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Transcript

Enrique Lores · The David Rubenstein Show

0:02
Speaker 1: The granddaddy of all Silicon Valley startups is Hewlett Packard.
0:05
Speaker 1: It would start in a garage in nineteen thirty nine,
0:08
Speaker 1: but in twenty fifteen it's split into two separate companies,
0:11
Speaker 1: Heulett Packard Enterprises and HP Inc. Recently, at the Economic
0:15
Speaker 1: Club of Washington, I sat down with Enrique Loris to
0:18
Speaker 1: talk about how he's led the successful personal computer and
0:21
Speaker 1: printing company following the split. So which company is better,
0:30
Speaker 1: Hewlett Packard Enterprises or HP Inc.
0:34
Speaker 2: So, as you can imagine, I have a very unbiassed view,
0:38
Speaker 2: and I have say, of course, HP Inc. Is not
0:41
Speaker 2: only that we do printers and PCs.
0:44
Speaker 3: We think we.
0:45
Speaker 2: Are the company that can enable a more flexible way
0:48
Speaker 2: of working, to make employees productive, to make employees engaged,
0:52
Speaker 2: and this is what we stand for.
0:54
Speaker 1: So, but their main business is today is computers and
1:00
Speaker 1: so much and printers that their main businesses. Right, So
1:03
Speaker 1: I can tell from your accent you're not from Baltimore
1:06
Speaker 1: or Washington, DCA.
1:08
Speaker 4: Where did you grow up?
1:10
Speaker 3: I can't say you're very astute.
1:12
Speaker 2: So you're really detecting that I'm not from the US
1:15
Speaker 2: is very difficult, I know.
1:17
Speaker 3: But yeah, originally from Spain.
1:19
Speaker 4: I okay, so you grew up in Spain.
1:21
Speaker 3: I grew up in Spain.
1:22
Speaker 1: Now, how many companies in Silicon Valley are run by
1:26
Speaker 1: people who were born in Spain?
1:28
Speaker 4: One one? So all right, so you're born in Spain.
1:32
Speaker 1: Did you say I want to run HP someday or
1:34
Speaker 1: what it was your aspiration as a young boy in Spain.
1:37
Speaker 2: No, it was not my inspiration to tufront a company
1:40
Speaker 2: like HP. I joined HP as an intern in nineteen
1:44
Speaker 2: eighty nine, so I have worked for the company for
1:47
Speaker 2: a very long time. When I was studying, there was
1:50
Speaker 2: a group of HP engineers that came to my university
1:53
Speaker 2: in Spain, in Valencia, and they explain what it took
1:57
Speaker 2: to develop a printer, was where it was when printers
1:59
Speaker 2: were starting to be created, and I was amazed by
2:03
Speaker 2: both the technology complexity but also by the passion these
2:06
Speaker 2: people showed about the printer, And in fact, I was thinking,
2:09
Speaker 2: how can someone feel passion for something so strange.
2:14
Speaker 3: I have to say though, that thirty.
2:16
Speaker 2: Four years later, I have more passion for printers than
2:19
Speaker 2: these people had. So I have learned and I have
2:22
Speaker 2: been converted to the religion.
2:23
Speaker 1: Okay, so you went to college in Spain and you
2:26
Speaker 1: got an MBA or an engineering degree.
2:29
Speaker 3: I got an engineering degree first.
2:31
Speaker 1: Okay, so you're electrical engineer. You moved to Slicon Valley.
2:35
Speaker 1: Where'd you move to?
2:36
Speaker 3: No?
2:36
Speaker 2: Actually, the full story was I got this opportunity to
2:40
Speaker 2: work as an interne in HP, and it was I
2:43
Speaker 2: had the opportunity to go to San Diego. So we
2:46
Speaker 2: went to San Diego for the summer, and when the
2:49
Speaker 2: internship was finishing, HP was opening an Rande Center in
2:53
Speaker 2: Spain in Barcelona. So they told me, you're from Spain,
2:56
Speaker 2: we are creating this new Errandi center you might be
2:59
Speaker 2: interested in And I said that at point, yea, maybe
3:03
Speaker 2: for a couple of years, because we were living a
3:05
Speaker 2: different city, and in Spain you don't change cities.
