The Impact of Privacy on HP’s Customer Relationship Management Solution Mike Overly Vice President, Marketing hp © 2003 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without HP today… 4Q segment revenue percentage* ESG ‘every business, every region’ IPG ‘record performance’ Imaging & Printing Enterprise Systems $6.2B 11% growth industry leader 31.2% 20.6% HP Services Personal Systems PSG 30.1% ‘execution and innovation’ $6.1B 19% growth grew faster than US market (IDC) September 16th Version $4.1B 2% growth #1 in servers #1 in storage 16.1% HPFS HPS ‘on demand capabilities’ 2.0% $3.2B 5% growth #3 worldwide IT service provider Source: HP Security Analyst Meeting, 12/09/2003 page 2 HP Strategy: Reliable innovation at a price our customers can afford, delivered with an experience that sets us apart. Enhance customer focus Accelerate growth Best customer experience Simplify our organization for speed and effectiveness HP’s CRM Objective Dramatically simplify our global business CRM ecosystem to: •Deliver an improved, consistent customer experience; •Increase sales and accelerate revenue growth; •Improve organizational agility and effectiveness; •Reduce cost-to-serve. September 16th Version page 3 HP’s global CRM framework: our vision, approach & focus CRM Global Capability Framework CRM Vision Build a cohesive, integrated CRM ecosystem to turn basic data into rich customer insight (see, know, anticipate) September 16th Version Marketing Contact Centers Outside Sales Customer Knowledge Management Approach Lead Management Provide business customers an industry-leading experience page 4 Business drivers for promoting privacy • Minimizes risk of compliance breach or regulatory investigation and costs • Builds the brand • Enhances consumer and employee trust customer community employee shareholder • Reinforces global citizenship September 16th Version page 5 Highlighting leadership HP Sponsored Privacy Innovation Award First Awards given to E-Bay and Alberta CIO in October 2003 Recent Privacy Awards given to HP #1 among 100 U.S. companies for online customer respect and experience, July 2003 Customer Respect Group #1 for online customer respect, High Technology Sector, April 2004 and April 2003 Customer Respect Group Among top 3, Fortune 100 Privacy Leaders, June 2003 Computerworld Magazine September 16th Version page 6 Current Privacy Environment • Customers – Expect robust privacy policies and compliance practices when they give their personal data to HP. Emerging requirement in customer bids & managed services. • Competitors – Many are investing in and using privacy as a competitive differentiator, while others ignore the issue at their risk. • Employees – Expect strong privacy protections, especially in EMEA. • Government Regulators – Enforcement actions are increasing globally; we have legal obligations through our participation in Safe Harbor. Mistrust of pervasive use of technologies driving increased level of local and national regulations. • NGOs – Privacy viewed as human rights/civil rights issue in many parts of the world. Advocates and NGOs are knowledgeable, organized, drive press coverage, enforcement actions, and are well connected to regulators. • Press – Media is consistently pro-privacy and assume worst of business’ motives. September 16th Version page 7 Global Privacy Policy Framework Values Standards of Business Conduct Principles Customer Policy Employee Policy Master Global Policies Privacy Rulebook Self Assessment Tools Specialized Training IT and Business Process checklist Contractual devices & model clauses (Safe Harbor) Design for Privacy Implementation Standards and Tools Risk Assessment Web monitoring Internal Audit Framework Measure & Report Review & Remediation Compliance Management Training and Communication September 16th Version page 8 HP logo September 16th Version page 9