mis-dell-1227965308312360-9 by cookdojo

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									MIS @ DELL

        NAME                ROLL
        Pranav Bhardwaj     6
        Amit Kumar          20
        Ashish Modani       26
        Tarun Shetty        47
        Anuj Pratap Singh   48
        S. Karthik          53
                   Dell at a Glance
Globally 2nd in computer hardware design, manufacturing and
distribution with a market share of around 16%.(HP is 1st with 19%)

Founded by Michael Dell in 1984.

1987 --first computer systems company to offer next-day, on-site
product service .

Greater than $50 Million sales per day through the internet with
yearly revenue of $55.908 Billion with employee base of 78,000.

Ventured in areas of storage products, workstation systems, online
technical support, appliance servers, network switches, standards-
based point-of-sale offering for retail customers, recycling .

Shipped more than 10 million systems in a single quarter (Q4, FY06)
                      Dell’s Direct Model

•   Direct relationship, most efficient path
•   Low cost and best value
•   Built to order
•   Customized systems
•   Superior, tailored service and support
•   Highest quality and most relevant technology
Dell‟s Value Web Model
   Why SCM is so Important in PC
Material costs account for 74%($21 billion) a year for

Improving SCM by 0.1% has bigger impact than
improving manufacturing process by 10% .

Changing technology obsoletes Materials‟ value by
almost 1% per week .

Rely on market forecasting to drive Production.

Technological breakthroughs cause very short Product
life cycles .
    Competitors‟ Disadvantages
          vis-à-vis Dell
Need to hold inventory at each step in value chain .

Have to pay suppliers first before getting paid from customers

Caught with short supplies of hot products- lost sales.

Stuck with excess inventories of slow selling products .

With about 2,000 product transitions a year, the ability to
reduce product time to market is critical.
      Dell‟s Competitive Advantages
Dell is having one of the best SCM in the world.

  90% supplies ordered online using integrated websites of
  supplier and Dell (B2B).

  95% of suppliers situated very close to assembly plant
  hence coordination is easier.

  Dell‟s factories have only 7 hrs worth of inventory for most
  items whereas industry wise it is around 10 days.

  15 suppliers provide almost 85% of all supplies.

  Dell gets paid by customers and then pays to its suppliers.
    Dell Chooses i2 SCM S/W
Dell chose i2 Technologies for its SCM system.
i2 serves almost 70% of the SCM market.
Every 20 sec the S/W aggregates orders,
analyzes material requirements ,compares Dell‟s
on-hand inventory with its suppliers‟ inventory
and then creates a supplier bill of material to
meet its order needs .
Instead of forecasting the daily supply needed,
Dell receives the exact material every two hours
to fulfill actual customer orders.
                        Dell ERP Debacle
•140 member team was set up for ERP ( SAP) implementation.
•Cancelled when costs shot up and flexibility of system went down.

Reasons for no company wide ERP
•SAP is like cement, flexible when poured but rigid once it hardens.
•Decentralization of company into 4 major regions-America
Europe , Asia and Japan .
•Focus on technology which should remain open, flexible and
adaptive .
•Even a small error might be very costly .

HP lost $160 million because of SAP implementation errors .
Nike lost $100 million because of SAP demand planning error.
            Dell‟s Ans to ERP
             G2 Architecture

The G-2 architecture enables company to run “best-of-
breed applications” rather than only a single enterprise
             What is RFID
RFID stands for Radio Frequency
 Identification Devices.

RFID is a 3 part technology consisting of:
 A reader
 A receiver with decoder
 A Transponder
RFID applications
RFID at Dell - Manufacturing
Tracking code and Computer assembly
instructions are added to the tray.

This determines the specific line to which
the tray should go to.

At every stage of the assembly, the tags
are read by the antenna for specific
    RFID at Dell - Shipping
Once assembled and tested, production
information is inserted into the tags and
sent to a shipping station.

At the shipping station, the RFID tag
transfers data to the control PC.

This control PC uses this information to
print the appropriate label.
        Benefits of RFID
Production stops have reduced

Labor can be allocated by minimizing
repetitive activities.

