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Dell evolution Dell strategy past to present

Dell evolution Dell strategy past to present. Daniel Spanier, Alexandra Bielkov á. About the P resenters. Daniel Spanier Education: Bachelors of Economics and International Management 6 Sigma Green Belt Certified Work experience Dell: Finance Director – EMEA FP&A

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Dell evolution Dell strategy past to present

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  1. Dell evolutionDell strategy past to present Daniel Spanier, Alexandra Bielková

  2. About the Presenters • Daniel • Spanier • Education: • Bachelors of Economics and International Management • 6 Sigma Green Belt Certified • Work experience Dell: • Finance Director – EMEA FP&A • Controller– EMEA Services Call Centers • Services Globalization and Liberty Lead • Americas Support Services Team Lead • Worldwide Operations - Manufacturing • Alexandra • Bielková • Education: • Masters in Maths & Mgmt, Comenius University, 2002 • PhD in Mathematics, Comenius University • Work experience Dell: • Services FP&A manager • Western EMEA FP&A • EMEA RUM Forecast Coordinator • OPEX controlling & consolidation • EMEA Fin Systems Training Coordinator

  3. Agenda Dell strategy past to present • Strategy • Dell direct model • Dell.com • Dell embracing the channel • Strategy shift • IT trends • The new Dell business model • Going private – change in strategy? 1) 2) 1) http://techaisle.com/blog/2012/04/dell-confirms-its-position-as-an-end-to-end-solutions-company/ 2) http://www.forbes.com/sites/connieguglielmo/2013/10/30/you-wont-have-michael-dell-to-kick-around-anymore/

  4. What is Strategy? “The determination of the basic long-term goals and the objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals." Chandler, 1962, Strategy and Structures: Chapters in the History of the Industrial Enterprise, MIT Press, Cambridge, Mass) 1) However, “You learn the most when you make mistakes. There is no such thing as a perfect plan. Talk about what is not working and move quickly to fix it as soon as you find it,” Michael Dell 2) 1)http://www.ifm.eng.cam.ac.uk/csp/summaries/ms.html2)http://en.community.dell.com/dell-blogs/direct2dell/b/direct2dell/archive/2011/11/10/michael-dell-opens-e-amp-y-strategic-growth-forum-2011-a-conversation-with-charlie-rose.aspx

  5. Strategy to execution Vision Mission Values ELT Strategy Objective Change Initiatives Planning Sales Front Office Manufacturing Customer Support Back Office Demand Supply IT Finance Marketing & Product Development HR Information & Communication Flow

  6. Dell Direct

  7. PC’s in the Mid 1990’s…

  8. Dell direct model

  9. Build to order cost benefits Components Purchase Cost Product Assembly Cost to Competitors Customer Places Order Shipment to Distributor Manufacturer's Inventory Shipment to Reseller Cost advantage Dell Procures Components, Assemblesand Ships Channel Inventory Dell Cost 8 Weeks Ago 6 Weeks Ago 4 Weeks Ago 3 Weeks Ago Today Time Customer Benefits ConsistentSupplyGlobally Immediate Response to Customer Needs LowestCost Consistently

  10. Dell.com

  11. 2008 Dell.com - a brief history • 2001: Online technical staff moved into IT • 2002-3: New content publishing system • 2003: Code re-written to .Net, consolidation onto global code base • 2005: Widespread AJAX implementation • 2009: Completed widespread globalization • 2010+: Radically improve Customer Experience • 1994: Launched as internal tech support site • 1996: Became commercial site with limited product set • 1997: Reached $1M/day in revenue • 1999: 1st Content Publishing capability • 1999: Accounted for 50% of Dell Revenue • 2000: Re-platform to VB and J++ 2001 1996 2003 2007 2006 2011 2012 1999

  12. Dell online today Online: Dell.com + Premier Pages + Global Portal + B2B 7.3 M online transper year, e-pen = 42.2% 34supported languages 25M visits on PP and GP pages per year 1.8M B2B transper year 1B visits per year to Dell.com 124K Premier and Global Portal pages 86% of trans are Client and SnP products 11B online revenueper year An online orderis placedevery4 seconds 2B online marginper year

