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Volume 2, Number 9__________________ _________________________________
September 1983
World-Wide
Marketing/Sales Symposium
Al Crawford
Joins Corporate Marketing Staff
Gale Morgan To
Head At Marketing Group
Grant
Saviers Named Head Of Storage Systems
Korean
Airlines Crash Kills Digital Employee
The
Compatible Family Of Digital Products
Employee
Communication Policy And Plan On Its Way
Europe
Develops Organizational Effectiveness Focus
Educational
Services Reorganizes Customer Training
"This is one of the biggest sales
meetings the world has ever seen. That's because we've got
the biggest message to tell," said Ken Olsen, president, as
he welcomed the sales force to the company's first worldwide
marketing/- sales symposium last month. Some 7,200 Digital
sales and marketing people participated.
Jack Shields, vice president, group
manager, explained the rationale behind this huge meeting,
"After the January Sales Symposium it became obvious that it
was impossible to communicate the fantastic feeling of the
power and capability of this company to the individual sales
contributors unless you brought them all together and let
them see and talk to the marketing and engineering people
and see and touch the whole spectrum of products,
capabilities and market applications that we have going for
us."
About 1,200 people from marketing and
engineering helped prepare and staff the exhibits at
"DECtown," the centerpiece of the week's activities. DECtown
remained open for several additional days after the
symposium was over to demonstrate the company's breadth and
strength to financial analysts, customers and the families
of employees.
Products, people and enthusiasm
"With our new products, our order rate
is turning around and our backlog is growing significantly,"
Ken told the sales force. "Thanks to the recession, we have
learned to sell, learned to market, and we have products to
solve all problems. So now with the products you see here
and the marketing which has been prepared for this show —
the world is ours.
"Our strategy has always been to make
commercial and industrial products. We avoid the consumer
market. We don't chase after those markets which boom
quickly and then quickly disappear. Parallel to this
approach, we go after the world's best companies. And
satisfying the most critical, quality companies makes it
easy for us to sell to all the other companies.
"The result is that all through our
history, some people have criticized us because there has
always been somebody doing better. But we go after the
quality market, the discerning customer, doing a thorough
job. Sometimes that means we have to be patient and wait for
products because our products have to be right. But by
pursuing quality, we end up with a stable set of customers.
"And I feel
confident now more than ever that this strategy is the one
that counts and that we want to follow. Now, we have the
products; we have the people; we have the enthusiasm.
"The other
night I came to look at this show with my wife. We stopped
and asked the elevator operator what the big tent was for.
He said it was for Digital. My wife meant to ask him what
Digital was going to use it for, but he misunderstood and
said, !Oh Digital, they make some of the world's
finest computers'. That could be the theme of the whole
conference."
Messages to remembers PCs and
interconnect
"There are two
key messages I want to get across," Ken emphasized. "I think
everyone who works for Digital should have an understanding
of these two subjects. How do our three personal computers
and our Micro/PDP-11 fit together? And how does all our
interconnect fit together?
"Our DECmate
is the best standalone word processor. Our Rainbow is the
best industry standard personal computer. The Professional
has the best quality of everything. The Micro/PDP-11 is
probably one of the best engineered and best documented
projects in the history of the company. It has become one of
our best-selling products. OEM customers who were
considering building their own computers with microprocessor
chips appreciate what the Micro/PDP-11 has to offer. And
businesses that started with personal computers and now find
they need a multi-user minicomputer are also turning to the
11.
"I challenge
you to learn about our interconnect. Learn how with
clustering we tie similar computers together in the most
wonderful, elegant ways to any number of disks in any
configuration so you can do multiprocessing for reliability,
redundancy or prestige. Learn about Ethernet which is the
fastest, most efficient, most elegant way of interconnecting
computers, and be reminded again how we do our low-speed
communications with DECnet and over serial lines.
"Communications
and interconnect have always been one of our advantages. Now
everybody is talking about networking computers. We're the
only ones that have a family of computers from the very small
to the very large that were designed
so that they can talk together
efficiently and effectively.
