Presented by Garikayi, Kieran Habeeb,
Omari, Patrick and Jakub.
Presenter and Topic
 Garikayi – Dell’s History and Business Model
 Habib – Dell’s Internal Information Systems
 Jacob – Dell’s Information Access Requirements
 Keiran – Dell’s Management Structure
 Omar – Dell’s Supply Chain
 Patrick – Dell’s Position in the Future
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
Simple in concept but involves great
complexity and precision in actual
execution.
By Garikayi Brasington Madzudzo
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
Build-to-Order
By Garikayi Brasington Madzudzo
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
Dell’s Value Web Model
By Garikayi Brasington Madzudzo
Direct Sales Comparison
 Indirect distribution channel of the PC industry
 Dell’s direct distribution channel
By Garikayi Brasington Madzudzo
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
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
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
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
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
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
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
Dell - Information Access
Requirements
 Unique business model
 Connecting participants
 Real-time response
 Virtual integration
by Jakub Gieryn
Unique business model:
knowledge drives sales
 Trends
 Technology
 Know-how
 Competition
by Jakub Gieryn
Connecting participants :
team effort to sell & service
by Jakub Gieryn
Real-time response:
key to customer care
by Jakub Gieryn
Virtual integration
by Jakub Gieryn
Strategic
Tactical
Operational
By Kieran Saeed
Strategic Level
 Prioritise customer satisfaction
 Disdain inventory
 Fully customised PC’s
By Kieran Saeed
Tactical Level
 Minimum stock
 Strategically placed warehouses
 Agility in staff
 36 hours max
By Kieran Saeed
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
A Supply Chain encompasses all activities
in fulfilling customer
demands and requests
By Omari Kondo
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
Supply Chain
By Omari Kondo
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
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
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
By Patrick Kayijuka
How well is Dell positioned for the
future?
 2007 Michael Dell returns as CEO
 44,000 of Dell’s 103,000 employees in service business
(The economictimes)
 Acquisition of 14 companies in different domains
(health care, and other networking and security
services)
 An “Enterprise Solutions”
 strategy : mixing hardware, software and services
By Patrick Kayijuka
Services and cloud model
 Web-based offerings via Dell’s data centres – cloud




model.
There isn’t ONE cloud solution.
Our infrastructure to support other companies cloud.
More understanding of health care, financial services,
manufacturing and retail
Better help to customer solving problems
By Patrick Kayijuka
Social Media and new market
 2 billion social media conversation a year
 Engage with customers
 Last year, 86% earnings growth
 Smartphone ambition
 Small and medium enterprises
 India and china market
By Patrick Kayijuka
Dell’s positioning- Conclusion
 IT is a $ 3 trillion industry (Economic times)
 Only 10 companies have more than 1% share of that $ 3




trillion market
No single firm has more than 5-6% of the total
Dell have 2%
Partnership becomes necessary
Our present and future bet are SOLUTIONS
(services)
By Patrick Kayijuka
References
Saunders, R. (2000) Business the Dell way. Oxford:
Capstone
2. Dineley D., Knorr E. (n. d.) Michael Dell: We're a
'solutions' company [online] available from
<http://www.infoworld.com> [18 February 2012]
3. Collins J. (n. d.) Still passionate about the PC[online]
available from http://www.irishtimes.com> [17february
2010]
4. Jayadevan PK (n. d.) Tablets will not replace PCs; they
actually do different things: Michael Dell, Chairman &
CEO, Dell [online] available from
<http://articles.economictimes.indiatimes.com> [17
February 2012]
1.
By Patrick Kayijuka
Any questions?