
have 20/20 hindsight [I'm thinking here about bad power supplies, bad batteries,
disks only from digital, incompatible software ...].

What has always amazed me though is that if you talk to people in the older
organization the problems were well known before the products were ever 
shipped. 

It seems to me that Digital has never lacked for talent, we have just suffered
from poor decision making. Why do we need another outsider? Why not just
promote from within?


For example, I have recently acquired a Celebris 590. I must say it's great
and I'm very pleased with it. But it has 2 500 Meg drives and a CD-ROM that
had to installed later. In any rag you get 1 Gb drives, I think there are
even plenty of 2 Gb IDE going cheap now. You don't need an outsider to
tell you that things could be done better!

Mark
   

re Note 4028.64 by METSYS::THOMPSON:

> It seems to me that Digital has never lacked for talent, we have just suffered
> from poor decision making. Why do we need another outsider? Why not just
> promote from within?
  
        Our group decision-making is not as good as the
        decision-making abilities of our individuals.

        Bob

    
    	Now that is a scary thought. Make decisions by committee. Then bet
    your jobs on the committee actions. Now I know why we are 60,000 people
    light....
    
    		the Greyhawk

    yikes!! decisions by committee!!!!????@#$@! head for the hills fast!!
    
    

The latest Business Week has an article on the new appointment.

It contains a few comments by Enrico, of which one caught my eye. He says
that the only way to get the required growth in PCBU is to go for a
retail strategy.

Does that mean that we have tried and failed to develop a retail
strategy and the new guy is being brought in to develop one that works?

Or does it mean that we never had a retail strategy?

Mark
 

    I think he/they want to expand the retail presence beyond the
    current infancy stage.  And even tho Digital has been in retail
    only a year or so, 5 of the top 10 retailers are now signed up.
    Hopefully the visbility has a spillover effect onto other
    businesses as well.  .02 Kratz  

re.69:


>    current infancy stage.  And even tho Digital has been in retail
>    only a year or so, 5 of the top 10 retailers are now signed up.
>    Hopefully the visbility has a spillover effect onto other
>    businesses as well.  .02 Kratz  

U.S. only. 

Dave.