WHY DID HPS ALEX

PROJECT FAIL?

TECHNICAL PROBLEMS
SLOWED DOWN THE SCHEDULE
Replacing the traditional belt with a wire would reduce
costs, but the wire could not perform adequately to
achieve the desired print density.
A standard polymer paten would be 70% to 80% the cost
of a proprietary rubber paten, but it would be slippery,
and might cause the paper to skew easily.
The keypad was designed to be separately built and then
assembled onto the machine, but its quality of being
detachable caused it to fail the usual HP drop test.
The small gap between the keypad and the body of the
printer made the machine vulnerable to electro-static
discharge.

BRINGING DOWN COSTS WAS MORE

DIFFICULT THAN EXPECTED
The encoder would have to be cut to less than one
fifth of its costs in the Deskjet, and no vendor
could provide it at that cost.

CONFLICTING PRIORITIES OF DESIGN

ENGINEERS AND MANUFACTURING
The designers in Vancouver concentrated on how
to achieve the best functionality, while the group
in charge of manufacturing (in Singapore) were
concerned about high volume production, and
wanted to make sure that any changes in the
product could be accommodated by their
vendors. The Vancouver team assumed that such
changes could be made, and did not consider
them.

GEOGRAPHICAL AND TIME DIFFERENCES

Team members were separated by 7,000 miles, a
15 hour time difference, and considerable
variation in work styles.
This meant that the Singaporean members could
not demonstrate their points physically before
their Vancouver colleagues, and vice versa.
Furthermore, the Singapore team (the 3 firmware
engineers) located in Vancouver were homesick.

CULTURAL DIFFERENCES COMPLICATED

PROJECT MANAGEMENT
Singaporeans were accustomed to more
consensual decision making and a more
hierarchical system.
Americans, on the other hand, were more
accustomed to making individual decisions within
clearly articulated boundaries.
This caused difficulties, especially when they had
to work together.

EDUCATIONAL DIFFERENCES CAUSED

CHALLENGES
Singaporeans are trained in the art of
accumulating facts and knowledge.
Americans, on the other hand, are more concerned
with creativity, inspiration and innovation.
This meant that their mindsets were very different,
and they had different priorities in mind when
working on the same project.
Furthermore, for Singaporeans, English was only
their second language. This caused them to be
less confident when challenging the ideas of their
US counterparts.

LAST MINUTE RELOCATION CAUSED

INCREASE IN COSTS
In early May 1990, HP decided to relocate the
Alex project to Vancouver. It was believed that the
moving of the development to one single site
would accelerate the process and ensure no
further delay.
However, by September 1990, the Alex project
was 18 months behind schedule, and moving to
Vancouver had only increased the costs. Hence,
the project was cancelled.

RECOMMENDATIONS FOR
PROJECT CAPRICORN

TURN A DISADVANTAGE INTO AN

ADVANTAGE - WORK AROUND THE CLOCK
Asychronous work schedules could be an
advantage, as colleagues could work on a given
R&D issue around the clock, given a 12 hour time
difference.
When one group got up in the morning, they
could build on the work done while they slept.
Diverse cultural backgrounds and work habits
could also yield different yet highly
complementary skills.

MAXIMISING THE ASIAN ADVANTAGE

As Cloutier stated, The logical thing for us to do in Asia
was to build printers for Asia.
Since the printer will be produced entirely in Singapore,
many advantages can be maximised.
For instance, the Asian employees would be better able to
understand the needs and concerns of Asian users.
Furthermore, Singapores position as a financial and
economic hub can be maximised and close connections
can be built with neighbouring Asian countries, including
Japan.
Also, Singapore has a highly skilled and literate workforce
that can contribute their skills to the R&D, engineering and
management departments.

MAKE USE OF EXISTING TECHNOLOGY

Using the technology already developed for the Thinkjet,
with its high resolution capabilities, for printing the
complex Japanese characters.
Using the mechanical design of the DeskJet, as well as
the identical chassis.
The outward appearance would be the same as the
prototype in the Alex project, only the software and
firmware need to be adapted to the Japanese characters.
This saves HP time, financial expense, as well as
expertise. They can focus on other factors, such as cost
reduction and additional features in order to increase the
competitiveness of their product.

USING AGGRESSIVE ADVERTISING TO

ESTABLISH A BRAND NAME
Japanese customers make purchase decisions based on
brand name recognition. Since they are not familiar with
HPs brand, they may worry that the company may not
be in business in the future.
Hence, HP needs to focus on aggressive advertising in
order to inform potential Japanese customers that they
have been established since 1939 and hence is a reliable
brand with a long history. It is also the world's leading PC
manufacturer, and has been since 2007. By informing the
consumers of the brand history, this helps increase
consumer confidence and interest in the product.
Advertising the product itself as well as its unique
features would also attract consumers.

FOCUSING ON PRODUCT SIZE IN THE

DESIGN PROCESS
As it has been established that Japanese
consumers are particularly concerned with the
size of the printer (as office space is sparse and
expensive in Japan), HP needs to focus on this
aspect of the printer while it is in the design
stage.
If it is able to develop an efficient printer that is
smaller than that of its competitors, it will have a
distinct advantage in the Japanese market.