Business information strategy in dell

Business information technique in dell

XECUTIVE SUMMARY

The business information technique helps a business in identifying ways and means of sharing information over the organization and across all of the departments of the organization. This report highlights the business information approach at Dell, a favorite computer manufacturing company. The industry offers been led by the important players like IBM, Compaq, Intel, Lenovo, HP, Apple, Microsoft, Dell, Sony, Samsung, LG, etc. The very best two manufacturers of pcs apart from Dell are Apple and Microsoft and they pose a stiff competition to Dell and the market is led by the very best 2-3 manufacturers.

After evaluating the financial efficiency of Dell, IBM and Apple Inc, it really is said that the amount of operations of Dell is much lower when compared with Apple Inc and IBM. Some of the recommendations made to the companies in the manufacturing industry are as follows

Concentrate on quality of products, adopting progressive manufacturing processes, improved customer support, competitive pricing, improved source chain, etc. The technique for Dell is always to adopt an progressive manufacturing process therefore helping it to remain competitive by bringing in a switch and by making technologically advanced goods.

This technological change will have an impact on virtually all the aspects of Dell’s business, like control, information needs, business spots, staffing requirements, employee training, etc.

INTRODUCTION

The technique in a business corporation plays a key part, be it a organization strategy, marketing strategy, HR Strategy, or business information strategy. The business enterprise needs info at all levels and the achievement of the business can be directly related to the amount of information which might be accessed by the staff members of any organization. A business should strive hard to supply information to the employees, as it is likely to increase the performance of the business enterprise as a whole. The business information approach helps a organization in identifying ways and means of sharing information over the organization and across all the departments of the organization. This report highlights the business information strategy at Dell, a well known computer manufacturing company.

INDUSTRY SECTOR ANALYSIS

Computer manufacturing sectors differs somewhat from various other manufacturing industries in the way of production and mostly staff make up a comparatively very small proportion of the workforce. Computer manufacturing industry is recognized as most innovative market. With the moving style, improving technology and increase in technological innovation, this industry creates its own identity and drives a lot of the industry’s creation. This industry can be considered as a place for technological as well as innovative advancements. Here is the only manufacturing sector which requires maximum amount of engineers, technicians, and many other complex assistants who may take the study and development work further. In addition to manufacturing, it also requires promotion of items manufactured by the several segments of the industry that will require more eligible marketing and also sales executives or workers. U.S firms in this industry produce along with assemble the components produced in foreign countries, to be able to take advantage of less expensive of production and regulatory and favorable environments.

The majority of the electronic products include numerous intermediate pieces that are would have to be purchased from various suppliers. So these companies that create intermediaries and merchandise mostly locate themselves close by to industry to ensure that the companies can acquire their intermediate products in very less period in order to lower down their inventory costs. Many the computer manufacturing businesses in this industry are incredibly large and many are relatively small.

The computer production industry has also had its show of impacts of the latest financial crisis. The computer manufacturing market was also going through a transformational crisis. The revenue of the main players have decreased considerable and the gains have also declined. In fact, some of the manufacturers include incurred losses from their operations during the crisis. Moreover, the market has been extremely competitive in the recent past with an increase of and more moderate level makers entering the global marketplaces. The low cost computers created by the Indian and Chinese suppliers have increased the level of competition in the industry. There have been various influences using the pc manufacturing industry over the last few years roughly. The influences were because of the increase in the quantity of computer manufacturers, make use of latest technologies, rapid reduction in the price tag on manufacturing mainly because of the outsourcing of components manufacturing ton countries like India and China. Overall, it is usually said that there are many difficulties faced by the laptop manufacturing industry and it is likely that the near future is going to more challenging for the manufacturers, as they compete hard as a way to attract and retain the market share.

Market Leaders

The Computer making industry has experienced a rise in the number of computer manufacturers over the last five years or so. But the industry most importantly offers been led by the significant players like IBM, Compaq, Intel, Lenovo, HP, Apple, Microsoft, Dell, Sony, Samsung, LG, etc. The top two manufacturers of computers apart from Dell are Apple and Microsoft and they pose a stiff competition to Dell and the market is led by the very best 2-3 manufacturers. Regardless of the top manufacturers holding bigger shares on the market, the market is wide open for all your other manufacturers. Therefore, the open market helps it be all more important for the manufacturers to look at effective strategies to be able to achieve competitive advantage and maintain the competitive benefits with a check out to raise the sales revenues, profits, market share, and also to improve the wealth on the traders.

