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Volume 6, #7                                                                                             October, 1987

 

Wall Street Reactions To DECWORLD '87 by Mark Steinkrauss and Brad Allen, Investor Relations

 

An Outsider's View Of Digital vs. IBM

 

Vice Presidents Build Long-Term Relationships With Key Customers

 

Digital Exceeds FY87 Customer Satisfaction Goals

 

Update On The Order Transaction ProcesS (OTP) by Harvey Weiss, vice president, U.S. Sales Operations/Government Systems Group

 

The Role Of Strategic Relations

 

European Research Laboratory Opens In France

 

Gift Supports Creation Of Doriot International Information Center

 

Geoff Shingles Honored By Queen Of England

 

EMC And Digital Agree To Settle Litigation

 

Progress In U.S. College Recruiting

 

Digital Honored For Technology Executive Roundtable

 

Organizational Changes In European Marketing And Sales

 

High Performance ULTRIX Workstation Group Formed

 

Appointments

Wall Street Reactions To DECWORLD '87 by Mark Steinkrauss and Brad Allen, Investor Relations

 

DECWORLD '87 represented the largest gathering of security analysts Digital has ever hosted. It served to change the thinking of even the most cynical of the more than 125 analysts who attended. They came away saying that Digital is not just the logical alternative to IBM, but rather an obvious equal.

 

Analysts who have been extremely positive regarding Digital were in their glory. It was as if their upbeat research reports on Digital were played out before their clients' and their own eyes.

 

Every analyst we talked with spoke of the enthusiasm and professionalism of Digital people, be they demo people, registration people, or those who handled long lines or provided general information. They also recognized and applauded the customer focus of DECWORLD and were favorably impressed by the manner in which we interacted with our customers.

 

Susie Petersen of First Boston, who maintains a cautious near-term outlook for Digital, said in a report dated September 14: "Now that the stardust from DECWORLD has settled, we remain highly impressed with the conference's breadth and still cautious about Digital's spending outlook for the first half of fiscal 1988.

 

"What we saw at DECWORLD wasn't a happening; it was a siege. Digital has progressed from a minicomputer vendor serving the scientific crowd to a full-line information systems company equally comfortable with corporate America. The breadth of the product exhibits — publishing, medical, legal, financial services, government, telecommunications — were overwhelming and could have been staged by only one other, highly Blue competitor. When IBM claims it can't justify the cost, we point out that Digital's $25 million party added over $1 billion to the firm's market capitalization in two daysl

 

"But Digital did more than just strut its product stuff at DECWORLD. Digital is convinced that it has the one true faith: networks of computers which distribute their processing power into the hands of the people who use it. This commitment to 'peer-to-peer' networking which links equals together, rather than IBM's 'hierarchical' approach, which maintains a central main­frame with smaller computers communicating through the mainframe, is reli­gion to the Digital employees I met in Boston.

 

"At the product introductions on Wednesday, when Ken Olsen was asked what Digital would do with its $2.2 billion in cash, he answered, 'When the message finally gets across, we're going to need all the cash we can get to handle the growth.' DECWORLD was Digital's $25 million, sugar-coated way of beating that message of peer-to-peer networking into us, even if we didn't want to hear it.

 

"We agree with Mr. Olsen that there is enormous opportunity for Digital to leverage its emerging status as the other company besides IBM a customer or supplier or software house has to do business with into above-industry growth for the next decade. Our theme of caution remains focused on differ­entiating between the short term and the long term; in the short term, Digital needs to build a broader foundation of people and plant to complete its transition from minicomputer star to global information galaxy of the 1990s."

 

Along the same lines, Jean Orr of Drexel Burnham Lambert noted in a report dated September 15: "With the DECWORLD '87 trade exposition, heavy media exposure, and a large number of new product introductions, together with gains in revenues and earnings while the industry struggles, and a clearly enunciated and understood approach to computing, Digital is the talk of the industry.

 

"If an ideal computer system for an entire company is described, given current technology and consideration of costs, and then compared with what is available in the market today, Digital's product line comes out as close as any supplier to this ideal system. The company's computer system is clearly closer to the ideal than those of IBM and virtually every other competitor while many of those companies are working toward a more DEC-like solution. Digital is recognized as the number two vendor in the industry and as the leader in terms of distributed data processing, compatible computers throughout the product line and the ability to network.

