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Agilent Technologies

Agilent Technologies. Organizational Study Presentation Dan Lindquist, Michael Foss, & Sara Schwalbenberg. History. Agilent is Hewlett-Packard spin-off (1999) Strategic move to re-image themselves as “testing & measurement” company Wanted to respond better to customers

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Agilent Technologies

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  1. Agilent Technologies Organizational Study Presentation Dan Lindquist, Michael Foss, & Sara Schwalbenberg

  2. History • Agilent is Hewlett-Packard spin-off (1999) • Strategic move to re-image themselves as “testing & measurement” company • Wanted to respond better to customers • Improve testing & measurement worker morale • Largest IPO in Silicon Valley history, raising 2.1 billion dollars

  3. Company Facts • Corporation • 30,000 employees around the globe • Sell to customers in over 110 countries • More than half of Agilent’s revenue is generated from outside the United States

  4. Strategy “ Agilent focuses on high-growth market opportunities in the communications, electronics and life sciences industries. Continuing a legacy of technological innovation, Agilent leverages the benefits of scale and global presence to capture and create business opportunities.”

  5. Milestones • Specific financial milestones have been set for next 2-3 years • Operational excellence

  6. Departments • Life Sciences and Chemical Analysis • Semiconductors • ATG: Automatic Test Group • EPST: Electronic Products and Systems (original part of HP)

  7. Life Sciences and Chemical Analysis • Drug testing to genomic research • Mostly the tools to do those things

  8. Semiconductors • Sells integrated circuits on the open market • Duplexer chip allows same antenna to be used for sending and receiving signals • Makes the LEDs for newfangled traffic lights, taillights, and cars • Searching for the holy grail of replacing the light bulb itself

  9. EPST: Electronic Products and Systems (original part of HP) • Voltmeters, oscilloscopes, basic testing equipment • Helps people put systems together - Agilent supplies the tools

  10. ATG: Automatic Test Group • Make the testers for large manufacturers • New tester that works on things that use both analog and digital signals • ICs getting so small that you can’t just connect to it to test it, so new ways of testing are needed • X-rays are one of the methods that are used

  11. Intellectual Property • Pretty much the same throughout corporate America • Patent belongs to the company, & the employee gets some sort of reward • Many thousands of patents at Agilent • When the split with HP happened, the patents split as well. • Typically there is a bonus for when someone is able to file a patent

  12. Spinoff Problems • Inefficient because they had been under the HP “umbrella” • HP had infrastructure Agilent didn’t even know they were using • Expensive rebuliding • 2000 major software packages were being used internally (most use 20) • HP masked Agilent’s profitability when they were together

  13. Was the spinoff beneficial? • Agilent has made incredible leaps in business efficiency • November 17th will show if it really paid off • In the distant future, Agilent will definitely benefit • Now they can run their business the way they want to run the business

  14. Agilent Today • Agilent is the #1 supplier of testing equipment in the world • Suffering because of sagging sales in key markets • Had to lay off 8,000 people in 2002 • Net losses in 2002 was 1.3 billion dollars • Focus on restoring profitability through innovative products • Initial goal for Agilent is to become profitable • November 17th a big date for Agilent - earnings statement comes out

  15. Company Atmosphere • Marketing and R&D are almost inseparable • Strong technical confidence in marketing • Never can quite get back to the garage culture • People are impressed by how coworkers will help out other coworkers • Attitude that if someone needs something, you help them

  16. Marsh Faber • EPST: Electronic Products and Systems (original part of HP) department • Marketing in an area called System Components • Marsh has no experience working at any other companies

  17. Questions?

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