FACULTY OF BUSINESS & MANAGEMENT

Master in Office System Management (BA775)

Course: Information System Management (OSM 752)

INDIVIDUAL ASSIGNMENT
Title : DELL Company

Prepared by:

Name Muhammad Fadli bin Setopa

Student ID 2022869176
Group TBA7751A

Prepared for:

Ts. Yau’mee Hayati binti Hj. Mohamed Yusof

 ACKNOWLEDGEMENT

First of all, my deepest gratitude to Allah S.W.T, for His blessings, I was able to
complete this individual assignment on time, at the same time completed the
requirements for OSM752 Information System Management course.

I would like to express the deepest appreciation to my lecturer Ts. Yau’mee

Hayati binti Hj. Mohamed Yusof, for her valuable encouragement and guidance
extended to me in order to develop a satisfactory assignment. I am very thankful for
her willingness in spending time to entertain my in doubt from time to time.

I’m also want to place on record, my sense of gratitude to my soulmate, Wan

Nur Fadhlini binti Wan Abdullah who have contributed full of support and ideas in the
first place during the assignment development.

Thank you.

MUHAMMAD FADLI BIN SETOPA

January, 2023
Faculty of Business Management
Universiti Teknologi MARA (UiTM)
Dungun Campus, Terengganu Branch

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 TABLE OF CONTENTS
Page
ACKNOWLEDGEMENT i
TABLE OF CONTENT ii

1.0 EXECUTIVE SUMMARY…………….. ………………………………………….......... 1

2.0 BACKGROUND…………….. ………………………………………………………...... 1-2

3.0 CASE EVALUATION.. ………………………………………………………………..... 3-4

4.0 PROPOSED SOLUTION……………………………………………………………….. 4-7

5.0 CONCLUSION…………….. ………………………………………………………….... 7-8

6.0 IMPLEMENTATION…………….. ……………………………………………………... 8

7.0 REFERENCE…………….. …………………………………………………………...... 9

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1.0 EXECUTIVE SUMMARY

After Michael Dell’s (CEO of Dell Company) resignation statement is made in

2014, the restructuring discussion of Dell, in which Michael Dell plays critical role is
facing tremendous pressure. Dell responds immediately to this potentially worrying
sign, and an investigation of the external environment of the computer business as
well as internal capabilities has been made (Dell Annual Report, 2014). In order to
help Dell Company succeed, this paper analyses sustainable competitive advantage
and offers suggestions. Summary Dell is one of the largest computer manufacturers
in the world. Dell has grown rather swiftly as a result of their unique "direct-build-to-
order" selling strategy. The key achievement of Dell was a seamless, economical
distribution network that delivered its product via mobile or web. Dell's distribution
slowed down as a result of supply chain challenges caused by the removal of Sony
batteries from their PCs. On the other hand, HP took over and seized Dell's operational
expertise. Dell decided to use the commodity prices as they were now working with
HP. But Dell was also the source of the problem. Competitors may increase their
market share over time. They might even try to eliminate Dell from the market by
undermining its advantages over rivals. Dell is also having internal problems.
Employee dissatisfaction at Dell and the high turnover rate appear to be growing
problems. Brilliant candidates are being hired by Dell for other organisations. Dell's
appeal to customers has diminished as a result of the organization's declining ideals
and objectives, and it may continue to do so in the future. The major problem is that
Dell has failed to persuade stakeholders of its dedication to innovation and continuous
improvement. In this report, we'll look at the many approaches, outcomes, and
problems Dell encountered while putting competitive advantages into practise.

2.0 BACKGROUND
A significant producer of personal computers, computer accessories, and
software was Dell Computer Corporation. One of the leading computer manufacturers
in the world, Dell, instead distributes its products to customers directly through the
Internet and mail-order catalogues. The company is based in Round Rock, Texas. At
Dell Computers, customers are included in the processes of product development and
manufacture, and all employees are urged to engage with customers. Successful
cross-border collaboration allows for the exchange of thoughts on product designs and

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value propositions. Faster and more customer-focused product and service innovation
is the end outcome.

