HP Remixes its Imaging and Printing Group

Big Changes from a top name in Printing Plotters

In the printer industry, sometimes less is more. HP apparently knows the old tenet as well as anyone, and they’re applying it to a T as they reconfigure their Imaging and Printing Group (IPG). More specifically, HP is reducing the number of divisions that comprise the IPG from six down to four, and delegating the duties of the old standalone supplies division (aka HP Supplies ) to the new divisions in charge of the printers that utilize those supplies. It’s all part of an effort to transform HP from “a printer company to a printing company,” according to IPG chief Vyomesh Joshi. What that actually means makes a little more sense after generally assessing the new-look IPG.

As we mentioned, the four new IPG groups are basically mini-conglomerates made up of their predecessors. First off, the Ink Jet and Web Solutions group will cover consumer inkjet printers, ink cartridges, supplies, and web-based operations like Snapfish. The LaserJet and Enterprise Solutions group will take over LaserJet printers, toner cartridges, supplies, Edgeline color copiers, and Halo, which offers full-service video conference rooms to corporations. The Graphic Solutions division will cover larger-scale professional printing operations, including wide-format printing, Web Press, Indigo, and the Light Production business group. Finally, the Worldwide Sales and Service organization will handle sales to big corporations.

So what are the implications of the new business model? On the downside, reorganization has resulted in job cuts for domestic employees as recently as late August. At the same time, media and industry experts are buzzing about the demise of HP Supplies, and I think it actually makes sense to give control over ink and toner to the people who already work with the printers that use them. In my opinion, the main benefit really comes from the time, money and frustration you save in reducing the communications gap between separate, yet closely-related departments by combining them into a single entity that can address issues internally. Then again, who knows if each new division might be biting off more than it can chew with its extra responsibilities. At the very least, look for HP’s IPG to operate a little more smoothly within its own offices for the time being. The bottom line implications may take a little longer to assess.

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Published on October 9th, 2008
Posted by Taeho Lim in News
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