Dell Online (Case Study)


Background (General case), Dell Computer Corporation is a reward for the production of information over the cradle. In 1983, Michael Dell saw the opportunity to computers compatible with IBM’s new production, which can be sold to local companies are used. The idea, says Michael Dell, the interview with Joan Magretta [1] is that the early days of the computer industry, companies must be able to generate all parts of the system. As the industry matures, companies started to individual parts and who specialize in creating objects that are installed on other sites to prepare the team can concentrate. As a result, Dell is aware that a competitive advantage in the market, including measures to sales and use of capital to increase production by other manufacturers already creating.In 1990-computer market, laptops, network servers would focus. Dell with the high-end machine, IBM, HP, Compaq and range of products that compete to provide consumers with price-fixing systems and reliable network systems companies. In the late 90s, approximately 40% of households have a computer in the United States. Instead, the business side, is about 80% of companies in the old server and desktop computers. The Board has approved the agreement, in this case only 2.2% of revenues to the total price of Dell servers, workstations 1996.In 7.8 billion in sales in the 90 years the traditional channels or resellers (VARs) to circumvent, to sell directly to consumers over. “Direct Model”, Michael Dell, or comments, as new employees are considered “model” is not so strong. It is simply a way to make the cycle of the Dell supply chain to reduce standards and deliver products directly from manufacturer to customer. They created in cooperation with several manufacturers such as Sony, Intel and other goods delivered in the order of the assembly operation. Shipping and Transport have rejected a special service that also supply to both directly from the supplier. Mr. Dell spoke about how suppliers benefit from the fact that Dell buys more goods from suppliers inventory management, demand for faster delivery orders.In 1996, Dell increased the number of customers, the benefits the Internet, and launched an online Shop at E-commerce sales channel has to be best suited to the model in the supply chain directly from Dell uses fit. On the way competition in the market, Dell had to offer additional services such as Dell, plus that to install commercial software, Dell DellWare offers hardware and software from other manufacturers, and service and support. These actions, described by Michael Dell, it requires new partnerships, Mr. Dell described the process of “trial and error.” Integration partners changed technology is changing and many providers are volatile, while others still for sale. On the other hand, are looking for a construction shop has some of the players so that the development, Dell has given the portal? Architecture house.Enterprise
Supply Chain Management: Purchase, and the number of events, the Dell business processes requires properly configured and appropriately.
Outsourcing: In response to the demand in certain parts of the process of applying for services from other companies that have a relationship with Dell.
Quality assurance: the computer industry is very dynamic, which by the quality of products in consumer-oriented technology.
Automation Company: Advanced online markets, such as Dell, providers are afraid to lose their jobs if the sale automatically.
Dynamics: Technology requires consumption closely, “to keep the gap between demand and low supply temperature.
Analysis of Supply Management Supply Chain Management (SCM), the goal is to integrate all business activities to improve relationships at all levels (internal function, supplier networks and distribution channels) to competitive advantage and customer satisfaction (Al-Mashari and Zairi, 2000) to reduce emissions [2]. To create efficient business processes as well as comprehensive support for the SMC, the information flow among all trading partners is available. The exchange of information via the Internet to the differences between companies (B2B), business, so that a seamless integration of business processes between trading partners (Archer, 2006) to reduce [3]. Dell has developed its business in the internal production processes to cells to begin to create the contract. In addition, an internal reporting system and production of electronic information products in all of the chain. You can control the supply of computer components, Dell has close relationships with suppliers and logistics providers to manage inventory system, while Dell is focused on product development (Kumar and Craig 2007) [4]. Dell can also use the technique from the database and methods available to suppliers do not understand how Dell. Use from the perspective of the consumer orders over the phone or through developed tracking code that the consumer to check the status of your order at any time by phone or page can sourcing organizations. Across the world benefit from the specialized services offered by various Dell. Faced in relation to shipping and transportation such as UPS (United Parcel Service) and DHL, as a teacher in the area are. UPS and DHL has set offices and vehicles in the world. They offer services to companies through internationalization, they can fall within the internal business processes of companies (Marcum 2007) [5]. A company like Toshiba, for example, after-sales support needed to send the damaged equipment and the demand side. These UPS said: “Listen, instead of driving to their customers, which in our midst, and then steal our operations center and the center of downtown, and we go back to our hometown of his client and trying everything that cut in between . We are collecting the UPS, repair and send it directly to the customer “(Friedman 2006) [6]. Dell knows that there is no need for competition if you have an advantage in the market. Michael Dell said that it is necessary to evaluate the competition and choose the best. In this context, the sale has been made after the event, with companies specializing in this area and the distribution system can be built to meet the needs of consumers justice to be contacted. In addition, the shipping is done through offering different systems for network operators to offer consumers and retailers around the world. Dell also posted the following airlines offer the supplier undertakes to drive the screen directly to the consumer arena time.Quality Assurance try competitiveness of the companies an advantage over agents that do not necessarily get the price in context. Restrictions on outsourcing, because of the excessive decentralization of the organization may have a negative impact on the value chain. Combing the various ways to support the diversification in terms of acceleration of the market and improve product quality (Ernst 2000) [7]. Dell is the heart of Penang, Malaysia, the Dell brings in the center of town, near where most manufacturers have their own factories. Orders for goods come straight from the heart of Penang centers for logistics service providers “(SLC)-chain [8]. Penang message center candidate sites have been compiled at the request of the customer. The whole design was strong enough to require no more than 36 hours from order to