InnovationISSUE 2: SPRING 2016 INVENTING Journal THE BLENDED WORLD OF TOMORROW Charting a course for the future In this issue: Megatrends shaping our future & HP strategy Page 4 Ambient computing in the fabric of everyday life Page 8 Celebrating HP Labs 50th anniversary Page 11 Accelerating into the future with partners Page 12 Innovation spotlight: HP Pro & Elite X3 Page 16 Meet amazing talents in HP Taiwan & Brazil Page 18 Megatrends are on our minds as we release this second installment of the quarterly HP Innovation Journal. As I noted in the first issue, the vision of the new HP is to create technology that makes life better for everyone, everywhere. As you’ll read in these pages, that’s a commitment we are doubling down on with deep thinking, planning, and innovating around socio-economic trends that are profoundly influencing where and how we live and work. As a global population, we’re looking at who we are, how we are, where we are, and what kind of world we’ll be living in, a decade or two from now.

Taken together, these trends create a picture of where the world is going, and of the technology that will be needed in the future. We study developments that are transforming our business and social land- scape, and we’re inspired to adapt and evolve. From Bristol to Boise to Taipei, our passion for shaping our future by engineering experiences that amaze is unwavering. In celebration of that global commit- ment we are releasing this issue to coincide with the Personal Systems Innovation Summit in Taiwan.

The features you’ll find in this issue include an over- view of megatrends, and an exploration of ambient computing and its role in the future of home and work. You’ll also learn about how our innovation efforts apply not only to products—but to processes, as we expand the journal to include coverage of the dramat- ic and positive changes in our channel strategy.

As we share so much at HP that is exciting and new, we’re also marking, this month, an incredible mile- stone. March 3, 2016 marked the 50th anniversary of HP Labs. Our innovative spirit shines every bit as brightly today as it did at HP’s founding. Labs continues its mission to create, identify, and develop novel technologies and experiences that delight customers and define the future of HP.

To the road ahead,

Shane Wall Chief Technology Officer and Global Head of HP Labs

2 Innovation Journal Issue 2 InnovationISSUE 2: SPRING 2016 INVENTING Journal THE BLENDED WORLD OF TOMORROW

Contributors

Mei Jiang Editor-In-Chief

Chandrakant Patel Managing Editor

Doug Warner Executive Editor

Andrew Bolwell Contributor

Philipp Jung Contributor

The HP Innovation Journal is a celebration of HP’s culture of invention and innovation— Ticky Thakkar blending the heart and energy of a startup with the brains and muscle of a Fortune 50 Contributor company. Each issue will shine a spotlight on the intersection of our people and their ideas; on the notable new technologies and experiences that we’re developing; and on the key industry trends that we will drive through innovation. In this issue, we’re also looking at global trends that are shaping our efforts even as our work is shaping the future. We’re Jos Brenkel passionate about staying ahead of the curve, and ensuring our partners’ and customers’ Contributor success. As we celebrate HP Labs’ 50th anniversary, we also celebrate the momentum and opportunity we find in innovating for this fast-changing world.

We want to hear from you! Email [email protected] to share your thoughts Get involved! on the Innovation Journal. Louis Kim Contributor

Innovation Journal Issue 2 3 :::::::::::::::::::::::::::::::::::::::: Megatrends shaping ::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::: our future ::::::::::::::::::::::::::::::::::::::: Using global trends to chart our course By Andrew Bolwell, Global Head, Technology Vision and HP Ventures, HP

4 Innovation Journal Issue 2 :::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::: Two-ThirdsTwo-thirds of theof the Population population ::::::::::::::::::::::::::::::::::::::: Will Livewill live in Cities in cities by by 2050 2050 1950 2050 ::::::::::::::::::::::::::::::::::::::: =10% of the world population

There’s so much change happening around us these days that it’s easy to forget the speed at which things are changing.

We now have more computing power in Rural our pocket than all of NASA had in 1969 Population to put the first man on the moon. India sent a spacecraft to Mars for less money than it took Hollywood to make the movie Gravity.1 It took Uber a mere four years to hit $10 Billion in gross revenue.2 And Artificial Intelligence took just 42 hours to solve the 100-year-old mystery of how flatworms regenerate body parts.3

This pace of change will continue to accel- Urban erate at warp speed, with more change Population expected in the next 15 years than in all of human history to date. 19501960 1970 1980 19902000 2010 2020 2030 2040 2050 So how does a company like HP stay ahead of Rural (%) 70 66 63 61 57 53 48 44 40 37 34 all this change, to innovate, adapt, reinvent Urban (%) 30 34 37 39 43 47 52 56 60 63 66 and engineer experiences for a future that promises to look very different from today? Source:Source: World UrbanizationWorld Urbanization Prospects: Prospects: 2014 2014 Revision, Revision, United United Nations Nations Population Population Division DIvision