When it comes
to communications and software
, we probably have maintained better discipline than
anyone in the industry.
This is going to be one of our most significant advantages,
something everybody else dreams about."
Marketing — DECtown is the message
According to Ed Kramer, vice president,
Corporate Marketing, the goals of the meeting were learning,
inspiration and fun. He told attendees, "We want to help you
better understand our products, to let you see some of the
new things that we have coming and how they serve the
applications and industries they were meant for. We also
want to inspire you and make you enthusiastic. It's
important for people to take pride in their company so they
can transmit this enthusiasm to customers. Our third goal is
to have fun. Being challenged is fun and working as part of
a team is fun, and the most fun of all comes from being part
of the winning team."
DECtown was a comprehensive series of
exhibits and demonstrations intended to show the universe of
Digital's market opportunities. Like the real marketplace,
it was not neatly aligned along the lines of our internal
product or marketing organizations. "Wherever possible,"
claimed Ed, "we displayed our products in a simulated
end-user environment. We have a factory, university, service
bureau, government building and even a computer store. Where
our products and people work together to serve the needs of
our customers, we will certainly be in a much better
position to win."
The meeting was also an opportunity for
marketing and sales people to reestablish old ties and make
new ones. "One of the functions of marketing at Digital," Ed
told the sales force, "is to help interpret for our
development people the real needs of the marketplace, the
customers and the sales force. So it is important for you to
build relationships and communications with our marketing
folks so they can do a better job passing information along
to the development people who will, in turn, provide us with
products we need for the marketplace.
"The other function of the marketing
organizations," Ed concluded, "is to tell the world about
our products. The world, to a large degree, is you, the
sales force. We tell you; and you, in turn, tell your
customers. Obviously, we also use other media — advertising,
sales promotion, etc. — but our communication with you is
the most important part of this effort."
Sales — ready for an exceptional year
"The past two years have been difficult
for all of us," admitted Jack Shields as he welcomed the
sales force to the symposium. "The world economy has been in
a recession; the company has been going through organization
changes; new competitors have appeared; and we've been
trying to make some of our high-demand new products
available for customers.
"Ql of FY83 was a very difficult time
for us. That was when we made some changes with regards to
the connections between the Field and the marketing
organizations. But during FY83, we actually grew our backlog
and our booking rate was up well over 30 percent. The yields
in the corporation were at a historic all-time high, and our
sales productivity was up 36 percent. I think that was a
fantastic accomplishment, given the circumstances and the
world economy."
Jack noted that the delivery situation
is improving. "In particular, we expect to ship a few
thousand RA81 disk units in Q1 and nearly double that in Q2.
We will begin shipping the RA60 disk unit in small
quantities in Ql, and we are working like the devil to try
to get our capacity up on that. The Micro/PDP-11 looks good,
and the capacity is coming. Meanwhile, the personal
computers are being shipped, and we are working on getting
more software for them."
He concluded,
"The backlog is there, the products are becoming available,
and we're beginning to see some economic improvement. All in
all, we think we have everything positioned to make FY84 an
exceptional year."
Al Crawford
has been named the Corporate Marketing Finance and Planning
manager and given responsibility for Digital’s Strategic
Planning function. He will report to Ed Kramer and Al
Bertocchi for the former role, and Win Hindle and Ed in the
latter capacity.
As Finance
& Planning manager for Corporate Marketing, Al will
participate in new venture proposals and programs, apply
strategic business analysis to proposed marketing
alternatives, provide functional leadership for the market
group F&A managers, and audit/measure the effectiveness
of Digital’s marketing programs.
In his role as
head of Digital's Strategic Planning effort, Al will provide
the leadership necessary to allow each organization in the
company to produce and maintain a plan that is supportive
of, and supported by, the plans of the other groups and
functions. The intention is to stimulate strategic thinking
and to integrate all long-range plans along the dimensions
of function, geography, market and product.
Al, who joined
Digital in 1976, has been the Corporate manager of Digital’s
Internal Information Services (DIS) for over six years.