3:08
Speaker 3: You grew up in.
3:09
Speaker 2: You are born in one place, you go to school
3:11
Speaker 2: in one place, and you build you live all your
3:13
Speaker 2: life there. So we said, oh, for a couple of years,
3:16
Speaker 2: would be nice to go to Barcelona. Thirty five years
3:19
Speaker 2: later we never came back. We went to Barcelona. Sometime
3:23
Speaker 2: later we came to the US and here.
3:25
Speaker 1: We How long did it take after the split occurred
3:27
Speaker 1: in twenty fifteen for you to become the CEO.
3:29
Speaker 4: What were you doing before he became COO?
3:32
Speaker 2: Before I became CEO, I led the separation of the company.
3:36
Speaker 2: So when Meg, or the CEO, decided to split the company,
3:40
Speaker 2: we created what we called a separation office and there
3:43
Speaker 2: were two leaders, one from HPE and the other one
3:46
Speaker 2: for Hilopap Enterprise, one for HPING.
3:48
Speaker 3: I led a separation from my side.
3:51
Speaker 2: In fact, when I was asked to lead a separation,
3:55
Speaker 2: my immediate response was no, I don't want to do that.
3:58
Speaker 2: And then Meg, that was make Witnan, that was a
4:00
Speaker 2: CEO at that point. After a few days, a weekend,
4:03
Speaker 2: she called me home and said, and Rica, I need
4:05
Speaker 2: to talk to you. So I went to her home
4:07
Speaker 2: and she said, I know you don't want to do that.
4:10
Speaker 2: This is the opportunity of your career. You're going to
4:13
Speaker 2: learn things you will never forget. You should be taking
4:16
Speaker 2: different and when the CEO calls you to her home
4:19
Speaker 2: on a weekend, you know that is only one answer. Okay,
4:22
Speaker 2: it was yes, I will do it. And I have
4:25
Speaker 2: to say I learned a lot.
4:27
Speaker 1: So what was the theory, the business theory behind why
4:30
Speaker 1: sputting up Hulett Packard a very successful company in the
4:33
Speaker 1: two separate companies.
4:34
Speaker 4: Why was that going to be such a great idea?
4:36
Speaker 2: I think the main theory, which at least in our case,
4:40
Speaker 2: have proven to be true, was focus.
4:43
Speaker 3: HP was a very big company.
4:45
Speaker 2: We were selling from printers to service data centers, all
4:49
Speaker 2: sorts of technology products, and the theory that the board
4:52
Speaker 2: had at that point was that focus was very important.
4:55
Speaker 2: Each market was moving in a different direction, we were
4:58
Speaker 2: competing with different companies, so being focus, being able to
5:01
Speaker 2: invest in our segments was the critical thing, and in
5:04
Speaker 2: our case has proven to be right.
5:05
Speaker 1: So when a company is split occurr in twenty fifteen,
5:09
Speaker 1: many people thought that Hewlett Packard Enterprises, which was in
5:12
Speaker 1: the sexual area of software and services, would.
5:15
Speaker 4: Become more valuable.
5:17
Speaker 1: But actually your company is now has a higher market
5:19
Speaker 1: capitalisation than Helot Packard Enterprises.
5:22
Speaker 4: Is that make you sad or happy?
5:25
Speaker 2: I only I'm only concerned about what happens with our company.
5:30
Speaker 2: And as I said, the separation has been good for us.
5:34
Speaker 2: We have proven that we can create value to two shareholders.
5:38
Speaker 2: Our ts are in the last seven years has been
5:41
Speaker 2: two hundred percent, significantly higher than the average of the market.
5:45
Speaker 2: So we have done well and what is more important.
