MIS @ DELLMIS @ DELL

NAMENAME ROLL ROLL NONO

Pranav BhardwajPranav Bhardwaj 66

Amit KumarAmit Kumar 2020

Ashish ModaniAshish Modani 2626

Tarun ShettyTarun Shetty 4747

Anuj Pratap SinghAnuj Pratap Singh 4848

S. KarthikS. Karthik 5353

Dell at a GlanceDell at a GlanceGlobally 2Globally 2ndnd in computer hardware design, manufacturing and distribution with a in computer hardware design, manufacturing and distribution with a market share of around 16%.(HP is 1market share of around 16%.(HP is 1stst with 19%) with 19%)

Founded by Michael Dell in 1984.Founded by Michael Dell in 1984.

1987 --first computer systems company to offer next-day, on-site product service .1987 --first computer systems company to offer next-day, on-site product service .

Greater than $50 Million sales per day through the internet with yearly revenue of Greater than $50 Million sales per day through the internet with yearly revenue of $55.908 Billion with employee base of 78,000.$55.908 Billion with employee base of 78,000.

Ventured in areas of storage products, workstation systems, online technical Ventured in areas of storage products, workstation systems, online technical support, appliance servers, network switches, standards-based point-of-sale support, appliance servers, network switches, standards-based point-of-sale offering for retail customers, recycling .offering for retail customers, recycling .

Shipped more than 10 million systems in a single quarter (Q4, FY06) Shipped more than 10 million systems in a single quarter (Q4, FY06)

Dell’s Direct ModelDell’s Direct Model

• Direct relationship, most efficient pathDirect relationship, most efficient path• Low cost and best valueLow cost and best value• Built to orderBuilt to order• Customized systemsCustomized systems• Superior, tailored service and supportSuperior, tailored service and support• Highest quality and most relevant technologyHighest quality and most relevant technology

Dell’s Value Web ModelDell’s Value Web Model

Material costs account for 74%($21 billion) a year for Material costs account for 74%($21 billion) a year for dell.dell.

Improving SCM by 0.1% has bigger impact than Improving SCM by 0.1% has bigger impact than improving manufacturing process by 10% .improving manufacturing process by 10% .

Changing technology obsoletes Materials’ value by Changing technology obsoletes Materials’ value by almost 1% per week . almost 1% per week .

Rely on market forecasting to drive Production.Rely on market forecasting to drive Production.

Technological breakthroughs cause very short Product Technological breakthroughs cause very short Product life cycles .life cycles .

Why SCM is so Important in PC Why SCM is so Important in PC businessbusiness

Need to hold inventory at each step in value chain .Need to hold inventory at each step in value chain .

Have to pay suppliers first before getting paid from Have to pay suppliers first before getting paid from customers .customers .

Caught with short supplies of hot products- lost sales.Caught with short supplies of hot products- lost sales.

Stuck with excess inventories of slow selling products .Stuck with excess inventories of slow selling products .

With about 2,000 product transitions a year, the ability to With about 2,000 product transitions a year, the ability to reduce product time to market is critical.reduce product time to market is critical.

Competitors’ Disadvantages Competitors’ Disadvantages vis-à-vis Dellvis-à-vis Dell

Dell’s Competitive Advantages Dell’s Competitive Advantages

Dell is having one of the best SCM in the world.Dell is having one of the best SCM in the world.

90% supplies ordered online using integrated websites of 90% supplies ordered online using integrated websites of supplier and Dell (B2B).supplier and Dell (B2B).

95% of suppliers situated very close to assembly plant hence 95% of suppliers situated very close to assembly plant hence coordination is easier.coordination is easier.

Dell’s factories have only 7 hrs worth of inventory for most items Dell’s factories have only 7 hrs worth of inventory for most items whereas industry wise it is around 10 days.whereas industry wise it is around 10 days.

15 suppliers provide almost 85% of all supplies.15 suppliers provide almost 85% of all supplies.

Dell gets paid by customers and then pays to its suppliers. Dell gets paid by customers and then pays to its suppliers.

Dell chose i2 Technologies for its SCM system. Dell chose i2 Technologies for its SCM system.

i2 serves almost 70% of the SCM market.i2 serves almost 70% of the SCM market.

Every 20 sec the S/W aggregates orders, Every 20 sec the S/W aggregates orders, analyzes material requirements ,compares Dell’s analyzes material requirements ,compares Dell’s on-hand inventory with its suppliers’ inventory on-hand inventory with its suppliers’ inventory and then creates a supplier bill of material to and then creates a supplier bill of material to meet its order needs . meet its order needs .

