Strategy: HP Labs 2.0 - Reorganizes To Focus on Big Bets

At the HP Labs conference, Lab director Prith Banerjee presents keynote new "blueprint" for HP's coporate research arm. HP Labs is now going to focus on "big bets" all linked to 5 main areas: Information explosion, dynamic cloud services, content transformation, intelligent infrastructure and sustainability. What's interesting is the deep consequences this new plan will have on HP Labs structure: going from hundreds of projects to 20-30 big bets. The Labs' more than 600 researchers will now be "regrouped" into 23 separate labs around the world, of 20 to 30 researchers each: smaller teams which should make them more dynamic and responsive to change. In terms of investment, HP Labs will now spend 1/3 of its $150 million annual in exploratory research (versus 10% before), 1/3 in applied research and the last third in advanced product development.