Tom Maguire
has been named the acting head of DIS. Tom has been with
Digital for almost three years. Prior to that, he worked
with Touche-Ross in systems consulting.
Andy Knowles
has resigned from Digital to pursue personal interests.
During his 14 years with the company, Andy was involved in a
number of important start-up activities. He joined Digital
in 1969 as product line manager for the then-new PDP-11
minicomputer. He was named vice president of the Small
Computer Goup in 1972, ran the Components Group in 1974 and
became vice president of Corporate Marketing in 1978. He
served as vice president of the Technical Group from 1979 to
1981, when he was named to head the Small Systems Group.
In submitting
his resignation, Andy said, "I have enjoyed my 14 years with
the Digital organization. It was truly exciting to have been
able to contribute to so many important activities in behalf
of the company, and I wish them continued success."
Ken Olsen
said, "We are grateful to Andy for his contributions to
Digital’s progress. He will be missed."
Gale Morgan
has been named head of the newly created Artificial
Intelligence Marketing group, reporting to Ed Kramer, vice
president, Corporate Marketing. Gale has been a member of
Digital’s Sales organization for 15 years, working most
recently as the Regional Sales Manager for the Western
region. Prior to that, he was Regional Manager for the
Central region.
The AI
marketing group will work to establish Digital as a leading
supplier of computing tools for AI research. It will build
and develop technology expertise and identify markets and
worldwide product application opportunities. The marketing
group will be headquartered in the Sacramento/Davis,
California area, operating temporarily out of the Digital
Sacramento facility at 9719 Lincoln Village Drive,
Sacramento, California 92138 (phone 916-362-2420). Any
calls, inquiries or information regarding AI should be
directed to that location. Plans call for additional group
members to be located in Europe and the New England area.
The Storage
Systems Engineering and Manufacturing organizations have
been combined under the leadership of Grant Saviers, vice
president, who has been head of the Storage Systems
Engineering group for the last four years. In making the
announcement, Jack Smith, vice president, Manufacturing,
noted that, "The integration of these functions, together
with our strong linkage with the Customer Service and
Marketing organizations, will enable us to enhance our
position as a product leader in the Storage and Systems
businesses especially as we move into more process
intensive technologies."
Grant has been
with Digital since 1968, when he came to the company as an
engineer. He has been instrumental in developing Digital's
mass storage capabilities, and among other responsibilities,
managed the start up of our Colorado Springs disk
engineering facility.
Robin Siu,
Distribution and Sales manager for Korea and Taiwan, was one
of the 269 people who perished when Korean Air Lines flight
#007 was shot down on August 31.
Robin was a
DEC-100 winner twice, and this year was one of three
DECathalon winners from the Far East. He joined the company
two years ago this September as the senior sales
representative from Taiwan, and his success in this position
quickly brought him additional responsibilities for sales in
Korea and distribution in both Taiwan and Korea.
When this
tragedy occurred, Robin was returning from business in the
U.S. and was on the way to Korea for meetings.
Bruce Ryan,
manager, VAX Base Poduct Marketing, provided both sessions
of the Sales Symposium with an overview of Digital's product
families and their interrelationships.
"To update you
on some of the highlights of FY83, Digital sold and installed
over 50,000 personal computers in six months—a remarkable
accomplishment by any standard. Demand remains strong for both
the PDP-11/24 and PDP-11/44. And the Micro/PDP-11 program was
launched successfully. The VAX-11/780 and 11/75Q bookings and
shipments have set all-time records, and thousands of VAX
ll/730s were booked and shipped the very first year.
"We are seeing
four major computing phlosophies evolve:
o personal
computing,
o small team
computing,
o department
computing and
o cluster
computing.
"I am sure you are now acquainted with
the big E, which symbolizes the customer organizational
environment. Using this format, you can see how our product
families map into price ranges and applications. At the
individual level, we have have terminals and personal
computers. At the team and departmental level, we have PDP-lls
and VAXs. At the organizational level, we have DECsystem 10s
and 20s and VAXclusters.
"In the midst of all this, we use
Digital's systems architecture to insure compatibility both
within a family of products and between our product families.