 

"In addition to the momentum that Digital is currently exhibiting, the company is strongly positioned for the next several years. Users are moving to distributed data processing, more networking and communication between various computers within the organization and fewer (ideally none) conver­sions from one operating system to another."

 

Finally, Carol Muratore of Morgan Stanley and Company, a long-time supporter of Digital, had the following to say, "Digital Equipment's offerings dis­played at the DECWORLD exhibition toll another warning for the other general purpose minicomputer companies. The Firm's weapons in this area are its sales and service strengths and superior product and market strategy. This combination will be hard to beat; 1988 should be another year of marketshare gain for Digital, and I continue to recommend purchase of this Morgan Stanley model portfolio selection."

 

She continued, "Digital is riding an applications-market wave that should last for several years, and it's momentum is likely to continue throughout 1989. The company is filling a broad need for networked solutions and has a strong focus on industry segments. Its success stems not from a new hardware cycle, but from a well-implemented marketing strategy backed by good pro­duct .

 

"We left DECWORLD impressed by three observations:

1)    the breadth and functionality of Digital's products — solutions, network, and hardware;

2)    the company's attunement to the needs of its customers and prospects; and

3)    Digital's leap in sophistication and industry marketing and executive­level selling."

 

An Outsider's View Of Digital vs. IBM

 

On July 24th, the Gartner Group's Small Computer Systems organization issued a report to their clients on “Digital Equipment Corp, vs. IBM," answering questions that clients had posed. The following are a few of the client questions and Gartner Group responses as they appear in the report.

 

o How has Digital succeeded in invading IBM's turf (Aetna, Citicorp)?

 

Three primary features make Digital competitive with IBM, even on IBM's own turf. First, Digital has a single, compatible architecture in hardware and software, while IBM has a proliferation of incompatible midrange arch­itectures. Second, Digital's applications development environment is gen­erally more productive. Third, Digital has superior connectivity, includ­ing VAXclusters, PC support, LANs and mainframe connectivity.

 

o Can a single, compatible architecture provide the necessary functionality over the wide performance range?

 

We see no reason why not. We believe Digital has the right answer. It will probably rewrite VMS [software] so it can be configured (probably at sysgen) to suit the system (VAX, MicroVAX, symmetrical multiprocessor) on which it runs. For example, for a uniprocessor the instructions and code dealing with multiprocessing would be dropped, eliminating unnecessary overhead while retaining the advantages of a single, compatible architec­ture from desktop to enterprise-level computer.

 

o Does Digital have the resources to develop and sell both minisupercom­puters and high-end commercial systems?

 

We believe it does. The appropriate comparison at the high end is between Digital and IBM. Digital's sales and R&D resources are more substantial than they appear (compared to IBM's), because they focus on a single product architecture. IBM spent $5.2 billion in R&D in 1986, but the funds

 

went to product development for several different architectures. Digital spent $810 million on R&D in 1986, primarily to move the VAX/VMS archi­tecture forward.

 

In the minisupercomputer market, start-ups spent $20 million to $30 million in their development phases (over several years), and were starting from the ground up, rather than integrating an add-on processor to an existing sys­tem. Even the entire $20 million to $30 million, spread over several years, would be a very small portion of Digital's $810 million annual budget. The minisupercomputer start-ups had to build sales forces, whereas Digital can use its existing sales force.

 

Vice Presidents Build Long-Term Relationships With Key Customers

 

The Executive Partnership Program, now a year old, has paired 49 Digital vice presidents with 91 of Digital's largest accounts to help account managers develop senior-level business and personal relationships with these customers. Improved business relationships are already resulting in more opportunities to compete for major sales projects. The program also gives these vice presidents insight into the needs and concerns of customers, which helps in setting marketing, service and product strategies.

 

Each vice president is assigned to one or more accounts "for life." In each case, the Corporate Account team is responsible for getting the executive partner involved. Bill McHale, manager, U.S. Strategic Sales, coordinates and supports the program.

 

It is recommended that each executive partner visit the assigned customers one or two times per year, host the customers at DECWORLD and other head­quarters visits, participate in account plan reviews twice per year and participate in Executive Partner training.

