HP Inc. reinvents its sales compensation function

The challenge of transforming legacy IT systems

HP Inc. (also known simply as HP) is a global technology company that offers a portfolio of printers, PCs, mobile devices, and related supplies, solutions, and services. Following the split of Hewlett-Packard into Hewlett Packard Enterprise and HP Inc. in 2015, HP Inc. made the decision to revamp its internal processes, systems, and tools to meet the demands of changing markets and customer needs, as well as providing its partners and customers with a best-in-class experience.

To succeed in a constantly changing market and achieve increased sales, HP Inc. needed to provide their sales force with immediate and real-time access to sales performance data and other compensation information to foster best-in-class sales behavior and increase motivation of its sales’ teams.

In Q1 2016, HP Inc. released an RFP to partner with an organization that would help to transform its sales compensation function. The project would optimize all processes end to end and develop a new sales compensation system to deliver an improved experience, shorter response time, and increased availability of information for its sales people. The key objectives of the RFP included:

• Improved efficiency and effectiveness – HP Inc. needed a new environment that could adapt easily to changing market conditions and customer needs at a competitive cost
• Increased standardization – HP Inc. needed to consolidate its processes, tools, and operations across the business
• Enhanced business insight – HP Inc. wanted to leverage its sales performance data in the best possible way

Following an extremely competitive RFP process, HP Inc.’s leadership partnered with Capgemini’s Business Services to completely transform its sales compensation function and optimize its operational processes.

Optimized processes that drive sales

With HP Inc.’s complex environment requiring an “out-of-the-box” approach to ensure all regions were catered for with the same level of knowledge and expertise, Capgemini leveraged the strengths and capabilities across the Capgemini Group to deliver a complete transformation shift combining system and operations improvements in an innovative, two-pronged approach:

Process optimization – HP and Capgemini defined a three-wave approach to gradually move activities from in-house, region-based operations teams to a Capgemini team. This involved the implementation of best practices to deliver process standardization and optimization from a consolidated global team in India. HP Inc. and Capgemini worked together to ensure the on-time delivery of a
seamless, zero-surprise service transition, ensuring zero disruption to its services or operations during the transition.

The defined three-wave approach proved to be very successful and enabled the organization to minimize business continuity risk and react flexibly to changing business requirements. The step-by-step approach allowed all teams to gain knowledge and grow into the different
roles gradually, without operational disruption.

ICE platform – HP, Capgemini, and Microsoft developed a new platform known as Integrated Compensation Environment (ICE), which transformed HP Inc.’s entire sales compensation technology environment and improved data visibility, enabling the easy and timely visibility of sales performance and a related improvement in motivation across the sales force. The ICE platform provides integrated sales  compensation information and services to approximately 8,500 sales employees worldwide, delivering reduced turnaround time, real-time access to sales data, more rapid reporting, and chatbots that leverage machine learning to deliver an improved experience to HP Inc.’s sales’ teams.

Results count – a state-of-the-art sales compensation environment

By combining IT and operations, and leveraging various partnerships, including Microsoft, Capgemini helped transform HP Inc.’s legacy systems to a state-of-the-art, highly adaptive sales compensation environment, which represents an industry benchmark. This has led to a range of business outcomes that include:

• Increased process standardization and optimization
• A significant reduction in operational cost
• Timely delivery of key sales performance data

Now that successful implementation of the ICE platform has been achieved, other hi-tech players in the industry will also be able to leverage this innovative solution and approach.

The Collaborative Approach

HP Inc. and Capgemini have developed an excellent working relationship, characterized by a strong collaborative partnership and open dialogue on ways of working. The Capgemini team is seen as a natural extension of HP Inc.’s own team, rather than a vendor.

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