Dell: Unlocking InnovationPresented by Garikayi, Kieran

Habeeb, Omari, Patrick and Jakub.

Dell: The Early DaysBegan in 1984 by Michael Dell

Initially known as PC’s Limited

Changed to ‘Dell’ in 1988

Began selling through website in 19962002 Dell expanded its product line

By Garikayi Brasington Madzudzo

Dell Business ModelSimple in concept but involves great

complexity and precision in actual execution.

By Garikayi Brasington Madzudzo

Build – to - OrderCustomer configures the product on the web.Order fulfilled within 36 hours.From its early beginnings, Dell operated as a

pioneer in the “configure to order” approach to manufacturing .

Customers are aided by configuration management software that enables them to choose from a menu of hardware and software options.

By Garikayi Brasington Madzudzo

Build-to-Order

By Garikayi Brasington Madzudzo

Direct SalesDell sells its products to customers using

direct sales model via Internet and Telephone network.

The direct sales approach is built on two key elements : 1. direct customer relationships.2. products and services targeted at distinct customer segments.

Implements a just-in-time manufacturing approach

By Garikayi Brasington Madzudzo

Dell’s Value Web Model

By Garikayi Brasington Madzudzo

Direct Sales ComparisonIndirect distribution channel of the PC industry

Dell’s direct distribution channel

By Garikayi Brasington Madzudzo

AdvantagesBrings new products to market quicklyIncreases market shareAchieves high returns on investment in a

highly competitive industry.Successful in minimizing inventoryCheap pricesEnhances customers satisfaction

By Garikayi Brasington Madzudzo

References Steven, A.: Information Systems, the foundation of E-business.

Fourth edition..Prentice Hall, 2002. Kraemer K., Dedrick J., Yamashiro S.. Refining and Extending

the Business Model with Information Technology: Dell Computer Corporation .2000

www.indiana.edu/~tisj/readers/full-text/16-1%20kraemer.pdf http://crito.uci.edu/papers/2002/ImpactofITonPC.pdf www.dell.com

By Garikayi Brasington Madzudzo

DELL INFORMATION SYSTEMS

By Habib Munir Babba

WHY WE NEED INFORMATION SYSTEMS..

• Dell also uses information to manage relationships withcustomers.• Senior managers need information to help with their business planning• Middle management need more detailed information to help them monitor and control business activities• Employees with operation roles need information to help them carry out their duties.

Dell: Information System• Transaction Processing Systems (TPS)

• Decision Support Systems (DSS) • Expert Information Systems (EIS)

• Order Management Information Systems (DMIS

• Office Automation Systems (OAS) By Habib Munir Babba

Transaction Processing SystemManage customer relationships

Broker between customer and 3rd party maintainers

Call-Centre uses system to troubleshoot customer problems

Develops computerised FAQ’s (Frequently Asked Questions)

By Habib Munir Babba

Order routed to finance department

Payment approved, order referred to engineering

Transferred to plant, with order specification

Order checked against inventory

Production begins.

Order Management System

By Habib Munir Babba

Dells Success: How IT HelpedThe contributionof IT to operational efficiency is reflected in

measuresrelated to procurement and inventory,

manufacturing production,cash management, and administrative

overhead

By Habib Munir Babba

Dell - Information Access Requirements

Unique business modelConnecting participantsReal-time responseVirtual integration

by Jakub Gieryn

Unique business model:knowledge drives sales

TrendsTechnology Know-how Competition

by Jakub Gieryn

Connecting participants : team effort to sell & service

by Jakub Gieryn

Real-time response:key to customer care

by Jakub Gieryn

Virtual integration

by Jakub Gieryn

Dell: Management Structure

By Kieran Saeed

Strategic

Tactical

Operational

Strategic LevelPrioritise customer satisfaction

Disdain inventory

Fully customised PC’s

By Kieran Saeed

Tactical LevelMinimum stock

Strategically placed warehouses

Agility in staff

36 hours max

By Kieran Saeed

Operational LevelKeep staff motivated

Offer technical support, different levels available to buy

Conduct surveys and continue to ask for customer feedback

By Kieran Saeed

How Dell integrates its supply chain

A Supply Chain encompasses all activities in fulfilling customer

demands and requests

By Omari Kondo

There are four stages in supply chain

The supply network,The internal supply chain (which are

manufacturing plants),Distribution systems, The end users.

By Omari Kondo

Supply Chain

By Omari Kondo

Supply Chain in a Dell way.Direct ‘Build-to-order’

Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage

By Omari Kondo

Challenging TimesDell lost the leading in 2006

In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. The problem of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). By 2009 Dell’s Market Share in US and Worldwide (2009) compared to other top PC makers was still under HP.

By Omari Kondo

http://www.casestudyinc.com/dell-supply-chain-case-study

Referenceshttp://www.casestudyinc.com/dell-supply-c

hain-case-studySteven, A.: Information Systems, the foundation of E-

business. Fourth edition..Prentice Hall, 2002.Saunders,R.: Business the Dell Way, 10

Secrets of the World’s Best Computer Business.

www.dell.com

By Omari Kondo