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Management Information System at Dell
Management Information System at Dell
SYSTEM AT
Applications of MIS
With computers being as ubiquitous as they are today, there's hardly any large business
that does not rely extensively on their IT systems.
However, there are several specific fields in which MIS has become invaluable.
Strategy Support
While computers cannot create business strategies by themselves they can assist
management in understanding the effects of their strategies, and help enable effective
decision-making.
MIS systems can be used to transform data into information useful for decision making.
Computers can provide financial statements and performance reports to assist in the
planning, monitoring and implementation of strategy.
MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision
makers. By studying these reports decision-makers can identify patterns and trends that
would have remained unseen if the raw data were consulted manually.
MIS systems can also use these raw data to run simulations hypothetical scenarios
that answer a range of what if questions regarding alterations in strategy. For instance,
MIS systems can provide predictions about the effect on sales that an alteration in price
would have on a product. These Decision Support Systems (DSS) enable more
informed decision making within an enterprise than would be possible without MIS
systems.
Data Processing
Not only do MIS systems allow for the collation of vast amounts of business data, but
they also provide a valuable time saving benefit to the workforce. Where in the past
business information had to be manually processed for filing and analysis it can now be
entered quickly and easily onto a computer by a data processor, allowing for faster
decision making and quicker reflexes for the enterprise as a whole.
Management by Objectives
While MIS systems are extremely useful in generating statistical reports and data
analysis they can also be of use as a Management by Objectives (MBO) tool.
MBO is a management process by which managers and subordinates agree upon a
series of objectives for the subordinate to attempt to achieve within a set time frame.
Objectives are set using the SMART ratio: that is, objectives should be Specific,
Core Competencies
Every market leading enterprise will have at least one core competency that is, a
function they perform better than their competition. By building an exceptional
management information system into the enterprise it is possible to push out ahead of
the competition. MIS systems provide the tools necessary to gain a better
understanding of the market as well as a better understanding of the enterprise itself.
production process. With better information on the production process comes the ability
to improve the management of the supply chain, including everything from the sourcing
of materials to the manufacturing and distribution of the finished product.
ERP OF DELL
Dell Computers Vital PLM Processes
Dell has achieved dramatic success streamlining its product data management
activities to product life cycle management. Its ability to keep the project focused
on core business processes has yielded short time to value.
In 2000, Dell Computer faced these trade-offs as part of its constant efforts to improve
its supply chain processes. In this case, it improved its product data management
(PDM) capabilities, most notably its engineering change management (ECM)
processes, internally and across the supply chain. In addition to streamlining the
engineering workflow, this IT effort was key to building a foundation that can enable
more-efficient product life cycle management (PLM). The goal of PLM is to manage the
stages of a product's life to improve business performance. PLM depends on PDM for
timely and accurate information about the status of a product definition.
Problem: Dell determined that it needed to reduce costs associated with managing
product data and improve its engineering change workflow internally and across the
supply chain as part of its ongoing efforts to improve business performance. The
established infrastructure and processes were supported by internally developed
applications to define products and manage bills of material (BOMs), manage related
documentation and support ECM. As the enterprise continued to grow, it was becoming
harder to monitor and control product development and production startup. Dell sought
to address these issues before they became widespread.
