4. Improves the organization by focusing on
Improving Needs of the customer
Empowering employees
Optimizing existing activities in the
process.
IMS-DAVV-MBA FT
5. OE'S main objective is to reduce operation cost
and wastes, without affecting quality, time
delivery and cost of products and services one
has to offer.
IMS-DAVV-MBA FT
6. Operational Excellence stresses the need to
continually improve by promoting a stronger
teamwork atmosphere.
Safety and quality improvements for employees and
customers lead towards becoming a better enterprise.
IMS-DAVV-MBA FT
8. An American multinational computer technology
corporation based in 1 Dell Way, Round
Rock, Texas, United States.
Develops, sells and supports computers and related
products and services
Named on its founder Michael Dell
Third largest PC Maker in the world, after HP and
Lenovo
41st on Fortune 500 List™.
IMS-DAVV-MBA FT
9. Traditional Operating Cycle
Assembly of PC by Service and support
PC Makers (to Fill activities Provided
Manufactured Manufactured Purchase By PC
order from Suppliers to PC Users by
of PC’s Component of PC’s Component
and Keep Users reseller (or some PC
By Suppliers By Suppliers
distribution Channel Makers – IBM to PC
stock) users
OPERATIONAL CYCLE AT DELL
Service and Support
Customized Assembly
activities Provided to
Manufactured of PC’s By PC
PC Users either by
of PC’s Component Makers as Orders Purchase By PC user
PC Makers (via
By Suppliers from PC Buyers come
Telephone, fax, Email
in
) etc
IMS-DAVV-MBA FT
11. Dell basically builds
computers to fulfill
orders, rather than
keeping it for inventory
This reduces inventory
costs
IMS-DAVV-MBA FT
12. An order is highly customizable at
Dell
Because of this, the customer has a
large variety of product to choose
from.
Therefore a customer may get the
closest alternative for his demand
IMS-DAVV-MBA FT
13. Dell directly partnered with its main suppliers
Prominent advantages like
◦ Enhanced Branding
◦ Getting volume of Components needed for supply
◦ Developing the brand DELL as an industrial
standard, so as to have its own engineers to assist
its customers
IMS-DAVV-MBA FT
14. Dell's just-in-time inventory emphasis yielded major cost
advantages and shortened the time it took for Dell to get new
generations of its computer models into the marketplace.
New advances were coming sofas in certain computer parts
and components (particularly microprocessors, disk
drives, and modems) that any given item in inventory was
obsolete in a matter of months, sometimes quicker. Having a
couple of months of component inventories meant getting
caught in the transition from one generation of components to
the next. Moreover, there were rapid-fire reductions in the
prices of components —most recently, component prices had
been falling as much as 50 percent annually (an average of 1
percent a week).
IMS-DAVV-MBA FT
15. Selling direct to customers gave Dell first hand intelligence
about customer’s preferences and needs, as well as
immediate feedback on design problems and quality
glitches. Management believed
Dell's ability to respond quickly gave it a significant
advantage over rivals, particularly over PC makers in Asia,
that made large production runs and sold standardized
products through retail channels.
Dell saw its direct sales approach as a totally customer-
driven system that allowed quick transitions to new
generations of components and PC models.
IMS-DAVV-MBA FT
16. Online Integration with both be supply
partners
Use of Real-Time, Online transaction
processing systems to minimize operational
and inventory costs.
Customer Support and Problem Solving using
DELL’s online support system
IMS-DAVV-MBA FT
17. Accurate Sales Forecasts
Direct contact with Institutional Customers
Predicting accurate level of sales in advance about
directly connected customers.
IMS-DAVV-MBA FT
18. The company talked to its customers frequently about
"relevant technology”
Dell Selects Silicon Valley to Open Research and
Development Center
Dell improved efficiency using inputs from its
Bangalore research centre
IMS-DAVV-MBA FT
19. For fiscal 2007, Dell spent $498 million, or 0.9
percent of revenue, on R&D.
For fiscal 2008, Dell spent $610 million, or 1
percent of revenue, on R&D
For fiscal 2009, Dell’s R&D spending was $665
million, or 1.1 percent of revenue.
For fiscal 2010, R&D spending was $624 million,
or 1.2 percent of revenue.
For the year ending 2011, Dell reported R&D
spending of $661 million, or 1 percent of revenue.
IMS-DAVV-MBA FT
20. Fiscal R & D Expenditure
(in million dollars)
2007 498
Expenditure
2008 610
2009 665 700
2010 624 600
2011 661 500
400
300 Series 1
200
100
0
2007 2008 2009 2010 2011
IMS-DAVV-MBA FT
21. Through listening, Dell learned that customers want
the power to do more with technology.
Dell's Next Step: The Social Media Listening
Command Center
IMS-DAVV-MBA FT
22. Build a strong foundation on agile IT
with virtualization
Data Center Virtualization
The benefit of data center virtualization
IMS-DAVV-MBA FT
23. Dell Knows Dell PCs
Dell Saves You Time
Dell Can Save You Money
Dell Keeps You Protected from Accidents
Dell Protects Most Everything
IMS-DAVV-MBA FT
24. As dell is the fast seller but needs to work on
green technology
Dell by removing the mediators growing very
fast pace but sometimes the indirect contact is
necessary
It should provide more diverse products
IMS-DAVV-MBA FT
Dell built its computers, workstations and servers to order, none were produced for inventory. Dell customers could order custom built server and workstation based on their needs of their applications.This sell-direct strategy meant that Dell had no in-house stock of finished goods inventories and that unlike competitor using traditional value of chain model, it didn’t have to wait for resellers to clear out their own inventories before it could push new models into market
Dell believed it made much better sense for Dell Computer to partner with reputable suppliers of PC parts and components rather than to integrate backward and get into parts and component manufacturing on its own. The advantages:Using name-brand component enhanced the quality and performance of Dell PC’s.Getting the volume of components it needed the overall market supply.It feasible to have some of supplier engineers assigned to Dell product design team and for them to be treated as part of Dell.Dell’s long-run commitment to its suppliers laid the basis for just-in-time delivery suppliers product to Dell assembly in Texas, Ireland, Penang.
Dell was using technology and information-sharing with both supply partners and customers to blur the traditional arm's-length boundaries in the supplier- manufacturer-customer value chain that characterized Dell's earlier business model and other direct-sell competitors. Michael Dell referred to this feature of Dell's strategy as "virtual integration."16 On-line communications technology made it easy for Dell to communicate inventory levels and replenishment needs to vendors daily or even hourly. A number of Dell's corporate accounts were large enough to justify dedicated on-site teams of Dell employees. Customers usually welcomed such teams, preferring to focus their time and energy on the core business rather than being distracted by PC purchasing and servicing issues. Dell gave its large customers access to Dell's own on-line internal technical support tools, allowing them to go to www.dell.com, enter some information about their system, and gain immediate access to the same database and problem-solving information that Dell's support personnel used to assist call-in customers. This tool was particularly useful tithe internal help-desk groups at large companies
Management believed that accurate sales forecasts were key to keeping costs down and minimizing inventories, given the complexity and diversity of the company's product line. Because Dell worked diligently to maintain a close relationship with its large corporate and institutional customers, and because it sold direct to small Customers via telephone and the Internet, it was possible for the company to keep a finger on the pulse of demand—what was selling and what was not. Moreover, the company's market segmentation strategy paved the way for in-depth understanding of its customers' evolving requirements and expectations. Having credible real-time information about what customers were actually buying and having first hand knowledge of large customers' buying intentions gave Dell strong capability to forecast demand.