Returns due to wrong shipping of products
have been minimized.
         Reduction of TCO
Dell aims to reduce TCO for its customers
 by improving its IT systems:

 To meet corporate objectives.

 Keep costs to a minimum.

 Reduce Complexity.
A shift from proprietary technologies to in
house Dell capabilities.

„Pay as You Go‟ model.
Benefits of the „Scalable‟ Model
Increase performance and availability by
scaling incrementally

Minimize management overhead.

Improve utilization rates.

Preserve capital.

Reduce TCO
Delivering High Performance
2 Global Centers with 72 Dell PowerEdge
6650 servers.

Dell uses Oracle 9i Database with Real
Application Clusters (RAC) running on
Red Hat Linux Advanced OS for servers.

Servers help carry out 5 million
transactions a day
Delivering High Performance - Storage

  Dell uses Dell/EMC Fibre Channel SAN
  (Storage Area Network)

This helps:
  Store and retrieve critical information.

  Helps it scale easily and thus enabling it to
  accommodate any increase in storage
Dell‟s Factory Planner Solution
Manages 250 suppliers who handle 4000

Calculates schedules.

Estimates surplus parts in the factory and
in the supplier inventory.

Places orders, which are delivered within
90 minutes!
A single database is run on a cluster of
Dell servers running on Intel processors.

This ensures that the minute a server is
down, another server automatically comes
up and takes over.
  Business To Business (B2B)
 Business model for dealing with large business
 Server- to- server communication over internet
 integrating both supplier & buyer system.
 Shopping online with customer‟s ERP
 Procurement Application with simultaneous up
 No duplicate information entry.
 Easy process, less cycle time, less errors.
    Dell‟s Objectives With B2B
To quickly integrate customers who are capable

Built a solution to integrate any customer who
supports open industry standard of XML,EDI

To help customers built a B2B solution for rapid
deployment & connectivity.

Providing hardware, software & consultation to
help build a system which not only connects to
Dell but even to other suppliers.
     B2B e-Commerce Solutions
     Connection to more than 20 different industry E-
     procurement (ERP) tools & usage of standard
     formatting protocols.
     Example- Ariba, Peoplesoft, SAP, EER,
     Basic division into 2 parts:

1.   Supplier hosted solutions
         Dell will host the catalog .
         Customers will access their own custom catalog
         to retrieve their personalized configurations.
         Catalog maintenance by sales representatives.
1. "PunchOut" - authenticated access to the customer's
   catalog at Dell from the customer's Internet browser to
   facilitate shopping
2. Order Requisition - shopping cart data pulled back into
   the customer's ERP system and workflow processing
3. Electronic Purchase Order - sent back to Dell for
   automated order processing
4. PO Acknowledgement - response returned to customer
2. Buyer Hosted Solutions:
 Most complex and require resources, time and effort
 to implement.

 Catalog information exported to a spreadsheet or
 file and either sent to the customer directly for
 inclusion in their own system or moved to the E-
 Procurement vendor's network to be utilized and
 accessed there.

 Information can become outdated so regular
 updates required.

 Customer bears a large burden of catalog
                Supplier vs. Buyer
            Supplier                         Buyer
Pros:                               Pros:
   Real-time Data Updates              Works well for commodities
   Data Accuracy                       with limited configurations
   No Double Entry                     Catalog Preview Management
   Integrated Electronic               Consistent look and feel
   Transaction                         among different suppliers
   Allows supplier to manage
   complexity of valid              Cons:
   configurations                     Data Accuracy
Cons:                                 Catalog Management
   Requires XML Communication         Manual Data Update and
   Capability .                       Order Receipt (sent in email)
   Customer gets a different look
   and feel from every 'Punchout'
          Engaging With Dell
   In order to maximize customer opportunities
   through B2B integrations, Dell has identified the
   primary criteria for quick, successful
   integrations. These are divided into two parts:
1. Purchasing Focus:
              Developed or are developing an e-
              commerce strategy.
              Larger numbers of orders .
              More standardized configurations.
              Centralized procurement.
          Engaging with Dell
2. Technology focus:
   Dell's solutions are best designed for
   customers with some of these capabilities:
              Punch out capabilities in their ERP
              or access to an authenticated
              Dedicated development teams.
              ERP systems that can use or
              translate XML.
Dell- Customized for the
                 Dell Premier
Corporate customers account for almost 85% of
  Large corporate customers access Dell website
  called dell premier which is a customized version of
  Access to product and service information tailored to
  a particular company.
  Can order PCs directly from a menu of
  configurations pre-approved by the company
  without going through normal purchasing channels
  or paperwork.
           Dell Premier contd.
 Orders put on Premier are automatically routed to higher
 managers for approval which eliminated paperwork and

