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Management Information System - at - Dell
Management Information System - at - Dell
(GST 5083)
GROUP ASSIGNMENT:
Case Study: Management information system at Dell
GROUP MEMBERS:
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The positive side of Dell using MIS in the corporation is that they are easing up the
fussy work that traditionally done by human. Such as to segregates the demographic data,
mapping the business in other country and such. The MIS can be more accurate and can work
faster, produce better results and can cut down administration and operating costs. MIS also
helps the corporation to deal with the consumer needs faster by providing databases and
solving consumer activity such as payments and delivery. Efficient management information
system makes it possible to effectively collaborate across boundaries, shared ideas about
product designs and value propositions. The result is faster and more customer-focused
product and service innovation.
However, to set up the sophisticated MIS package is not cheap and much of the
money and time need to be invested in order to get MIS peripheral up and running. The
servers itself will cost millions and systems such as mapping s and payment system will cost
more. The preparation also need to be done before installing and implementing MIS such as
training, prototyping and pilot test need to be conducted to make sure, the system will not be
jeopardizing the corporations once it is ready. Things such as corruptible data and security
measures must be monitored closely to avoid misuse of the data gathered. As in the article
mentioned “the misuse of the inventory system may cost problems to the company.” And the
corporation as large as Dell will not be taking that kind of risk and they will have a bright
future to look upon.
3) The dell directly sells its computers to the customer whether it will give them good
and reliable information or they are lacking in information system due to this move?
Dell gives its customers good and reliable information. It has an excellent supply
chain and gets instant feedback from customers about needs and wants via
integrated info systems (purchasing patterns online and service partnerships). Due to fast
phone service and also quick onsite service dell offers customized products better than
anyone else. Based in the the March issue of Consumer Reports, included a survey of 4,100
consumers, who gave Dell 62 points out of a possible 100 for its support on desktop PCs.
Although it still managed to top competing brands Hewlett-Packard and Compaq, which
scored 54 and 51, respectively. Shipments for the company, which pioneered direct sales of
computers to consumers, surged 25 percent year over year to 25.8 million units in 2003,
making it the world's largest PC maker.
Dell has a closer relationship with customers after cutting out the middleman,
thus taking all the praise from happy buyers and all the blame when things go wrong. In
addition, the PC business is becoming increasingly commoditized, marked by similarly
equipped machines and price erosion. The primary way to distinguish themselves from the
competitor is to spoil buyers by providing better service and support than competitors. Dell's
emphasis on service emanates directly from the top. CEO and founder Michael Dell wrote in
his 1999 book, "Direct by Dell," that relatively sketchy support offered by electronics stores
inspired him to build his own company. Therefore, Dell extremely committed to spend time
each year operating the phone lines to reach and communicate with their customers.
4) Develop the information flow diagram for dell and suggest some improvement in the
same.
DELL dell.com
dell.com consum
consumee
• host • product r
product detail • access
detail • price product
• recieve inform ati
informati
order on
and • place
dispatch order
product
However, there are several improvement on the dell.com that needed to adjust in order
to accommodate the customer need and demand such as to provide customer review or
comment to rate the product. Furthermore, Dell should also revise on the software in order to
stimulate the interest of the customer for example giving free trial software and others.
Dell lacks in management as The Company has such a huge range of products and
components from many suppliers from a number of countries, that there is the occasional
product recall that can cause Dell some embarrassment. For instance, in 2004 Dell had to
recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric
shocks or fires. On August 17, 2007, Dell Inc. announced that after an internal investigation
into its accounting practices it would restate and reduce earnings from 2003 through to the
first quarter of 2007 by a total amount of between $50 million and $150 million, or 2 cents to
7 cents per share. The investigation, begun in November 2006, resulted from concerns
raised by the U.S. Securities and
Exchange Commission over some documents and information that Dell Inc. had
submitted. It was alleged that Dell had not disclosed large exclusivity payments received
from Intel for agreeing not to buy processors from a rival manufacturer. In 2010 Dell finally
paid $100 million to settle the SEC's charges of fraud. Michael Dell and other executives also
paid penalties and suffered other sanctions, without admitting or denying the charges.
The inefficient management of dell is also obvious from several incidents such as:
• Closure of Dell’s biggest call center in April, 2003 terminating 1100 employees
• Dell announced the closing of its manufacturing plant in Limerick, Ireland with the
loss of 1,900 jobs and the shift of production to its plant in Poland