Dell: Unlocking Innovation

1. Dell: Unlocking Innovation Presented by Garikayi, Kieran Habeeb, Omari, Patrick and Jakub.

2. Dell: The Early Days • Began in 1984 by Michael Dell • Initially known as PC’s Limited • Changed to ‘Dell’ in 1988 • Began selling through website in 1996 • 2002 Dell expanded its product line By Garikayi Brasington Madzudzo

3. Dell Business Model Simple in concept but involves great complexity and precision in actual execution. By Garikayi Brasington Madzudzo

4. Build – to - Order • Customer 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

5. Build-to-Order By Garikayi Brasington Madzudzo

6. Direct Sales • Dell 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

7. Dell’s Value Web Model By Garikayi Brasington Madzudzo

8. Direct Sales Comparison • Indirect distribution channel of the PC industry • Dell’s direct distribution channel By Garikayi Brasington Madzudzo

9. Advantages • Brings new products to market quickly • Increases market share • Achieves high returns on investment in a highly competitive industry. • Successful in minimizing inventory • Cheap prices • Enhances customers satisfaction By Garikayi Brasington Madzudzo

10. 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

11. DELL INFORMATION SYSTEMS • WHY WE NEED INFORMATION SYSTEMS.. • Dell also uses information to manage relationships with • customers. • 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. By Habib Munir Babba

12. 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

13. Transaction Processing System • Manage 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

14. Order Management System • Order routed to finance department • Payment approved, order referred to engineering • Transferred to plant, with order specification • Order checked against inventory • Production begins. By Habib Munir Babba

15. Dells Success: How IT Helped • The contribution • of IT to operational efficiency is reflected in measures • related to procurement and inventory, manufacturing production, • cash management, and administrative overhead By Habib Munir Babba

16. Dell - Information Access Requirements • Unique business model • Connecting participants • Real-time response • Virtual integration by Jakub Gieryn

17. Unique business model:knowledge drives sales • Trends • Technology • Know-how • Competition by Jakub Gieryn

18. Connecting participants : team effort to sell & service by Jakub Gieryn

19. Real-time response:key to customer care by Jakub Gieryn

20. Virtual integration by Jakub Gieryn

21. Dell: Management Structure Strategic Tactical Operational By Kieran Saeed

22. Strategic Level • Prioritise customer satisfaction • Disdain inventory • Fully customised PC’s By Kieran Saeed

23. Tactical Level • Minimum stock • Strategically placed warehouses • Agility in staff • 36 hours max By Kieran Saeed

24. Operational Level • Keep staff motivated • Offer technical support, different levels available to buy • Conduct surveys and continue to ask for customer feedback By Kieran Saeed

25. How Dell integrates its supply chain A Supply Chain encompasses all activities in fulfilling customer demands and requests By Omari Kondo

26. 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

27. Supply Chain By Omari Kondo

28. 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

29. Challenging Times • Dell 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. http://www.casestudyinc.com/dell-supply-chain-case-study By Omari Kondo

30. References • http://www.casestudyinc.com/dell-supply-chain-case-study • Steven, 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