The competition in the market has been extremely stiff and therefore it made the computer system manufacturers to increase their product line and also to adopt ground breaking manufacturing processes to come up with latest and progressive products. The computer making industry or market leaders have also adopted innovative ways of stay competitive and increase the market share, thereby resulting in the organizational success. The important indicate remember here’s that Dell is also one of the market leaders in the pc manufacturing industry and it also poses stiff competition to the other competitors in the industry.

Comparative Performance of Competitors

The comparative performance of some of the major computer manufacturing market leaders provides us an insight into the degree of competition that exists among the most notable competitors plus the situation of Dell in the overall computer manufacturing industry.

The revenues of Dell for the entire year 2009 had been $61.101 Billion and its operating income was $3.190 Billion, whereas its NET GAIN was $2.478 billion. THE WEB income, Operating Income and also the revenues have all proven an increase as compared with the year 2008, which ultimately shows that there’s been a noticable difference in the performance of Dell over the last one year roughly.

The revenues of IBM for the year 2009 were $95.757 Billion and its own operating income was $17.012 Billion, whereas its NET GAIN was $13.425 billion. THE WEB income, Operating Profit have raised and the revenues own shown a decrease as compared to the year 2008, which ultimately shows that there has been a noticable difference in the functionality of Dell during the last one year or so with regards to the profitability, but it has lost some part of its market show, compared to its performance during the year 2008.

The revenues of Apple Inc for the entire year 2009 had been $42.91 Billion and its own operating income was $11.74 Billion, whereas its NET GAIN was $8.24 billion. The Net income, Operating Income plus the revenues have all shown an increase as compared with the year 2008, which shows that there has been a noticable difference in the performance of Apple Inc, during the last one year roughly.

Revenues ($ bn)

Operating Income ($ bn)

Net Income ($ bn)

Dell

61.1

3.19

2.48

Apple Inc

42.91

11.74

8.24

IBM

95.76

17.01

13.4

The above desk shows the financial effectiveness of Dell, Apple Inc and IBM.

The above graph shows the financial efficiency of Dell, Apple Inc and IBM.

After evaluating the financial efficiency of Dell, IBM and Apple Inc, it could be said that the level of operations of Dell is a lot lower as compared to Apple Inc and IBM. So, it suggests that Dell has to adopt progressive strategies in its procedures at all levels so that you can compete with its competitors. The positive that goes with Dell is that it’s been improving its efficiency and the amount of growth is way better than some of the other industry leaders.

Current Technology found in the Computer Manufacturing Industry

In past times, the computers used to be so big, even bigger than the refrigerators, but now-a- days, the computer systems are as small as a PDA, which can fit into a palm of human beings. So, it has been possible mainly because of the advanced technology and constant advancements of technology that is adopted in the laptop manufacturing industry. The most recent technology has reduced the size of the computers, devices, etc, without comprising on the quality, actually with better quality and durability for the clients. These computer manufacturing corporations have their own research and development departments, in order to continuously search for new means of manufacturing the computers.

The technology takes on an integral role in the success of any product and computer systems are no distinct. The better technology facilitates the suppliers in manufacturing latest personal computers. The technology used by the personal computers has been so very much helpful for the people. The technology used in computer production has been helpful in other industries as well. These latest technologies managed to get possible to use computer system in virtually all the areas of human life.

Future Technology that can be utilized in the Computer Production Industry

The future of the technology and the advancements in the technology appears to be more effective, as there exists a large amount of scope for improvement and developments in the technology. The near future technology makes it possible to produce much smaller personal computers with better features, and better effectiveness, as compared with the efficiency of the computers produced today. With the developments in technology, almost anything is possible. Things that look impossible today have become possible and a reality tomorrow. Thus, with the advanced technology anything is possible.