5:48
Speaker 2: We have a lot of opportunities and ideas of how
5:51
Speaker 2: to continue to make the company better.
5:53
Speaker 1: You compete against I guess Dell and Lenovo and also Apple.
5:58
Speaker 1: I assume which of your which o those companies makes
6:02
Speaker 1: the best personal computer? What you say really and is
6:06
Speaker 1: what makes your computer better? Why should I want to
6:08
Speaker 1: buy yours over somebody else? Aren't they all really pretty
6:10
Speaker 1: much the same? At this point?
6:12
Speaker 2: I think there are three big differentiations for our products,
6:16
Speaker 2: especially in the piece space.
6:18
Speaker 3: One is security.
6:20
Speaker 2: Cyber security is every time more important, and we build
6:23
Speaker 2: both software and hardware in our PCs to make them
6:27
Speaker 2: more secure. Second big differentiation is industrial design. We have
6:33
Speaker 2: made a big effort to make our preces the best
6:36
Speaker 2: looking pieces, the most attractive, and the ones that have
6:39
Speaker 2: the better use model. And finally is sustainability. We think
6:44
Speaker 2: that sustainability is really important and we use in our
6:47
Speaker 2: PCs all type of materials that are environmentally friendly, from
6:52
Speaker 2: plastic that we get from the oceans, to coffee beans
6:56
Speaker 2: to You can look at our portfolio and see any.
6:58
Speaker 1: Type of matiityre do you sell them? And you don't
7:01
Speaker 1: have HP stores the way Apple has stores, So where
7:03
Speaker 1: do you sell your computers.
7:05
Speaker 2: It actually depends country by country. In the US, for example,
7:08
Speaker 2: we sell online on HP dot com or on Amazon.
7:12
Speaker 2: You can buy our products in any large consumer electronics
7:16
Speaker 2: retailer like Best Buy. But also for commercial customers, we
7:20
Speaker 2: have a big network of free sellers, commercial resellers that
7:24
Speaker 2: will sell our product and for our top customers, we
7:27
Speaker 2: have a dairy Excel force. In other countries, we have
7:30
Speaker 2: our own stores you do. For example, in India, we have
7:33
Speaker 2: more than five hundred stores that really we use.
7:37
Speaker 4: India rate five hundred stores and the US rates non.
7:40
Speaker 2: Because of the structure of the distribution and retail model
7:44
Speaker 2: in India, there is not an electronic retail network in
7:48
Speaker 2: many of the cities, so we had to build our
7:50
Speaker 2: own to be able to really reach consumers anywhere in
7:53
Speaker 2: the country. And we continue to expand because we see
7:56
Speaker 2: continue to see a big opportunity.
7:58
Speaker 1: So pose I buy one of your computers and then you, lady,
8:01
Speaker 1: you have another model. Can I trade it in and
8:03
Speaker 1: get a discount Like a car, I can trade them
8:05
Speaker 1: when I buy a new car.
8:06
Speaker 4: Don't you don't have trade ends or anything.
8:08
Speaker 3: Like that today today we don't.
8:10
Speaker 2: But this is one of the businesses that we're starting
8:13
Speaker 2: to develop, both because we see we can really help
8:17
Speaker 2: customers to always stay on the latest technology, but also
8:21
Speaker 2: because from a sustainability perspective, recycling and refurbishing is a
8:25
Speaker 2: very important thing to do. So we are going to
8:27
Speaker 2: be building that model at scale.
8:29
Speaker 4: Right, So where are your computers manufactured today?
8:33
Speaker 3: Majority are still produced in China.
8:35
Speaker 4: China?
8:36
Speaker 1: And are you worried about somebody putting a chip in
8:38
Speaker 1: the air that can enable the Chinese government to listen
8:40
Speaker 1: to what you're doing?
8:41
Speaker 4: Is you're worried about that? Or should I worry about that?
8:44
Speaker 2: You should not worry about that, because we worry about that, okay.
