Hewlett Packard

The Flight of the Kittyhawk

Introduction

• The first attemption of Orville and Wilbur Wright to built the new era of transportation.

• HP introduced Kittyhawk as their new innovation

Rigid Disk Drives

• Commonly called hard drives

• Magnetic information storage and retrieval devices used with computer

• The first rigid disk drive was invented by engineers in IBM’s San Jose, California in 1956 with 5 megabytes storage.

• Used Binary code

The disk memory storage Division

• A management by objective – MBO

• A Decentralized organizational structure

• 4 major business organizations

• Disk Memory Division - DMD

President & CEO

Test & Measurement Organization

Computer ProductOrganization

Computer SystemsOrganization

Measurement Systems Organization

Personal Information Products

Printing Systems Mass Storage Group Ink-Jet Products Sales & Support

Boise Site Operations

Computer Peripherals Bristol Division

Colorado Memory Systems

Greeley Storage Division

Disk MemoryDivision

HP’s Mass Storage Group

Organization Chart

A Comparison of HP’s product PositionRelative to Other Leading Disk Drive Makers

Conner and Quantum

Industry (400MB)

Seagate

IBM HP (1024MB)

Origin of the idea of Kittyhawk

• Bruce Spenner , Risk taker general manager of DMD

• competitors are too strong to attack in the market

• Dick Hackborn’s favorite maxim “Never take a fortified”

• Storage in form of large data library servers and utilized by clients computer

• 1.3 inch drive

The project team

• The core project team formed in May of 1991

• Contained 3 functional representatives

• Rick Seymour as a leader and R&D namager

• Jeff White as a marketing manager

• Quick thinking & action

• Carefully Recruiting

The project parameters

• Kittyhawk project’s charter

- introduce drive in 12 months

- Accomplish the break even time (BET)

of less than 36 months

- achieve a 100 million dollas revenue

rate in two years after launch

- To be the first on a new hill

- Grow faster

Finding the Kittyhawk market

• Some interesting possibilities with personal digital assistants (PDAs)

• Founded new market ,Nintendo, in Consumer Electronics show in Chicago

• A list of five possibilities for new market

• Rick Seymour’s Strategy

The Competitors

• Two technologies might compete with Kittyhawk – flash memory and 1.8 inch disk drive

5.25” disk drive

3.5” disk drive

2.5” disk drive

1.8” disk drive

1.3” disk drive

The Pattern in Reduction of Disk Surface in New ,

Smaller Architectures

The product

• Introducing of first 1.8 inch disk drive for sub notebook computer in September 1991 spurred the Kittyhawk group to move even faster.

• Desinging the Kittyhawk to meet the key performance required three unique technologies

• Looked for external suppliers• Announcing the Kittyhawk’s launch • HP shipped its first Kittyhawk on June 23 as it if would

achieve Spenner’s objective

The consumer

• Design wins in new PDAs that fit for both flash memory and 1.8 inch disk drive

• Disk drive for car rental companies• Losting its first major potential customer• Economical reason with flash memory• PDAs as a industry controller• Several unexpected customer

started to show interest in HP’s 1.3 disk drive

Planned Versus Actual Production Levels and Product Applications

0100200300400500600700800900

1992 1993 1994

plan

Actual

Planned Versus Actual major product

Plan Actual Units sold over the life of the project

•Personal Digital Assistants•Sub-notebook•Hard copy devices•Printers•Copiers•Fax machines

•Japanese word processors•Personal digital assistants•Digital cameras•Cash registers•Telecom switching systems

100

35

20

8

2

The New Beginning

• Being in marketplace of Kittyhawk

• Embedded Kittyhawk

• Three alternatives to respond this new development

• Shutting down the Kittyhawk project