Considerable focus must be given to organisational structures, processes,

skills, and culture in order to create the capability for this. In older businesses, these
aspects might require a major revamp (Dennis & Harris, 2002). In 1984, Michael Dell
started the company Dell. In 1983, while a first-year student at the University of Texas,
he purchased extra RAM chips and disc drives for IBM personal computers from
nearby vendors. Through newspaper advertisements, he resold the parts for far less
than their original retail value. His monthly sales reached over $80,000 by 1984. Dell
stopped attending school in April 1984 to start his business (Ford,Honeycutt &
Simintiras, 2003).

Under the name PCs Limited, the new business soon started producing its own
IBM-compatible computers. Because Dell marketed computers directly to consumers
through advertisements in magazines and catalogues, the business was able to set
its prices lower than those of competing brands. In the first year of operation, sales
were close to $6 million, and the following year they increased to $34 million. Dell was
the top mail-order computer business in the US by 1987. In order to penetrate the
international direct mail industry, it started building overseas offices and formed a
sales team to target large organisations in that year (Ford, Honeycutt, & Simintiras,
2003). Dell had a string of mishaps that harmed revenues even while the company
kept expanding quickly.

The business started selling computers through retail locations in 1990;

however, it gave up on this strategy in 1994. Dell introduced a series of notebook
computers in 1991, but quality issues and poor production scheduling led the company
to halt sales for a year. In 1994, Dell extended its efforts to boost international sales
and introduced a new range of notebook computers. Dell also started concentrating
on the server sector, which used the computers to power local area networks. Dell had
firmly established itself as the top computer direct seller in the world by the late 1990s.
The company's website handled more than 50% of all computer sales transactions,
generating more than $40 million in daily global sales (Ford, Honeycutt, &
Simintiras,2003)

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3.0 CASE EVALUATION

According to Forbes, 1992, p. 82, the Dell Company has allegedly regularly
improved its information system methodologies. Information systems are crucial at
Dell. According to Kraemer et al, the Company's business model has been carefully
and continuously improved. The information systems support the company's direct
business style by providing a range of options from order entry through product
integration (Lisa , 1997). Information technologies also help by providing effective
means of sending staff members rapid communications. The information systems
provided a variety of tools, from order entry to production integration, to support the
Dell Direct business model. Employees could receive immediate information via e-mail
or the intranet to information systems.

Additionally, information systems served as a means of establishing contact

with suppliers, gathering and analysing market data, and supporting decisions
regarding anything from recruiting procedures to product offerings to pricing.
Additionally, the information technologies aid in offering efficient channels for quick
message delivery to the staff. The information systems are created in a way that links
the suppliers to the business, as well as supports product development by helping to
obtain market input (Langlois,1992). The Dell Company model is broken up into small
parts, is locally controlled, and has a worldwide perspective on business. According to
the direct business model, each of the company's products is specifically tailored to
meet the individual demands of the consumer. This makes it challenging for the
company to use just one type of standard information system model.

Dell's mass customization strategy completely transformed the way consumers

shop. Because Dell has been employing the same strategy for many years, HP has a
window of opportunity. In addition to exceedingly dismal earnings reports, self-igniting
rechargeable battery packs, and experts' ominously bleak projections for Dell's future,
Dell endured a lot of tragic incidents in 2006. Hewlett Packard has gained a sizable
market share at the expense of Dell (HP). With each passing year, Dell faces an
increasing threat from rivals like HP, Sony, Lenexa, Apple, and others. Competitors
may increase their market share over time. They might even try to eliminate Dell from
the market by undermining its advantages over rivals.

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 Dell is also having internal problems. Employee dissatisfaction at Dell and the
high turnover rate appear to be growing problems. Brilliant candidates are being hired
by Dell for other organisations. If all of these individuals depart, Dell will need to hire
new talent. In addition to taking a lot of time, employing new employees is also very
expensive. Employee dissatisfaction with the organisation is a result of other internal
issues, such as difficulties with corporate culture. Dell and its employees don't have
any close ties.