8:47
Speaker 3: And what we.
8:47
Speaker 2: Have built is what we call a secure supply chain
8:50
Speaker 2: through so across every step of the manufacturing process, we
8:55
Speaker 2: control anything that is inside of our printers, inside the chiefs,
8:59
Speaker 2: inside the sover to make sure that the printers, the
9:02
Speaker 2: PCs are the printers as we are.
9:03
Speaker 1: You're worried about being too dependent on China for your
9:06
Speaker 1: manufacturing because there could be us problems with China.
9:09
Speaker 4: Who knows what can happen? Why not diversify?
9:12
Speaker 2: Actually we are diversifying. We realized and learned painfully during
9:17
Speaker 2: Covid as many other companies, that depending on a specific
9:22
Speaker 2: territory or having too much dependency was too risky, and
9:26
Speaker 2: that the what we had done over many years of
9:30
Speaker 2: really pushing for a cost and therefore concentrated non manufacturing
9:34
Speaker 2: in one place created some the issues from a resiliency perspective.
9:39
Speaker 2: So since then we have been diversifying to increase resiliency.
9:43
Speaker 2: And this is a process that we embarked a few
9:46
Speaker 2: years ago that is going to take some time, but
9:47
Speaker 2: clearly we are doing that.
9:49
Speaker 1: But the key is the semiconductors of the chips and
9:52
Speaker 1: where are the chips made in China or the made
9:54
Speaker 1: in Taiwan or US.
9:55
Speaker 2: Or majority today are still built in Taiwan. We are
9:59
Speaker 2: working with all the key chip providers to make sure
10:02
Speaker 2: we diversify with the location. And this is why, for example,
10:06
Speaker 2: last year we were very supportive of the Chips Act
10:08
Speaker 2: because getting government funds to accelerate the change, we think
10:13
Speaker 2: is very important.
10:13
Speaker 1: So when you're at your home and you're working on
10:16
Speaker 1: a computer, do you ever use the opposition or the
10:18
Speaker 1: competitors to see what they're doing or you only can
10:20
Speaker 1: use HP.
10:22
Speaker 2: I use both, as you can guess I have lots
10:25
Speaker 2: of hppcs at home because every time there is something new,
10:28
Speaker 2: the team was me to train and sometimes they don't
10:33
Speaker 2: like it because I find things they didn't like me
10:35
Speaker 2: to find. So I give a lot of feedback, but
10:38
Speaker 2: of course I test also the latest innovation from our
10:41
Speaker 2: competitors to make sure I understand.
10:43
Speaker 1: You work at your competitors computers and say why don't
10:46
Speaker 1: we have this?
10:47
Speaker 4: And can't we don't have that?
10:48
Speaker 3: You ever ask yes, and the team hated it?
10:52
Speaker 1: And how do you protect against hacking? And how do
10:55
Speaker 1: you kind of give your people who are customers warning
10:58
Speaker 1: about what they're going to say if a hacker is
11:00
Speaker 1: coming in.
11:02
Speaker 3: What we have done is we.
11:04
Speaker 2: Have developed both software and hardware to protect our pieces.
11:09
Speaker 2: For example, in any of our commercial pieces, we have
11:12
Speaker 2: achieved embedded in the board that detects if the BIOS
11:17
Speaker 2: has been modified. The BIOS is kind of the brain
11:19
Speaker 2: of the PC, so we can detect if there has
11:22
Speaker 2: been any intrusion in the BIOS and if we detect that,
11:25
Speaker 2: we can restore it to the regional level. This is
11:27
Speaker 2: a unique technology that HP has that really helps to
11:31
Speaker 2: protect our pieces, and we have many other software developments
11:35
Speaker 2: in other layers to do similar things.
11:37
Speaker 4: You make servers as well, No, we only do pieces.
11:40
Speaker 2: We do workstations, which is a very high end type
11:42
Speaker 2: of PC, but we don't do servers.
