MIS at DELL

Presented by : Zalifah Che Embee Habibah Kadir Mohd Aswad Shahrul Asmadi Zahari Sehak (DL (DL (DL (DL (DL 1010195) 1013072) 1018773) 1010501) 1016065)

Listen  Solve  Impact Dell helps drive the course of future industry innovation through a time-tested process that puts customer needs first. . By year 2001 company grew to $31. Company’s innovations are driven by customer needs. Company sells build-to-order computer systems directly to a wide range of customers – from the largest enterprises and government agencies to individual home PC enthusiasts. Dell has seen its stock increase by 400 times over the last decade. cutting edge solutions and strategic partnerships: .8 billion.OVERVIEW OF A COMPANY       Dell is the largest seller of PCs in the world.

“We communicate directly to our customers – in person. Dell. Company’s climb to market leadership is a result of its persistent focus on customer.” – Dell Focusing on customer helps Dell efficiently and effectively deliver the products and satisfy the customers. so that even regular people will be able to use computers. . Nearly one out of every five standards-based computer system sold in the world today is a Dell. via the internet or by phone.” – Dell Dell’s focus is to make computing easy like it should be. and believe we do it better than anyone in the planet.ABOUT THE COMPANY         “We do businesses directly with customers. Dell teams work hard to meet the needs of each customer with carefully tailored computing solutions.com is one of the world’s leading web sites. one at a time. so our understanding of their need is instantaneous.

MIS concept’s is vital to efficient and effective computer use in business of two major reasons :  It serves as a systems framework for organizing business computer applications  In emphasizes the management orientation of electronics information processing in business  The output of an MIS in information that sub-serves managerial functions  MIS deals with information that is systematically and routinely collected in accordance with a well-defined set of rules  The information provided by an MIS helps the managers to make planning and control decisions .MANAGEMENT INFORMATION SYSTEM   System that provide information needed to manage organizations effectively.

process. stores. evaluates and disseminates the information .MIS ADVANTAGES  It facilitates planning  In minimizes information overload  MIS Encourages Decentralization  It brings Co ordination  It makes control easier  MIS assembles.

build to order strategy for producing and selling PCs  Deal directly with CIOs and top executives  To offer add on products and services.BUSINESS STRATEGY Direct sales. to coordinate maintenance and technical support and to help the customer plan its replacement and upgrade cycle  The build to order process has been carefully honed for years and involves the entire production cycle and supply chain  .

ORGANIZATION OF BUSINESS ACTIVITIES       Internal Organization Product Development Component Sourcing Manufacturing and Logistics Sales and Marketing External Relationships  Indirect PC value chain  Direct PC value chain (Hardware delivery system)  Value Web (Virtual Company) .

THE INTERNET & E-COMMERCE .

Customers can choose what components they want for their computer. Dell’s model is based on build-to-order process. . Dell passed these savings to customers. and retailers between PC makers and PC buyers. eschewing the thendominant indirect model that interposes a network of distributions. value-added resellers. where company builds each PC on demand. Dell believed that this could help best understand customers’ needs and provide the most effective computing solutions to meet these needs. Selling direct lowered dell costs by 25-40% compared to competitors. Dell then assemble the order and ships it. This strategy improves customer satisfaction and reduces costs and risks to the company.Dell and direct sales        Dell started the direct-sales approach.

Benefits of direct sales method     Direct sales in conjunction with build-to-order is a powerful model for both Dell and its customers. rather than be forced to choose among a fixed set of options. Dell wins because by developing and building only those systems that customers want. Dell can use savings in other areas such as web site improvement. marketing and distribution. and having to sell the surplus at a loss. having high storage and inventory costs. Dell eliminates the excess cost of buying too many components. . Customers get what they want.

. Configurator also records buyer’s preferences. giving Dell immediate access to buying patterns. By 2000.Goals and strategies     Dell’s emphasis on tech-savvy PC buyers made online selling a natural. which let buyers choose among computer models and variety options and components. In order to succeed in online selling Dell needed configurator. When a customer clicked on an option exact cost was immediately added. because high-end PC buyers were obvious users of internet and early adopters of e-commerce. online sales were running at $50 million per day and made up more than half of all Dell product sales.

Only 1 out of every 100 visits to Dell. two studies of online PC buying gave company confusing picture of the effectiveness of its online sales efforts.com is undeniably successful. .Confusion and need of change     Although Dell.com resulted in sale – 99 percent of visitors left before buying. Dell needed to carefully analyze this and understand buyer behavior and focus on best possible opportunities for online sales growth. This fact was confusing because Dell enjoyed over 70 percent market share among online PC vendors.

Converting even a few percent more visitors into customers could have a massive impact on sales. The question is how to get people to buy computers online?! Buyers want to compare different products. 50 visitors out of 100 leave the site in the browsing phase. Online PC buying involves three phases: browsing.com never bought PC online. visiting multiple sites multiple times before buying. many of them come back later. Although 99 percent of visitors leave Dell. The average buyer form Dell visits website six times before buying.Understand customer needs and behavior             Study revealed extremely high attrition rates among visitors to Dell. Among visitors are competitors who visit website numerous times. .com.com before buying. Only 1 percent of customers is converted to a paying customer. These visitors are not just buying from competitors. so they shop around. 48 leave in configuration and 1 leaves checkout phase. configuration and checkout. 90 percent of visitors to Dell.

There are so many components and services available that customer can just lose patience. First of all it takes more than 5 clicks to get to actual component selection which is in configuration phase. On the other hand potential customers that were visiting site were 90 percent people who never bought PC online. it takes too long to get to checkout phase. there are too many add-ons and software offers that are more of a marketing strategy for other companies through Dell site that customers don’t even need or want. Fifth. Fourth.Converting visitors to customers       As we see that targeted customer and actual customers don’t match. . there is lack of practical information about each component that customer chooses. even after all the wanted components selected that customer thought it would be necessary to have the total price at the end jumps up enormously. Second. Third. Targeted customers were tech-savvy people who knew what they wanted and knew what each component does to your computer.

Also eliminate those component selections which are least selected to make the process of configuration faster and not that difficult. Dell needs to target less tech-savvy people who don’t have good knowledge about computers.Implementation plan First of all. decrease amount of clicks that gets customers to configuration phase. Fourth. leave swappable components so that customers could select less in one areas and compensate in other to derive to better price. shorten the steps in configuration phase and eliminate several options so that customers would not lose patience. At last. Third. . Second. add more information about the components so that even low-tech people could understand.

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