While we can’t know what the future will 10 million people,7 but by 2030 we will urbanization? Given that city economies are hold, we can look to the major socio-eco- have 41 such megacities.8 Meanwhile, the becoming as big as country economies, nomic, demographic and technological area of urbanized land could triple globally should HP consider putting in place City trends occurring across the globe to help from 2000 to 2030. This is equivalent to Managers for top tier cities of the future? guide us: megatrends that we believe will adding an area bigger than Manhattan How can we reduce the energy used across have a sustained, transformative impact on every single day.9 the lifetime of our products? How can we of- the world in the years ahead - on business- fer people living in cities more convenience es, societies, economies, cultures and our With bigger cities come major economic through new services? personal lives. growth. By 2025, urbanization will welcome an additional 1.8B consumers to the world Changing demographics At HP, we’ve identified four major meg- economy, 95% of them in emerging mar- atrends: Rapid Urbanization, Changing kets.10 And consumers in emerging markets Simultaneously, changing demographics will Demographics, Hyper Globalization, and are forecast to spend $30T in 2025, up from dramatically shift the tapestry of our society. Accelerated Innovation. $12T in 2010.11 However, urbanization is not only driving economic growth, it is also As fertility rates decline and life expectancy Rapid urbanization changing how we buy and consume prod- increases, the composition of our popu- ucts and services, propelling the sharing lation, and our workforce, will shift older. By 2030 there will be 8.5 billion people economy and convenience-based services. By 2060 we’ll have 3B more people over walking the earth.4 97% of that population the age of 30 than today.13 More and more growth will be in emerging economies,5 and But urbanization is also having a toll on the countries are becoming super-aged, mean- most of these people will choose to call environment. If nothing changes by 2030, ing that more than 20% of their population cities their home. By 2025, 5B people will mankind would need the resources of two are over the age of 65.14 And by 2030 we’ll live in cities, 2.5B of them in Asia.6 planets to sustain its current lifestyle.12 have twice as many people over 65, nearly And so sustainability becomes an even 1B.15 China is a perfect example of this phe- And as people move to cities, our cities more important theme, for consumers and nomenon. Today 26% of their population is will get larger, and we’ll have more of businesses alike. over the age of 55. By 2030 that number will them, including megacities in places many grow to 43%.16 To deal with this shift they of us have never heard of today. In 1990 How can HP address some of the oppor- recently rescinded their one child policy there were only 10 cities with more than tunities and challenges posed by rapid after 35 years. > Innovation Journal Issue 2 5 <

In turn, this will lead to a shrinking and aging Personal and commercial robotic solutions has become the new norm. Long gone are workforce and put a strain on economies to augment our lives and tasks? the days when 75-year-old companies are and government spending, simply because commonplace. The average tenure of compa- as the world ages, there will be fewer people Hyper globalization nies on the S&P 500 dropped from 35 years working to support the number of people in 1980 to 18 years in 2012. By 2027, 75% of retiring. Germany, for example, will lose Globalization arguably began 2000 years S&P 500 companies will be removed from the nearly half its workforce by 2060, putting ago with the 6,000km Silk Road that index.19 Disruption is now happening every- its economy at serious risk.17 Companies will connected Eurasia. However, no one can where to everyone, even to those companies also be forced to reevaluate their workforce argue that a truly dramatic “flattening” of who were themselves doing the disrupting programs for aging workers. the world happened when the Internet was just a few short years ago. Companies around created. And today it’s not just data that’s the globe will have to constantly reinvent But every cloud has a silver lining, and in freely flowing between countries—it’s themselves to stay competitive. this case it’s the fact that an aging working capital, products, services, and people. For population also means a significant market example, how and where we design, sell and How can HP enable our customers to nav- opportunity. ‘Silver spenders’ as they are manufacture products will become both igate this era of constant disruption in an known, have greater purchasing power than hyper-global and hyper-local thanks to us increasingly globalized world? Printers that their younger counterparts, and could rep- now living in a globally connected world with provide automatic language translation to resent a significant untapped opportunity a diverse set of local requirements. make remote collaboration more efficient? for companies in the future. The European Immersive computing solutions focused on Commission estimates that by 2020, the Amplifying this globalization is the internet, helping us work across cultural and geo- spending power of people over 50 will reach which has enabled the growth of a vast graphic boundaries? Hyperlocal products $15T. This will create a significant shift for digital marketplace from companies we’ve and services? brands who today devote the majority of never heard of, from cities we’ve never been their marketing spend to people under the to, and working on digital platforms that Accelerated innovation age of 30, even though in places like North are changing the competitive landscape. America half of the money spent is actually Anyone with an idea can become a global Even though we are being constantly bom- by people over the age of 50. business overnight. It’s now easier than barded with faster, cheaper, more powerful ever for start-ups to scale globally, and for technology, it’s easy to forget that the rapid How should HP best cater to a diverse emerging market companies to become real pace of technological change is because (and aging) customer base? Simple, secure, challengers to established multinationals. digital technologies generally follow an and seamless printing and computing By 2025, half the Fortune 500 will be head- exponential trajectory versus a linear one. for the “silver generation”? Commercial quartered in today’s emerging markets.18 And this is why in 30 years’ time, our phones wearables to make us more productive won’t just be 30 times more powerful, but at work? Disruptive healthcare solutions? All of this meaning that market disruption a billion times more powerful than today.20

Increase in life expectancy At the current churn rate, 75% of S&P 500 Between 2010 and 2015 companies will be removed from the index by 2027 70 years 70

Between 2045 and 2050 60 77 years Average tenure was 35 years Between 2095 and 2100 50 Average tenure 83 years 1980 is 18 years 40 Source: United Nations Population Division, World Population Prospects: The 2010 Revision Today Decrease in fertility rate 30 Projections based on current data 2.5 20 2.25 2.0 10

0 From 2010 From 2045 From 2095 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 until 2015 until 2050 until 2100 (each data point represents a rolling 7-year average of average lifespan) Source: Gapminder Source: INNOSIGHT/Richard N. Foster/Standard & Poor’s

