Disrupttive Innovation example: Dell different business model

Dell Inc.: The Key To Success

Ignoring conventional wisdom and doing things their way

Difference that makes the Difference

Disruptive Innovation

By questioning all the aspects of our business, we continuously inject improvement and innovation into our culture.

Michael Dell

Dell Inc.

What is the most important key that has made the growth of Dell?

"I think the most important factor has been our business model. The way we provide our products and services to our customers has been radically different from competitors. Our success is due, in part, to not just an ability but a willingness to look at things differently," says Michael Dell.

"It is really dangerous if everyone in a company starts thinking the same way," writes Michael Dell, the Founder of Dell. "The danger comes when you fall into the trap of approaching problems too similarly. You can encourage your people to think about your business, your industry, your customers innovatively."

Revolutionary Strategies

Customer-focused Culture

Reward System

"Ask a different question – or word the same question in a different way. By approaching a problem, a response or an opportunity from a different perspective, you create an opportunity for new understanding and new learning."

"By questioning all the aspects of our business, we continuously inject improvement and innovation into our culture."

We learned the importance of ignoring conventional wisdom and doing things our way.

Michael Dell

Dell Inc.

"When we were completing our private placement, a noted industry analyst said we would never grow beyond $150 million in revenue. He was only off by a few zeros."

Market Segmentation

Freedom To Fail Forward

When the tech market "forced" computer companies to cut their advertising budgets. Dell saw this as an opportunity. They threw even more money into advertising. Since nobody else was advertising, this made them the only visible computer company. Dell Computers understood the business cycle and took control of the market while other companies were letting the market control them.