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
1. How and why did the personal computer industry come to have such low average profitability?
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.
Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
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.
Dell made the bold decision in 1994 to eliminate their products from retail stores and focused on mail order customers. In 1996 Dell began selling through their website as well. By eliminating the retail store presence Dell was able to reduce costs, reduce inventory, and maximize profit. Dell utilized a built to order system that allowed customers to specify exactly what they did and did not want on their Dell computer. Dell's just in time inventory system lowered inventory to 6 days and storage costs were saved.
This strategy was carried out by selling via phone, fax and direct sales, instead of selling through retail stores. Not only this approach differentiated Dell from other competitors at the time, it also reduced its operating costs as it did not have to rent expensive retail space. In addition, Dell’s strategy of selling customised computers allowed it to hold only a small amount of inventory, which reduce...
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
Historically, personal computer companies produced most of the components for a computer which they assembled into their final products and distributed to resellers. The manufacturing of these components was vertically integrated into the organisation. Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008)....
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.).
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...
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...
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.