The technology can be surely likely to play a key role in the computer system manufacturing sector. If one enterprise adopts a most advanced technology then the other competitors must adopt it or develop something innovative on the

own, otherwise, they will lag behind and might not have the ability to compete in the industry. So, the continuous adjustments in the technology keep the computer manufacturers on their toes, to make swift decisions and adopt successful and ground breaking strategies to produce high quality computers, mostly a low costs. (Buzzel, 1987).

Recommendations for the firms in the Computer Production Industry predicated on the Sector Analysis to stay competitive in the industry

Innovative Developing Processes

The companies in the computer production industry needs to stay competitive and they can do hence, by adopting progressive manufacturing processes. The aged and outdated manufacturing processes will not help the companies in remaining competitive. With a check out to achieve competitive advantage, the majority of the firms are adopting ground breaking strategies. The competitive advantages once achieved must be sustained so as to stay competitive. The competitive advantages can be achieved and sustained by adopting progressive manufacturing processes. (Parker, 1989).

Focus on the Quality

The firms should always turn to enhance the quality of the merchandise at all times. The low quality products will never be helpful in staying competitive for long. So as to attractive in the market and also stay competitive, a laptop manufacturer must focus on the quality of the products regardless of the internal issues. A low quality merchandise will survive for very long available in the market. (Swan, et.al, 1976).

Improved Consumer Support

The customer support and after sale service by the firms can be helpful in remaining competitive. If the queries of the customers are not answered properly, then it is likely that the customer will end up being attracted by other companies with better customer service. So, as a way to stay competitive, the firms should look to improve their customer care service. (Gale, 1992).

Competitive Pricing

Gone are the days, when the companies were the purchase price makers, now-a-days, actually, the customers will be the price makers. Quite simply, the customers search for the prices from various manufacturers and lastly purchase a product from the maker with the most economical price, thus if a manufacturers pricing is not competitive, then your manufacturer will not stay competitive. So, the firms should price their items competitively. (Gale, 1992).

Improved Source chain for Quick Delivery

The supply chain sometimes helps a provider in keeping competitive in almost all the sectors and the computer making industry is certainly no exception. The powerful supply chain ensures rapid and effective delivery of goods to the customers, whereas, an ineffective source chain is the key reason for the failure of any business to stay competitive. Thus, a better supply chain might help a business stay competitive on the market. (Parker, 1989).

BACKGROUND OF DELL

The business selected is definitely Dell and it handles the manufacturing of pcs and its elements, and it comes under the computer manufacturing industry. Laptop manufacturing companies are usually regarded as electronic manufacturing corporations and these companies produces products like personal computers, its peripherals, equipments linked to communications, and much more products similar to these products. These products can be utilized at many locations like offices, schools, industries, colleges, together with homes. These products are also used for military as well as government establishments. In addition to all this different computer system peripherals or different elements are built in into many market products.

Dell is a well known manufacturer of Computers, generally Desktops, Notebooks, Notebooks, and PDA. Dell has emerged as one of the largest manufacturers of personal computers. Dell competes with the market leaders and with the very best in the industry. Dell grew as a computer system manufacturing company in the entire year 1980’s and 1990’s, and it also became the largest computer company at one point of time. Dell’s primary business was to market Desktops, Laptops and Servers, etc. Dell also sells various other electronics items, which it acquires from its suppliers all over the world and sell them under the brand name of Dell. The functions of Dell have elevated drastically over the last couple of years and also have been competing with the very best in the business.

CURRENT SITUATION ANALYSIS

The existing situation examination of Dell assists us to investigate the situation as well as the various factors that affect the businesses of Dell. Following are the parts of situation analysis.

Customers

Dell serves an array of customers which range from individuals, small business to large multinational companies. Dell likewise supplies computers and additional devices to the federal government organizations in various countries. Its buyers are spread all across the world, so that it is a truly global organization. The global clients of Dell also highlights the occurrence of Dell, which all across the world. So, it is satisfying a sizable base of customers and thus there is lot of scope for increasing the client base of Dell

Costs

The costs of any business play a key part in the profitability and accomplishment of any company. Higher costs cause low profit or losses in some instances, so it is always better to reduce the price tag on manufacturing plus the additional indirect costs. Dell manufactures the majority of the products on its own and it also acquires some of the products from suppliers around the globe, with a view to lessen costs. This helps it in pricing its products competitively, therefore helping it to stay competitive on the market.