Instead of forecasting the daily supply needed, Instead of forecasting the daily supply needed, Dell receives the exact material every two hours Dell receives the exact material every two hours to fulfill actual customer orders. to fulfill actual customer orders.

Dell Chooses i2 SCM S/W Dell Chooses i2 SCM S/W packagepackage

Dell ERP DebacleDell ERP Debacle

Dell’s Ans to ERP Dell’s Ans to ERP G2 ArchitectureG2 Architecture

The G-2 architecture enables company to run “best-of-breed applications” rather than only a single enterprisesystem.

RFID @ DELLRFID @ DELL

What is RFIDWhat is RFID

RFID stands for Radio Frequency RFID stands for Radio Frequency Identification Devices.Identification Devices.

RFID is a 3 part technology consisting of:RFID is a 3 part technology consisting of:

A readerA reader

A receiver with decoderA receiver with decoder

A TransponderA Transponder

RFID applicationsRFID applications

RFID at Dell - ManufacturingRFID at Dell - Manufacturing

Tracking code and Computer assembly Tracking code and Computer assembly instructions are added to the tray.instructions are added to the tray.

This determines the specific line to which This determines the specific line to which the tray should go to.the tray should go to.

At every stage of the assembly, the tags At every stage of the assembly, the tags are read by the antenna for specific are read by the antenna for specific instructions.instructions.

RFID at Dell - ShippingRFID at Dell - Shipping

Once assembled and tested, production Once assembled and tested, production information is inserted into the tags and information is inserted into the tags and sent to a shipping station.sent to a shipping station.

At the shipping station, the RFID tag At the shipping station, the RFID tag transfers data to the control PC.transfers data to the control PC.

This control PC uses this information to This control PC uses this information to print the appropriate label.print the appropriate label.

Benefits of RFIDBenefits of RFID

Production stops have reduced Production stops have reduced dramatically.dramatically.

Labor can be allocated by minimizing Labor can be allocated by minimizing repetitive activities.repetitive activities.

Returns due to wrong shipping of products Returns due to wrong shipping of products have been minimized.have been minimized.

SCALEABLE DESIGN AT SCALEABLE DESIGN AT DELLDELL

Reduction of TCOReduction of TCO

Dell aims to reduce TCO for its customers Dell aims to reduce TCO for its customers by improving its IT systems:by improving its IT systems:

To meet corporate objectives.To meet corporate objectives.

Keep costs to a minimum.Keep costs to a minimum.

Reduce Complexity.Reduce Complexity.

THE SCALEABLE MODELTHE SCALEABLE MODEL

A shift from proprietary technologies to in A shift from proprietary technologies to in house Dell capabilities.house Dell capabilities.

‘‘Pay as You Go’ model.Pay as You Go’ model.

Benefits of the ‘Scalable’ ModelBenefits of the ‘Scalable’ Model

Increase performance and availability by Increase performance and availability by scaling incrementallyscaling incrementally

Minimize management overhead.Minimize management overhead.

Improve utilization rates.Improve utilization rates.

Preserve capital.Preserve capital.

Reduce TCOReduce TCO

Delivering High PerformanceDelivering High Performance

2 Global Centers with 72 Dell PowerEdge 2 Global Centers with 72 Dell PowerEdge 6650 servers.6650 servers.

Dell uses Oracle 9i Database with Real Dell uses Oracle 9i Database with Real Application Clusters (RAC) running on Application Clusters (RAC) running on Red Hat Linux Advanced OS for servers.Red Hat Linux Advanced OS for servers.

Servers help carry out 5 million Servers help carry out 5 million transactions a daytransactions a day

Delivering High Performance - StorageDelivering High Performance - Storage

Dell uses Dell/EMC Fibre Channel SAN Dell uses Dell/EMC Fibre Channel SAN (Storage Area Network)(Storage Area Network)

This helps:This helps:Store and retrieve critical information.Store and retrieve critical information.

Helps it scale easily and thus enabling it to Helps it scale easily and thus enabling it to accommodate any increase in storage accommodate any increase in storage system.system.

Dell’s Factory Planner SolutionDell’s Factory Planner Solution

Manages 250 suppliers who handle 4000 Manages 250 suppliers who handle 4000 components.components.

Calculates schedules.Calculates schedules.

Estimates surplus parts in the factory and Estimates surplus parts in the factory and in the supplier inventory.in the supplier inventory.

