The Internet Will BE Your Business
Richard Owen
Vice President,
Dell Online Worldwide
October, 1999
“The Internet could be
considered the ultimate
extension of our direct
business approach.”
Dell Computer CEO Michael Dell
Austin-American Statesman 2/26/97
www.dell.com
Keys to Building Momentum
Deliver
Deliver frequently, consistently
and to expectations.
Evangelize
Evangelize internet usage to
executives, marketing, sales,
and customers.
Empower
Empower an organization to
transform your business.
www.dell.com
Empower a Transformation
Create a
Web Culture
fast, focussed, fun
Build New Processes
don’t just put old ones online
Forget ROI
at first, it will come later
Provide Executive Sponsorship
to give authority
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Evangelize to Integrate
with Customers


Training and education
Demand generation
with Sales and Marketing



Hybridization
Training and education
Sales incentives
with the Executive Team



Corporate-wide goals
Regular and frequent communication of successes,
failures, and obstacles
Training and education
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Deliver in Internet Time

Incremental





Replacement



Innovation



www.dell.com
Fast and frequent
“Make it happen”
Concept test bed
Momentum builder
“Perceived” ROI
Slow and difficult
Legacy issues
Internal efficiencies
“Real” ROI
Fast and slow
Easy and difficult
“The next big thing”
Results to Date
Dell On-Line Sales
$30
Millions of Dollars per Day
$30
Premier Pages
Introduced For
Small Business
$25
Online Sales
Reach 25% of
Total Sales
$20
$15
Michael Dell’s
Challenge 50% Online
Revenue
Premier Pages
(Customized
Extranet)
Launched
$10
$5
Dell.com
Launched
$0
4/96
www.dell.com
500
Premier
Pages
Online
3,000
Premier
Pages
Online
$5
$1
4/97
$3
$4
4/98
$14
$6
Gigabuys.com
Launched
Premier Pages
With Customer
Specific
Dynamic
Pricing
4/99
“Internet will
BE your business.”
Dell Computer CEO Michael Dell
IDC European IT Forum, 09/13/99
www.dell.com
Internet Will Be Your Business
5X
www.dell.com
Velocity
What?
Efficiency
How?
Customer
Experience
Why?
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Velocity
What?
www.dell.com
Velocity
Speed to Quality
Fast Tech
Fast Tech
Fast Tech
www.dell.com
Velocity
Turning Our Business Inside Out
eSupport
B2B
Commerce
Value
Chain
Customer
Care
Premier
Pages
B2C
Commerce
Recruiting
Internet
Data/Common Services
Intranet
Role Specific Applications
Manage the Business Applications
Intranet applications, including:
•
•
•
•
Financial reporting
Pay and Performance Mgmt.
Benefits changes
Corp. Director
www.dell.com
Velocity
•
•
•
•
•
•
•
Share data and
develop
common
applications to
eliminate
redundancy and
ensure
consistent
experience
Purchasing - supply chain management
Marketing - product site content management
Sales - order management and customer specific content
SCM - configuration management
Product Engineering - tech support content
Customer Care - service content
HR - job postings
Efficiency
How?
www.dell.com
Efficiency
Services Efficiency
Resolution Without Onsite Dispatch
80%
INDUSTRY
27%
Source: DataQuest, June 1998
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Efficiency
Dell OpenManage
www.dell.com
Efficiency
Commerce Efficiency

Customer Standards
and Pricing

Build your own quotes

E-quotes & Purchase
Authorization Workflow

Paperless POs
“Dell’s system is so
efficient that it’s like
going to the supply
room and grabbing
a box of pencils.”
BancAmerica, 2/98
www.dell.com
Efficiency
Customer
Experience
Why?
www.dell.com
Customer Experience
What Drives E-Loyalty
Quality of customer service
Quality of customer service
is a more important
driver to repeat online sales
than product or price.
Product price
19%
Source: BizRate.com
www.dell.com
Customer Experience
62%
Focus on Customer Experience
Customer Focus
Customer Loyalty
Brand Equity
Increased Market Share
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Customer Experience
Customer Conversion through Experience
“Apostles”
100%
Zone of Affection
80%
Zone of Indifference
Loyalty
60%
40%
Zone of Defection
20%
“Terrorists”
1
Very Dissatisfied
2
3
4
Indifferent
Source: The Service Profit Chain, 1997
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Customer Experience
5
Very Satisfied
Experience Enhances Lifetime Values
Relationship Duration
Related Sales
Retention
Referrals Provided
Source: The Service Profit Chain, 1997
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Customer Experience
Word of Mouth
Premier Pages Service
SM
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Customer Experience

Customized
Extranet Sites

E-Commerce

Information
Sharing

Service and
Support
B2B Customer Integration
Customer
Dell
Requisitioning
Acknowledgement
Worklfow
Order
Submission
Logistics
Reconciliation
Internet
Notification
Procurement
System
Order
Management
System
Tracking
B2Be Direct Connecting Customers Directly to Dell
Creating a direct business relationship and providing
an end-to-end e-commerce solution.
www.dell.com
Customer Experience
Personalization
Web experiences
customized based on
total relationship
with Dell
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Customer Experience
Personalization Shifts Online Experience
FROM
TO
Transactional Focus
Relationship Focus
Multiple / Independent sites
Community of Interrelated Sites
“For Everyone”
Market of One
Not-Sticky - Buy and Go
Sticky - Return and Commit
High Tech
High Touch
Store Metaphor
Community Metaphor
Know Customer Only
by What They Buy
Know Individual and Prospect
According to Behavior
Personalization Only Available
to Premier Accounts
Personalized Service to Every
Customer (Mass Customization)
Responsive / Passive
Proactive - Makes “Smart” Offers
Site Changes Are Mass
Segment Focused
Site is Better For Me
With Each Visit
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Customer Experience
End-to-end direct business,
leveraging the internet