Dell Online: Case Study

Conclusions

Dell is simply a success story; it shows how one can gain market advantage by simply understanding what brings value to customers. No one, even Michael Dell himself when he started, thought that people would enjoy customizing their PC orders and wait patiently as the order makes its way back to their homes. Some studies talk about how people challenged the initial delivery estimates provided by Dell to see if they were met.

The level of expansion Dell strived to achieve brought in problems as with any growing business. However, by adapting techniques such as In-sourcing and mutual benefit partnerships it reduced its potential staff from 80,000 to only 15,000. Dell also was aware of factors that would hinder its supply chain. For example, they maintained a multiple list of shippers as not to be affected by unexpected delays and organizational issues. In addition, they understood the importance of developing their own enterprise systems in-house to control all the variables and maintain their business processes.

This is one of the best case studies in the IT industry. I believe the level of commitment Dell showed in the model he created is inspiring. On the editorial side, I believe more highlights on the internal infrastructure of Dell’s network would have helped in building an understanding of how the supply chain actually worked. Did they use CRM modules, ERP, SCM, or a combination of all? How did Dell secure its information link with its suppliers, were all of them mature enough when it came to Information systems?

Recommendations

  • Organizations should focus on value adding activities like establishing online portals for their customers.
  • Businesses should conduct frequent surveys to measure the level of service they provide and work on enhancing their products.
  • Organizations should decentralize and enable expansion through global techniques such as out-sourcing and in-sourcing.
  • Building internal enterprise information systems is the most effective methodology for information and knowledge sharing.
  • Establishing multiple touch points with customers, strengthen the relationship and increases satisfaction levels.
  • Meeting global quality standards is the only way to get an advantage in a competitive arena.
  • Internal organization assessment and training is vital to maintain the high spirit of employees and increase their productivity.
  • Management support and funding is a key element in the success of any information system implementation.

References

  1. Joan Magretta , “The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell.” Harvard Business Review 76, no. 2 (Mar/Apr 1998): 72-84, 13, 2.
  2. Majed Al-Mashari and Mohamed Zairi, “Supply-chain re-engineering using enterprise resource planning (ERP) systems: an analysis of a SAP R/3 implementation case.” International Journal of Physical Distribution & Logistics Management 30, no. 3/4 (2000): 296-313
  3. Norman P. Archer, “Supply chains and the enterprise” Journal of Enterprise Information 19, no. 3 (2006): 241-245, 242
  4. Sameer Kumar and Sarah Craig, “Dell, Inc.’s closed loop supply chain for computer assembly plants.” Information Knowledge Systems Management 6, no. 3 (2007): 197-214,18.
  5. Marcum, Jennifer. “In-Source or Outsource?” BioProcess International, June 2007
  6. Thomas L. Friedman, The World Is Flat (New York: Farrar, Straus and Giroux, 2006), 168.
  7. Dieter Ernst, “Inter-Organizational Knowledge Outsourcing: What Permits Small Taiwanese Firms to Compete in the Computer Industry?” Asia Pacific Journal of Management (Springer Netherlands) 17, no. 2 (August 2000): 223-255, 248
  8. Friedman, The World is Flat, 516
  9. Ali Khatibi, V.Thyagarajan, and A. Seetharaman, “E-commerce in Malaysia: Perceived Benefits and Barriers.” Vikalpa: The Journal for Decision Makers 28, no. 3 (Jul-Sep 2003): 77-82, 6.
  10. Bernadette Casey, “Online Monday blacker than in-store Friday.” DSN Retailing Today, December 13, 2004: 13-13,0.
  11. Chor-Beng Anthony Liew, “Strategic integration of knowledge management and customer relationship management.”Journal of Knowledge Management 12, no. 4 (2008): 131-146.
  12. Anderson, Joan L., Laura D. Jolly, and Ann E. Fairhurst. “Customer relationship management in retailing: A content analysis of retail trade journals.” Journal of Retailing & Consumer Services 14, no. 6 (November 2007): 394-399, 6.
  13. Alorie Gilbert, “Dell Online Marketplace Targets Small Businesses.” Electronic Buyers’ News, October 2, 2000: 58, 0.

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