Dell is losing market share in its industry. Strong competitors are getting riskier.
It is possible to overcome competitors as an external barrier by imposing Dell's key
competencies. Dell's competitors are numerous, and some of them have very enticing
value propositions. Dell's appeal to customers has diminished as a result of the
organization's declining ideals and objectives, and it may continue to do so in the
future. The major problem is that Dell has failed to persuade stakeholders of its
dedication to innovation and continuous improvement. Instead of introducing new
technologies, the staff wants to reduce the cost of existing procedures. In general,
workplace culture is declining. Employees do not believe that the workplace is suitable
for a technological business.

Similar results have been observed by other stakeholders during the previous
few years. Dell has kept using the same approach while experiencing minimal market
advancements. Dell has introduced items that fall short of the basic standards and
could endanger people. Additionally, it has sharply decreased revenue, decreasing
shareholder interest. Dell has not been improving over time or keeping up with the
competition. The root problem within the organisation is the cause of all the problems
in the problem, either entirely or in part.

4.0 PROPOSED SOLUTION

The direct model is easy to understand conceptually, but it requires significant

intricacy and accuracy to execute. Therefore, management and IT at Dell should think
that they must contribute to extending and improving the business model rather than
changing it entirely. The model design is adaptable, which ensures easy making of
modifications without affecting the entire system, according to Kreimal et al. Dell
Company architecture employs a G-2 blueprint on architect systems, executing

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development and implementing roll outs in order to supply the failed client servers.
The G-2 design allows the company to run the finest applications rather than running
a single enterprise system because it includes a web browser, message broker, and
database.

Due to its flexibility, Dell Company is able to accommodate consumer needs

and expand the capabilities of its information systems without affecting other essential
business operations. Dell's IT is decentralised and integrated with the company's
regional activities. The business as a whole is supported by the IT systems. Network
services, help desk, data centre, and database administration are all part of "the IT"
services. Other activities including production, procurement, logistics, support, and
service are coordinated via "the IT" systems. Through quick and effective information
sharing, the Company has used its I to achieve virtual integration between strategic
partners and suppliers.

Since they are essential to the operation manager's and the company's overall
success, "the IT" systems must to be updated on a regular basis. System updates will
assist the business in identifying, analysing, and resolving issues before they get out
of hand. The operations manager is in charge of keeping an eye on all of the business's
various enterprise systems, including the hardware and software. In order to stay
ahead of the competition, this helps Dell Company in meeting the demands of the
supply chain as well as the manufacturing solutions. The operation manager
collaborates with the IT division to guarantee that the IT management solutions are
scalable in order to support the seamless global operation of the business. This helps
the business manage its complex IT systems with little effort and expense. The
operations manager aids the business by closely monitoring the systems and notifying
the IT team of any threats or prospective issues.

Possible hardware issues like memory loss, drive and fan failure, and other
temporal problems are included in here. The operations manager collaborates closely
with the systems management server to guarantee that clients receive high-quality
services quickly.

There are other approaches to overcome the core problem, like Dell creating a
new marketing strategy that only concentrates on one aspect of their business. For
instance, they might place more emphasis on software or customer service. It will need

5
to increase its competence in that specific area. Although Dell is active in the hardware
and software industries, it will need to develop new skills if it wants to expand even
further. These skills can be expensive and time-consuming to master, but they can be
learned over time. If Dell's company focuses on a specific area, managing and
marketing it will be much easier. The most problematic aspect of this strategy is the
timeframe. If Dell does not take action right away, competitors will keep stealing
market share.