  13. Dell embracing the channel

  14. Group exercise & discussion:Why did Dell enter the indirect business model?

  15. Direct model

  16. Indirect model

  17. Dell approach – Global commercial channel Level of cooperation

  18. Dell approach • 1984-2006 • Pioneered direct model • Extreme growth, 2003 No.1 in PC market • Indirect business not addressed specifically • Changes on IT market in 2005/6 • 2013 - Now • 2008 - 2013 • June 2007 • “Direct model has been a revolution but it is not a religion” Michael Dell • Expansion into Indirect (Channel) business • Global Commercial Channel • Consumer Retail • New Dell : E-Dell, BVS, Client Reinvention • BRIC countries • New Dell Business model • BYOD • Going private

  19. Dell Strategy shift

  20. Dell strategy shift in 2011 • Dell’s strategy to develop its capability as an efficient technology solutions provider, grow faster than the industry in strategic areas and shift the company’s mix to higher-value products and solutions was outlined here today at the company’s annual stockholders meeting. • During the meeting, Michael Dell, chairman and CEO, and Brian Gladden, chief financial officer, reviewed the company’s business progress and its competitively differentiated strategy to deliver solutions that are highly capable, affordable and flexible to meet the needs of large enterprises, public institutions, small and mid-size businesses. • Mr. Dell described the company’s focus on next-generation computing solutions and intelligent data management; services, security and cloud; and end-user computing, which are critical to driving industry leadership and growing operating income and cash flow over time. http://www.dell.com/learn/ie/en/iecorp1/secure/2011-0715-annualmtg-release

  21. Dell’s leadership in the virtual era Key designtenets Open Create Manage Capable Affordable Services, Security, Cloud End-user computing Next generation computing solutions and intelligent data management Deliver 21

  22. Dell customer perception evolving… • Technology • Enterprise Services • Data center Followers • Efficient • Reliable Low quality Bad service Crap • Meets my needs • Customers PC provider customization • Mobility Laptops • Thought leader • Solutions Good Computers Dude Innovation • Best customer service Reliable Desktops • High quality • Innovative • Virtualization Poor quality Service • Outcomes Affordable OK Old Services Quality Good • Cloud • Services Followers Great Home • Infrastructure Inexpensive Value • IT leader Manufacturer • Smartphones • Trustworthy • PCs Cheap • Tablets Present Future

  23. Dell reflecting current IT trends

  24. Major IT trends Rapidly increasing storage requirements, services instead of in-house solutions Rise of Smartphones, Tablets, Ultra-books and Cloud Services • Global industry trends • BRIC country IT market growth • Consumerization of IT – change of traditional work/life patterns

  25. New Dell Business Model Confidential

  26. New Dell Business Model What: • Introduced in 2013 • Pre-set desktops / laptops for consumer, small businesses • Limited configurations for larger customer • Unique configurations available for very large deals Why: • Lower cost • Quicker delivery • Usually customer doesn’t need that many options Confidential

  27. Dell –the largest start-up Confidential

  28. Discussion:Does Dell need to change its strategy after going private? Confidential

  29. Dell – the largest start-up • http://www.dell.com/learn/us/en/19/videos~en/documents~from-year-one.aspx • This transaction positions Dell to enter an exciting new chapter, continuing the execution of its long-term strategy and focusing on delivering best-in-class solutions to customers as a private enterprise. Under a new private ownership structure, Dell will be even more flexible and entrepreneurial, allowing it to do what it does best — to serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals.

  30. Key takeaways • Dell has adapted its strategy to better serve customers several times throughout its history • Examples presented in this session include: • the Direct Model on which the company was founded • Leadership and pioneering in E-Commerce (Dell.com) • Embracing the channel – revisiting the direct model • Strategic shift of Dell transformation into an end-to-end solutions provider • Dell New Business model • Dell being private – strategy change needed?

  31. Thank You

  32. Backup

  33. How does Michael Dell describe the Dell evolution? • http://www.youtube.com/watch?v=N3VOR31Hrn4

  34. Dell’s commitment to customers • http://www.youtube.com/watch?v=-5-3t4RAaio

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