 

An executive partner serves as part of a Corporate Account team, which includes people from Field Service and Software Services, as well as Sales. "Basically, our executives are investing time to build relationships with senior customer executives and are thereby opening the doors, helping our Sales organization compete for more business," explains Bill McHale.

 

"In addition, through this program, our vice presidents, from all functions, are getting a better feel for how our Sales organization works, how our customers respond to us as a company and the kinds of problems that cus­tomers face. This high level feedback — from senior executive to senior executive — helps shape our thinking and decision-making.

 

"Purchasing decisions on $10 or $20 million projects aren't made by depart­ment managers. To compete for that business, to even know that those oppor­tunities exist in time to compete for them, we have to talk regularly to senior executives. Our own senior executives can help us do that."

 

To illustrate the level and variety of customer contacts and their import­ance to Digital, Bill cites nine examples:

 

Bill (B.J.) Johnson, vice president , Distributed Systems, and partner to NYNEX and GTE. B.J. helped "open the door" by hosting a meeting in Stow for NYNEX' s vice president of Science and Technology, who had previously been inaccessible. At that meeting, the Corporate Account Team convinced the customer to develop applications under VMS software rather than UNIX. A month later Digital received an order for $1.3 million for a VAX 8550 system and related tools.

 

In the case of GTE, Digital already had an excellent position in the govern­ment projects area, but had little visibility into their end user business. B.J. met with the President of GTE's Government Systems Group and helped convince him to let Digital offer a broader set of solutions, specifically aimed at the end-user community.

 

Bob Palmer, vice president. Semiconductor Operations, and partner to Intel and Motorola. Bob is a member~FT the board oT the~Semiconductor Industry Association CSIA), on which senior executives from Intel also serve. He has helped the Corporate Account Team meet with the senior Intel executives, in particular, the senior vice president of Worldwide Manufacturing. This level of contact has enabled Digital to reinforce its commitment to Intel, as Intel embarks on a significant investment to update their factories.

 

John Alexanderson, vice president, Peripherals and Supplies Group (PSG) and partner to the U.S. Navy. In the~area ofgovernment business, It is impor­tant to ~get into ~the sales cycle early enough to influence the customer’s request for proposal (RFP) before it is published. An ex-Navy officer himself, John has been very helpful in that regard. He also helped to put the Account Team in touch with the Assistant Secretary of the Navy and a Rear Admiral who together set up the approval process for the Navy's annual multi-billion dollar data processing budget. John was their host for a day at DECWORLD '87.

 

Al Mullin, vice president, Corporate Relations, and partner to Barclays Bank. Tn the space~ofr_:five months,Al has“met witha variety of Barclays' senior executives on several occasions and has worked with the Corporate Account Manager headquartered in London, as well as with the U.S> Account Manager. This team effort led one Barclays' executive to remark that they "feel closer to the heart of Digital".

 

Jerry Witmore, vice president, Basic Industry Marketing, and partner to Tenneco. Jerry has visited Tenneco twice in the past few months. At Tenneco, Inc., he met with a vice president and three of his executive directors. This meeting was instrumental in setting Digital's strategic direction within Tenneco Companies and receiving that vice president's support for these goals. As a result, 18 people, representing each of the Tenneco director and executive director of Technoloyg, who also gave a presentation at DECWORLD. Tenneco is also committed to Digital's six-month Artificial Intelligence (AI) Fellowship Program which is being attended by one of their senior internal consultants.

 

Jerry also visited Tenneco's Newport News Shipbuilding, meeting with senior management and received their commitment to give Digital equal consideration for future major projects.

 

Harvey Weiss, vice president, U.S. Sales Operations and Government Systems Group, and partner to TRW. Harvey helped tne Corporate Account Team influ­ence TRW's plans in the realm of software productivity. TRW had been trying to persuade Digital to port various VAX/VMS tools and ADA to ULTRIX. Harvey presented a strategy that provides TRW with a superset architecture (built around VMS and DECwindows software and the POSIX standard), giving them the end result, as well as an architecture to which future products can be added. Harvey's input was timely and important in competing for a large workstation opportunity.