The second possibility is that Dell will stimulate greater innovation while
maintaining their high level of personalisation. They can continue to develop their
primary talents while also adding new ones throughout time. The company's culture
and mission must be spread, with an emphasis on internal stakeholders. It can more
effectively address the fundamental issue. Given that it has been crucial to its success
for many years, the company should continue to enhance its core competencies. Dell
faces a challenge in that it must improve its core strengths and accelerate the creative
process. Dell should start with its most valuable asset: its employees. It's difficult to
find talented employees. Dell seeks devoted employees that are eager to pick up new
skills and technologies. Positive workplace cultures are typically the cause of high
levels of loyalty to the company.. Dell won't have to cut back on the services and goods
they offer if this approach is implemented. Profits are divided among all the items and
services offered. Customers of Dell are seeking specialised goods and services that
can be tailored to their own requirements, but doing so could be quite risky.. Customers
and communities will undoubtedly profit from this approach because they will have
access to more dependable services and goods. Businesses must adopt the newest
technologies as they develop. They now need computer equipment, and Dell can
supply them with high-quality products. Although this approach won't cause significant
changes to the environment, Dell cannot increase environmental impact or pollutants
in an endeavour to produce better items because doing so will harm the surrounding
areas. The rivalry will continue to be strong, as it has in the past. It's likely that rivals
may enter the market with novel marketing strategies and brand-new products. It is
envisaged that preserving its skills and applying this solution will help Dell, which has
long maintained the greatest market share, to keep that position.

They could even try to absorb the new advantages of their competition in an
effort to benefit from them. They would have to use their imagination to come up with

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modifications that would work for them. This is also a straightforward response.
Without a doubt, competitors are performing some tasks correctly possibly even better
than Dell.. Dell might concentrate on learning from rivals and investigating such
aspects. Although most of their tactics will be secret, some of them might be publicly
known. Dell won't be able to see the big picture without all the information, which might
be a problem.

5.0 CONCLUSION

In conclusion, the company must rely heavily on third parties for its software
before it can develop software skills to increase the value of its hardware. Dell has
never been a technology innovator. Dell was essentially a PC maker that found a
successful business model. It remained static, never looked ahead, and gradually
grew accustomed to itself. Dell had a tight focus on producing PCs before acquiring
other businesses and extending into the service industry. Dell had a brilliant business
plan that involves creating computers as they were purchased in order to avoid
accumulating inventory. The business operated successfully until rival manufacturing
firms found new, creative, and less expensive ways to reduce expenses.

Some factors, such net income, market share, and sales, can be evaluated
immediately to determine how effective a solution is. These metrics ought to rise; as it
is quantitative data, measuring it won't be a problem. Turnover rates and opinion poll
results can both measure employee satisfaction. Dell could use the suggested solution
as a backup plan if there is no difference after it has been put into practise. Although
the other businesses will have more expertise in the area, Dell might still gain
something by encouraging some of their work in rival firms. Competition is extremely
difficult, and it occasionally can result in unethical behaviour. Businesses might
engage in combat to demonstrate the superiority of their products. Due of their market
dominance and potential access to outside assistance, even Dell might adopt one of
these approaches. However, engaging in unethical behaviour could result in enduring
mistrust.

Apart from pricing, quality, style, service, and technology, these businesses
aren't all that different from one another. Dell, regrettably, falls short in each of these
areas. The objective of Dell's new innovation strategy is to increase standards while

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also attracting commercial clients. The company is launching a new Latitude business
laptop computer, however it deviates slightly from what Dell formerly stood for. Dell
built a successful reputation by emphasising basic technology and a business
approach that allowed customers choose the extras for their own PCs. Dell did not
place much importance on innovation. At the time when Dell was offering inexpensive
PCs to the general public, businesses like HP and Sony were promoting innovation.
This is how Dell promotes innovation, which unquestionably needs improvement to
provide the finest service to their clients.

6.0 IMPLEMENTATION

Before implementing the remedy, Dell should properly define the problem at
hand and start by developing a programme with staff members. Dell must be aware of
the challenges it faces and the reasons it must focus on improving its capabilities and
innovations. The best spot to start is with a programme that aids employees in
comprehending the company's culture, objectives, and hazards. In order to promote
innovation and growth, Dell will also give employees access to a livelier and more
open work environment. Once the business has started focusing on enhancing its
products and services, it may start advertising to the public and demonstrating its
advances. Since a large portion of the consumers have been loyal to the business for
many years, using its core strength (custom-built computer services) will help attack
customers. Additionally, Dell is a seasoned opponent that still holds a sizable portion
of the market.

