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PRODUCT DEVELOPMENT AT DELL COMPUTER CORPORATION

Group Members. From left to rightLe Thi Thu Tam : M9618802Doan Thi Truc Linh : M9701801Bui Tien Dung : M9701808 . OUTLINE. . . . Digital computer designed by Charles Babbage. Harvard -IBM Mark ILarge-scale automatic digital computer. Mark-8 designed by Jonathan A. Titus.

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PRODUCT DEVELOPMENT AT DELL COMPUTER CORPORATION

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    1. PRODUCT DEVELOPMENT AT DELL COMPUTER CORPORATION

    2. Group Members

    3. OUTLINE

    4. The Personal Computer Industry

    5. The Personal Computer Industry (cont’d)

    6. The History of Dell 1983: Started in Michael Dell’s dorm room at the University of Texas 1985: Grossed $70 million in sales 1992: made the Fortune 500 Ranks 2nd in computer sales

    7. The Dell Business Model Dell’s success is a combination of: Direct sales Home-based telephone representatives Field-based representatives Build-to-order Supplier integration

    8. Dell Computer Stumbles

    9. In 1991: first line of portable computer Through software and communications capabilities significant personalization. In 1992: with portables accounting for 17% of Dell’s sales, rumors circulated about quality problems: faulty battery packs, unreliable screens, power failures, broken hinges.. Early setback in portable computers

    10. Early setback in portable computers In 1993: canceled a new line of laptops under development (too slow and expensive) Desktops division had racked up unit volume increases of 155% but notebook sales had slipped to just 6% of Dell sales. Dell recall 17,000 notebooks Launching a new line of notebooks , name “Latitude”

    13. Dell’s Latitude development Project (cont)

    14. Battery Technology

    15. NiMH and NiCad Battery

    16. LiOn Battery

    17. Dell’s solution

    18. Option 1 Continue with a proven battery technology(NiHi)

    19. Option2 Go with the new battery technology(LiOn)

    20. Option 3a Dual development

    21. Option 3b Overdesign

    22. Discussion question

    23. Competition between four options

    24. Function to analyze sensitivity Option 1: $485m Option 2: 349.5 x p + 234.5 Option 3a: 99 x p + 482.5 Option 3b: 97.02 x p 475.1 With p: probability of LiOn success

    25. Sensitivity analysis

    26. Sensitivity analysis (cont’d)

    27. Sensitivity analysis (cont’d)

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