Startup

Fast-Growing Company

 

Dell Inc.

 

Be Different

Innovative Business Models

 

   

Business strategies that revolutionized an industry

 

 

 

Michael Dell advice

You don't have to be a genius or a college graduate to be successful. You just need a framework and a dream.

Michael Dell

 

 

Dell success story, 3 Golden Rules of rapid growth, New Business Model  

"Dell's story is the stuff high-tech legends are made of," wrote Forbes.

One focused vision made Dell the world's leading direct computer systems company. One bold concept – direct customer contact – has made Dell one of the most successful companies in the world.

 

 

Michael Dell advice

There's a guaranteed element of risk in any business, so experiment – but experiment wisely.

Michael Dell<

 

   

Dell:
The Three Golden Rules

① Disdain inventory

② Always listen to the customer

③ Never sell indirect

 

Lessons from Business Legends PowerPoint slide deck for courses

 

Michael Dell advice

Turn your customers into teachers.

Michael Dell<

 

 

 

   

Dell: Chronology and Key Components of Growth

 

 

 

 

Year 1: 19-years old Michael Dell registers Dell Computer Corporation with $1,000 in startup capital.

Year 4: Dell establishes its first international subsidiary in the United Kingdom.

Year 5: Dell raises $30 million in its initial public offering, bringing the market capitalization of the company to $85 million.

Year 8: Converting its entire product line to the highest-performing Intel 486 microprocessors, Dell demonstrates its commitment to rapidly delivering the latest technology to its customers.

Year 9: Dell achieves more than $2 billion in sales, which represents a remarkable 127% increase.

 

Disruptive Innovative Model of Dell

Sustainable Competitive Advantage

Customer-focused Culture

Fast-Paced Flexible Culture

How To Win Customer Loyalty

Experimentation

Reward System

 

 

 

 

Year 10:  "Liquidity, profitability, and growth" become a company mantra, signifying its shift from a focus on growth alone to more balanced priorities.

Year 11:  Dell challenges the traditional market for premium-priced servers based on proprietary technology with its introduction of its PowerEdge server line. In less than two years, PowerEdge vaults Dell from the 10th position in market share to the 3rd largest server vendor in the world.

 

Customer Listening Tips

EON Solution

Market Segmentation

Culture of Independent Owners

Strategies of Market Leaders

 

 

 

Year 13:  Dell launches its new Latitude notebook line with record-breaking battery line. The company launches also Dell Japan and opens its first operations in the Asia-Pacific region, which has become the fastest growing international startup in the company's history.

Year 15:  Dell Inc. becomes the number two manufacturer and marketer of personal computers in the world. The company grows five times faster than the industry rate. Its stock rises more than 200% - the largest share-price gain in the S&P 500 and the NASDAQ 100. Dell solidifies its Internet leadership when it's sales top $12 million per day over the Internet. The company opens an integrated sales, manufacturing and support center in China.

Year 16:  Dell becomes the No.1 PC company in the United States. To accommodate its growth, Dell opens new manufacturing facilities in U.S.A. and Brazil. Sales over dell.com top $35 million per day.

Year 21: Annual revenue of Dell Inc. exceeds $41 billion. The company ranks No. 6 on Fortune magazine's Global "Most Admired" list. 

* * *

"It's through curiosity and looking at opportunities in new ways that we've always mapped our path at Dell. There's always an opportunity to make a difference." ~ Michael Dell

 

 

 

   

Delivering the Best Possible Customer Experience

 

 

 

Michael Dell advice

We put a great deal of emphasis on understanding what drove customer satisfaction, whether it was quality of products, valuable features, or the ease using the product.

Michael Dell<

 

 

Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience (CX) by directly selling computing products and services online an-d through catalogs.

 

Customer Experience Management

Ask Learning SWOT Questions

 

 

Michael Dell success rules: best posible customer experience  

" Engaging the entire company – from manufacturing to engineering to sales to support staff – in the process of understanding customer requirements became a constant focus of management, energy, training, and employee education."