Digital systems architecture is a well-defined set of
standards. Our data formats and networking standards provide
the mechanism for the access, use and transfer of data between
these product families. We have common languages across our
families, allowing applications to be readily moved from one
product family to another. And, finally, our Information
Management Architecture allows applications to be written
independent of the specific mass storage device being used.
"The result is a set of products that
cover a wide range of price and markets, and that all work
together. This spectrum of products and capability is unique
in the industry.
"Looking at our product families in more
detail: Terminals and printers are our primary weapon in the
"battle for the desk." Terminals sell systems, and systems
sell terminals. Over 1.2 million of our terminals are
installed worldwide, making us the leader in the ASCII
terminal marketplace. Our second generation of video terminals
— the VT100 family — out-sells the competition by more than
three to one.
"Our personal computers address the need
for personal productivity. Strategically, they provide
entry-level products for small businesses and professionals,
and help establish and maintain account control in larger
organizations. Our FY84 goal is to be among the top three
manufacturers in the personal computer business. We have
strategically chosen not to pursue the home market.
"Digital
is
unique in the personal marketplace by virtue of our
complementary products optimized for different uses. DECmate
II is optimized for word processing, the Rainbow for industry
standard applications work, the Professional for distributed
Digital computing and the VAXstation for technical workstation
requirements for the VAX.
"In
team computing, our products address the needs for entry-level
systems with cost effective multi-user capability. This area
represents small companies as well as small departments within
larger companies. In this market, we capitalize on the
PDP-ll's huge installed base and applications strength. Our
new Micro/PDP-11 continues the 11 tradition by offering
multi-user capability in a compact open office package.
"Departmental
computing
addresses relatively complex but manageable problems, while
providing economies of scale and multi-user capabilities. Strategically, it is
our biggest market. In this market we capitalize on the
strengths of the VAX architecture, VAX productivity tools,
application software and VAX price/performance.
"Clusters
preserve
a customer's investment. Any VAX-11/780 or 750 ever sold can
be upgraded into the cluster environment. Likewise any RA80,
RA60 or RA81 disk can be attached to the HSC, a storage
controller. VAXclusters extend traditional Digital value to
new computing environments by providing high availability
through redundant processors, mass storage and data links.
Processors and mass storage can be incrementally added as
required, with little if any disruptions in the operating
environment. The reaction to the April VAXcluster announcement
has been extremely positive. There has been a great deal of
early sales activity, and our test sites are going well.
Shipments have begun and program deliverables are on schedule.
"The
popularity
of DECsystem-10s and 20s stems from their ability to meet
applications requiring high performance timesharing and the
ability to dynamically self-tune to match changing work loads.
The short-term product strategy is to integrate the 10s and
20s with other Digital product families—specifically, the VAX
and PC families.
"We
feel we have the strongest products in the marketplace today.
Our strengths include our architecture, the broadest line of
compatible systems and the broadest line of component
products. We have a family of software that is the envy of the
industry. We have unparalleled interconnectibility with our
own products, and outstanding interconnectibility with those
of our competitors, particularly IBM. Our products are easy to
use, and they offer exceptional value. And our customers feel
that both our products and our company are highly reliable.
"We
have the best architecture and the best products, which
coupled with the best service organization, our manufacturing
leverage and the best sales organization add up to the best
future for you and for Digital."
The cover story for the August 22 issue of
Newsweek as about drug abuse in the workplace. Accompanying
the article was a story on Digital employee Jim Kelly and the
evolution of the Employee Assistance program (EAP) at the
Westfield, Massachusetts, plant. With the company since 1973,
Jim, a foermer drug abuser and recovered alcholic, began using
his own experiences to counsel fellow employees during his
coffee and lunch breaks. In 1979, it became a full-time job.
Jim now has a regular office and walk-in
assistance center with staff support by a clinical
psychologist. He sees an average of ten employees a day.
According to Newsweek: "More important, his idea has spread.
DEC, a $4 billion computer giant with 70,000 employees, now
has employee assistance programs in 24 other locations, most
of which are run by outside professionals. DEC's informal
atmosphere has been a big help to the program. 'It has always
been a first-name basis and open door here,' says Kelly."
