Hewlett-Packard, the computer maker, is forming a new business division to focus on the Internet and e-commerce in a move designed to help it compete more successfully with rivals such as IBM and Sun Microsystems in this rapidly growing market.

Mr Joe Beyers, who will head the new Internet Business Unit, said he planned to expand the division aggressively through internal development, acquisition and the hiring of talent from outside the company.

He said the unit would break with the company's entrenched corporate culture which has been criticised for being too cosy. He said it would adopt a "new mindset" and become "far more aggressive".

The move comes just days after Hewlett-Packard - which employs 1,600 people in Ireland - announced it was spinning off its test and measurement arms to focus on higher-growth areas. The company has failed to keep pace with growth rates achieved by other high-technology companies and has fallen behind competitors in the market for Internet-based computer systems.

The new division will bring together all Hewlett-Packard's existing Internet-related software businesses, including VeriFone, which makes systems for financial transactions over the net, as well as call-centre and customer-relations software.

The creation of the new unit coincides with an advertising push by Hewlett-Packard which will emphasise its strengths as a provider of e-commerce systems. Mr Beyers said the division would create packaged products aimed at key industries including telecommunications, financial services and retailing.

The new division will employ 4,000 people. Mr Beyers said Hewlett-Packard was not yet releasing revenue figures for the operation but said it was growing at more than 100 per cent a year. He also said it was still in its "investment phase", indicating that it was unlikely to be profitable initially.