 

Bob Glorioso, vice president, High Performance Systems, and partner to Texas Instruments (TI) and Bellcore. Bob went to TI and met with the president, five executive vice presidents, two senior vice presidents and three vice presidents. Because of his strong technical background, he readily estab­lished a strong bond with the vice president of Information Systems, who has long been a user and strong advocate of IBM systems. In April, Bob and this vice president co-hosted the first technical review that Digital has ever held at TI. A total of 67 TI people attended the technical session and 17 TI executives attended an executive session. At these sessions, Bob handled technical, business and management questions on Digital's products and strategies. His comments from a user standpoint were particularly valuable to TI. His presence, support and interaction with TI have greatly furthered Digital's relationship with that customer.

 

In addition, Bob helps direct monthly management meetings of the Bellcore Corporate Account Team. Bob understands and interprets the need for product enhancement for intelligent telephone networks. He was also instrumental in setting up a meeting between Ken Olsen and the president of Bellcore.

 

Russ Gullotti, vice president. Computer Special Systems (CSS), and partner to the U.S. Air Force. Russ helped set up a combined meeting of the Canadian Air Force and people from the U.S. Tactical Air Force who are interested in "Mission Planning." This meeting, at DECWORLD '87, involved discussions about adapting a product that CSS has already provided the Canadian Air Force, for a major project in the U.S.

 

George Chamberlain, vice president, Finance for Engineering/Manufacturing/ Marketing, and partner for American Express and Grumman. George helped set up a meeting with the president of American Express Travel Related Services and two other American Express executives. During the meeting, they asked for Digital's help on a number of projects. George has also been very active with Grumman's Data Systems and Aircraft Systems Divisions. Recently, he hosted a two-day executive conference with 14 of the top executives of these divisions.

 

Digital Exceeds FY87 Customer Satisfaction Goals

 

Worldwide FY87 Customer Satisfaction scores (for overall satisfaction) increased in all three surveys — Sales, Field Service and Software Ser­vices. The overall, weighted average score was 8.1 (on a scale of 10) —i compared to the FY86 score of 7.8.

 

Digital's field organizations conduct these surveys annually, asking cus­tomers to rate the performance of the company and its representatives in key areas such as systems availability, product capability, professional atti­tude, responsiveness and technical competence. "It is the customer who is the ultimate judge of Digital's industry leadership," notes Jim Pitts, Field Customer Satisfaction manager. "These surveys give us a way to measure our progress in customer satisfaction. They also provide insight into how we must all focus on the quality of our products and the way we work together. Every Digital employee has an important role to play in this effort."

 

In the Sales survey, overall satisfaction increased to 7.9 from 7.7 on a worldwide basis. Scores for all questions increased worldwide and within each geography. For the second year in a row, the highest scoring section was "Digital products."

 

In the Software Services survey, all three geographies had overall satis­faction scores in the 8.0 to 8.3 range. Professionalism and technical competence of personnel were the highest scoring questions in both the U.S. and GIA.

 

In the Field Services surveys, Software Product Services (SPS) exceeded its corporate goal of 7.3 in all three geographies and received its highest overall averages on "attitude and manner" (8.3) and "installation quality" (8.1). Hardware Product Services (HPS) received highest overall scores on "engineer attitude and manner" (9.0) and "uptime" (8.9), which reflects the reliability of Digital's computer systems as perceived by customers.

Update On The Order Transaction ProcesS (OTP) by Harvey Weiss, vice president, U.S. Sales Operations/Government Systems Group

 

Digital is committed to the goal of becoming number one in customer satis­faction in the computer industry. An important part of our effort to achieve that goal is the Order Management Architecture and the Order Transaction Process (OTP). OTP is the administrative path an order follows through the company on its journey from quotation to the customer to Digital's collec­tion of the invoice.

 

To ensure this is a smooth process, an OTP committee has been chartered by senior management to tackle order transaction issues. Composed of repre­sentatives from organizations responsible for different segments of the total process, it is co-chaired by a manager from the Field and one from Manufacturing: Dave Beresford of Customer Finance and Administration and Anil Sitole of the Field/Manufacturing Strategic Business Center.