6 Innovation Journal Issue 2 Megatrends at work

As technology components mature and become commoditized, they become the building blocks for new breakthroughs to emerge. And this is why the rapid pace of change we are experiencing today is only going to accelerate moving forward. Electricity evolved from standalone gener- ators to utilities, that now power computing. Computing evolved from standalone serv- ers to cloud computing. Cloud computing enabled Big Data, which more and more is now also evolving to a utility model. And as that happens, Big Data is giving rise to new technologies like Intelligent Assistants. It’s technology’s equivalent to the Circle of Life. projects to prioritize. The Megatrend Big-picture Rapid Urbanization, for example, might As technology leaders and innovators it will building blocks lead us to look at devices tailored to urban be up to us to look out for new emerging populations: smaller, lighter devices for technologies on the horizon, that will them- for HP strategy denser environments, and more mobility selves one day become the future building solutions for people moving around cities blocks for huge new markets. There are many considerations that in- and coming into enterprise. For each form the development of an overarching Megatrend, we review the service model At HP we look at these Megatrends through strategy for the new HP, and the product and product roadmap that will allow HP the lens of our Blended Reality vision. This and services models we are creating. and customers to meet challenges and allows us to identify new technologies and What can we build, based on the amazing capitalize on opportunities. business models that will help fuse our technology capabilities unfolding every physical and digital worlds, reinventing and day in our own labs and elsewhere across Also, as we focus more on the commercial creating new experiences for everyone, ev- our industry? What should we build, to space it’s important to reflect on how erywhere. The emerging technology areas help our customers realize their immedi- megatrends will shape manufacturing that we believe will be the building blocks ate and future business objectives? What and business processes across industries. for our future success are HyperMobility, must we build, based on where the world We consider megatrends relative to our Immersive Experiences, 3D Transformation, is headed demographically, economically, focus on emerging markets as well—in- Internet of All Things and Smart Machines. environmentally? vesting in India and China, for example. Business teams across HP are starting to As we think about some of our tech- use an understanding of these Megatrends The latter question is where our nologies most relevant to Accelerated combined with our technology vision to Megatrends effort comes into play most Innovation—Sprout and Blended Reality identify new opportunities for market directly. Megatrends research was a crit- for example—we see special opportu- transformation and future success. ical point of input in the strategic process nities in a services model that allows us this past winter, leading to a pivotal gath- to innovate even more rapidly, with the And while Megatrends won’t give us all the ering of HP leadership at the start of this ability to deploy updates and not wait for answers, they can be a beacon for where the year. We looked at strategic choice points an overall product refresh. world is headed, giving us the opportunity to based on megatrends as well as core as- adapt, chart, and reinvent our own future. sumptions around factors including mar- Across the new HP, there is a sustained ket outlook, customer and industry direc- excitement about our future as a focused, The opportunity is ours. tions, investor perspectives, competitive agile and innovative competitor in the dynamics. We debated and established global market. At the “world’s largest For article references see back cover priorities around our product direction, startup,” our work on Megatrends is not service models, geographic focus, and only about predicting where the world more. As this issue goes to press, teams is headed, but about boldly ensuring a across the new HP are putting forward successful and relevant place in it for HP their ideas and proposals for projects and and our customers. Andrew Bolwell is VP, Global Head of areas of investment going forward. Technology Vision and HP Ventures, responsible for driving HP’s long- The strategic leadership will evaluate pro- Philipp Jung is Chief Strategy term technology vision, and for Officer at HP, responsible for corporate venturing activities, posed areas of investment and consider developing profit-generating working across start-up and venture the anticipated trade-offs and advantag- strategies, devising and capital communities to identify, es in each. Megatrends will help inform evaluating new growth source, commercialize and invest in both the projects presented for consid- opportunities, and leading the early-stage disruptive technologies. eration, and the decisions as to which strategic planning process.

Innovation Journal Issue 2 7 :::::::::::::::::::::::::::::::::::::::: Ambient computing ::::::::::::::::::::::::::::::::::::::: Technology in the fabric of everyday life ::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::: By Ticky Thakkar, Head of Emerging Compute Lab, Chief Technologist Personal Systems, HP Fellow and Louis Kim, Global Head and General Manager, Immersive Computing, HP

8 Innovation Journal Issue 2 conscious of, and more so every day. Just The walls have ears :::::::::::::::::::::::::::::::::::::::: as importantly the data is there, courtesy of computers aboard devices, machinery, (and eyes, and noses) ::::::::::::::::::::::::::::::::::::::: vehicles, and anything you can stick a sen- sor on. Extracting intelligence from oceans ::::::::::::::::::::::::::::::::::::::: of data is a monumental task—way beyond what humans could do unassisted. We can ::::::::::::::::::::::::::::::::::::::: use ambient computing to help us turn massive volumes of data into insights and What do you think of when you hear the useful guidance. phrase, “ambient computing”? It doesn’t conjure up a sleek device you can hold or From Altair to ambient: we’ve wear, nor an ingenious app you can down- load. Ambient computing—or ambient come a long way…and quickly. intelligence, a term used synonymously—is Not a single segment in the world has trans- more abstract: it’s a condition, a state of the Average number of formed like computing. If cars had trans- art. It describes a computing era that is un- devices per person, US1 formed since their introduction the way 6 folding around us, as technology continues computers have, we’d be flying around like its staggeringly rapid evolution. To under- Average number of George Jetson in solar rocket cars. On the 2 stand it, focus not on the word “computing” 7.4 devices per person, UK other hand, we carry devices in our pockets but on “ambient.” Think of ambient lighting. with many times the computing power that Average number of Ambient music. An ambient element is tuned once could be harnessed only by an enor- sensors in a smart phone3 to your immediate environment, adapted to 19 mous water-cooled machine, a behemoth enhance a particular mood or activity. in a dedicated room, serving one user at a Approximate number time. Even as computers evolved they were of sensors in a modern As the IoT landscape populates with smarter 70 4 locked away in offices and universities. luxury car devices and the data they generate, ambient computing is the fabric that knits them Major cities are testing In 1983 the personal computer was born. together. It is the intelligent synthesis and sensor-based parking Apple and a few other makers had existed analysis of many disparate elements, gen- systems to ease before that, but they were mostly the 35 erating insights and taking action based on congestion5 domain of tech enthusiasts. More accessible those insights. PCs with graphical interfaces soon appeared Average number of and improved through the early 90s. Then The idea of ambient computing has been connected “things” in they met with a fresh new current: the around for a long time. In 1988 Mark Weiser, 6.4B use in 2016, up 30% Internet. Overnight, or so it seems, PC users 6 a scientist at Xerox PARC, described its from 2015 around the world could connect to informa- precursor, “ubiquitous computing”—as he tion and each other. Number of international imagined a future in which people would airports deploying interact with computers not constrained to With this confluence of developments, thermal sensors for a desktop but anywhere at any time, on a 15 we were off to the races. Computers were public health7 host of different devices. It would be years becoming lighter, wireless connectivity was before technology’s physical capabilities introduced, as was broadband at home. caught up with the dream of anytime, any- In 2006, the iPhone was introduced, and where computing. An idea we can nearly Fun facts changed how we used mobile phones for- take for granted today was decades ahead ever. Three years after that came the first • The number of devices worldwide of its time. tablet—introduced to a skeptical public, just surpassed the number of and wildly embraced shortly thereafter. people (7.2 billion), and devices Today, the physical capabilities are there. Today we have multiple computers that are proliferating five times faster Computers are woven into our environment we easily carry with us through our days. than people.8 to a degree that most of us are not even > • A Dutch company uses Internet- connected sensors on cattle to tell farmers when the animals are sick At home, you’re CEO of your life with an or pregnant. Each cow sends about amazing (and tireless) staff of assistants. 200 MB of data per year.9 At work, there’s monitoring, management • 27% of all global M2M connections are in China, compared to 19% in and insights that can improve efficiency, the U.S.10 safety, resourcing, and customer service. For article references see page 19