Immediately put into practise the section addressing personnel and internal
company training. Employees may need some time to become used to the changes
and start helping to achieve the new objectives. On the other hand, innovation and the
creation of unique computers might take longer time. For Dell, regaining its lost market
share and continuing its growth would be the perfect outcome. As a result, Dell will be
able to increase its profitability while still keeping its stakeholders happy. Employee
motivation should increase, and employee turnover should be reduced.

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7.0 REFERENCE

Kraemer, Kenneth, et al. UC Irvine Recent Work Title Refining and Extending the
Business Model with Information Technology: Dell Computer Corporation
Publication Date. 1999.

Muhammad Zun, Hussain. “Case Study Dell - Case Study: Management Information
System at Dell Management Information System - Studocu.” Studocu, 2021,
www.studocu.com/my/document/universiti-putra-malaysia/information-
system/case-study-dell/17428149. Accessed 20 Jan. 2023.

Dell Case Study - Analysis - Internal Challenges. (2020, February 17). Retrieved from
Slick College Tips website:
https://slickcollegetips.com/index.php/2020/02/17/dell-case-study-analysis-
internal-challenges/

Kate. (2015, September 18). Case Study of Dell: Business Innovation and Success.
Retrieved from MBA Knowledge Base website:
https://www.mbaknol.com/management-case-studies/case-study-of-dell-
business-innovation-and-success/

Li, Y. (2022). A Case Study on Dell Technologies and its CEO, Michael Dell. Frontiers
in Business, Economics and Management, 3(3), 128–131.
https://doi.org/10.54097/fbem.v3i3.360

Hoffmann, L., van der Veer, A., Bostoen, F., Heiden, B., & Petit, N. (2022). Dell – A
Case Study of Dynamic Competition. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.4277601

Greco, A. (2000). Case Study – Dell Computer. The Marketing Review, 1(1), 103–127.
https://doi.org/10.1362/1469347002523473

Allen, B. R. (2008). Dell Computer: Business to Business Over the Web. SSRN
Electronic Journal. https://doi.org/10.2139/ssrn.1276593

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 OSM752 INDIVIDUAL
ASSIGNMENT
by Muhammad Fadli Setopa

Submission date: 21-Jan-2023 01:31AM (UTC-0500)

Submission ID: 1996474004
File name: OSM752_TURNITIN.docx (32.56K)
Word count: 2977
Character count: 16305
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OSM752 INDIVIDUAL ASSIGNMENT
ORIGINALITY REPORT

23 %
SIMILARITY INDEX
4%
INTERNET SOURCES
2%
PUBLICATIONS
22%
STUDENT PAPERS

PRIMARY SOURCES

1
Submitted to PSB Academy (ACP eSolutions)
Student Paper 7%
2
Submitted to New York College in Athens,
Greece
3%
Student Paper

3
Submitted to Loughborough University
Student Paper 3%
4
Submitted to Roehampton University
Student Paper 3%
5
Jiayang Cheng. "Sustainable Competitive
Advantage Analysis and Recommendations
1%
for Dell Company to Achieve Success", Open
Journal of Social Sciences, 2022
Publication

6
Submitted to Wittenborg University
Student Paper 1%
7
Submitted to Woxsen University
Student Paper 1%
8
Submitted to 93158
Student Paper 1%
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Journal of Organizational Change
Management, Volume 16, Issue 5 (2006-09-19)
1%
Publication

10
www.myspeedythesis.com
Internet Source 1%
11
www.scribd.com
Internet Source 1%
12
Submitted to Kaplan University
Student Paper <1 %
13
Submitted to University of Wollongong
Student Paper <1 %
14
Submitted to SP Jain School of Global
Management
<1 %
Student Paper

Exclude quotes On Exclude matches Off

Exclude bibliography On
OSM752 INDIVIDUAL ASSIGNMENT
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