 

Historically, the business practices that brought Digital to the multi­million dollar level proved ineffective at a multi-billion dollar level. To achieve the productivity and simplicity needed from the different organiza­tions participating in order transaction management, traditional "stove­pipe" methods of operation needed to change. To remedy these problems, the committee adopted a set of principles and directions as the cornerstones of the OTP effort:

o Purchasing any of Digital's products and services should be a simple and easy process for companies large and small.

o Management of the Order Transaction Process should result in complete predictability with regard to the expectations set with all customers.

o We should administer an order once, through a consistent, disciplined process in which accountabilities and responsibilities are aligned to achieve maximum productivity and employee job satisfaction.

 

Guided by these principles, the commmittee identified the need for a number of major programs at various points throughout the transaction process. To some degree, these programs will affect the work, the operating philoso­phies, and the policies and procedures of all organizations involved. Taken together, they are the basis of a whole new way of doing business within Digital — a significant step towards providing excellent customer service.

 

Because of the magnitude of effort needed to bring these programs to frui­tion, the committee addressed those portions of the overall process they felt could yield measurable improvements in customer satisfaction within a three-year period.

 

Changes are being implemented now, organized into 16 programs. Many of these changes are coming together in a significant milestone known as "Weekly Ships": the commitment to a customer of product shipment during a specified week. A phased implementation has begun which is currently limited to MicroVAX II orders in the Maryland/Virginia District. Expansion will then occur on a number of fronts: geography, product, process steps and systems, as experience dictates.

 

At a recent quarterly review, the program teams showed they had made sub­stantial progress in meeting their goals. Recent milestones include direct international invoicing, which replaces the time-consuming process of invoicing through intermediaries. In addition, the U.S. installation of the FOCUS order-entry and order-management system (replacing the 15-year old OASIS system) for all ordering modes and all products has been completed. Europe has significantly increased its OTP-related activities. GIA has a substantial structure already in place, and is measuring progress toward its goals.

 

Implementing such changes to Digital's business practices moves the company much closer to achieving its customer satisfaction goals.

 

The Role Of Strategic Relations

 

Strategic Relations, a new group managed by Henry Crouse, vice president, helps develop relationships with engineering and manufacturing companies that can add processes or products to complement Digital's products and architecture. This group is part of the Manufacturing/Engineering/Product Marketing organization, reporting to Jack Smith, senior vice president.

 

"Ours is not a procurement organization," explains Henry. "These are complex relationships that call for customized terms. We're involved in investments and joint ventures that require Executive Committee and the Board of Direc­tors approval. Our job is to facilitate negotiations and on-going senior­level relationships.

 

"The projects we're involved with are similar to past agreements with Ericsson in Europe and Trilogy and Gigabit. For example, we are responsible for managing Digital's relationship with Cray Research. Negotiations with Cray started long before our group came into existence, but now it is our role to keep that relationship healthy and growing.

 

"It's naive to think that Digital can do everything it needs to succeed in the world. We appreciate what other companies can do to add value to our product set, and we look for ways to develop mutually beneficial relation­ships. We have an outstanding relationship with Cray, which is leading to growth for both of us.

 

"Our goal is not just to take on some projects, but rather to serve as change agents for the company, helping Digital expand and leverage its investments with other companies' financial and technical resources. We want to encourage these other companies to develop skill sets which will be complementary and add to our own."

 

The Strategic Relations Group consists of less than a dozen senior technical or business people who understand how to deal with senior managers of other organizations and can play consulting roles. For example, Paul Curtin focuses on new computing structures. He helps evolve the Cray relationship and also works with Floating Point Systems, a company which supplies an accelerator for VAX systems for applications in the scientific marketplace. Howard Fineman works with Dom LaCava's Low End Systems and Technology (LEST) Group and Bill (B.J.) Johnson's Networks and Communications (NAC) Group, developing business relationships of interest to them. Nils Noren and Regis Kaufman (who also works for Software Acquisition) focus on software. Walter Dunham deals with components and manufacturing processes. And Joe Skillings focuses on superconductivity and other manufacturing processing opportun­ities.

 

In addition, key people in Finance, Legal and Treasury organizations serve as part of the team that helps in complex negotiations. And other groups within the company are assigning people to the similar task of developing and managing strategic relationships.

