In the late 1980s, the computer systems industry embarked on a perilous but thrilling white-water journey of change that left many previous giants upset or beached on the rocks, while young, unknown companies emerged from the chute as celebrities. In retrospect, the undercurrents of change seem clear, but, at the time, the level of confusion was tremendous. Hewlett-Packard’s successful navigation through this treacherous passage is attributable to many factors, including its new approach, called strategic market modeling (SMM), which HP’s computer systems organization used to generate and test alternative business strategies both for itself and for competitors.
The computer systems industry (traditional mini-computers and mainframes) in the late 1980s was already experiencing the impact of powerful desktop PCs and workstations when it was hit from a different direction by the growing acceptance of Unix and open systems. For HP, while the emergence of commercial Unix represented a tremendous opportunity, it was also a threat. Unix had been a popular computer operating system among scientists and engineers for many years, due to its portability across different platforms and its networking features. It began to penetrate the commercial market, as MIS managers introduced Unix into their departments for the same reasons. But Unix was only a small part of a larger technology shift to the “open systems” that have subsequently revolutionized the computer industry. Open systems have... To read the complete article, login or sign-up using the form below.
Become a premium subscriber today to read this and all MIT Sloan Managmeent Review articles.
Buy this article. Purchase one or more copies of this article in PDF form.
Become a premium subscriber today to read this article and the entire archive of MIT SMR articles.
Upgrade your existing subscription to premium
Sign in if you are a premium subscriber.
Do you subscribe the MIT Sloan Management Review in print? Enter the email address and password you used when ordering. Don't remember? Lookup your subscription account information
- Register for free access to recent articles and the current issue of MIT Sloan Management Review.
- Subscribe and read articles from the past three years online.
- Premium subscription give you access to the entire archive of articles.

