Dell Computers
MBA605-Information Technology And Society
Ida Lyons
Instr. Russell Barber
Dell Computer’s business model, when viewed with that of a traditional manufacturer was set aside as unbelievable. When Michael Dell thought of making a business like Dell Computer, he focused on making personal computer systems and selling directly to customers. Personal Computer 's Limited could better understand customers ' needs and provide the most effective computing solutions to meet those needs. Notably quoted as saying that “technology is about enabling human potential,” Mr. Dell’s vision of how technology should be designed, manufactured, and sold forever changed the IT industry. Mr. Dell had a good idea and he was looking to
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Since Mr. Dell took this option to focus on how the computer should work, it was only logical to look into the Information Technology System.
The Dell Model was understood what IT and JIT could do for the computer. His idea of how purchasing a computer should become simple and easy. Mr. Dell’s business model was to make sure that all computers were able to get to their customers fast. Dell started out as a direct seller, first using a mail-order system, and then taking advantage of the Internet to develop an online sales platform.
Where do IT and JIT come together to create success for Dell? IT is short for Information Technology and is pronounced as separate letters. IT is the broad subject concerned with all aspects of managing and processing information, especially within a large organization or company. IT is made up of four main age groups that are divided that became part of the history of information technology. Only the latest age (electronic) and some of the electromechanical age really affects us today, but it is important to learn about how we got to the point we are at with technology
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EMC stands for ElectroMagnetic Compatibility. “Dell Technologies, now officially a company with an estimated $74 billion in annual revenue, wants to be a presence in cloud but will not take on market leader Amazon directly in the public cloud game. Instead, it hopes to play above, around, and in between Amazon Web Services and other IT deployment models” (fortune.com.2016). Dell Technologies, like IBM Microsoft , and other older tech companies, is banking that most corporate customers will want a hybrid IT model—meaning they’ll keep running applications and storing some data in their own data centers or perhaps a “private cloud” dedicated to their own usage, and run others in a public cloud like AWS, Microsoft Azure, or Google. Cloud Platform that amasses tons of servers, storage, and networking for use by many customers. The world as we know it is forever
How and why did the personal computer industry come to have such a low profitability?
Information Technology (IT) is a foundation for conducting business today. It plays a critical role in increasing productivity of firms and entire nation. It is proven that firms who invested in IT have experienced continued growth in productivity and efficiency. Many companies' survival and even existence without use of IT is unimaginable. IT has become the largest component of capital investment for companies in the United States and many other countries.
1. How and why did the personal computer industry come to have such low average profitability?
Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
It was Steve Jobs who made Apple leave the garage and make leaps and bounds in the world of technology. Steve Wozniak made the first prototype, but it was Jobs who “saw the potential” in his computer and persuaded Wozniak to sell it (Peterson 106). Even though that first computer saw very little success, Jobs knew that Apple had potential and so released the Apple II. From the beginning Jobs knew what the consumers wanted, and where computers were going to take the world; he had a vision of the opportunities in technology and saw that Apple needed to move in a different direction. In 1984, one year before he left, Jobs finished the Macintosh computer system. He was pushed from his original computer design project, “the Lisa”, and then raced to release the Mac first, but the Lisa was released to the public first. Although the Lisa came out first, the Mac “[became] synonymous with Apple, mark[ing] a…revolution in…personal computing,” (Peterson 106).
Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use.
When an individual decides to venture out on their own and become an entrepreneur they are taking a huge risk, one of the tools that can make the difference between being successful or failing is the Business Model Canvas (BMC). Osterwalder invented the BMC because he believed that a company’s first business plan always failed the minute it reached the customers, leaving the owners discouraged and deflated and feeling that they had wasted time, energy and money; so he wanted to create a more flexible business plan that owners can edit and make the changes needed to reach the customers needs "One Tool Startups Need to Brainstorm, Test and Win | First Round Review," n.d.). The canvas consists of nine elements or building blocks that create a visual template spelling out the business’s value proposition, infrastructure, customers and the finances (White, 2012). Breaking down the key elements that are vital to taking customers needs, wants or problems into a fruitful company
Apple’s business strategy under Steve Jobs was well executed. Apple was very cautious about the release of its mobile and tablets. Therefore, Jobs allowed long development cycles that encouraged anticipation and displayed new innovations with each release. A report showed that Steve Jobs strategy was to develop and sell brand new, innovative products of which blended art and technology to provide simple and streamlined user experience. This business strategy made Apple a booming company for smartphones initiating the launch of the first iPhone in 2007 (Apple Business Strategy Under Steve Jobs, n.d.).
Although Steve and Bill are competitors, there are similarities between Steve Jobs and Bill Gates. Both of them are the most successful CEO’s in the world. Though they were college dropouts, but they still achieved a lot of success in their own way. Steve was a very innovative man. As the English proverb goes by “ Have no fear of perfection - you will never reach it.” by Salvador Dali. No matter how many times he failed, he could develop things from his own idea and turn them into a successful product. In 1979 Apple’s first product was introduced, people like it very much because of its simplicity and innovative ideas. Later on in year 1980, the company showed a tremendous performance, where its share rose by 32% (Messa, 1998). Similarly, Bill Gates was also like that, but just that Steve was in a company which makes hardware prod...
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.
One of the major ways of sustainably doing business is through the designing of an efficient business model. A business model explains the justification of how a firm delivers, creates and captures value (Muehlhausen 2013). A business model enhances sustainability in terms of creating a successful and profitable business entity in the long-run. It enables entities to withstand various business environments thereby surviving over a long time. The relevance of a business model is reinforced by having a wide scope since it applies to various diverse settings including NGO’s, Public sector administration, schools, as well as individuals. One of the most current contributions to the turf of the business model conceptualization is the business model canvas. This concept was proposed by Osterwalder in 2010. A business model canvas refers to a lean startup and strategic management template for developing new or documenting an existing business model (Osterwalder 2013). In this context, it involves the use of a visual chart that contains elements that describe the firm’s infrastructure, value proposition, finances and customers. It helps organizations in aligning their activities by demonstrating potential trade-offs. This paper will utilize the business model canvas to describe eBay’s internet business model.
Dell Inc had very effectively used the direct marketing channel for the sales of computers to the end consumer. When all the other pc makers were selling through retailers and distributors, Dell had started efficient use of the direct channels.
Gates and Allen soon got many opportunities to prove their computer skills. In 1972, they started their own company called 'Traf-O-Data.' They developed a portable computer that allowed them t...
“The Dell Theory of Conflict Prevention,” is a theory that is approved by multiple famous authors. The theories main points are valuable and the theory should be looked upon more seriously. In Thomas Friedman’s essay, “The Dell Theory of Conflict Prevention,” he gives examples of how global supply chains would be constructive to promoting world peace. Friedman feels that if everyone is an ally to each other in some shape or form, then no one will want to engage in war. Madeline Albright would agree with Friedman’s theory according to her writings in “Faith and Diplomacy.” Albright felt that religion should play a factor in the diplomatic system of America, in order for us to maintain some kind of peace with other nations. Friedman and Albright both were looking for a solution to world peace. Albright would agree with this theory from the religious perspective. Appiah argued that an ideal global citizen would be essential to America, in his essays “Making conversation” and “The Primacy of Practice.” Appiah felt that people must have an understanding of each other in order to get along with each other. Both Appiah and Albright would agree with “The Dell Theory of Conflict Prevention.” “The Dell Theory stipulates: No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain”(Friedman 125).