Dell Online (Case Study)

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Background (General Facts from Case Study)

Dell is a computer company recognized for the production of computer systems in parts put together. In 1983, Michael Dell saw an opportunity in using IBM-compatible computers for a new assembly line can be sold to local companies. The idea as explained by Michael Dell, in an interview with Joan Magretta [1] is that in the early days of computers "production, the companies are able to every part of the system to produce. As mature industry, companies are focus on some parts and specializes in creating items that can be merged with other parts on a computer to prepare. As a result, Dell understood that a competitive advantage in the market, they needed to get concentrate on activities that drive sales rather than capital in producing items that other manufacturers already do.

In the year 1990, the market turned around computer desktops, notebooks and network servers. Dell competing with high-end machines from IBM, HP and Compaq product line with an affordable systems for consumers and highly reliable network systems for businesses provided. In the late 90's, approximately 40% of households owned a PC in the U.S.. On the contrary, from the business side, about 80% of companies had old server and desktop machines. Management had to approve purchase orders, in only 2.2% of the servers' sales resulted in comparison with the total purchases for desktops in 1996.

In order for Dell to $ 7.8 billion from the sale in the late 90's, had to skip the traditional channels of retail or the use of value-added resellers (VARs) to sell directly to consumers. The "direct model" or as Michael Dell remarks about how his new employees as the "model" is not all that powerful system. It's just a way for Dell to cut the standard supply chain cycle and directly from the manufacturer to deliver goods to the customer. They created partnerships with various suppliers such as Sony, Intel, and others to actually deliver goods at the time of the order to Dell's plant where the assembly took place. The delivery and transmission were contracted through a special service also assured supply of the monitors directly from the supplier at the same time. Michael Dell talks about how suppliers benefit from the fact that Dell buys more items from the suppliers hold no inventory and only requesting faster delivery of orders.

In 1996, Dell capitalized on the growing number of customers using the Internet and launched its online store at dell.com. The online business then was the most suitable sales channel supply chain implemented by Dell direct model are matched.

On her way to compete in the market, Dell had additional services, such as DellPlus which is Dell's commercial software packages to install offer dell true what hardware and software from other vendors, and after the sale and on-site support services. These actions, as described by Michael Dell, required establishment of more partnerships, Michael Dell describes as a process of trial and error. "Integration with partners was changing as technology evolves and many venders go volatile, while others remain sold. Moreover, looking for an IT company's online store located in very few players, allowing Dell to accept the overhead of developing the portal in-house to build.

Enterprise Architecture Issues

  • Supply Chain Management: The purchase and number of transactions that Dell has the requirement of a properly configured and concise business.
  • In-sourcing: To meet the market demand a number of components of the process requires the services of other companies that may be in partner with Dell standards.
  • Quality Assurance: The computer industry is a very dynamic, quality products stand out when faced with technology-oriented consumers.
  • Business Automation: Dell as advanced in online markets, sales people feared losing their jobs in favor of computer sales.
  • Dynamic Industry: The technology industry requires careful consumer trend of a low point of the gap between the demand and the point of supply is maintained.
  • Analysis

    Supply Chain Management

    Supply Chain Management (SCM) focuses on the integration of all corporate activities to build relationships at all levels (internal operations, supplier networks and distribution channel) to improve competitiveness to meet and satisfy the customer (Al-Mashari and Zairi 2000) [2]. To ensure an effective and complete business process supply chain, information between business partners build supports need to be shared. Sharing information via the internet gap for business-to-business (B2B) trade by enabling seamless integration with business processes among partner companies (Archer 2006) [3].

    Dell developed its internal business processes by creating production cells begin editing at the point of order. Even a single information system to the details of the products to be made under the production electronically available to all parties within the chain. To manage the delivery of computer parts, Dell maintained close relationships with their suppliers and logistics service providers to manage their inventory system, while Dell's focus on product assembly (Kumar and Craig 2007) [4]. Additionally, Dell uses technology to their enterprise database and methodologies available to the supplier to understand how Dell works. On the consumer side, orders made by phone or online at dell.com produced a tracking code that consumers can use to check the status of their order via any time by phone or on the Dell website.

    In sourcing

    Organizations worldwide benefit from the specialized services offered by various companies. In the Shipping and Transport arena, companies like UPS (United Parcel Service) and DHL stand out as masters in their sector. UPS and DHL have offices and transportation vehicles around the world. They offer business services through in-sourcing that allows them to be part of the internal processes of companies (Marcum 2007) [5]. For example, a company like Toshiba would after-sales support service to send the damaged computer and consumer side. Before UPS would say, "Look, instead of us picking up the machine of your customers, allowing it to our hub, they will fly from our hub t

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