Conference ilbbak::us_sales_service

218.0. "7/18 CSD Announcement" by ODIXIE::RYANKE (Kevin Ryan @MTO DTN 360-5115) Mon Jul 18 1994 13:30

            New Computer Systems Division to increase focus on
     core systems business, simplify structure, meet customer needs
   
         Digital today unveiled its new Computer Systems Division, which 
   will provide its worldwide customers with a sharpened focus on 
   Digital's core computer systems business and a simplified structure 
   that will play a key role in helping return Digital to sustained 
   profitability. The division was first announced last week by Digital 
   President and CEO Robert B. Palmer.
         Enrico Pesatori, vice president and general manager of the newly 
   created division, explained, "The Computer Systems Division has many 
   strengths to build on, including Digital's huge and loyal installed 
   base of customers, the acknowledged excellence of our technology, and 
   increasingly competitive products and manufacturing capabilities. When 
   focused and harnessed -- with the kind of competitive cost structures 
   Digital has already built in several of our successful business units 
   -- we are confident that these world-class assets will be a major step 
   in helping to set Digital back on track toward profitable growth on a 
   worldwide basis."
         The Computer Systems Division (CSD) has three worldwide business 
   units, each with its own revenue and profit responsibility and each 
   with control over the business functions critical to its success, 
   including engineering and product development, manufacturing and 
   logistics, marketing and communications, business information systems, 
   channel recruitment and support, and sales. The business units are: 
 
          The PC Business Unit, headed by Bernhard Auer, vice president and 
   general manager; 
   
	  The Systems Business Unit, headed on an acting basis by Pesatori; 
   
	  The Accounts Business Unit, headed by Vincenzo Damiani, vice 
   president and general manager.

         "Each of these units will be built around a specific business 
   model that represents the way customers choose to buy in today's 
   marketplace," said Pesatori. 
         The PC Business Unit (PCBU) is responsible for profitably 
   engineering, manufacturing, marketing and selling Digital's PC products 
   through indirect business partners. This unit will continue to build on 
   the growth and success it has achieved over the past year. 
         The Systems Business Unit (SBU) is responsible for profitably 
   engineering, manufacturing, marketing and selling high-volume computer 
   systems through indirect business partners. These products include 
   Digital's Alpha AXP workstations and servers as well as the operating 
   systems and layered software needed to implement open client/server 
   solutions. The SBU will be managed by Pesatori on an acting basis. 
         "As part of the Systems Business Unit, much of Digital's 
   outstanding engineering talent will now be linked more closely with the 
   marketplace and the needs of our customers," Pesatori explained. "We 
   will be working closely with the systems and applications software, 
   systems hardware, and systems engineering groups, previously part of 
   the central engineering function, to define the right level of 
   engineering support needed to make the SBU a success." 
         Russ Gullotti will lead Manufacturing and Logistics for the SBU, 
   and will have responsibility for Digital's Customer Value Chain 
   activity and the Computer Special Systems organization.
         The Accounts Business Unit (ABU) will be responsible for 
   profitably meeting the needs of major customer accounts worldwide. From 
   the customer's perspective, the ABU account team will act as an 
   expertise broker in bringing together the right Digital and business 
   partner products and solutions to meet that customer's needs. 
   Besides receiving product and service support from the other business 
   units, ABU account teams and their customers will be supported by 
   technical integration consultants within local Technical Integration 
   Centers around the world. The ABU will be managed by Damiani, who will 
   continue to serve as president of Digital's European operations.
         "The full implementation of these units will take place in 
   stages," noted Pesatori. "The PC Business Unit is already well 
   established and has tremendous marketplace momentum, and that will 
   continue. The Systems Business Unit will be immediately operational, 
   including engineering, manufacturing operations and product segment 
   management. The Accounts Business Unit will undergo a period of 
   transition before being fully operational on Jan. 1. As we migrate from 
   our traditional sales and marketing model into this new structure over 
   the next six months, we will ensure that the Computer Systems 
   Division's contribution to Digital's return to profitability will 
   continue unimpeded.  
         "Throughout this time, our first priority is to continue to 
   support our customers without disruption," Pesatori added. "We are 
   confident that they will be as enthused as we are about this 
   streamlined, simplified approach to providing them with the best 
   products and services that Digital and our partners have to offer." 
         The Area vice presidents will continue to lead sales and 
   marketing through the geography structure until Jan. 1. As announced 
   earlier, Harry Copperman is president of the Americas; Bobby Choonavala 
   will continue as president of Asia Pacific; and Vincenzo Damiani will 
   continue as president of Digital Europe.  All three report to Pesatori 
   in his acting role as head of the Systems Business Unit. 
         The three business units within the Computer Systems Division 
   will be supported by these functions: Product Strategy, Business 
   Strategy, Market Strategy and Communications, Human Resources, and 
   Finance.
         Willy Shih will manage Product Strategy for the division, which 
   will ensure consistency in product offerings that meet market and 
   customer requirements. He will also be responsible for alliances with 
   other industry leaders in key product and solutions offerings. 
         Lucia Quinn will lead the Business Strategy Group for the 
   division, and will be responsible for CSD's long-range planning and the 
   development of business alliances. 
         Carl Gustin, who has headed market strategy for the PCBU for the 
   past six months, will head Market Strategy and Communications for CSD.
         Bob Mulkey will lead the Human Resources function for CSD and 
   will provide overall leadership and direction to ensure that CSD's 
   organization objectives are supported by its human resources 
   strategies.
         Tony Wallace will head the Finance function and will be 
   responsible for all of CSD's financial management and decision support 
   activities, as well as for operations planning.                        
         Pesatori has been responsible for Digital's worldwide sales and 
   marketing operations for the past three months. In early 1993, he 
   joined Digital as vice president and general manager of the PC Business 
   Unit. Since that time, Digital has doubled its PC revenues and moved 
   from an industry ranking of 22nd to 12th in PC revenues, and the unit 
   has become profitable.