Michael Dell

It’s amazing to me that our competitors think the customer is the dealer.” � Michael Dell��“Sales Leader: Tops in Global Basis.

1. Michael Dell Presented By: Jigisha Dave Submitted To: Prof. Sakunt Jadav

2. “It’s amazing to me that our competitors think the customer is the dealer.” Michael Dell “Sales Leader: Tops in Global Basis.”

3. Introduction Michael Dell: “The only constant thing about business is that every-thing is changing. We have to take advantage of change and not let it take advantage of us.”

4. Introduction about Michael Dell Michael Saul Dell (born February 23, 1965 ) is an American business magnate and the   founder , chairman  and  chief executive officer  of  Dell Inc. He is the 44th richest person in the world, with a net worth of US$14.6 billion in 2011.

5. Introduction Michael Dell is the chairman of the Board of Directors of Dell, the company he founded in ’84 for $1,000. With an unprecedented idea---build relationships directly with consumers (born in February ‘65). Dell’s commitment to consumer value, to the team, to being direct, to operating responsibly and, ultimately to winning. Continues to differentiate Dell from other companies.

6. CEO: Michael Dell Registered as 'PC's Limited‘ in 1984 From his condominium in Austin, TX Capital: $1,000 Sold IBM PC-compatible computers Dell Inc.- Company Intro

7. Known for its innovative customer service and product custom configuration Dell’s collaboration with other computer software companies has allowed it to become a leader in CRM It is not an inside-out company but outside-in

8. “To be the most successful computer company in the world at delivering the best customer experience” Mission

9. Dell Business Strategy Faster inventory turnover and reduced inventory levels Incorporate new technologies and components into its product offerings. Online support to onsite customer-dedicated systems

10. Highlights for direct model and crm Contacting with the customer directly & capturing as much information as possible Eliminating middlemen Building computers based on customer’s needs. Engaging with customer on each touch point as productive & efficient as possible.

11. 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

12. Dell’s Value Web Model

13. Material costs Improving SCM Changing technology Rely on market forecasting to drive Production. Technological breakthroughs cause very short Product life cycles . Why SCM is so Important in PC business

14. Need to hold inventory Have to pay suppliers first Caught with short supplies Stuck with excess inventories Product time to market is critical. Competitors’ Disadvantages vis-à-vis Dell

15. 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.

16. 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. Tracks backlog numbers, stock status and supplier commitments i2 SCM S/W package

17. RFID applications

18. Business To Business (B2B) Model Business model for dealing with large business entities. Server- to- server communication over internet integrating both supplier & buyer system. Shopping online with customer’s ERP Procurement Application with simultaneous upgradation . No duplicate information entry. Easy process, less cycle time, less errors.

19. Dell’s Objectives With B2B Integration To quickly integrate customers who are capable today. 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.

20. DELL’S CRM STRATEGY

21. Customer R elationship Management Techniques

22. Pre-Sales customer support

23. Customer Interaction

24. Expert opinions

25. Post-Sales customer support

26. Online support:

27. Experience Sharing

28. Sales force CRM Media presence

29. Marketing Strategy

30. Segmentation Backbone of Dell computers Based on segmentation, company takes its positioning and modifies its offerings for each segment’s customers. “An Important element of virtual integration with customers is segmentation. The finer the segmentation, the better able Dell is to forecast what customers are going to need and when. Then coordination of flow of strategic information comes to stage all the way back to suppliers, effectively substituting information for inventory”

31. Focusing on Personal Users In the early 2000s, Dell attempted to diversify its business by targeting personal consumers, such as families and students that needed to purchase computers Dell's Retail Strategy In the fall of 2007, Dell announced partnerships with major computer retailers, including Wal-Mart, Best Buy and Officeworks

32. Home users Small businesses Enterprise support

33. Marketing Mix Product - Customization Price - Reasonable Place - location strategy Promotion - "Be Direct"

34. Ad Agency In 2007 BBDO to Working Mother Media Continue Change in Slogan “Work it Out” “Yours is here”

35. Dell Dude Benjamin Bowmar Curtis an American actor and former spokesman for Dell Computers. from 2000 to 2003. "Dude, you're getting a Dell.“ The campaign was a huge success and not only helped bring prominence to Dell, but to Curtis as well.

36. Social Media Presence

37. social media content: You do not own the content you create… your customers do Producing content via the same social media tools your customers use allows 3 things: Makes your content sharable Gets your content to customers where they are Gives you a reason to connect with fans

38. SOCIAL WEB STARTING TO EVOLVE We’re still in the early stages of the social web How do we reach customers in different social networks? Forrester’s Five Eras of the Social Web - Jeremiah Owyang Shared ID options Dell on other sites

39. Zero Concept at Dell Zero time organization Zero value-gaps, Zero-learning-gaps, Zero-management-gaps-gaps, Zero-process-gaps , and Zero inclusion-gaps .

40. CSR - Green initiatives Establish a product-recycling program. On February 6, 2007, the National Recycling Coalition award. Dell Bans E-Waste Exports Bamboo — Nature's Eco-Friendly Packaging Solution

41. Lessons‘ Michael dell

42. LESSONS FROM MICHAEL DELL Every customer is important, regardless of size   Innovation is incremental and continual   Innovators are their own market research departments   Collaboration leads to the best ideas   Customers want to help their peers   Don’t decide alone for your customer  

43. LESSONS FROM MICHAEL DELL 7. Participation is powerful 8. Follow through is the middle name of collaboration  9. Become your own incubator  10. Realize that innovation and collaboration are cousins   

44. Success Mantra – Michael Dell “When you get a business that changes very quickly, you get some of that naturally.” “You just have to change. To be successful, what you have to do is have an acceptance of risk and you have to be pretty explicit about that, because if you don’t accept risk, you don’t get any innovation. And that means part of risk is you have to accept failure because not everything works.”

45. Conclusion “Be willing to take risks and change,” if you want to stay successful