 Access to Dell‟s own on-line internal technical support
 tools which is actually used by Dell‟s Support personnel
 when a customer calls for help.

 Premier sites can integrate with - Microsoft (Biztalk)
Oracle, Peoplesoft , SAP ,etc .
        Dell Premier contd.
The Dell Premier sites includes more than
500,000 pages of information and facilitates
greater knowledge transfer.

Gives detailed info on all the configurations(h/w
and s/w) present in the customer‟s pc which
helps in quick decision making for customer if
going for upgrades.

The same configurations info helps Dell to make
repeat business with customers by offering
products specifically to them.
              Dell e-learning
Need for training for continuous product development,
while keeping a worldwide sales and service
organization up to speed.
Issues of quality, costs and no re-use
Eedo's ForceTen chosen as the content development
and delivery platform for e-learning programs
Enabled Dell to own and control their content as well as
the development process
Higher quality training, cost reduction, re-use and
translation facility.
Result: Dell increases sales productivity by 20%, while
reducing training development costs by 55%
Authentication Solutions
       @ DELL
          Dell authentication
Challenge at hand:
  Integrate authentication and identity
  management for Microsoft Windows, UNIX, and
  Linux platforms
  Incorporate this into Microsoft Active Directory
  across the entire Dell infrastructure
  Vintela Authentication Services from Quest
  Software deployed with the help of Quest
  Professional Services
      Dell authentication contd.
Consolidating authentication and
identity management systems:
   Multi-Platform Management
  Integration (MPMI).
   Microsoft Active Directory service
Planning for the future:
   Migrate the local user accounts from each non-
   Windows system into Active Directory.
Building a relationship:
   Able to use this product for all costumer related
   solutions with a guarantee of successful execution
                     CRM in Dell
  Dell maintains special DB of its top 50 global customer.
  Maintains a Global Data Repository for all of its
  Uses DB compiled by Dun & Bradstreet for 500 global
  companies for selectively targeting sales efforts .

                    Real Time CRM
When a customer calls in for placing order then customer
 service links directly to Dell‟s Real Time inventory .

Depending on latest inventory data Dell can :
  – Push Available inventory at lower cost.
  – Promote latest/new products at higher cost.
  – Provide add-on products with discounts .
Why Boeing will only do business with
            Dell -CRM
Boeing as part of Federal Govt rule cannot use internet
for doing business.

Dell has adapted customized its offering to Boeing‟s IT
system .

Dell uses EDI for processing orders from Boeing directly
into its order management system.

30 Dell people take care of Boeing‟s 140,000 Dell PCs -
forecasting future PC purchases, managing current
inventory and securing needed service and support.
Demand Forecasting at Dell
    Dell losing confidence in Direct internet
             based sales model ??
  Starting 2005 Dell set up Kiosk locations at Shopping
  malls across US (Wal Mart Stores and other shopping
  malls), Canada ,China ,Japan and Australia where
  people can experience dell products .
  Customers place order for dell products to be delivered

Reasons for going for Hybrid Sales Model
  Biggest competitor HP gaining market share faster
  particularly in notebooks chiefly because of retail outlets.
  Low internet penetration in India and China –two of
  biggest and fastest growing markets.
Summary of MIS and its Effect in Dell
 Acknolwdgements /Sources
California, Irvine.

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