Unisys Corporation Unveils New Business Structure to Fuel Profit and Revenue Growth

Strategic Insights -

Unisys Corporation, led by Chairman and CEO James A. Unruh, announced a significant transformation of its business structure, dividing the company into three distinct businesses: computer systems, information consulting and integration services, and global support services. This move aims to enhance the company's ability to compete effectively, react quickly to growth opportunities, and leverage its product and service competencies in meeting clients' information management needs.

Key Takeaways:

  • The three businesses will have their own sales forces, streamlining decision processes, accountability, and dedicated resources.
  • The information consulting and integration services business has been growing at more than 20% annually and will focus on helping clients apply information technology to gain a competitive edge and better serve their clients.
  • The global support services business will be headed by G.A. Gagliardi and will significantly expand on its desktop services, network integration, and multivendor support, with revenue expected to increase from a low in 1993.
  • The computer systems business will combine development and manufacturing operations with a full-fledged hardware and software marketing and sales organization, aiming to unleash the potential of its technology resources and pursue new opportunities.
  • The company expects to trim at least $400 million from its current cost structure by the end of 1996 through reducing infrastructure overhead and administrative costs, facility consolidation, and personnel reductions.
  • Unisys aims to redeploy assets and maximize the potential of its core businesses through complementary acquisitions, new partnerships, and other alliances that can enhance revenue growth and strengthen core competencies.
  • The company's mission remains unchanged, focusing on helping business and government use information as an asset to achieve competitive advantage and better serve their clients.

Statistics:

  • Total 1994 revenue: approximately $6 billion
  • Products and services each accounted for approximately $3 billion
  • The information consulting and integration services business has grown at more than 20% annually
  • Global support services revenue has begun to increase from a low in 1993
  • Traditional maintenance revenue dropped from more than 80% of revenue in 1990 to approximately 65% in 1994
  • Expected cost savings: at least $400 million by the end of 1996

Sources:

  • Unisys Corporation (NYSE: UIS)
  • Unisys home page on the World Wide Web: http://www.unisys.com
  • PRNewswire - Oct. 6, 1995 (http://www.prnewswire.com)