~ Michael Dell

 

 

 

   

Customer Value Creation

Focus On the Best Solution, not the Best Technology

 

 

 

Lessons from Business Legends PowerPoint slide deck for courses  

"We know what we are and what we're not. We are a really superb product integrator. We're a tremendously good sales-and-logistics company. We're not the developer of innovative technology," said Mort Topfer who helped revive Dell's fortunes in 1990s.

 

 

 

As Fortune wrote: “A Dell mantra is that today's technology is tomorrow's commodity. Dell waits until the cost of that technology falls low enough for it to be stuffed into computers at state-of-the-art factories and then sold direct at a cheap price, which allows the company to drive for share.”

 

Value Chain

Customer Value Management

Listen to Customers

Service-Profit Chain

 

 

Michael Dell advice

How can we teach people to be more innovative? Ask them to approach a problem in a holistic sense.

Michael Dell<

 

 

 

 

 

 

Make the Most of Incidental Interactions

"Dell is the kind of company where everyone rolls up sleeves and get personally involved in the details of our business every day," says Michael Dell, the Founder of Dell Computers. "This is, in fact, how we got to be successful: As managers, it's not enough to sit around theorizing and reviewing what those who report to us do. We frequently meet with customers and attend working-level meetings about products, procurement, and technology, to tap into real source of our company's experience and brainpower.

"Why bother? It's a way to get close to our people, for certain. But that's not all. Our day-to-day involvement in the business helps us establish and allows us to maintain one of the Dell's critical competitive advantages: speed. In this case, "staying involved in the details" allows for rapid decision making because we know what's going on... More

Getting Feedback from Customers and Suppliers

"Turn your customers into teachers," advises Michael Dell, the Founder of Dell Computers.

Dell start their innovation process with asking their customers, "What would you really want this thing to do? Is there a different way to accomplish that?" Then they meet with their suppliers and ask, "Can we do this in a different way?" Then they try to come up with a totally different approach that exceeds the original objectives.

To continually bring information from the outside world into Dell, with an eye toward staying as competitive as they can, Michael Dell uses a variety of innovative approaches. He says, "I also enjoy roaming around outside the company to see what people think of us. On the Web, nobody knows I'm a CEO. I'll hang out in chatrooms where actual users commonly chat about Dell and our competitors. I listen to their conversations as they discuss their purchases and their likes and dislikes. It's a tremendous learning opportunity."1

 

Thinking Unconventionally and Making a Difference1

Selected Breakthrough Innovations

1984  The company becomes the first in the industry to sell custom-built computers directly to end-users, bypassing the dominant system of using computer resellers to sell mass-produced computers.

1986  Dell unveils the industry's fastest-performing computer, pioneers the industry's first thirty-day money back guarantee, and offers the industry's first onsite service program.

1996  The company's quiet bid to sell custom-built computers over the Internet quickly becomes a public revolution when the company announces that sales over dell.com have exceeded $1 million per day. Dell introduces also its first custom custom-made web links for customers. Called "Premier Pages", the links allow customers to tap directly into the company's own service and support databases.

1998  Dell establishes web-based connections with its suppliers to speed the flow of inventory and quality information.

 

Dell Competitive Strategies...

Sustainable Competitive Advantage...

New Business Model...

Venture Management at Different Growth Stages...

Ignoring Conventional Wisdom and Looking at Things Differently...

Building a Learning Culture...

Creating a Competitive Culture...

People Partnership...

Managing Creativity...

Questioning Everything...

Asking Effective Questions...

Encourage Smart Experimentation...

Preventing Bureaucracy...

Continuous Improvement Strategies...

Virtual Integration

Incentive Motivation...

Employee's Incentives to Improve Efficiency...

Learning from Failure...

Freedom to Fail...

Measuring Innovation...

Market Segmentation...

Customer Partnership...

Listening To Your Customers...

Turn Your Customers Into Teachers...

Focus on Customer Satisfaction...

Value Innovation: EON Solution...

Coaching Corporate Customers...

Adapting to Cultural Differences...

Simplicity...

Just-In-Time Manufacturing...

Timely Advertising...