Innovation Journal Issue 2 9 <

From lighter laptops to tablets to watches to phablets to fitness bands and watches, we live and work and play in a mobile world. And beyond those things we carry, display technologies are advancing rapidly as well—bendable, projected, and all at ever increasing resolution.

Sensor sensibilities

The sheer amount of data coming through sensors is mind-boggling. If the IoT’s data had to be interpreted solely by humans, its potential would be severely limited. Ambient computing includes the analysis to turn bits and bytes into insight, and the intelligence can take actions and learn from feedback of those actions.

What will life look like when ambient com- A day in the life puting is fully realized? We believe it will Natural interfaces are a key manner in put technology in its proper place relative 3:30 – 5 p.m. which ambient computing helps make to people and their potential: Anticipating Notification of project over budget; technology blend into the fabric of daily needs and proactively addressing them. sends meeting invite to purchasing life. It does this by using and responding Adapting to changing conditions, and contact. Home system advises that to natural language and familiar ges- making suggestions that enhance our lives, husband and kids are home from school; tures, and embedding seamlessly into at work and at play. Today, we gaze at our sends a reminder to them to walk the dog our environment. screens large and small, with obsessive and do homework. Remote conference attention—sometimes diminishing our with communications colleague to prep experience of everyday life. Ambient com- 6 a.m. for presentation. puting makes the technology pay obsessive Nora Jones’ “Sunrise” plays. Coffee attention to us—serving us, helping us starts brewing. make good decisions and operate more efficiently. As we pursue advancements, it’s 8 a.m. not just ambient computing’s potential we Finish dressing while headlines, weather stand to unlock. It’s our own. and traffic updates delivered to bathroom vanity. Traffic delay: sends note to first Ambient Computing is an area of research in appointment pushing out 15 minutes. HP labs that relates to fusing our physical and digital worlds through Ambient Intelligence, 9:15 a.m. – 3:30 p.m. Smart Surfaces and Natural interaction. Team meetings; virtual assistant rounds 6 p.m. up interview candidates, assembles Freezing tonight! Virtual assistant sug- materials for noon review, orders choc- gests hot soup for the family and orders olate donuts and coffee for an afternoon it delivered. Dials up sister to wish happy pick-me-up. birthday while warming soup.

Ticky Thakkar is Head of the Emerging Compute Lab, Chief Technologist of Personal Systems, and an HP Fellow, leading efforts relating to the convergence of technologies and bringing customer insights and new thinking into product development efforts. :::::::::::::::::::::::::::::::::::::::: Louis Kim is Global Head and General Manager of Immersive Computing ::::::::::::::::::::::::::::::::::::::: at HP, with direct responsibility for engineering, design and marketing, ::::::::::::::::::::::::::::::::::::::: and for developing new business models and strategic partnerships. :::::::::::::::::::::::::::::::::::::::

10 Innovation Journal Issue 2 HP Labs 50th anniversary

1980 1967 Office laser printer Cesium-beam atomic clock 1984 Inkjet printer 2013 Moonshot 1972 2010 Pocket ePrint 2013 scientific 1986 1995 SureStart calculator 3D graphics 64-bit workstations architecture 2012 SERS Sensor

1980 64-channel ultrasound 1989 2011 Digital data MagCloud storage drive 2005 2015 Virus 2011 3D Materials throttle StoreOnce 2015 Charge Roller 1968 1986 Programmable Commercialized desktop calculator RISC chips

2003 1966 Smart cooling Light emitting diode (LED)

Celebrating 50 years but also for sharing it with the larger scientific we are creating in HP Labs that will trans- community. From the first programmable form businesses and lives—technologies of innovation desktop calculator to office laser printers, dig- such as 3D printing, immersive computing, ital data storage drives, and most recently the hyper mobility, Internet of Things, smart On March 3, 2016 HP Labs celebrated the Sprout immersive computing platform and machines and more. Through lighthouse anniversary of its creation and its rich history commercial-scale 3D printing, HP Labs has moments along the way we will bring these of innovation. HP’s founders set out to change created some of the greatest technological technologies to life—disrupting markets the world by developing technology that breakthroughs of our time. and fundamentally changing the way we live would improve the lives of people everywhere. and work. Fifty years ago in 1966, they opened HP’s first To celebrate our 50th year, we are bringing centralized organization focused on exploring a renewed openness to HP Labs. As part of The first 50 years of HP Labs were new ideas. HP Labs became respected not Keep Reinventing, we are looking at new incredible, but we are just getting started. only for the work that was being done there, ways to share the mind-bending technology Keep Reinventing!