11:44
Speaker 1: You make cartridges, right, and the printers. So on printers,
11:50
Speaker 1: it's one printer really different than another from your competitors.
11:53
Speaker 1: Aren't all the printers pretty much the same?
11:56
Speaker 3: Printers are fairly different.
11:58
Speaker 2: In fact, there is more difference print to printer than
12:00
Speaker 2: PC to PC because printers are a totally integrated business.
12:04
Speaker 2: So we develop the printer, we develop the ink, we
12:07
Speaker 2: develop the cartridge. Is a much more vertically integrated model
12:11
Speaker 2: that dries more differentiation.
12:13
Speaker 1: Is the printing business a growth business because people now
12:16
Speaker 1: printing stuff as much, they're just sending it by email
12:19
Speaker 1: or computer digital means to other people. So is printing
12:22
Speaker 1: a growth business or it's kind of a shrinking business.
12:25
Speaker 3: In printing, there are three very different segments.
12:28
Speaker 2: There is what we call home printing, so printers you
12:31
Speaker 2: will buy to use at home, to print photos or
12:34
Speaker 2: to print email. This is clearly a not growing business.
12:37
Speaker 2: Then we have an office segment people copiers printers that
12:41
Speaker 2: you will do in the you will use in the office.
12:43
Speaker 2: That's a market that is table is declining in more
12:46
Speaker 2: developed countries, is growing in emerging countries. And then we
12:50
Speaker 2: have a third segment, which is industrial printing. Industrial printing
12:54
Speaker 2: means printing labels, packaging, this type of and this is
12:59
Speaker 2: a significantly go.
13:00
Speaker 1: I actually do have an HP printery good, but the
13:04
Speaker 1: cartridge is always running out. I'm running out of ink
13:06
Speaker 1: all the time. So is that a problem? How do
13:10
Speaker 1: I how do I know where my ink is going
13:13
Speaker 1: to be out and right in the middle of printing something.
13:15
Speaker 1: Is that a big problem that you guys have, which
13:18
Speaker 1: I do about it.
13:19
Speaker 2: When we talk to customers, they always have two concerns
13:23
Speaker 2: about printing. One is what Jja said, I want to
13:26
Speaker 2: print my kid has finished homework. I need to print homework.
13:30
Speaker 2: The print is not working because the cartridge is not working.
13:33
Speaker 2: Second complaint that we have is printing is expensive. I
13:37
Speaker 2: really hate paying fifty dollars forty five dollars fifty five
13:40
Speaker 2: dollars for the cartridge. And we have a solution for that.
13:44
Speaker 2: We have created a subscription model where we monitor the
13:48
Speaker 2: amount of ink that is being used in the printer.
13:50
Speaker 2: Customers pays for the number of pages the print per
13:53
Speaker 2: month and before the printer runs out of ink, we
13:56
Speaker 2: send a new cartridge to customers and by doing that,
14:00
Speaker 2: depending on your volume, you can save up to seventy
14:03
Speaker 2: percent of I mean, you print seventy percent cheaper.
14:07
Speaker 4: What are you doing about carbon and your global footprint?
14:10
Speaker 2: We have an aggressive plan to reduce that to be
14:12
Speaker 2: carborn by twenty thirty and we are working in the
14:16
Speaker 2: areas of the company where we have more impact. Because
14:19
Speaker 2: of the products that we build, we use alls of plastic,
14:22
Speaker 2: so we have an important initiative to use a recycled
14:26
Speaker 2: plastic in any of our products. We are also I
14:30
Speaker 2: mentioned before, we are going to be changing business models
14:33
Speaker 2: to move into referbised products.
14:36
Speaker 3: So we live, we give to our products toward the lives.
14:40
Speaker 2: And finally, and one of the things that I feel
14:42
Speaker 2: most proud of in this space is people always associates
14:46
Speaker 2: printing with paper, paper with trees, and therefore, if you print,
14:51
Speaker 2: you're doing something wrong for the environment. So what we
14:55
Speaker 2: have is an initiative that we call forest positive printing.