 

Related appointments:

 

Bill Lowe has rejoined Digital and will support storage external investment, development and resource activiites for Strategic Relations. Bill joined Digital in 1969 as an electronic components buver. He moved to Puerto Rico in 1972 as manager of Purchasing and Distribution, and on his return in 1974 was responsible for Disk Manufacturing in Westfield. His last Digital assignment was as the first Shrewsbury plant manager. After leaving Digital in 1984, he was involved in two start-up companies. He is a graduate of Northeastern and attended the Program for Management Development at the Harvard Business School.

 

Steve Teicher is joining Strategic Relations as a strategic technical consultant. He came to Digital in 1969 as an engineer in the PDP-12 group. He was the project leader for a floating-point processor built for the PDP-12, one of the first floating-point units built for a minicomputer. During the mid-1970s, he managed the low-end PDP-11 development group which produced the LSI-11 chip set (the first 16-bit microprocessor chip set with floating-point instructions) and the VT100 video terminal. He served four years as manager of Semiconductor Engineering and most recently was manager of Worksystems in the LSI Group. He is a graduate of MIT's 6A program and was a member of the Division of Sponsored Research Staff at MIT prior to joining Digital.

 

In Europe, Eric Sublet has been named manager of the newly formed Office of Strategic Business Cooperations, to aid the countries in negotiating strate­gic alliances and cooperative agreements with large European organizations. Reporting to Earl Mason, manager, European Finance, and David Stone, vice president, International Engineering and Strategy, Eric will provide guid­ance on the structure of agreements as well as coordinate the activities of dedicated project teams. He has worked for Digital for 10 years, most recently in the U.S. as Western and Central Area F&A manager. Before coming to Digital, he worked for Emmanuel Deetjen, an investment banking firm in New York, and for Banque de Gestion Privee, a private Swiss bank.

 

European Research Laboratory Opens In France

 

Digital has selected a French research team to launch its European Systems Research Laboratory. The team is led by Patrick Baudelaire, formerly a member of the research team at the Xerox Research Center in Palo Alto, California, and of Tecsi Software Corp., a subsidiary of the French C.G.E. group.

 

Over the next two years, the new center, which is located in the Paris area, will develop a team of approximately 30 researchers. In addition to theore­tical computer research, the group will be involved in experimental work for the development of systems prototypes, especially in areas such as graphics software and hardware technology, parallelism, program specification and programming environments. The Paris laboratory also will maintain an open dialogue with the European scientific community, especially with university and public research facilities.

 

Gift Supports Creation Of Doriot International Information Center

 

Digital has contributed 10 million French francs (about $1.7 million) toward the creation of an International Information Center at INSEAD (the European Institute of Business Administration) in Fontainebleau, France. The Center will be named in honor of General Georges F. Doriot and his wife Edna. The General played an important role in the founding of both Digital and INSEAD.

 

The Center will pool all the techniques and data made available by computer science, audiovisual technology, information storage and retrieval, printing and telecommunications and will put them at the disposal of researchers, teachers and students at INSEAD. Construction work on the Center will cost an estimated 40 million francs (about $6.7 million), and should begin in 1988 for opening in the autumn of 1990.

 

INSEAD, Europe's leading business school, has an international focus. Its main objective is to help European enterprises become more competitive in international markets. Since its founding in 1959 (two years after Digital), it has awarded 5,500 MBA (Master of Business Administration) degrees. Each year more than 300 new students enroll. In addition, extension programs reach another 2,000 participants a year. Some 4,500 companies from around the world have sent a total of 15,000 employees and managers to this school.

 

The faculty consists of 65 permanent professors (representing 17 different nationalities) and 50 visiting professors. In addition to teaching, the faculty devote an important part of their time to management-related re­search, working closely with businesses.

 

About 10% of the budget of the school is now devoted to information process­ing, based around a local area network and a VAXcluster. Through ALL-IN-1, students as well as teachers have access to all office functions, including electronic mail.

 

Geoff Shingles Honored By Queen Of England

 

Geoff Shingles, managing director of Digital's U.K. subsidiary, was awarded a C.B.E. (Commander of the Order of the British Empire) decoration in the Queen's Birthday Honors List.

 

The reasons behind these awards are never made public, but Geoff's C.B.E. is seen as a recognition of Digital's standing as a major company with a high growth record and an excellent record of job creation; and also as a recog­nition of the company's substantial contribution to the arts through the "Partners in Dance" program.