HP Founders Dave Packard (left) and Barney Oliver (left), founder and first director of HP Labs, checks out a new scope with Peter Lacy (center) and George Mathers in 1966.

Innovation Journal Issue 2 11 :::::::::::::::::::::::::::::::::::::::: Accelerating into the future ::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::: with channel partners ::::::::::::::::::::::::::::::::::::::: By Jos Brenkel, Global Head, Sales Strategy and Operations, HP

12 Innovation Journal Issue 2 percent of our global sales, functioning as designed our new Partner First program to :::::::::::::::::::::::::::::::::::::::: an independent extension of HP. We deliver meet partners where they are on this jour- value to partners, so partners can deliver ney—meeting immediate business needs ::::::::::::::::::::::::::::::::::::::: value to customers. The execution is com- while making new opportunities available to plex, but the driving idea is as simple, and encourage future growth. ::::::::::::::::::::::::::::::::::::::: powerful, as that. The program features three tracks: ::::::::::::::::::::::::::::::::::::::: Transactional, Value and Alliance, and OEM. The Transactional track is helpful for volume This article introduces an ongoing column start- 80% 250,000 sellers and small companies that don’t have ing in the June issue on sales transformation for of HP’s sales revenue a large service business. The Value track is comes from channels channel partners worldwide HP and partners. We welcome your feedback at optimized for VARS moving toward services; [email protected]. it features training and benefi ts along the road to solutions selling. The Alliance track One of the most compelling things about A focus on delivering value and focuses more on ISVs, and on partners the new HP—the “world’s largest start- building loyalty adding value in emerging categories such as up”—is the opportunity to innovate in every immersive computing and 3D printing. pocket of the organization. Our mission, “to Customers in every industry are trans- engineer experiences that amaze,” is being forming their business models in response In all three Partner First tracks we are mak- applied as vigorously to our channel strat- to disruptive market conditions, IT innova- ing it easier for partners to access a wealth egy as it is to our R&D labs. With the launch tion, and changing consumer behaviors. IT of streamlined training programs, tools, and of our new company, we are able to be more organizations are increasingly integral to processes for speed and consistency across focused and responsive to our partners’ strategic business direction. For partners, markets and geographies. We are commit- needs, and help them deliver value in an great opportunity lies in understanding ted to being fi rst in speed and agility, fi rst in evolving market. customers’ challenges, and helping IT simple and consistent operations, and, as teams to provide not just infrastructure but a result, fi rst in driving partner growth and Innovation at HP is not just about products, business solutions. profi tability. but about processes—and both types of innovation have been deployed in radically HP Partner First: unlocking Building relevant solutions for revamping our channel program for speed, simplicity, and accelerated growth. opportunity at every level today, tomorrow and beyond Some channel partners are farther along on We started strong with the Partner Navigator Our 250,000 channel partners deliver eighty solutions-fi rst selling than others. We have program, ensuring a smooth transition in the > 30 words or less: Jos’ take on Megatrends and the HP sales channel

RAPID URBANIZATION CHANGING DEMOGRAPHICS HYPER GLOBALIZATION ACCELERATED INNOVATION

“More population ”Millennials will be “As the heat shifts to “Every day brings density in megacities 40% of the workforce emerging markets more speed, more will off er our partners in the 10 years, both for startups power, more eff iciencies, but expecting to use the and established connected devices, they’ll also face the devices, apps, cloud companies, HP’s more information. challenge of increased services and other global channel Partner First keeps complexity and higher tools they choose to strength can help pace with more expectations around work with for speed partners thrive in new resources and speed and service.” and agility.” markets.” innovative tools and technologies to support partner growth.”

Innovation Journal Issue 2 13 <

separation of HPE and HP. We’ve moved to a variable cost model, buying key services as we need them to build current and relevant GTM evolution for HP: experiences for our customers. This more cost-eff ective and dynamic approach is an Mapping to shifts in the channel landscape example of the IT best practices we encour- age partners to embrace, on behalf of their Core customers. It’s completely transforming the way we interact with the channel in areas such as pricing, e-business, channel data ONLINE Grow share in the collection and predictive analysis. declining transactional business in the core TRADITIONAL CHANNEL

SLO W through enhanced sales THE PAC E OF productivity + increased Innovation at HP is not DECL INE > focus on online partners just about products,

but about processes— Growth and future and both types of innovation have been Accelerate contractual business in the growth > deployed in radically TH CONTRACTUAL and future segments W RO PARTNERS E G by increasing focus on AT ER revamping our EL new capabilities and ACC channel program for SYSTEM INTEGRATORS developing new channels speed, simplicity, and There are three areas of focus for and leveraging our PageWide tech- accelerated growth. HP’s product and solutions develop- nology. In Personal Systems we’re ment: Core, Growth, and Future. The focused on leading in commercial, Core category is shrinking—it is built delivering the best devices across The global channel infrastructure is com- on a transactional business model. multiple operating systems and plex, but the formula is simple: speed plus At the same time, Growth and Future form factors. simplicity equals greater sales. Our goal is categories are getting larger. Our to enable our partners’ success, delivering strategy is to slow down deceler- Growth innovative and valuable solutions, and set- ation in Core by growing market We are driving solutions areas. This ting the stage for a profi table future where share, which we do by out-executing means leading and expanding the we will grow and thrive together. Everyone competitors and putting more focus market in commercial mobility, while has a customer—the job of our solutions is on online partners. The growth and also capturing copier pages and to create value for our customers, so they future categories represent a shift to driving the digital transformation in can in turn create value for their customers. a contractual business model. It’s a Graphics. diff erent mindset requiring diff erent capabilities and new relationships Future with systems integrators. We are building a strategic partner ecosystem to drive new solutions Core and services for tomorrow, in- Products focus on reinvigorating cluding 3D Printing and Immersive printing in the home, capturing Computing. commercial print market share,