management, and ECM across the enterprise and the supply chain. During 2000, the
stewards of product data, Dells Product Group
Configuration Management (PGCM) team, drove this effort in conjunction with the
engineering services project team. Meetings with senior executives reaffirmed the need
for the project, reinforced corporate commitment, and confirmed the goals, scope and
expected results from this initiative. Enterprise wide awareness of this support from
senior executives encouraged cooperation from all affected groups. Central to this
strategy was Dell's decision to focus on the IT capabilities that would be useful to
improving its infrastructure. It focused on secure document and file management, BOM
creation, product configuration management, ECM, and the Web based ability to
coordinate these activities across Dell's global operations and with suppliers. Although
Dell recognized that supporting multiple types of workflow could be valuable, it decided
to streamline workflow options during the initial deployment of software. After exploring
options with major systems integrators (SIs) and suppliers of PDM applications, Dell
decided to partner with Agile Software and to support the effort with an internal team
dedicated to the deployment. Dell adopted this approach because:
Agile addressed the major focus points of this initiative
During the evaluation process, Agile instilled the greatest confidence that Dell could
work with it to deploy in the Dell environment
Given their knowledge of engineering processes and software, an internal deployment
team from Dell would deliver a more-economical and timely solution than those
proposed by Sis Figure 1 depicts the upgraded infrastructure. At the core, the ehub and
the Internet file server provide the backbone for archiving and sharing electronic files
securely across the Internet. The product data validator and the Agile integration server
provide the interface between Agile and Dells enterprise resource planning (ERP)
environments worldwide, as well as to its sales configurator for complex servers and
storage devices in the United States. By integrating Agile with its sales configuration
validation tool, Dell enabled its U.S.-based sales department to automatically validate
server and storage device configurations based on engineering technical attribute data
housed in the Agile tool. Dell executed the bulk of the deployment in two phases. The
first enabled Agile as the system of record for 2,500 internal users and 37 of Dell's top
50 suppliers. More than 250,000 part numbers and 20,000 documents were converted
from the legacy database into Agile's software environment. This phase lasted seven
months (from March 2000 through October 2000) and cost between 200 percent and
250 percent of the software's purchase price. Nonsoftware costs comprised Agile's
consulting services, the time of internal team members, travel and ancillary software
support for the Web-based environment, including extranet support. On 1 October 2000,
Dell went live on Agile as the product change system of record to manage all product
platforms. During the second phase of the deployment (from October 2000 to June
2001), Dell added 800 users and 63 suppliers to the system. It improved interfaces with
ERP systems and developed the data validator with Agile's Software Development Kit.
The data validator checks product data accuracy, compliance with local manufacturing
conditions and the compatibility of translated data with local ERP data formats. Further
steps in this effort will involve refinement of the workflow internally and with suppliers.
Results: The initiative reduced the product development cost structure by improving the
timeliness and accuracy of product data and ECM processes across Dell and its
supplier network. Dell achieved most of these benefits during late product design stage
(just before manufacturing begins). This is the point in the product life cycle with the
greatest volume of engineering change to manage internally it is the point in time at
which suppliers have the greatest risk of error. Dell reduced the resources necessary to
process engineering changes by more than 30 percent. The average time to process an
engineering change dropped by 50 percent. Thirty percent fewer people are needed for
configuration management globally, since employees are able to process four times as
many engineering changes as they had done previously. This enabled personnel to be
redeployed to other critical tasks throughout the product's life cycle. Improvements in
the accuracy and timeliness of data reduced unnecessary scrap and rework. On
average, Dell processes more than 4,000 changes monthly on more than 20,000 parts.
The data validator traps more than 8,500 errors each month. This has substantially
reduced the amount of personnel required to intervene on the translation of product
data to ERP systems.
KNOWLEDGE MANAGEMENT
Dell Computer Corporation enjoys a reputation for outstanding customer service. This
expertise has helped the company become one of the fastest growing computer
manufacturers in the world. But customers in the rapidly evolving information age
expect even more. To meet its customers demands for faster, better-informed, and
more responsive service, Dell has developed a host of Microsoft
Exchange Serverbased knowledge management solutions that has helped the
company increase productivity and cut costs while improving customer service.
The concept of direct customer contact has made Dell Computer Corporation one of the
most successful companies of the 1990s. But to carry their success into the next
millennium, Dell executives realized they would need to make sure that when customers
come into contact with Dell, they receive quick, accurate, knowledgeable service.
Dell has a two-part sales force, an internal sales-support team and a fleet of field sales
representatives. Historically, the groups were challenged to keep their information about
customers in synch and up-to-date, often resulting in needless duplication of efforts and
missed sales opportunities.
Dell also needed a way to respond to customers whether they contacted the company
by letter, fax, phone call, or e-mail. Complicating that communication was the fact that
the people who needed to respond to customer issues were dispersed among the
companys more than 33,000 employees in 33 different countries.
As Dell and its customer base began to experience explosive growth, it became
increasingly difficult for Dell employees to provide high-quality service using nonautomated processes, says Arnie Panella, Dell senior manager for global messaging
infrastructure.We needed to create an infrastructure to support development of
workflow-based applications that would enable us to efficiently organize, share, and
disseminate information throughout Dell, so we could better serve our customers.