14:59
Speaker 2: So we look at the amount of print paper that
15:01
Speaker 2: is used in our printers, if that paper is not
15:04
Speaker 2: coming from recyclable forests, for forests that have been planted
15:08
Speaker 2: to create paper. We plant trees and we have programs
15:11
Speaker 2: of reforestation to compensate for that.
15:14
Speaker 1: Silicon Valley companies are not famous for diversity, So what
15:19
Speaker 1: do you do.
15:19
Speaker 4: In that regard?
15:20
Speaker 1: You have a program that I'm sure you have some
15:22
Speaker 1: fair amount of diversity.
15:23
Speaker 3: We take it.
15:24
Speaker 2: Extremely seriously and for example, my compensation and the compensation
15:28
Speaker 2: of my direct team is dependent on the progress that
15:32
Speaker 2: we make on diversity.
15:33
Speaker 1: Also, I want to buy a computer, but I want
15:35
Speaker 1: I want to have AI in my computer. I want
15:37
Speaker 1: to be really up to date. Do you have AI
15:40
Speaker 1: and your computers yet?
15:42
Speaker 2: Not yet, but it is coming soon and we think
15:45
Speaker 2: this is going to be one of the largest transformations
15:48
Speaker 2: in the PC industry in decades. What will be possible
15:53
Speaker 2: starting this summer is to run large language models in AIPCS,
15:59
Speaker 2: which means that what today all of us are doing
16:02
Speaker 2: in the cloud, where you use any of the applications
16:05
Speaker 2: that you can, you will be able to do it locally.
16:08
Speaker 2: And what this means, which is why we think this
16:10
Speaker 2: is important, is it will be much better from a
16:13
Speaker 2: cost perspective, because running models in the cloud is expensive.
16:17
Speaker 2: It will be better from a security perspective because you
16:20
Speaker 2: will be able to use the model with your own
16:23
Speaker 2: data locally without having to upload your data to the cloud,
16:26
Speaker 2: and you will be able to do it anywhere in
16:29
Speaker 2: the world. And also for applications where speed is important,
16:32
Speaker 2: where latency is important, you will be able to do
16:35
Speaker 2: it locally much faster. For example, in gaming, where you
16:38
Speaker 2: are where the game needs any resource the computer have,
16:42
Speaker 2: it will be a much better model. So it's going
16:43
Speaker 2: to be a big change starting this summer at the
16:46
Speaker 2: same price too, slightly higher price, but if we look
16:50
Speaker 2: at the increase of price versus the increase of value,
16:53
Speaker 2: not comparable.
16:54
Speaker 4: With one of your competitors.
16:55
Speaker 1: Apple has recently come out with a product that is
16:58
Speaker 1: they called spatial computer.
17:00
Speaker 2: It's like a virtual reality. Do you have that kind
17:02
Speaker 2: of product yet, And we have had a similar product
17:06
Speaker 2: for some time. Focus on two spaces. One was gaming,
17:10
Speaker 2: one was in some commercial usance. And we think that
17:13
Speaker 2: over time this category is going to grow. But what
17:17
Speaker 2: we really think is that computing is going to become
17:20
Speaker 2: we call it immersive. That today we interact with computers
17:24
Speaker 2: through a screen or through a keyboard, more and more
17:26
Speaker 2: we are going to interact with our full body, with
17:29
Speaker 2: our gestures, with and this is the trend that we
17:32
Speaker 2: are we are pushing for. You will see this in
17:36
Speaker 2: some models like what Apple has done. There are also
17:39
Speaker 2: very interesting concepts where you interact with holograms and we
17:42
Speaker 2: are really exploring a multitude of different things which one
17:46
Speaker 2: will win. At this point it is difficult to see,
17:48
Speaker 2: but clearly immersive is the future.
