This change in structure is aimed at driving profitability and growth. Beginning June 4, 2001, the start of its fiscal year, the company will establish the 3Com Business Connectivity Company and the 3Com Business Networks Company.
With this announcement, we now have three dedicated units focused on leadership in their respective markets, said Bruce Claflin, 3Com chief executive officer. CommWorks, a dedicated unit created last year, has been the model for these two new units. However, these changes were also validated after an extensive strategic review conducted by our senior management team, assisted by experts from McKinsey and Company. Dennis Connors and John McClelland, presidents of the 3Com Business Connectivity Company and the 3Com Business Networks Company respectively, are talented and experienced leaders. They will be directly responsible for profit and loss and have the resources necessary for success in the marketplace.
Today’s action is another step on the path to profitability and growth, continued Claflin. It puts the responsibility for the business in the hands of the people on the front lines, where 3Com is closest to its customers.
The 3Com Business Connectivity Company
Dennis Connors will be president of the 3Com Business Connectivity Company, which will focus on business customers that are served by PC OEMs, distributors and other channel partners with high-volume, high-performance connectivity products for desktop, mobile and server PCs. Today, these 3Com offerings include market-leading Gigabit Ethernet access and wireless connectivity products. 3Com Business Connectivity Company products and services will be based on a Universal Connectivity Platform that offers simple, seamless and continuous network access — from one network to another — across a variety of access technologies and all major devices.
Until June 4, Connors will continue to serve as 3Com’s senior vice president of E-Business and Information Technology, responsible for developing and implementing 3Com’s web-enabled strategy and information systems. Connors previously held senior executive positions at Ericsson and General Electric.
The 3Com Business Networks Company
John McClelland will be president of the 3Com Business Networks Company, which will serve businesses of all sizes with market-leading LAN switching, wireless infrastructure and IP PBX voice solutions. The 3Com Business Networks Company will sell through 3Com’s traditional channels of worldwide resellers as well as emerging service provider channels. 3Com Business Networks Company offerings will be based on a Universal Services Platform that simplifies management and provisioning of networking equipment, enables remote management of network functionality such as security and backup and offers aggregation of access, switching and or voice functionality to meet specific customer needs.
Until June 4, McClelland will continue to serve as 3Com’s senior vice president of operations, responsible for worldwide product development and manufacturing. Having worked at IBM, Digital Equipment and Philips Corporation, McClelland has extensive experience leading and executing improvements to drive operational excellence, with particular expertise in the functional areas of finance, manufacturing and distribution.
3Com Corporation: Three Independent Units Poised for Profitable Growth
Following this restructuring, 3Com will consist of three independent units, the two announced today and 3Com’s CommWorks Corporation, which builds IP networks for network service providers around the world. 3Com has designed this business structure for the following reasons:
Each independent unit will be smaller and more agile, able to better serve its customers and become more competitive.
Each independent unit will have the opportunity to pursue more aggressive strategies and more quickly deliver competitive products for their customers.
Each independent unit will be able to pursue strategic partnerships.
Each unit will have greater transparency around business and financial performance.
Services that are common to the three independent units – human resources, finance, information technology, legal and brand management – will continue to be provided by 3Com Corporate.
