HP to benefit from switch to digital after reorganization

HP said it is set to benefit from the continued growth in digital printing, after announcing a reorganization that sees its Imaging and Printing Group (IPG) and Personal Systems Group (PSG) merged to create the Printing and Personal Systems Group (PPSG).
 
HP said the organizational realignment will improve performance and drive profitable growth across the entire HP portfolio. The combined entity will be led by Todd Bradley, who has served as the executive vice president of PSG since 2005. Vyomesh Joshi, executive vice president of IPG, is retiring after a 31-year career at HP. Under Joshi’s leadership, IPG has grown revenue from US$19 billion to US$26 billion, and doubled its operating profit to approximately US$4 billion.

'We are the undisputed leader in the printing and imaging industry and well positioned to capture the shift from analog to digital'

 
HP’s Indigo digital printing unit is categorized under the Graphic Solutions Business, which was part of IPG, now PPSG. While HP said it is not giving out more detail about the structures of the new group at this stage, a spokesperson said: ‘Our commercial print business is very important us. We are the undisputed leader in the printing and imaging industry and well positioned to capture the shift from analog to digital. 
 
‘Our printing teams will continue to drive innovation (eg Indigo, Web Press), leveraging our strong inkjet portfolio. As an example, our Indigo page volume has been showing double-digit growth for many quarters. We are positioned for growth in graphics, managed print services and workflow solutions, leveraging Autonomy’s intellectual property, and we are seeing good traction in these categories.’
 
HP said the creation of PPSG will rationalize its go-to-market strategy, branding, supply chain and customer support worldwide, leading to a better customer experience and driving innovation across personal computing and printing. This realignment is expected to provide opportunities for cost savings and accelerate HP’s ability to pursue profitable growth and reinvest in the business.
 
HP president and chief executive officer Meg Whitman said: ‘This combination will bring together two businesses where HP has established global leadership. By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders.’