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HP is world’s top PC maker. How did they get there?

“Wow!” is what sells, says Todd Bradley, whose PC division brings in $42 billion annually.

How does Todd achieve Wow? Through innovation.

And how does Todd strike a balance between innovation and price?

He uses a metric called “R&D productivity.” It measures R&D spending as a percentage of gross margin for each product line.

For example, a standard desktop computer with low margins may get one or two innovative features, while a high-end laptop with fat margins would get substantially more. (BusinessWeek December 22, 2008.)

Nicely done, Todd!

First posted in WordPress on December 29, 2008

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