Jos Brenkel leads Global Sales Strategy and Operations across :::::::::::::::::::::::::::::::::::::::: HP. Prior to this, he led Worldwide Sales for HP PPS after serving in ::::::::::::::::::::::::::::::::::::::: geographies including APJ and MEA.

14 Innovation Journal Issue 2 Makers spotlight

HP’s Maker Space < 3D-printed building across teams and organizations, robotic hand allows for product testing and feedback, Projected to open this Spring, the HP Maker provides employees with new skills and Space in Boise, Idaho will help grow the maker experiences, and offers the opportunity to spirit globally across HP discover the next big thing.

In our inaugural Issue we introduced One person especially enthusiastic about you to Chris Morgan, the Engineering this Maker Space? HP Robotics Lab Intern, Manager of the HP Robotics Lab in Boise, Camille Eddy. As an intern at HP, Camille ID. The robotics team is filled with strong created a 3D-printed robotic hand that multidisciplinary backgrounds that include uses a 3D camera to capture human computer, mechanical, and electrical en- movements and then mimic them. With gineering disciplines with emphasis on AI, the new Maker Space, the possibilities Automation, and Mechatronics. for what team members like Camille can create are endless. This year they’re extending beyond robotics to build the HP Maker Space in “There’s a lot of excitement around the Boise. Intended to give all HP employees Maker Space at HP. I’m looking forward greater access to innovation and group to seeing all of the collaborations and collaboration, the space will be filled with and robotics. The best part of our jobs as innovations that will be realized because several work stations, staging areas, along Makers is when we can take what we have when you have the tools you need, you can with four 50" monitors and a 360° camera learned and share it with others. This space create things you never imagined possible,” system to enable virtual collaboration with will help us to do just that,” said Chris. said Camille. HP Makers across the globe. The space, filled with useful tools and To learn more and stay up to date on the “Our goal is to promote and encourage supplies, removes inhibitors to innovation, latest about the HP Maker Space, visit innovation in technology, engineering encourages collaboration and network www.hp.com/go/innovationjournal.

Camille (center), along with some members of the HP Robotics team at their office in Boise

Innovation Journal Issue 2 15 Innovation spotlight

Elite X3 > Sprout Pro >

using the compute power of the phablet. In the Education market while also discovering HP launches the next addition to the hardware, HP will bring HP a unique niche in manufacturing. wave of computing at Mobile Workspace to market, allowing users to run legacy and traditional x86 apps through a OPS Solutions, an HP OEM partner based in World Congress virtual desktop solution. Novi, Michigan, utilized the Sprout SDK to with the Elite X3 port their proprietary guided assembly soft- HP has made some amazing steps forward ware (Light Guide Systems) to Sprout Pro. Mobility in the commercial space was sup- in engineering with the Elite x3, such Sprout Pro’s projector and durable touch- posed to make everyone’s lives easier and as the ability to work with the Elite x3 in mat combined with the Light Guide Systems make workforces more efficient, but has your pocket, running the Mobile Extender software creates a scalable Augmented it really reached its potential? People still wirelessly over 802.11 AC WiFi. In addition Reality platform. Customers are deploying carry round heavy bags with multiple devic- the Elite x3 is designed for business: this platform to provide assembly line es running different OS’s, and IT still faces waterproof and rugged to pass IP-67 and workers a visual workflow experience for challenges securing and enabling BYOD Mil-STD testing as well as dual biometric error-proofing manual assembly processes. mobile devices to give the best experiences. solutions with Iris scan and fingerprint reader for incredible security. “Sprout Pro allowed us to scale our existing People have learned to live with all these hardware solution down in both size and inconveniences, but computing isn’t any- The development process involved taking a cost to help companies improve reliability of where near as seamless and intuitive as it very small, experienced and cohesive team processes such as fuel injector assembly,” should be. and giving them space, within the larger said Paul Ryznar, CEO of OPS solutions. The organization, to move quickly, push limits, Light Guide Systems Pro solution is receiving The Elite x3 aims to be the first step in the and take risks. This allowed for quick design strong interest from companies like General next wave of computing and to solve many iteration, making mistakes, correcting Motors, Chrysler, Johnson Controls and of these problems. Amazing advances in them quickly, and accelerating the path to Tesla for use in a variety of small assembly mobile chipset power aligned with Windows realizing the Elite x3, which is expected to processes. LGS Pro is also garnering interest 10, the first OS to truly span device form be available this summer. in the healthcare industry for applications factors with Continuum, means we’re at such as surgical instrument kitting and a new threshold. With the Elite x3 we can pharmaceutical pill sorting. think beyond the phone and see a powerful new way of computing. Louis Kim, Global Head and General Sprout Pro finding a home in Manager, Immersive Computing, adds: “HP At the heart of the platform is the Elite x3 manufacturing and OPS have combined to take advantage itself, a killer 6” phablet with a Qualcomm of all of the projective computing capabili- Snapdragon 820 processor delivering When Sprout by HP debuted in November ties of Sprout to boost productivity in manu- proper PC performance from a mobile 2014 for the consumer market, it was hard facturing and assembly environments.” device for the first time. With the addition to imagine it improving worker productivity of the Desk Dock and Mobile Extender it in manufacturing environments. Nearly For a quick video of Sprout Pro with Light allows users to dock the Elite x3 and work 18 months later, however, Sprout has Guide Systems in action, please visit on a big screen and in a laptop style, all branched out with a Pro version targeting www.bit.ly/SproutPro.