Competitors

A few of the rivals of Dell are popular companies around the world. The rivals of Dell incorporate Microsoft, IBM, Apple Inc, HCL, HP, Sony, LG, Samsung, etc. These rivals are well known companies with a variety of products and a wide base of buyers, which likewise helps them to indicate their presence around the globe. The competition is very stiff in the computer manufacturing industry, with the presence of these popular global brands.

STRATEGY FOR DELL

The technique for Dell would be to adopt an impressive manufacturing process thus helping it to remain competitive by attracting a transformation and by developing technologically advanced items.

Change Required

Dell must bring in regards to a major change in how big is its desktops and notebooks. Dell can manufacture smooth laptops like Apple, Inc, and therefore can contend with Apple Inc. It could also give Dell an edge over its competitors. Moreover, it offers Dell an chance to increase its market show by serving a fresh base of customers using its sleek products. This can be achieved just by adopting a technology like Apple Inc, and even a better technology than Apple Inc.

Impact on Management

This transformation will probably impact the supervision at Dell. The affect of the technological change would require dell to bring about a change in the way the management at Dell operates. There can be a need to include topics for persuasive thesis generator

speech a new of degree of management or even to remove an existing level of management positions predicated on certain requirements. With a change in the organisation with regards to the structure or the technical changes, the management must also change, as per certain requirements. So, it might be said that the change in the merchandise to be manufactured, is likely to bring about a change in management. Thus, it usually is said that there surely is an impact of the change on the administration.

Impact on Organization Location

Dell might need to begin its manufacturing devices to manufacture sleek products, or else it can use the existing manufacturing establishments to manufacture such items. With a change in the laptop manufacturing technology, Dell must expand its functions by starting manufacturing units in home based business locations. Dell might need to change it out business from location to some other considering its effect on the operations. Most of the manufacturing firms are starting their manufacturing devices in countries like India and China, so Dell might consider India and China, as a proposed site to start its manufacturing models to manufacture sleek notebook computers, and little sized desktops.

Impact on Information necessities of management

The supervision needs an upgraded facts system, to be able to offer an accurate and updated information at all amounts, as and when required, (Malhotra, 2008). The information needs of the operations at Dell are as well likely to change, with a switch in the technology and operations of Dell. Therefore, depending after the information needs, the info system also needs to be upgraded, in order that it provides required data to the control at all levels, which could ultimately assist in achievement of the objectives of Dell.

Impact on Staffing Plan

As talked about earlier, Dell might need to hire additional people to manage its new procedures of manufacturing sleek laptop computers. The staffing plan can be likely to alter with a proposed switch in the technology. Some employees may need to be transferred from one position to another, plus some others might be would have to be hired, depending after requirement. The proposed technological change at Dell can be likely to impact the staffing strategy at Dell; therefore, a new staffing plan needs to be developed, considering its operations.

Impact on Training

Dell also needs to provide enough training and education to its staff with a check out to upgrade their skills and improve the productivity and efficiency. Working out and development of employee should be given highest concern, as the highly developed employees improve the productivity and overall performance of the organisation all together. With a technological transformation, there will impact on the training offered at Dell. There will tend to be new training programs, to match the needs of the new business development i.e. incorporating the proposed technical change.

CONCLUSION

Finally, it could be concluded by stating that the business enterprise information strategy plays an integral role in the accomplishment of an organization. It also plays a significant role, when a business intends to bring about any switch in its functions, because, a significant change is possible only with the no cost flow of details. Dell can manufacture smooth laptops, by causing a technological change and also a change in its production procedure. The impacts of such a transformation is seen on the current management, business locations, details needs of supervision, staffing, training, etc.

The strategic degree of management must adopt innovative strategies to achieve the targets of Dell. The strategic management plays an essential role in the success of any organisation, therefore the key policy improvements or developments happen at the strategic degree of management. The tactical level of management must follow the policies produced by strategic level. Finally, the operational level is accountable for implementing the plans and achieving the final objectives.

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