THE POWER OF VIRTUAL INTEGRATION
Hii Ladies and Gentelmen
I would like to share with you some part of the article by Joan Magretta, "The Power of Virtual Integration: An Interview with Dell Computer's Michael Dell."Harvard Business Review 76, no. 2 (Mar/Apr 1998): 72-84, 13, 2.
As the people around the world know that Dell is simply a success story it shows how one can gain market advantage by simply understanding what brings value to customers. No one, even Michael Dell himself when he started, thought that people would enjoy customizing their PC orders and wait patiently as the order makes its way back to their homes. Moreover, some studies talk about how people challenged the initial delivery estimates provided by Dell to see if they were met.
The level of expansion Dell strived to achieve brought in problems as with any growing business. However, by adapting techniques such as In-sourcing and mutual benefit partnerships it reduced its potential staff from 80,000 to only 15,000. Dell also was aware of factors that would hinder its supply chain. For example, they maintained a multiple list of shippers as not to be affected by unexpected delays and organizational issues. In addition, they understood the importance of developing their own enterprise systems in-house to control all the variables and maintain their business processes.
Furthermore, in my view this is one of the best case studies in the IT industry. I believe the level of commitment Dell showed in the model he created is inspiring. On the business side, I believe more highlights on the internal infrastructure of Dell's network would have helped in building an understanding of how the supply chain actually worked. Did they use CRM modules, ERP, SCM, or a combination of all? How did Dell secure its information link with its suppliers, were all of them mature enough when it came to Information systems? All of these questions should be understood by other business people or organization to ensure that their business will be remains competitive in any industries.
Otherwise, I would like to give some recommendations on how to remain competitive hopefully will give benefit to everyone. Firstly, organizations should focus on value adding activities like establishing online portals for their customers this is to ensure that the customer fell that they are valuable and may establishing multiple touch points with customers, strengthen the relationship as well as increases satisfaction levels. For instance, businesses should conduct frequent surveys to measure the level of service they provide and work on enhancing their products. Secondly, organizations should decentralize and enable expansion through global techniques such as out-sourcing and in-sourcing. Thirdly, building internal enterprise information systems is the most effective methodology for information and knowledge sharing. Fourthly, internal organization assessment and training is vital to maintain the high spirit of employees and increase their productivity. Last but not least, meeting global quality standards is the only way to get an advantage in a competitive arena.
Thats all from me, and I hope this view will give some knowledge for us……thank you.
As the people around the world know that Dell is simply a success story it shows how one can gain market advantage by simply understanding what brings value to customers. No one, even Michael Dell himself when he started, thought that people would enjoy customizing their PC orders and wait patiently as the order makes its way back to their homes. Moreover, some studies talk about how people challenged the initial delivery estimates provided by Dell to see if they were met.
The level of expansion Dell strived to achieve brought in problems as with any growing business. However, by adapting techniques such as In-sourcing and mutual benefit partnerships it reduced its potential staff from 80,000 to only 15,000. Dell also was aware of factors that would hinder its supply chain. For example, they maintained a multiple list of shippers as not to be affected by unexpected delays and organizational issues. In addition, they understood the importance of developing their own enterprise systems in-house to control all the variables and maintain their business processes.
Furthermore, in my view this is one of the best case studies in the IT industry. I believe the level of commitment Dell showed in the model he created is inspiring. On the business side, I believe more highlights on the internal infrastructure of Dell's network would have helped in building an understanding of how the supply chain actually worked. Did they use CRM modules, ERP, SCM, or a combination of all? How did Dell secure its information link with its suppliers, were all of them mature enough when it came to Information systems? All of these questions should be understood by other business people or organization to ensure that their business will be remains competitive in any industries.
Otherwise, I would like to give some recommendations on how to remain competitive hopefully will give benefit to everyone. Firstly, organizations should focus on value adding activities like establishing online portals for their customers this is to ensure that the customer fell that they are valuable and may establishing multiple touch points with customers, strengthen the relationship as well as increases satisfaction levels. For instance, businesses should conduct frequent surveys to measure the level of service they provide and work on enhancing their products. Secondly, organizations should decentralize and enable expansion through global techniques such as out-sourcing and in-sourcing. Thirdly, building internal enterprise information systems is the most effective methodology for information and knowledge sharing. Fourthly, internal organization assessment and training is vital to maintain the high spirit of employees and increase their productivity. Last but not least, meeting global quality standards is the only way to get an advantage in a competitive arena.
Thats all from me, and I hope this view will give some knowledge for us……thank you.
SUZANA HASSAN
2009868496
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