"Ex-Digital Exec Makes A Move To Networking"
Date: 7/20/98
Author: Michele Hostetler
Bruce Claflin's new job will be to make Eric
Benhamou's life a little easier.
Claflin is the new chief operating officer at
networker 3Com Corp. And his boss is Benhamou,
the company's chief executive officer.
Benhamou announced in June he was looking for
someone to handle day-to-day duties at 3Com while
he concentrates on the big picture. Claflin, a former
executive at Digital Equipment Corp., now a unit of
Compaq Computer Corp., will try to return 3Com to
strong sales after several quarters of slow growth.
Claflin most recently was senior vice president and
general manager of sales and marketing at Digital.
He also was in charge of Digital's PC business unit.
Prior to that, Claflin worked at IBM Corp. for 22
years, and introduced IBM's ThinkPad line of
mobile computers.
''I was very impressed with the depth of Bruce's
experience in the PC industry,'' Benhamou said in an
interview. ''The PC industry, of course, is not the
same as the networking industry, but a lot of
Bruce's knowledge of the business processes - the
partners, the channels, the manufacturing processes
and so on - apply directly to how we do business at
3Com.''
Benhamou says he plans to focus on 3Com's
strategic partnerships with Siemens AG and
Microsoft Corp. He'll also zero in on 3Com's role in
the new data-voice networking field.
Claflin left Digital when Compaq bought it because
the PC maker planned to transfer him to its Houston
headquarters. He lives in Boston and will stay until
his youngest daughter graduates from high school
next year. Claflin talked with IBD about his plans
for his new job.
IBD:
What attracted you to 3Com?
Claflin:
It's really two reasons - the industry and the
company itself. Just the industry is exciting. It has
great growth historically. As far as we can see in
the future, there's great growth opportunity. It's
certainly not commoditized. The technology is
driving what previously had been separate networks
of voice, video and data into converged networks.
Of course, this means there are enormous
opportunities for companies that have capabilities to
capture them.
That leads me to 3Com. I was very impressed with
the company. (It has) a very strong market
presence (with) almost $5.5 billion in revenue,
leadership in a number of key segments in the
industry (and a) very strong financial structure so
that the balance sheet would support aggressive
plans.
IBD:
How does 3Com's culture differ from Digital's?
Claflin:
My preliminary view is 3Com clearly has a little bit
more entrepreneurial spirit. In a company like
3Com, it's not as large and has not been around for
as many years, which can be a mixed blessing. But
I think, on balance, it creates a more vibrant
environment. Having said that, Digital has a strong
culture, and there are similarities in terms of
respecting people, valuing technology and
innovation, and a strong balance sheet.
IBD:
How do you plan to apply your past experience to
3Com?
Claflin:
I think the first thing is to use my ears more than
my tongue, certainly for the first period of time.
While I bring experiences and biases, I think it's
very important that I spend my first days and
months just listening and learning. I expect the first
90 days to be characterized by a lot of travel. I'll
meet broadly with our people throughout the world
at all levels.
I'll meet with our customers, our partners, industry
analysts. The goal is simple - to understand what
we do well that we can capitalize on and what we
don't do as well that we need to improve. I think
3Com's strategy is very sound. My focus will be
more on the execution and operational side. My first
90 days will be intense listening and learning, and
then applying my experience to what I've learned.
IBD:
Where do you think 3Com needs improvement?
Claflin:
Clearly, from an overall view, we need to get our
revenue growing at a faster rate than it has in the
last few quarters. Historically, 3Com was
characterized by very high rates of growth as well
as very good profitability. In the most recent
quarter, the profitability was improved. My focus
will be focused on driving the revenue side more as
well.
IBD:
How does your ThinkPad experience translate to
3Com's mobile computer, PalmPilot?
Claflin:
I think there will be similarities. ThinkPad was a
wonderful experience in that we took a piece of the
business that was not doing well and got it growing
very rapidly. Why did it work? We leveraged very
aggressive technology and priced it aggressively,
promoted it well and sold it through channels that
were well positioned to succeed (and) had low
inventories and a high degree of training. Those are
general characteristics that drove ThinkPad. I think
they largely apply to success in the networking
industry.
IBD:
Any specific ideas for PalmPilot?
Claflin:
No specific plans there.
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Mang |