Supervisors
will
soon receive a tool designed to help them meet their
department and business goals through improved communication.
Called the Managers’ Employee Communication Plan and Program
Guidelines, the document presents some options to consider
when preparing communication processes and plans for
employees, and delineates the responsibilities supervisors and
managers have for communication. It is intended to help
managers maintain an environment that is conducive to two-way
communications and the appropriate exchange of information.
"Last
November,
we introduced 'MGMT MEMO' to provide more information on a
more timely basis to our supervisors so they, in turn, will be
better informed to deal with employee questions and concerns,"
explains Win Hindle, vice president, Corporate Operations.
This plan is the next step in Digital's efforts to increase
communication within the company. It helps define
responsibilities so that you will be more proactive about
communications issues. He emphasizes that senior management
intends to support this effort by sharing information on a
timely basis.
In
a continuing effort to improve the performance of Digital's
European subsidiaries, European Headquarters has asked Sheldon
Davis, vice president, to take responsibility for a newly
created function to be called Organization Effectiveness,
Europe.
In
making a joint announcement, Pier-Carlo Falotti and
Jean-Claude Peter- schmitt said, "We increasingly need synergy
and collaboration across the businesses and functions; we need
country management teams which are highly effective in their
interdependent tasks; we need EHQ and other area level units
to be highly responsive and very helpful to the subsidiaries,
and we need decision-making processes which are simple,
efficient and timely."
Shell has been with Digital for the last six years
and brings extensive expertise to the newly created post. He will
be directly involved in a variety of projects including the design
and implementation of feedback structures and processes, to ensure
the EHQ and other area-level units provide value-added help to the
subsidiaries. He will consult with Europe's senior managers about
their roles, work with country management teams to improve their
ability to work together and participate in management training
and strategic projects.
IN
A RELATED MOVE, THE EUROPEAN PERSONNEL ORGANIZATION, which
Shel headed for the last 12 months, has been reorganized with
Pier-Carlo Falotti taking direct leadership for the function
as well as maintaining his other responsibilities as vice
president, Field Operations, Europe.
"During
the
past several months in my assignment, I have become
increasingly concerned about our ability to sustain the very
basic people values which have made Digital a great company. I
am worried that changes in the organization and in people's
assignments get interpreted as changes in these fundamental
company values," said Pier-Carlo in his announcement about the
Personnel organization. The Personnel organization will focus
on several specific issues including encouraging people to be
entrepreneurial and to take initiatives, investing in the
development of Digital people, and maintaining open-door and
two-way communications.
Pier-Carlo
has asked Bernard Mire, Country Group Personnel manager;
Laurens Bouwman, Personnel manager, Holland; Dick McQuillen,
European Compensation and Benefits manager and Personnel
manager, Manufacturing Europe; Erik Tegner, Personnel manager,
Sweden; Peter Thomson, Personnel manager, United Kingdom, and
Girogio Corsi, Personnel manager, EHQ, to take specific
responsibilities in helping the European Personnel
organization meet its goals. Shel Davis will be a consultant
to this group.
Customer
Training
has been divided into three businesses—Services, Products and
Systems—in order to take advantage of several opportunities
that have developed in the marketplace, according to Del
Lippert, manager of Educational Services.
Colin
Allan is the product line manager of the Services business
which includes lecture lab courses, seminars, educational
consulting and customer courseware development. Colin
previously managed the European Educational Services Area.
Tim
Walsh is the product line manager of Products business, which
includes audio visual courses, self-paced instruction (print),
Digital Press, computer-based instruction and IVIS courses.
Tim previously managed Western U.S. Educational Services.
Bob
DiFazio is the product line manager of the includes base
product marketing of computer-based ware and software, and
applications marketing to marketplace.
Related
appointments
include Art Zins as U.S. Area manager of Educational Services,
Dave Buckingham as the European Educational Services manager,
and Dick McCarthy as the Educational Services Courseware
Manufacturing and Distribution manager.