 

"Obviously, I am delighted," says Geoff. "From a personal point-of-view, it is exciting to have received the award; but the more rewarding aspect is the recognition for a company that started off in a very small way in the U.K.

 

23 years ago and has grown into a major industrial force."

 

Geoff's connection with Digital U.K. dates back to 1965 when he joined as Field Service Engineer. He soon moved into Sales and by 1967 was Reading Branch manager, becoming U.K. Subsidiary manager the following year. In 1971, he spent a year in the U.S. on staff assignment with Corporate Marketina. Then he returned to Eurooe as North EuroDean Regional manager.

 

He was appointed managing director of the U.K. Sales Subsidiary in 1974, and transferred to Geneva in 1976 as European Marketing Manager. In 1981, he became a vice president of the Corporation and in 1982 was given responsi­bility for 11 European countries. In December 1983, he returned to the U.K. as managing director.

 

He holds a B.Sc. in Electronic Engineering from Leeds University and did Postgraduate Computer Studies at Philips International' Institute, in the Netherlands.

 

EMC And Digital Agree To Settle Litigation

 

Digital and EMC Corporation of Hopkinton, Massachusetts, have announced the settlement of the pending litigation between the two companies. They have been in litigation since 1985 in the U.S. District Court in Boston, Massa­chusetts. Digital's lawsuit alleged that one line of EMC's computer memory products infringe patents on Digital's SBI computer interconnection and control technology. EMC denied those allegations. EMC also filed a counter­claim alleging that Digital had violated federal anti-trust laws.

 

Although the details of the settlement were not disclosed, the companies jointly stated that:

o The pending litigation, including all claims of both parties, will be dismissed;

o EMC has been granted a license to utilize Digital's SBI interconnection and control technology; and

o Digital and EMC will confer in the future in an attempt to resolve potential issues between the companies.

 

EMC Corporation is a leading manufacturer of computer system enhance­ment products for use with selected mid-range and large mainframe computer systems.

 

*EMC is a trademark of EMC Corporation.

 

Progress In U.S. College Recruiting

 

In FY87, Digital continued to attract and hire high quality students, according to a summary report from Corporate College Relations. In the U.S. the company hired 771 four-year and advanced degree college graduates. Of these college hires, 32% had graduate degrees and 83% hires had technical degrees. The vast majority were engineers — 245 software engineers and 239 hardware engineers. The ratio of acceptances to offers was 74%. The average grade point average of students hired in FY87 was 3.4.

 

Digital recruited at 73 schools. Although the number of hires increased significantly over FY86 (to 771 from 580), only five schools were added to the recruiting roster, continuing the trend to focus the program at a smaller number of campuses.

 

The top ten schools by number of hires were: Northeastern, 57; Rensselaer Polytechnic Institute, 47; University of Massachusetts, 39; Worcester Polytechnic Institute, 35; Rochester Institute of Technology, 31; Boston University, 27; Massachusetts Institute of Technology, 25; University of Lowell, 24; Cornell University, 20; and Arizona State University, 19.

 

Of the four-year/advanced degree college graduate hires, 29% were minorities and 24% were white females.

 

To identify outstanding students, College Relations maintained direct contact with faculty at selected schools, particulaly faculty members who received grants through the Digital Faculty Program. Coop/internship pro­grams provided an additional resource from which to attract trained, quali­fied students for full-time hire.

 

Digital's Minority and Women's Education Program helped in enlisting quali­fied women and minority students. This program, funded by Corporate Contri­butions, provides scholarships to students, and financial support and equipment grants to educational programs for women and minorities. A total of 29 permanent hires, including 22 scholarship students, were sourced through that program.

 

Digital Honored For Technology Executive Roundtable

 

Ken Olsen, president, has been named 1987's "Master of Entrepreneurial Management" by Venture Magazine and Arthur Young Entrepreneurial Services. Ken was honored for his "ingenuity, hard work, and innovation," and, in particular, for Digital's Technology Executive Roundtable Program, which is sponsored by the Channels Marketing Group.

 

The Technology Executive Roundtable is an organization for founders, board members and chief executive officers of technology-related companies with fewer than 300 employees. Roundtable members can share information, discuss their concerns, and learn from their peers. There are chapters in five U.S. cities: Atlanta, Boston, Dallas/Fort Worth, Los Angeles, and Santa Clara.

