Agilent Technologies

1
Agilent Technologies

• Organizational Study Presentation
• Dan Lindquist, Michael Foss,
• Sara Schwalbenberg

2
History

• Agilent is Hewlett-Packard spin-off (1999)
• Strategic move to re-image themselves as testing
  measurement company
• Wanted to respond better to customers
• Improve testing measurement worker morale
• Largest IPO in Silicon Valley history, raising
  2.1 billion dollars

3
Company Facts

• Corporation
• 30,000 employees around the globe
• Sell to customers in over 110 countries
• More than half of Agilents revenue is generated
  from outside the United States

4
Strategy

• Agilent focuses on high-growth market
  opportunities in the communications, electronics
  and life sciences industries. Continuing a legacy
  of technological innovation, Agilent leverages
  the benefits of scale and global presence to
  capture and create business opportunities.

5
Milestones

• Specific financial milestones have been set for
  next 2-3 years
• Operational excellence

6
Departments

• Life Sciences and Chemical Analysis
• Semiconductors
• ATG Automatic Test Group
• EPST Electronic Products and Systems (original
  part of HP)

7
Life Sciences and Chemical Analysis

• Drug testing to genomic research
• Mostly the tools to do those things

8
Semiconductors

• Sells integrated circuits on the open market
• Duplexer chip allows same antenna to be used for
  sending and receiving signals
• Makes the LEDs for newfangled traffic lights,
  taillights, and cars
• Searching for the holy grail of replacing the
  light bulb itself

9
EPST Electronic Products and Systems (original
part of HP)

• Voltmeters, oscilloscopes, basic testing
  equipment
• Helps people put systems together - Agilent
  supplies the tools

10
ATG Automatic Test Group

• Make the testers for large manufacturers
• New tester that works on things that use both
  analog and digital signals
• ICs getting so small that you cant just connect
  to it to test it, so new ways of testing are
  needed
• X-rays are one of the methods that are used

11
Intellectual Property

• Pretty much the same throughout corporate America
• Patent belongs to the company, the employee
  gets some sort of reward
• Many thousands of patents at Agilent
• When the split with HP happened, the patents
  split as well.
• Typically there is a bonus for when someone is
  able to file a patent

12
Spinoff Problems

• Inefficient because they had been under the HP
  umbrella
• HP had infrastructure Agilent didnt even know
  they were using
• Expensive rebuliding
• 2000 major software packages were being used
  internally (most use 20)
• HP masked Agilents profitability when they were
  together

13
Was the spinoff beneficial?

• Agilent has made incredible leaps in business
  efficiency
• November 17th will show if it really paid off
• In the distant future, Agilent will definitely
  benefit
• Now they can run their business the way they want
  to run the business

14
Agilent Today

• Agilent is the 1 supplier of testing equipment
  in the world
• Suffering because of sagging sales in key markets
• Had to lay off 8,000 people in 2002
• Net losses in 2002 was 1.3 billion dollars
• Focus on restoring profitability through
  innovative products
• Initial goal for Agilent is to become profitable
• November 17th a big date for Agilent - earnings
  statement comes out

15
Company Atmosphere

• Marketing and RD are almost inseparable
• Strong technical confidence in marketing
• Never can quite get back to the garage culture
• People are impressed by how coworkers will help
  out other coworkers
• Attitude that if someone needs something, you
  help them

16
Marsh Faber

• EPST Electronic Products and Systems (original
  part of HP) department
• Marketing in an area called System Components
• Marsh has no experience working at any other
  companies

17
Questions?