16 Innovation Journal Issue 2 University outreach

acquisition the skills, experience, social net- With over 30 patent applications filed, works, and passion of students can be har- over 50 PhD degrees granted, more than nessed as an effective person-to-person 15 master’s degrees granted, over 200 technology transfer strategy. conference papers published, and more than 50 referred journal articles, the Steven Fraser, Lead of the Global University collaboration with Purdue is contributing Program, knows how vital university to a brighter, more innovative future. HP’s Global University research collaboration is to sustain HP Currently, the team is focused on inves- innovation: “Collaborative research strat- tigating ambient computing devices for Program egies are essential to promote the sharing home and office applications. of ideas and organizational learning. The Global University Program is an im- The power of collaboration should never Qian Lin, Research Scientist at HP Labs, who portant part of HP Labs’ research strategy. be underestimated—whether planned was responsible for initiating the Purdue and The program fosters new opportunities or serendipitous.” HP Labs relationship by inviting her Purdue for innovation through the coordination University professor to speak at HP Labs, of research collaborations, increased HP’s long-standing relationship with Purdue summarized the collaboration perfectly: visibility in the academic community, and University has created one of these import- “Purdue has a long history of research in technology transfer. ant partnerships. Since the collaboration imaging and computer vision in partnership began almost 25 years ago with HP Labs in with HP. We are excited to expand the re- HP’s university relationships have a positive Palo Alto, it has expanded to the HP Printer lationship and explore using deep learning impact on technology transfer from uni- Divisions in Boise, Vancouver, Barcelona, to further enhance the computer vision versity research to product. Through talent and Israel. capabilities of our devices.”

Market watch

on identifying companies that share our outside talent and ingredient technology for Blended Reality vision and desire to deliver HP business units,” said Salfity. immersive experiences. This past February, HP’s Venture team com- EvoNexus is Southern California’s leading bined forces with the Immersive Computing technology startup incubator, designed team to meet 14 companies at a two-day to accelerate the growth and success of MarketLink event in San Diego. Among the promising entrepreneurial companies in the innovative technologies presented to the HP San Diego and Irvine areas. Startups lucky team was an immersive audio solution with enough to be selected into this non-profit head tracking for a new 360 degree sound incubator, benefit from premium office experience. This startup company just de- space and a cadre of mentors and advisors buted on Kickstarter and quickly exceeded HP Ventures and Immersive Computing team at an made up of the region’s leading business their funding target. Also presented were a EvoNexus event and technology entrepreneurs, investors pressure-sensitive touch screen for glass, and executives. and security for the emerging Internet of Things chip industry. HP’s Venture group teams up HP has been deeply involved in the growth of the EvoNexus program with Mike Salfity, The HP team was led by Irit Hillel and Mitchell with EvoNexus for San Diego Global Head of HP’s Graphics Solutions Weinstock from the CTO Venture group and incubator event Business, serving as EvoNexus’ chairman. In Geoffrey Maine and Ben Wynne from HP’s addition HP joins other global multination- Immersive Computing group. HP Ventures works across start-up and ven- als such as Qualcomm, Cisco and Accenture ture capital communities to identify, source, in sponsoring EvoNexus’s ongoing efforts. This early exposure to promising startups commercialize and invest in early-stage dis- In the six years since it began operations, allows HP to innovate and differentiate ruptive technologies for HP competitive ad- EvoNexus’ companies have been able to our product lines with new disruptive vantage. Recently we teamed up with the HP raise nearly $1B in funding and acquisition technologies, allowing us to strengthen our Immersive Computing team and EvoNexus proceeds. “EvoNexus represents a key re- leadership in the markets we play. to host a startup event in San Diego focused source that HP can use to find and leverage

Innovation Journal Issue 2 17 Community voice

What do you think HP’s greatest innovations will be in the year 2030?

Lee Atkinson Maureen Lu KT Wu Distinguished Technologist Audio Architect Material Scientist HP Taiwan Consumer PC R&D HP Taiwan Consumer PC R&D HP Taiwan Commercial PC R&D

Invisible computing! Of course, not really Providing secure and seamless experience Establish a multiple access authentication invisible, but computing products that to customers everywhere they go, whether system to secure the information safely. are integrated around our lives so much they be at home, on the go, at office, at Secondly, I believe HP could deliver a low that they simply work for us. So much of school, etc. We will be able to deliver prod- battery charging time solution by green “computing” today still requires too much ucts and processes that combine the rich energy utilization. effort. In 2030 we won’t think of separate experience and knowledge from different categories of technology and components groups that changes the way people interact that we call “personal computing.” Instead, with technology, and there will be no barri- our lives will be assisted by networks of ers to technology. A product will no longer seamlessly connected devices that adapt be traditionally categorized into its own to our different needs and truly enrich our category. For example, a PC will no longer lives—from the mirror in the bathroom and deliver only PC functions, and a printer will locks at the door to the world outside and no longer just print. around us, the disconnected bits and pieces will work together in a way that we won’t identify them separately anymore. Geisa Rocha Software Engineering Manager HP Brazil R&D