Places orders, which are delivered within Places orders, which are delivered within 90 minutes!90 minutes!

ReliabilityReliability

A single database is run on a cluster of A single database is run on a cluster of Dell servers running on Intel processors.Dell servers running on Intel processors.

This ensures that the minute a server is This ensures that the minute a server is down, another server automatically comes down, another server automatically comes up and takes over. up and takes over.

B2B @ DELLB2B @ DELL

Business To Business (B2B) Business To Business (B2B) ModelModel

INTRODUCTIONINTRODUCTIONBusiness model for dealing with large business Business model for dealing with large business entities.entities.

Server- to- server communication over internet Server- to- server communication over internet integrating both supplier & buyer system.integrating both supplier & buyer system.

Shopping online with customer’s ERP Shopping online with customer’s ERP Procurement Application with simultaneous up Procurement Application with simultaneous up gradation.gradation.

No duplicate information entry.No duplicate information entry.

Easy process, less cycle time, less errors.Easy process, less cycle time, less errors.

Dell’s Objectives With B2B Dell’s Objectives With B2B IntegrationIntegration

To quickly integrate customers who are capable today.To quickly integrate customers who are capable today.

Built a solution to integrate any customer who Built a solution to integrate any customer who supports open industry standard of XML,EDIsupports open industry standard of XML,EDI

To help customers built a B2B solution for rapid To help customers built a B2B solution for rapid deployment & connectivity.deployment & connectivity.

Providing hardware, software & consultation to help Providing hardware, software & consultation to help build a system which not only connects to Dell but even build a system which not only connects to Dell but even to other suppliers. to other suppliers.

B2B e-Commerce SolutionsB2B e-Commerce SolutionsConnection to more than 20 different industry E-Connection to more than 20 different industry E-procurement (ERP) tools & usage of standard formatting procurement (ERP) tools & usage of standard formatting protocols.protocols.

Example- Ariba, Peoplesoft, SAP, EER, Peregrine,etc.Example- Ariba, Peoplesoft, SAP, EER, Peregrine,etc.

Basic division into 2 parts:Basic division into 2 parts:

1.1. Supplier hosted solutionsSupplier hosted solutions

Dell will host the catalog .Dell will host the catalog .

Customers will access their own custom catalog to Customers will access their own custom catalog to retrieve their personalized configurations.retrieve their personalized configurations.

Catalog maintenance by sales representatives. Catalog maintenance by sales representatives.

1.1. "PunchOut" - authenticated access to the customer's "PunchOut" - authenticated access to the customer's catalog at Dell from the customer's Internet browser to catalog at Dell from the customer's Internet browser to facilitate shopping facilitate shopping

2.2. Order Requisition - shopping cart data pulled back into Order Requisition - shopping cart data pulled back into the customer's ERP system and workflow processing the customer's ERP system and workflow processing

3.3. Electronic Purchase Order - sent back to Dell for Electronic Purchase Order - sent back to Dell for automated order processing automated order processing

4.4. PO Acknowledgement - response returned to customer PO Acknowledgement - response returned to customer

2.2. Buyer Hosted Solutions: Buyer Hosted Solutions: Most complex and require resources, time and effort to Most complex and require resources, time and effort to implement.implement.

Catalog information exported to a spreadsheet or file Catalog information exported to a spreadsheet or file and either sent to the customer directly for inclusion in and either sent to the customer directly for inclusion in their own system or moved to the E-Procurement their own system or moved to the E-Procurement vendor's network to be utilized and accessed there.vendor's network to be utilized and accessed there.

Information can become outdated so regular updates Information can become outdated so regular updates required.required.

Customer bears a large burden of catalog maintenance.Customer bears a large burden of catalog maintenance.

Supplier vs. Buyer Supplier vs. Buyer SupplierSupplier

Pros:Pros: Real-time Data Updates Real-time Data Updates Data Accuracy Data Accuracy No Double Entry No Double Entry Integrated Electronic Integrated Electronic

Transaction Transaction Allows supplier to manage Allows supplier to manage

complexity of valid complexity of valid configurationsconfigurations

Cons:Cons: Requires XML Communication Requires XML Communication

Capability .Capability . Customer gets a different look Customer gets a different look

and feel from every 'Punchout' and feel from every 'Punchout' suppliersupplier

BuyerBuyer

ProsPros:: Works well for commodities Works well for commodities

with limited configurations with limited configurations Catalog Preview Management Catalog Preview Management Consistent look and feel Consistent look and feel

among different suppliersamong different suppliers

ConsCons:: Data Accuracy Data Accuracy Catalog Management Catalog Management Manual Data Update and Manual Data Update and

