Post on 12-Jan-2016
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