 

Digital recognizes that start-up companies have unique problems — fewer resources, a need to make fast decisions and little margin for error. By helping increase the survival rate of start-up companies, Digital's Round- table strives to expand the scope of the technology industry.

 

Organizational Changes In European Marketing And Sales

 

To optimize staff resources, Pier Carlo Falotti, president, Digital Europe, has made several organizational changes. The strategic responsibilities of Marketing and Sales at the European level have been realigned under Bruno d'Avanzo, vice president, Marketinq and Sales, EuroDe.

 

The Corporate Accounts Office — Europe, the Selling Operations Group, the Sales Program Office, and the Sales Training and Development Offices now report to Georges Cassir, manager, European Corporate Accounts and Sales operations. Reporting to Bruno, Georges is responsible for enhancing account management within the organization, while decentralizing to the countries responsibilities for worldwide business.

 

Dave Buckingham has been appointed manager of Strategic Accounts Develop­ment, reporting to Bruno. He is responsible for developing long-term strat­egic relationships with several accounts. He also serves as manager of Competitive Sales Programs in Europe.

 

Colin Allan has been appointed European Marketing manager — Public Sector, reporting to Bruno. In this new position, Colin is responsible for estab­lishing a Digital Competence Center to support business in Public Sector markets in Europe. These markets include Education and Scientific Research, Defense, Health Care and Public Administration. He also continues to be responsible for Europe's EEC office in Brussels.

 

High Performance ULTRIX Workstation Group Formed

 

Don McInnis has been named manager of a new group, High Performance ULTRIX Technical Workstations. In addition, he continues to be responsible for the Engineering Systems Group (ESG), reporting to Peter Smith, vice president, Product Marketing.

 

Glen Johnson and the ULTRIX Development Group now report jointly to Don McInnis and Bill Heffner, vice president, Software Systems. Bob Supnik also reports to Don for Targeted Processor Development, in addition to reporting to Duane Dickhut, manager, Semiconductor Engineering Group. Dom LaCava, manager, Low-End Systems Group, continues to be responsible for overall VAX Workstation Development Program activities.

 

Appointments

 

Bob Good has been named Corporate Field Service Logistics manager, reporting to Dave Grainger, vice president, Field Service. Bob joined Digital in 1969 in the Software Services Group. He became a senior Sales specialist in the Large Systems Group and District Software Service manager in the Philadel­phia District. He was also Regional Field Service manager in the Northeast, and, for the past three years, has managed the Corporate Field Service Business Development Group.

 

Mike Kalagher has been appointed to the new position of U.S. Field Adminis­tration manager, reporting to Jack Shields, senior vice president. In this role, Mike is a member of the U.S. Field Management Team. He will be respon­sible for establishing Administration as a single, unified organization in the U.S. Field, and workina with the U.S. Field Manacrement Team to establish cross-functional business models and policies that will enable Administra­tion to further customer and employee satisfaction, and enhance Digital's competitive status in the industry. For the past four and a half years, he managed Customer Administrative Services.

 

Mike Mulqueen, in addition to serving as country Personnel manager for Ireland, will take on the role of Employee Relations manager for Manufac­turing (worldwide), reporting to Linda St. Clair, Manufacturing Group Personnel manager, and Erline Belton-Willis, Corporate Employee Relations manager. Mike joined Digital in 1971 as a member of the start-up team for Manufacturing in Europe.

 

Mick Prokopis has joined Digital as Manufacturing Finance manager, reporting to George Chamberlain, vice president, Manufacturing/Engineering/Marketing Finance, and Bill Hanson, vice president, Manufacturing Operations. Mick comes to Digital from Lotus Development Corp., where he was most recently chief financial officer and senior vice president of Finance and Operations. He also served as vice president of Finance at Mostek Corp., a subsidiary of United Technologies Corp., and held financial management positions at Pratt and Whitney Aircraft Group and the Mitre Corp.

 

Lee Richardson has joined Digital as Corporate Contributions manager, reporting to Nancy Dube, manager of Corporate Community Relations. In his new role, Lee will be responsible for the management of all financial, administrative and program operations for the Corporate Contributions program worldwide. Lee comes to Digital from Tuskegee University, where he was the vice president for University Relations.

 

 



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