1. Beyond Tech Interview with Randy Mott, Hewlett Packard Chief Information Officer WSJ, 16 April 2007 p. R7

2. Info. Tech. Initiatives at HP Data center consolidation Enterprise data warehouse Work-force effectiveness –e.g. integrating mobile devices (PDA’s) World-class IT Prioritization among IT projects

3. 5 corporate IT tips from Mr. Mott Technology is competitive corporate asset Invest more in technology & get rid of old systems Manage technology like it’s a business, with one balance sheet Work on technology projects that line up with corporate strategic direction Invest in tech talent beneath the CIO to help drive projects

4. Let’s suppose we want to increase work- force effectiveness by integrating PDA’s into IT. We could do this by investing in tech talent. Let’s divert proven talent to explore and implement ways to integrate mobile devices into corporate IT. Let’s hire a temporary (6 month) system administrator to pinch-hit during diversion. Suppose market price for the 6-month temp is $36,000. We anticipate the new methods to be effective for 3 years, creating $14,000 of productivity value each year.

5. Will we benefit enough from this plan to integrate mobile devices to justify the cost? Given an interest rate of 6%, after year one, the present value of our investment is $14,000 / 1.06 = $13,207. After year 2, it is $14,000 / (1.06) 2 = $12,460. After year 3, it is $14,000 / (1.06) 3 = $11,755. Given an interest rate of 6%, $36,000 will normally return $36,000 x (1.06) 3, or $42,876. Our cost does not outweigh our benefit under this plan.