An Overview of Dell Computers

Dell Computers, generally speaking, is an American success story; its founder, Michael Dell took the only $1,000 that he had to his name several decades ago, and through perseverance, hard work and innovation, created what is today a multi-billion dollar information technology empire (Massachusetts Institute Of Technology, 1994). This empire was born not only out of innovative products, but also innovation in the ways that this product was marketed to the average consumer. This paper will not only delve deeper into the mindset of Dell the man, but also Dell the organization and Dell the innovator.

Overview of "A Conversation with Michael Dell"

In 1994, Michael Dell was a featured speaker at Massachusetts Institute of Technology. During his remarks, he offered several key insights into exactly what motivated him to begin his organization, virtually from nothing as well as the unique methods he employed to create such a huge, ongoing successful international organization.

If one were to sum up the content of Mr. Dell's MIT presentation, or more precisely the recipe of success that the used as the backdrop of his presentation, one word would surely come to mind-innovation. In essence, Michael Dell was able to become a leader in the information technology industry by offering products that were rarely seen before-home computers in a way that had not been seen before-sales directly to the consumer. Moving forward from this first bold experiment in the 1980's, Dell, the man, has kept innovation alive at Dell Computer by, in his words, "serving as a nurturer of company culture" (Massachusetts Institute Of Technology, 1994). The bottom line is that Michael Dell created a unique product/marketing mix, has been hugely successful in using this mix, and keeps the fires of success burning through promotion of a culture of innovation in his organization.

Questions to Ask Michael Dell

Although there were some interesting questions asked of Michael Dell during the MIT speech, there are 3 questions that should have been asked in addition:
1.
What is Dell's plan, if any, to add to national security? Granted, the modern age of terrorism was just getting started at the time of the MIT speech, but it is likely that Dell can make great contributions to national security through technological innovations, if not already doing so.
2.
Does Michael Dell plan to share his knowledge in a more open manner? In other words, would Dell consider teaching other business leaders his techniques to inspire innovation and success in other industries.
3.
How does Dell view his business model in light of international competition? His innovative business model, which will be discussed in more detail in the next section, could be the "secret weapon" to put the United States back on top of the world markets.

The general purpose of the asking of these questions would be an attempt to open a dialogue that would allow a transfer of knowledge and best practices from Dell to other industries in America in the hopes that this knowledge transfer would open up a new era of American prosperity through successful international business practices. In reality, Dell could do this without compromising any proprietary information. The Dell business model, one of the most revolutionary in decades, is worthy of additional discussion as well.

The Dell Business Plan and Organization

Dell's system of offering IT products directly from the manufacturer to the end user in both business and consumer markets not only brings tremendous value to the buyer in the form of faster delivery of product at a lower price (Kraemer & Dedrick, 2001) but also represents vast improvements to Porter's classic Five Forces Framework, as well as the traditional ERP model.

Speaking directly to Porter's model in light of the Dell business model, the model itself serves as a sort of binding to bring together what were previously separate components of the Porter model. Specifically, by Dell's refinement of the transfer of goods from supplier to buyer, the process itself is so unique that it all but eliminates the threat of substitutes and new entrants into the market, evidenced by the failure of many who attempted to compete with Dell over the years (Barua, Konana, Whinston, & Ying, n.d.). Also, the value transferred to the buyer makes the need to continue heavy bargaining unnecessary.

Dell has also streamlined the traditional ERP model; again, through the integration of what were previously individual resources (sales/distribution/manufacturing), the overall efficiency of the enterprise is enhanced, as is the value the buyer receives for their purchase of Dell products. Strategically, like in the case of commercially, Dell has brought a great deal of added value to the entire business entity (Kraemer & Dedrick, 2001) .

Summary

Dell Computers, through the vision of Michael Dell, has taken products, process, and people to a higher level than anyone ever thought possible. Evidenced by Dell's tremendous success in a brutally competitive environment, the innovations of Dell simply produce results. In closing, in the most basic of terms, the conclusion is clear- Dell has taken chances that have paid off, and continues to do so. Along the way, the consumer, competitor and economy all benefit, and hopefully will do so for many more years to come.

References

Barua, A., Konana, P., Whinston, A., & Ying, F. (). Dell Computer: Organization of Business Transformation, Opportunities and Value Assessment. Sloan Management Review.

Kraemer, K., & Dedrick, J. (2001, June). Dell Computer: Using E-Commerce to Support the Virtual Company. University of California, Center for Research on Information Technology and Organizations.

Massachusetts Institute Of Technology. (1994). A Conversation with Michael Dell. Retrieved October 23, 2006, from MIT USA Web Site: http://www.mitworld.mit.edu/video/94