17:50
Speaker 1: Or somebody comes and says, look, I don't really care
17:52
Speaker 1: about price. I'm not price sensitive. Sell me whatever you got,
17:55
Speaker 1: give me your best stuff. I mean, what's somebody going
17:57
Speaker 1: to spend that five thousand dollars or something for.
17:59
Speaker 2: A con five thousand dollars? So we have products at
18:02
Speaker 2: five thousand dollars for a business customer. If you want
18:06
Speaker 2: to buy the top of the line workstation with the
18:09
Speaker 2: top of the line processor ten fifteen thousand dollars.
18:14
Speaker 4: Wow.
18:14
Speaker 1: So if somebody goes into your stores in India and
18:16
Speaker 1: they spent five thousand for a personal computer, that they
18:19
Speaker 1: call you up and side. We just sold somebody a
18:21
Speaker 1: five thousand dollars personal computer. They don't call you about
18:23
Speaker 1: that since you mentioned it.
18:24
Speaker 2: This summer we were in India, so I decided to
18:28
Speaker 2: go to some of our stores without telling them who
18:30
Speaker 2: I was, so you should see the faces.
18:32
Speaker 3: When I went to the store, they look at me.
18:35
Speaker 2: I asked them about what products they were selling, and
18:38
Speaker 2: at some point I said, well, you know, I'm the
18:39
Speaker 2: sea of the company, and they became white.
18:44
Speaker 3: First war Like they didn't believe it.
18:46
Speaker 4: They didn't believe it, or after a while.
18:48
Speaker 3: They believed it, but some of them look at the
18:50
Speaker 3: web to make sure it was me.
18:52
Speaker 1: Okay, why should somebody want to join Hula Packard as
18:55
Speaker 1: an employee? Why is it better than working at Apple
18:58
Speaker 1: or one of the other competitors that you might have.
19:00
Speaker 2: So when when Ivy CEO, we define four objectives for
19:05
Speaker 2: the company and one of the four objectives is to
19:09
Speaker 2: become a school of talent. And our value proposition to
19:13
Speaker 2: employees is that they can join the company, they will
19:16
Speaker 2: learn their job, they will be able to experience multiple businesses,
19:21
Speaker 2: multiple functions if they want. They can live in multiple
19:24
Speaker 2: countries just because of the presence that we have. So
19:27
Speaker 2: we really focus on employee development as the key value proposition,
19:31
Speaker 2: to the point that we say when someone leaves, we
19:34
Speaker 2: celebrate the graduation because really that person has learned from
19:39
Speaker 2: us and has developed. And this also gives us opportunity
19:42
Speaker 2: to bring someone new, to bring someone younger, to continue
19:44
Speaker 2: to reference.
19:45
Speaker 3: So that's one of the key values that we have.
19:48
Speaker 1: So if somebody wants to work at a company like yours,
19:51
Speaker 1: what's the best way to get a job? You get
19:53
Speaker 1: an engineering degree from a good school or not a
19:56
Speaker 1: good school. Is being an engineer is the best way?
19:58
Speaker 2: I think there are multiple Always clearly there are a
20:02
Speaker 2: lot of engineers in the company, So studying engineering and
20:06
Speaker 2: graduating from a good school is important. But we hire
20:10
Speaker 2: people that graduate from marketing. We graduate people from law schools.
20:14
Speaker 2: I mean, we are a very large company that has
20:17
Speaker 2: any function that you can think of in the company,
20:20
Speaker 2: So we have lots of people.
20:21
Speaker 1: The average person you hire do'es he or she lasts
20:25
Speaker 1: one year or two years, five years?
20:26
Speaker 4: How long are your average people?
20:28
Speaker 3: In general?
20:29
Speaker 2: We are a company with long tenure. I mean I
20:32
Speaker 2: said before I've been more than thirty four years in
20:34
Speaker 2: the company. You will find people that has been the
20:37
Speaker 2: company for a long time.
