Slide 16 dell forecasting technology

Two surprises greeted the Dell executives who were creating this new process. First, as inventory dropped, lead-time performance improved. The reason was that Dell was not simply carrying component inventory against forecasted sales, but rather was aligning inventory and sales, managing profitability on a daily, weekly, and monthly basis. Second, as inventory disappeared, the company's returns grew disproportionately. Not only did Dell avoid carrying costs and obsolete stock, but importantly, it was saving enormous amounts of money on purchasing components because the component prices were dropping 3 percent per month. Profitability, not inventory The inventory in a channel is determined by the variance in supply and the variance in demand. Unless these variances are reduced, channel inventory can only be moved around, not eliminated. I think of this as the "waterbed effect." When you sit on a waterbed, it sinks in one spot and bulges in another. The water is redistributed but the amount stays the same. Through its use of profitability management, Dell matched supply and demand on a daily, weekly, and monthly basis. It sharply reduced the variance, and the need for inventories simply disappeared.

Then v can xplain d diagram in our words this is jus mirch masala for it

Dell wanted to be able to offer customers better quality at a bargain price. Moreover. improving delivery time. To achieve this objective. His focus on concrete issues like cutting operation costs. has contributed vitally to the company's successes in both the US and overseas markets. . he incorporated a customer-centric philosophy in his company. The establishment of www.Slide 24 dells direct model This quote epitomizes how Michael Dell transformed his former University of Texas dorm room adventure into a multibillion-dollar corporation. Without the massive inventory that other corporations have. this "direct model" concept can also be applied to Dell's suppliers. the materialization of Internet technology played a major role in sustaining the rapid growth of the company by allowing Dell to get even closer to its customers. This also created more options for customization. Listening to the customer directly takes the guesswork of what to include in the computer and wasted resources out of the equation altogether. Dell customers could configure and order their PC online. and download updates to their software. Another breakthrough due to the Internet was the start of E-Support Direct. The basis of the "direct model" is to improve efficiency by effectively eliminating the intermediaries thereby allowing the company to speak directly to the customer." as well as his exploitation of the benefits of the Internet. inventory costs were kept to a minimum and obsolete products were opened up the company's product to a greater number of potential customers. With the "direct model" initiative achieving preliminary success in both domestic and international markets. This helped revolutionize customer service by enabling automation and acceleration of the support process. get technical support. Dealing directly with customers allows Dell to customize their orders according to the customers' needs. and maintaining customer service is the underlying force that has driven the company. Internet has truly helped Dell expand globally. Michael Dell's establishment of the "direct model. This significantly added to the ability of keeping the costs small for the

Slide 29 rfid supply chain proper diagram .

countries. securely share information and take steps needed to boost the security of citizens. i2 CEO.S. i2 helps customers in 150 countries – including eight of the world‟s 10 largest companies -. Consistent with IBM's software strategy. i2 expands IBM's big data analytics software for smarter cities by helping both public and private entities in government. .” said Craig Hayman. more than half the people in the world are city dwellers.500 global customers rely on i2‟s offerings. it is basically is ibm software that helps forecasting faster than normal process ARMONK. Army. that number is expected to rise to 70 percent. approximately 350 i2 employees will join IBM.” The closing of IBM‟s acquisition of i2 comes less than five weeks after IBM's announcement on August 31 that it had entered into a definitive agreement to acquire the company. IBM has seen growing interest in analytics technology as a tool for protecting cities in terms of both public safety and corporate security. customers and shareholders. fraud and other security threats. insurance and other industries access and analyze information they need to combat crime. generate leads. VA and a major presence in Tucson. general manager. “Our clients will benefit from the integration of i2‟s products and technologies into a global organization with the stature and scale of IBM. UK. More than 4. law enforcement. IBM will continue to support i2‟s clients while allowing them to take advantage of the broader IBM portfolio. retail. "Helping governments and businesses improve public safety and corporate security is a significant part of IBM‟s business strategy. N. IBM Industry Solutions. Today. Using these technologies..K. public safety personnel and other investigators are better equipped to find patterns and address security threats before a crime occurs. further reduce crime and fraud and generate significant cost savings. IBM and i2 technologies will enable clients to put seemingly unrelated pieces of information to work.” said Robert Griffin.Y. we can expand capabilities and help our customers achieve their missions and goals in using analytics and big data to drive more information sharing.. with U. In recent years.” “With IBM. Ariz. By 2050. we are strengthening our ability to help cities. – 5 October 2011: IBM (NYSE: IBM) today announced it has completed its acquisition of i2. social media and biometrics.tap into vast quantities of information and derive intelligence from multiple sources to anticipate threats. headquarters in McLean. Based in Cambridge.S. corporate security experts. In combination. "Through our acquisition of i2. Soon after the closing. drawing on both unstructured and structured data sources such as criminal databases. international organizations and private enterprises create safer environments for conducting business. including the U. the Los Angeles Sheriff‟s Department and the majority of the police forces in the U.Slide 27 dell chooses i2 software so this below info is all about i2.

There costs were able to stay competitive while delivering an exceptional product because their business kept internal costs low. Dell‟s business structure of “virtual integration” allowed it to excel in an incredibly competitive industry. strategically targeting only the customers they wanted. small business and home PC users. and follow up customer service was able to be more effective. yet near their competitor‟s price. and Transaction buyers. By defining their customer as a „knowledgeable PC user‟ Dell made their task of providing a PC easier.Slide 26 dells competitive advantage Dell did something else other PC companies were not doing. Their customers did not need to go to a retail store to gain knowledge about their product. As Porters Five Forces demonstrates. Dell was able to evade a price war because its customers were aware of the technological value in a Dell PC. Dell was able to provide a technologically superior product at a reasonable price. As well. purchasing history could be consulted. . This enabled the „Direct Model‟ for purchasing PC‟s to work. Production efficiency lowered cost which in turn provided Dell with larger profit margins. Dell further expanded its ability to meet customers needs by classify customers into specific categories. It's competitiveness in the industry resulted from a highly efficient business model that sought out every opportunity to work more productively without compromising the quality of their product. Customers were categorized into Relationship buyers. By integrating both Relational and Transaction buyers into their business system repeat purchases were quick and easy. the potential for price battles increases.” Like Honda. Dell combated failing into the trap of a price battle by making a PC that was a better product than the competitors. Every relational buyer was assigned a representative who guided the business and institution through each stage of the buying experience. thus showing the effectiveness of “virtual integration. The Relational buyers made up a significantly larger portion of Dell‟s business but also had different needs than Transaction buyers. large businesses and institutions. when bargaining power of buyers is high.