delivery. When it comes to the quality of the service, Dell has received numerous awards. However, it is one way to find increasing the efficiency of their products. Michael Dell suggested that the reduction to reduce the human interaction with the hard drive during installation on the failure rate. Therefore reduces the number of “touches” the failure was reduced by 20%. Business Automation general attitude of the people and workers is that the automation of complex IT systems to internal processes and lead to a reduction in the number of workers (Khatib, V. Thyagarajan and Seetharaman 2003) [9]. There are several psychological and behavioral problems associated with resistance to change seems to inhibit the growth of electronic commerce. On the other hand, retailers do not believe that their sites are just some of the benefits to their customers ROI (return on investment), web sites, the brick and mortar counterparts are exceeded (Casey, 2004) [10]. For this reason, workers need in traditional sales training, introducing new technologies and learn how to use them, Dell online store consumer response has been tremendous the cache, but at the beginning of the officials fear that the online site can offer to reduce the sale be closed. To solve this problem, Dell has a model of how to save more representative of the online store to support sales and profitability at the same time to produce results show a positive return introduced. Customer relationships in a dynamic relationship management (CRM) is a very important competition, which is derived from the amount offered by the sale of telephone service. Understanding the customer through the first phase of data collection and trend analysis, and finally to a knowledge base to create supports the beneficial relationship (Liew 2008) [11]. With the models of the organization is trying to see at first hand the CRM, can get to improve marketing effectiveness, the more options for customizing and branding, among other things, depending on the company (Anderson, Fair Jolly and Hurst 2007) [12]. Michael Dell’s model is the maintenance of inventory, customer segmentation to Dell scalable for companies that are analyzed at the level of demand is based. Dell Sales managers use communication techniques to get information about our customers to increase support for initiatives in anticipation of demand to the company. Dell also sent questionnaires to customers to better understand the level of satisfaction with services, Dell, and change the line of products and services accordingly. On the other hand, Michael Dell said that the regional meetings in various countries has invited potential customers to improve relationships and to make space for comments and opinions on Dell Services. In addition, Dell has been working together to provide information to customers so that they make the right decisions they need to obtain confidential information about new technologies and the future. Dell invests in the development of a portal “Premier Pages” for high-end customers and small and medium [13]. Both parties will endeavor to provide information to customers and establish a centralized access to customers of IT services requirements.ConclusionsDell is simply a success, but it shows how you can gain an advantage in the market is enough to understand what it means to add value to the customer that means. Nobody, not even Michael Dell himself, when he started, I thought that the people to change their jobs and wait patiently for the PC will eventually want to return to their homeland. Some studies say that the supply of people ask themselves whether Dell’s initial estimates, the amount of development to try Dell osiągnięte.Właściwe problems like any growing company. However, adaptation techniques, such as outsourcing and alliances between the potential benefits of a reduction of only 80,000 personnel 15,000. Dell is aware of the factors influencing the supply chain. For example, keeps a list of a number of practitioners who are not affected by unexpected delays and organizational problems. Also understand the importance of the development of business systems to manage all the variables from home and maintain processes.This company is one of the best deals in the IT industry. I think the level of commitment shown by the Dell has created is exciting. From the viewpoint of the editors, I think the main internal network infrastructure, Dell will help build understanding of how the supply chain actually worked. These are the modules for CRM, ERP, SCM, or a combination of all? How do I connect the Dell to journalists, all of which were mature when it comes to information systems to inform? Recommendations
Companies need to value, how to focus the creation of portals for their customers.
Companies often need to test the level of service and are working to improve their products.
Companies need to decentralize and give the extension, using techniques such as global outsourcing and provisioning.
Construction of internal information, the company has the most efficient way to share information and knowledge.
By creating multiple interfaces with customers, strengthen relationships and improve satisfaction.
Meet international quality standards is the only way to achieve a competitive advantage in the arena.
Evaluation of the internal organization and the training necessary to maintain a good mood, and increase employee productivity.
Management support and funding is the key to successful implementation of IT systems.
Joan Magretta, “the power of virtual integration: an interview, Michael Dell, Dell Computer. “Harvard Business Review 76, No. 2 (March / April 1998). 72-84, 13, 2
Majed Al-Mashari and Mohamed Zairi. “, The reconstruction of the supply chain Enterprise Resource Planning (ERP) analysis of SAP R / 3,” International Journal of Physical Distribution & Logistics Management 30, No. 4.3 (2000): 296-313
Norman P. Archer, supply chains and business operations, “Information Business Journal 19, No. 3 (2006). 241-245, 242
Sameer Kumar and Sarah Craig, “Dell Inc. is a closed supply chain computer assembly plants.” Knowledge Management Information Systems 6, No. 3 (2007). From 197 to 214.18.
Marcum, Jennifer. “In-source or outsource?” Bioprocess International June 2007
Thomas L. Friedman, The World is Flat (New York: Farrar, Straus and Giroux, 2006), 168
Dieter Ernst, “the inter-organizational knowledge outsourcing for small business with the Taiwanese computer industry”, Asia Pacific Management Journal (Springer Netherlands) 17, No. 2 (August 2000) can compete. 223-255248
Friedman, World Is Flat, 516
Ali Khatib, V. Thyagarajan and A. Seetharaman, vikalpa “E-commerce in Malaysia, benefits and barriers.” Memoirs of 28 artists, No. 3 (July-September 2003). 77-82, 6
Bernadette Casey “Black Monday online stores on Friday.” DSN Retailing Today, December 13, 2004: 13 to 13.0.
Anthony Liew Chor Beng, “The integration of knowledge management and strategic customer relationship management.” Knowledge Management Journal 12, No. 4 (2008). 131-146.
Anderson, Joan L., Laura D. Jolly, Ann E. Hurst fair. “The management and sales. Analysis of the contents of journals in the details,” the official data and the consumer 14, no. 6 (November 2007): 394-399, 6
Alora Gilbert. “Dell’s target market small online businesses,” Electronic Buyers News October 2000 ‘2: 58, 0 .