20:38
Speaker 1: Would you say that the computing business is one that
20:41
Speaker 1: is likely to increase in value? Is more companies come in,
20:46
Speaker 1: or computers become more sophisticated, or you think it's pretty
20:49
Speaker 1: much a solid business, but not going to be a
20:52
Speaker 1: high growth business.
20:54
Speaker 3: It depends on what you mean by high growth.
20:56
Speaker 2: Is a business that we think is going to grow
20:58
Speaker 2: between two and four percent, but it is a four
21:00
Speaker 2: hundred billion dollar business, so twocent of four hundred billion
21:04
Speaker 2: is a lot of additional business every year in.
21:06
Speaker 1: Your business today, would you say that your biggest problem
21:10
Speaker 1: is what your biggest concern is? Competition, government, regulation, the economy.
21:16
Speaker 4: What is your biggest concern?
21:18
Speaker 2: I think one is all the geopolitical changes that we
21:22
Speaker 2: are seeing. I think one we have had a very
21:25
Speaker 2: stable environment for the last twenty years. It was very
21:28
Speaker 2: clear how to manage the company to be successful. Things
21:32
Speaker 2: have changed extremely fast and this is having significant impact
21:37
Speaker 2: on our business. And the second is to make sure
21:40
Speaker 2: that we stay in the lead. From an innovation perspective.
21:44
Speaker 2: The pace where that technology is changing by is faster
21:49
Speaker 2: than ever, so making sure that we are making the
21:52
Speaker 2: right technology beds, that we hire the right people to
21:55
Speaker 2: develop those technologies.
21:57
Speaker 3: That's one of the challenges.
21:58
Speaker 1: And today you get a lot of people coming to
22:01
Speaker 1: here with great ideas what new businesses you should be in,
22:04
Speaker 1: or you generate your own ideas of new businesses that
22:07
Speaker 1: can expand your business space is both.
22:10
Speaker 2: We have teams in the company that are constantly exploring
22:14
Speaker 2: new ideas, but we also have a small venture fund
22:20
Speaker 2: that looks what is being invented, what is being created
22:23
Speaker 2: in startups, and then.
22:25
Speaker 3: We invest on those.
22:27
Speaker 2: The innovation model has changed a lot in the last
22:30
Speaker 2: thirty years. Thirty years ago, companies like US used to
22:34
Speaker 2: have big central labs that were the ones creating new things.
22:38
Speaker 2: The model is way more decentralized today and the combination
22:42
Speaker 2: of university startups.
22:44
Speaker 3: Is really now driving the innovation.
22:46
Speaker 2: So we need to be much more external focused than
22:48
Speaker 2: we were before to continue to stay on the lead.
22:51
Speaker 1: So what is the most important message you would like
22:54
Speaker 1: to convey anybody watching here today about the personal computer
22:59
Speaker 1: world is that it's a great thing for society and
23:02
Speaker 1: that they should buy more personal computers. And what is
23:05
Speaker 1: the most important thing you want to convey about HPA inc.
23:08
Speaker 2: About HPS that is a company that really cares about
23:14
Speaker 2: helping society. That we have a big opportunity to enable
23:19
Speaker 2: our employees to be more productive, to be more engaged,
23:23
Speaker 2: and that we see a lot of opportunities to innovate
23:26
Speaker 2: to make it happen. And also that is a company
23:29
Speaker 2: with very strong values and strong principles. Since the company
23:33
Speaker 2: was funded in nineteen thirty eight, the Villa, and they've
23:36
Speaker 2: defined before all the conversation about sustainability or diversity even existed.
23:43
Speaker 2: They define the values of the company. They define that
23:46
Speaker 2: the company. Great companies create a lot of value for shareholders,
23:51
Speaker 2: but also have a positive impact for our communities.
23:54
Speaker 3: And since then we have been driving both.
23:57
Speaker 1: Thanks for listening to hear more of my interviews. You
23:59
Speaker 1: can subscribe and download my podcast on Spotify, Apple, or
24:03
Speaker 1: wherever you listen.