Order Receipt (sent in email)Order Receipt (sent in email)

Engaging With DellEngaging With Dell

In order to maximize customer opportunities In order to maximize customer opportunities through B2B integrations, Dell has identified the through B2B integrations, Dell has identified the primary criteria for quick, successful primary criteria for quick, successful integrations. These are divided into two parts:integrations. These are divided into two parts:

1.1. Purchasing Focus:Purchasing Focus:

Developed or are developing an e-Developed or are developing an e-commerce strategy.commerce strategy.

Larger numbers of orders .Larger numbers of orders .

More standardized configurations.More standardized configurations.

Centralized procurement.Centralized procurement.

Engaging with Dell Engaging with Dell Contd.Contd.

2.2. Technology focus:Technology focus:

Dell's solutions are best designed for customers Dell's solutions are best designed for customers with some of these capabilities:with some of these capabilities:

Punch out capabilities in their ERP or Punch out capabilities in their ERP or access to an authenticated intranet.access to an authenticated intranet.

Dedicated development teams.Dedicated development teams.

ERP systems that can use or translate ERP systems that can use or translate XML. XML.

Dell- Customized for the Dell- Customized for the CustomerCustomer

Corporate customers account for almost 85% of Corporate customers account for almost 85% of revenue.revenue.Large corporate customers access Dell website Large corporate customers access Dell website called dell premier which is a customized version of called dell premier which is a customized version of dell.com.dell.com.Access to product and service information tailored to Access to product and service information tailored to a particular company.a particular company.Can order PCs directly from a menu of Can order PCs directly from a menu of

configurations pre-approved by the company configurations pre-approved by the company without going through normal purchasing channels without going through normal purchasing channels or paperwork.or paperwork.

Dell Premier Dell Premier

Orders put on Premier are automatically routed to higher Orders put on Premier are automatically routed to higher managers for approval which eliminated paperwork and managers for approval which eliminated paperwork and delays.delays.

Access to Dell’s own on-line internal technical support Access to Dell’s own on-line internal technical support tools which is actually used by Dell’s Support personnel tools which is actually used by Dell’s Support personnel when a customer calls for help.when a customer calls for help.

Premier sites can integrate with -Premier sites can integrate with - Microsoft (Biztalk) Microsoft (Biztalk)

Oracle, Peoplesoft , SAP ,etc .Oracle, Peoplesoft , SAP ,etc .

Dell Premier contd.Dell Premier contd.

The Dell Premier sites includes more than The Dell Premier sites includes more than 500,000 pages of information and facilitates 500,000 pages of information and facilitates greater knowledge transfer.greater knowledge transfer.

Gives detailed info on all the configurations(h/w Gives detailed info on all the configurations(h/w and s/w) present in the customer’s pc which and s/w) present in the customer’s pc which helps in quick decision making for customer if helps in quick decision making for customer if going for upgrades.going for upgrades.

The same configurations info helps Dell to make The same configurations info helps Dell to make repeat business with customers by offering repeat business with customers by offering products specifically to them.products specifically to them.

Dell Premier contd.Dell Premier contd.

Dell e-learningDell e-learning

Need for training for continuous product development, Need for training for continuous product development, while keeping a worldwide sales and service while keeping a worldwide sales and service organization up to speed.organization up to speed.Issues of quality, costs and no re-useIssues of quality, costs and no re-useEedo's ForceTen chosen as the content development Eedo's ForceTen chosen as the content development and delivery platform for e-learning programsand delivery platform for e-learning programsEnabled Dell to own and control their content as well as Enabled Dell to own and control their content as well as the development processthe development processHigher quality training, cost reduction, re-use and Higher quality training, cost reduction, re-use and translation facility.translation facility.ResultResult: Dell increases sales productivity by 20%, while : Dell increases sales productivity by 20%, while reducing training development costs by 55%reducing training development costs by 55%

Authentication SolutionsAuthentication Solutions@ DELL@ DELL

Dell authenticationDell authentication

Challenge at hand:Challenge at hand:Integrate authentication and identity Integrate authentication and identity

management for Microsoft Windows, UNIX, and management for Microsoft Windows, UNIX, and Linux platformsLinux platforms