HP’s greatest innovation in 2030 will be en- abling people to create things with 4D print- ing. The current society major challenges are related to construction and manufactur- Emily Wang ing inefficiencies, that require a lot of energy Product Strategy Program Manager consumption and material resource. This HP Taiwan Commercial PC R&D system is known to be unsustainable, as it Leo Gerten demands more than what our planet is able Director, Communication Tech EVERYTHING will be online. One trillion of to provide and degrades the environment. HP Taiwan Commercial PC R&D devices will connect to internet with evolv- Instead of brute force assembly lines, HP ing A.I./much more mature AR to calculate/ can reinvent how people build the objects The “HP 4 Life” Essential Service. HP Quality learning human activity based on big data they need. Beyond that, build objects made will now last much longer than your tech- analysis. This will be stored by (5D) digital of material that change shape and property, nology hungry appetite. So with HP 4 Life data by femtosecond laser writing. The even compute, based on their use. The 4D Service, you can always be sure to be able storage allows unprecedented properties technology will allow a more intelligent use to update your hardware to the latest life including high data capacity, thermal stabil- of resources, while providing people the changing tech from HP. ity and virtually unlimited lifetime at room autonomy to build what they need, and the temperature (13.8 billion years at 190°C)— product may be even able to adapt itself for opening a new era of eternal data archiving. new usages.

18 Innovation Journal Issue 2 Employee profi le In the next issue:

I enjoy innovating when… Blended Reality – I am participating in the Innovation Forum— HP 3D Printing nurturing innovation and creation at our Shanghai site. My goal is to help others and beyond! realize their ideas and turn those ideas into Bringing together the physical products. In the past two years, we have and digital worlds is the essence submitted over 100 disclosures and pat- of HP’s “Blended Reality” inno- ents. It’s inspiring to see the makers spirit vation. Blended Reality is central thriving within HP. to our strategy for thriving in tomorrow’s world, as it is shaped My favorite part of working at by developments including the HP is... megatrends covered in this issue. Blended Reality describes The collaboration opportunities. I recently a world where inputs and outputs attended the B.I.L Program at Stanford Meet Haven Zhu, are seamless and intuitive, and our University. Not only did I receive a great digital environments mirror the 3D Hardware Development education from the professors, but I was physical landscape around us. Manager, LaserJet also able to collaborate with HP’s greatest Printer Team talents. Ten years after completing my Innovation Journal Graduate work at the Robotics Research INVENTING THE BLENDED WORLD OF TOMORROW Institute, it was exhilarating to return to the Technology changed the course of Haven’s world of robotics. life. As a child growing up in Wuxi, a small town outside of Shanghai, China, he never HP has allowed me to achieve my had access to a computer. Watching dramatic dreams. technological advances unfold before his eyes, Haven was inspired to pursue a future in I’ve been fortunate enough to work on technology. He is now responsible for manag- ground-breaking projects and push myself to solve real-world problems every day. My ing an experienced team of mechanical and proudest moments are when I walk through electrical engineers who continually improve a retail store with my daughter. I can show and deliver LaserJet hardware design. her products on the shelf that I designed— that is a huge gift that HP has given me. I pursue my passions at HP every day. When I graduated high school, my passion was engineering. To further that passion, I attended Shanghai JiaoTong University and completed Graduate School at the Robotics Research Institute. I could have never dreamed that I could work at HP—a world-class technology company that’s contributing to a better future. I’ve worked at HP for 9 years. I began as a mechanical engineer and then after fi ve years, I became a project manager for HP LaserJet business. LaserJet is the high end segment in the whole HP portfolio. Page 9 article reference sources I am thankful to be part of the team where 1 Cisco Visual Networking Index (2015) we are constantly pushing ourselves to build 2 Guardian UK (2015) 3 more aff ordable, reliable, and high quality Technology Ace (2015) 4 The Economist (2014) laser printers. Knowing our customers are 5 Bloomberg (2103) getting faster, cheaper and quieter printers 6 Gartner (2015) from HP is the best reward to our innovative 7 Daily Mail UK (2014) work at HP. 8 Independent UK (2014) 9, 10 Motley Fool (2015)

Innovation Journal Issue 2 19 News

“As a separate company, HP can more quickly respond to market changes and invest in necessary research to keep it relevant.” Dion Weisler, HP CEO, explaining HP’s commitment HP Elite x3 named one of the to keeping the innovation engine alive to Fortune 5 best gadgets from Mobile World Congress 2016 Source: Paste Magazine

HP Inc. unveils huge printer update with new PageWide portfolio and secure managed print service HP Spectre x360: 360 degrees of versatility. Zero compromises. Source: Computer Dealer News HP amazes at CES 2016 with HP PageWide EliteBook Folio wins prestigious Source: CNET golden design award Source: Print Week

Megatrend article reference sources

1Wall Street Journal (2014) 11McKinsey (2012) 2Reuters (2015) 12World Wildlife Fund, “Living Planet” report 3Science journal PLOS, Michael Levin and and Global Footprint Network (2015) Daniel Lobo (2015) 13World Bank Databank (2015) 4United Nations (2014) 14World Bank Databank (2015) 5Roland Berger’s ‘Trend Compendium 15Population Reference Bureau (2011) 2030 (2011) 16UN Population Data (2015) 6United Nations (2014) 17McKinsey Global Institute Analysis and UN 7United Nations (2014) Population Data (2015) 8United Nations (2014) 18McKinsey (2013) 9New Climate Report (2014) 19Seeking Alpha (2014) 10Mckinsey (2012) 20Ray Kurzweil (2005) and Andrew Bolwell Introducing the Titan JUXT and the Isaac (2015) Mizrahi Smartwatch Engineered by HP Source: HP Wearables and Smart Objects

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