MIS @ DELL
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 .
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
•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
The G-2 architecture enables company to run “best-of-
breed applications” rather than only a single enterprise
RFID @ DELL
What is RFID
RFID stands for Radio Frequency
RFID is a 3 part technology consisting of:
A receiver with decoder
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
Returns due to wrong shipping of products
have been minimized.
SCALEABLE DESIGN AT
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.
THE SCALEABLE MODEL
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
Minimize management overhead.
Improve utilization rates.
Delivering High Performance
2 Global Centers with 72 Dell PowerEdge
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)
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
Estimates surplus parts in the factory and
in the supplier inventory.
Places orders, which are delivered within
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.
B2B @ DELL
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
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
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
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
Information can become outdated so regular
Customer bears a large burden of catalog
Supplier vs. Buyer
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-
Larger numbers of orders .
More standardized configurations.
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
Dell- Customized for the
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
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.
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
Result: Dell increases sales productivity by 20%, while
reducing training development costs by 55%
Challenge at hand:
Integrate authentication and identity
management for Microsoft Windows, UNIX, and
Incorporate this into Microsoft Active Directory
across the entire Dell infrastructure
Vintela Authentication Services from Quest
Software deployed with the help of Quest
Dell authentication contd.
Consolidating authentication and
identity management systems:
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 @ DELL
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
Boeing as part of Federal Govt rule cannot use internet
for doing business.
Dell has adapted customized its offering to Boeing‟s IT
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
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TECHNOLOGY AND ORGANIZATIONS University of