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Driving Customer-Centric Innovation: Agilent’s Organizational Transformation

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Read time: 9 minutes

Agilent Technologies has undertaken an organizational transformation designed to strengthen its market responsiveness and customer-centric approach. By realigning its business units into three focused groups the Life Sciences and Diagnostics Markets Group, the Applied Markets Group and the Agilent CrossLab Group the company’s objective is to foster deeper collaboration, drive innovation and enhance the value of its solutions.  


In this Q&A with Technology Networks, Agilent CEO Padraig McDonnell discusses how the reorganization aligns with Agilent’s commitment to innovation and customer success, the expected benefits of the new structure and the steps being taken to ensure a seamless transition for customers and stakeholders.  


McDonnell also highlights how the integration of automation, informatics and digital services into the Agilent CrossLab Group will enhance customer engagement and provide greater value across all end markets. 

Anna MacDonald (AM):

Could you elaborate on the strategic vision behind Agilent’s organizational changes and how they align with the company’s mission, long-term goals and its commitment to innovation and customer success? 


Padraig McDonnell (PM):

Our evolved strategy is both market- and customer-focused. When we’re developing new products or considering new investments, we’ll do it through a customer and market perspective markets such as pharma/biopharma, chemicals, applied materials and environmental.  


Our new organizational structure will help us execute on our evolved strategy and enable us to deliver products and services that make our customers more productive. 


The Applied Markets Group will focus on growing Agilent’s strong leadership in these markets and accelerating growth in new areas of the market.  


In the Life Sciences and Diagnostics Markets Group (LDG), we have combined biomolecular products, cell analysis, liquid chromatographymass spectrometry (LC/MS) and LC, mirroring how our customers are organized. These changes allow us to better meet their needs and drive innovation. 


Additionally, Agilent CrossLab Group which includes our Consumables and Services Division now also includes software and informatics at a strategic level across the company. With these additions in Agilent CrossLab Group, we can close gaps more quickly and make more informed decisions moving forward. 


This is the right time to set a new direction for the company. We have evolved our strategy and set ambitious goals to execute on that strategy through the Ignite Transformation.  


At our Analyst and Investor Day in December 2024, we announced that the Ignite Transformation outcomes would be: 57% annual core-revenue growth; operating-margin expansion of 50 to 100-plus basis points per year; and double-digit EPS growth. With our realigned businesses under the direction of proven leaders and focused on our markets, we are well-positioned to become nimbler and accelerate innovation in service to our customers. 



AM:
How will this reorganization enhance collaboration and execution across divisions? 

PM:

The reorganization within Agilent is designed to enhance collaboration and execution across our divisions by creating a more integrated and cohesive structure. By aligning our three businesses, we can leverage synergies and streamline operations to better meet our customers’ needs in a few key ways: 


  • By integrating LPD (our LC and LC/MS products) into LDG, we're aligning more closely with the needs of our biopharma customers. This boosts collaboration among cell analysis, API manufacturing and LPD, creating a strong ecosystem that enhances our biopharma capabilities. Bringing together genomics, pathology and companion diagnostics businesses strengthens our diagnostics focus. This grouping allows for better coordination and execution of our strategy.  

  • Including services, support, consumables and automation within CrossLab promotes cross-functional teamwork.  

  • Integrating software and automation through synapse connections help both the Applied Markets Group and the Life Sciences and Diagnostics Markets Group share technologies and expertise, leading to more efficient and innovative solutions.  


Overall, the reorganization positions us to better collaborate across divisions, leverage our collective strengths and execute on our strategy with great precision and impact. We already have great team rapport among the three businesses and incredible momentum for evolving Agilent. That will be key in driving collaboration and achieving our ambitious goals.  



AM:
How does Agilent envision these changes improving the value and relevance of its solutions for customers? 

PM:

By evolving our Enterprise strategy to be market- and customer-centric, we can more deeply understand and anticipate our customers’ unique needs. This approach allows us to tailor our solutions more precisely to solve our customers’ most vexing problems. 


The reorganization of our businesses fosters closer collaboration. This enables us to leverage diverse expertise and technologies, accelerating the development of innovative solutions that address evolving customer challenges. 


Improved agility through the reorganization allows us to respond quickly to market changes and customer feedback. This continuous improvement of our offerings positions us to forge stronger partnerships with our customers. By aligning our goals and strategies with theirs, we can work more closely together to achieve mutual success. 


Overall, these changes are designed to make Agilent's solutions more valuable by being even more responsive to market needs, fostering innovation and providing comprehensive support. This customer-centric approach ensures that we continue to meet and exceed our customers' expectations. 



AM:
What specific initiatives will the CrossLab Group implement to enhance customer engagement and support? 

PM:

Agilent CrossLab Group’s objective is to strengthen customer connections across all end markets through several key initiatives designed to enhance customer engagement and support. By integrating services, consumables, software and informatics, and automation, this will make us more agile, accountable and customer-focused in the face of ever-changing market conditions. 


The integration of automation hardware and software capabilities within CrossLab supports application and workflow orchestration. It enhances our ability to provide innovative solutions and improve customer engagement. This strategic use of technology streamlines processes and delivers timely solutions. 


Additionally, the reorganization facilitates stronger collaboration across internal divisions. The new CrossLab structure aligns teams to deliver on key enterprise strategic priorities, ensuring harmonized solutions across our markets. This alignment will facilitate closer collaboration and enable us to better deliver solutions and workflows that significantly enhance customer success, productivity and lifetime value across all markets. 



AM:
What challenges do you anticipate as you implement these changes, and how is Agilent addressing them to ensure a smooth transition for customers and stakeholders? 

PM:

We have implemented a transition team to guide us through the structural changes and ensure a smooth transition for our customers and stakeholders. 


Our priorities are to ensure consistent and continuous communications so our employees around the world understand and, as a result, execute on our evolved strategy 


Continuous monitoring and feedback allow us to quickly make necessary adjustments so that we can continue to delight our customers. It is critical now more than ever that our customers experience uninterrupted service and support during the transition. We are maintaining open lines of communication with our customers and already are seeing early positive feedback from them about doing business with Agilent. 


Accelerating our innovation in service to our customers is our focus as we begin our Ignite Transformation to become nimbler and make decisions faster. We want to deepen our relationships with our customers so they can leverage our scientific expertise, and we can enable them to bring great science to life.