Recovery makes sure that weve addressed whatever issues the customer
has raised in a timely and efficient manner, Panella says. With this knowledge
management solution, we make sure that the correct people see the complaint, resolve
it, and close the loop with the customer, and that gives our customers a better
experience with Dell. Dells order-fulfillment and tracking process has also improved.
The company receives many orders by fax, and customer service representatives used
to write down additional information or customer questions on the actual hard fax copy.
These records were very difficult to track, manage, and follow up on. In fact, it could
take weeks for Dell employees to find the correct fax order and respond to a customer
inquiry. Dell IT staff made a number of changes that help make these fax orders more
manageable. First, they installed the Omtool Fax Sr. fax server to receive all incoming
faxes and send them directly to employees desktops via Exchange Public Folders.
Then, they designed a knowledge management solution that makes it easy for
employees to find the order information they need. Now, when a fax order arrives at
Dell, an employee enters all the relevant information into a custom Outlook form, and
the fax and form are sent to a Microsoft SQL Server-based database. Any Dell
employee can then find the order almost instantly and answer questions or update
information.
Business-Critical Results
According to Panella, the document-management system is helping Dell in a few very
important areas. The system has cut the material costs of printing faxes and has saved
the company for each page not printed. In addition, the time it takes to service requests
has been reduced dramatically from a number of days to the number of minutes it takes
to service online image retrieval. The document management system has dramatically
improved Dells responsiveness to order inquiries. Because accounts receivable can
also find payment information almost immediately, it has helped Dell to come up with
the correct document quickly. Because Dell employees can invoice customers more
quickly and follow up on payment status easily, Panella considers this a business-critical
solution. In addition to increasing sales productivity, the shared-contact management
system has also given the Dell sales force a competitive advantage. If a Dell employee
learns that a competitor is courting a Dell customer, he or she can target and quickly
contact the appropriate people at the customer site. Then the representative can update
the contact information immediately, so other Dell employees know about the situation
and the action taken. Dell has many plans to refine and expand its use of knowledge
management solutions. For example, its IT staff is developing reporting tools that will
help managers record, track, and analyze the success of systems such as Customer
Recovery. In addition, the company is in the process of developing an automated
approval system that will reduce the time it takes to fulfill employee requests, whether
for new equipment or a change in benefits. Employees will enter their requests in a
custom Outlook form that will then automatically be routed to the correct managers for
approval. And the efforts wont stop there. Dell executives have embraced knowledge
management as an integral component of running an efficient business. Says Panella,
Very soon after migration, weve gone from using Exchange just as our messaging
system, to using it for business-critical knowledge management applications.
Dell UPS Management Software supports Uninterruptible Power Supply (UPS) products
connected to an individual computer as well as UPS models connected to a network
using the Network Management Card (NMC). The Dell UPS Management Software
allows you to monitor and manage several UPS products through one intuitive graphical
user interface. In addition to monitoring the UPS products the software also safeguards
computer systems from uncontrolled shutdowns due to power failure.
With the Dell UPS Management Software, you can configure UPS products on any
computer within the same LAN and monitor their status. Using the UPS software, you
can manage the power to multiple computers on a network as well as shut systems
down in the event of a utility power failure, saving vital application data. The Dell UPS
Management software also supports different UPS products in redundant
configurations1 through the same user interface.
Dell UPS Management Software has three components. Of these, the first is the Agent,
which is the core component and runs in the background as a system service. It
communicates with the UPS, logs events, notifies users of events, arranges actions
according to the users specifications, and initiates shutdown when necessary. The
Agent can be managed by the Monitor.
The Monitor is the graphical user interface application of the Dell UPS Management
Software. Communicating with the Agent, it gathers real-time UPS information, UPS
status, and server information, and allows the user to tailor the UPS working
parameters. It can run on any computer on the LAN or on a standalone computer. The
final component, the Tray Icon, is the management tool of the Dell UPS Management
Software, and it appears in the status area of the system task bar. It is available only for
the Microsoft Windows platform.