Officials at ailing Digital Equipment corporation have announced yet another company wide restructure, the organisation?s third major reshuffle since Robert Palmer took control in 1992.
The company?s multiple business unit strategy implemented back in 1994 to create accountable streams of profit and loss has been hampering sales leverage between different units and robbing the company of the opportunity to face its customers with any sort of critical mass.
As of the first of July, Digital?s Systems Business Unit and Personal Computer Business Unit are to be scrapped and folded into two new horizontal divisions. The product responsibilities of the two business units will be folded into a new Product Division, which will oversee product development, engineering and manufacturing. Sales and marketing activities will be folded into a world wide sales and marketing group.
Although the details have not been worked out yet, James Stevenson general manager for the Systems Business Unit in the UK and Ireland, said there are likely to be few job losses in the UK.
?Dave Townsend General manager of the PCBU in the UK) and myself see limited impact on people. The level of overlap between the two business units is pretty small There is more than enough jobs and work to go round.? According to Stevenson the impact on the UK channel will be limited as well.
?In the last nine months four different business units have been merged into the SBU, Storage, OEM, computer special systems and the old ABU. Three of those had their own special distribution strategies SBU, OEM and storage. But there has been very little change in the make up of the channel.?
Amanda Cook marketing manager at Digital reseller Hamilton Rentals said ?This is good news for us. It means our dealings with Digital are now centralised and we can deal with everyone all at once. We don?t have to mess about with different people and different departments etc.?
Analysts have hailed the organisation as a positive step. By July Digital sales reps will be able to sell not just service or hardware, but virtually every offering available from the company.
Bruce Claflin, formerly vice president and general manager of Digital?s Personal Computer Business Unit, will become vice president and general manager of Worldwide Sales and Marketing.Harold Copperman, formerly vice president and general manager of Digital?s Systems Business Unit, will become vice president and general manger of Digital Products Division.
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