Incorporate this into Microsoft Active Directory Incorporate this into Microsoft Active Directory across the entire Dell infrastructureacross the entire Dell infrastructure

Solution:Solution:Vintela Authentication Services from Quest Vintela Authentication Services from Quest

Software deployed with the help of Quest Software deployed with the help of Quest Professional ServicesProfessional Services

Consolidating authentication andConsolidating authentication andidentity management systems:identity management systems:Multi-Platform ManagementMulti-Platform Management Integration (MPMI).Integration (MPMI).Microsoft Active Directory serviceMicrosoft Active Directory servicePlanning for the future:Planning for the future:Migrate the local user accounts from each non-Migrate the local user accounts from each non-

Windows system into Active Directory.Windows system into Active Directory.Building a relationship:Building a relationship:Able to use this product for all costumer related Able to use this product for all costumer related

solutions with a guarantee of successful executionsolutions with a guarantee of successful execution

Dell authentication contd.Dell authentication contd.

CRM @ DELLCRM @ DELL

Dell maintains special DB of its top 50 global customer.Dell maintains special DB of its top 50 global customer.Maintains a Global Data Repository for all of its Maintains a Global Data Repository for all of its customer.customer.Uses DB compiled by Dun & Bradstreet for 500 global Uses DB compiled by Dun & Bradstreet for 500 global companies for selectively targeting sales efforts .companies for selectively targeting sales efforts .

Real Time CRMReal Time CRMWhen a customer calls in for placing order then customer When a customer calls in for placing order then customer

service links directly to Dell’s Real Time inventory .service links directly to Dell’s Real Time inventory .

Depending on latest inventory data Dell can :Depending on latest inventory data Dell can :– Push Available inventory at lower cost.Push Available inventory at lower cost.– Promote latest/new products at higher cost.Promote latest/new products at higher cost.– Provide add-on products with discounts .Provide add-on products with discounts .

CRM in DellCRM in Dell

Boeing as part of Federal Govt rule cannot use internet Boeing as part of Federal Govt rule cannot use internet for doing business.for doing business.

Dell has adapted customized its offering to Boeing’s IT Dell has adapted customized its offering to Boeing’s IT system .system .

Dell uses EDI for processing orders from Boeing directly Dell uses EDI for processing orders from Boeing directly into its order management system.into its order management system.

30 Dell people take care of Boeing’s 140,000 Dell PCs - 30 Dell people take care of Boeing’s 140,000 Dell PCs - forecasting future PC purchases, managing current forecasting future PC purchases, managing current inventory and securing needed service and support.inventory and securing needed service and support.

Why Boeing will only do business with Why Boeing will only do business with Dell -CRMDell -CRM

Demand Forecasting at DellDemand Forecasting at Dell

Starting 2005 Dell set up Kiosk locations at Shopping Starting 2005 Dell set up Kiosk locations at Shopping malls across US (Wal Mart Stores and other shopping malls across US (Wal Mart Stores and other shopping malls), Canada ,China ,Japan and Australia where malls), Canada ,China ,Japan and Australia where people can experience dell products .people can experience dell products .

Customers place order for dell products to be delivered Customers place order for dell products to be delivered later.later.

Reasons for going for Hybrid Sales ModelReasons for going for Hybrid Sales Model

Biggest competitor HP gaining market share faster Biggest competitor HP gaining market share faster particularly in notebooks chiefly because of retail outlets.particularly in notebooks chiefly because of retail outlets.

Low internet penetration in India and China –two of Low internet penetration in India and China –two of biggest and fastest growing markets.biggest and fastest growing markets.

Dell losing confidence in Direct internet Dell losing confidence in Direct internet based sales model ??based sales model ??

Summary of MIS and its Effect in DellSummary of MIS and its Effect in Dell

Acknolwdgements /SourcesAcknolwdgements /Sources

Dell.comDell.com

Cio.comCio.com

Idc.comIdc.com

WikipediaWikipedia

Google.comGoogle.com

Quest.comQuest.com

I2.comI2.com

CENTER FOR RESEARCH ON INFORMATION CENTER FOR RESEARCH ON INFORMATION TECHNOLOGY AND ORGANIZATIONS University of TECHNOLOGY AND ORGANIZATIONS University of California, Irvine.California, Irvine.

Businessweek.comBusinessweek.com

http://www.intel.com/ebusiness/pdf/affiliates/i2-dell.pdfhttp://www.intel.com/ebusiness/pdf/affiliates/i2-dell.pdf

THANK YOUTHANK YOU