DELL
Gartner Symposium/ITxpo 2005Orlando, FloridaOctober 20, 2005
Dell is really all about productivity
Our direct model allows us to build relationships with customers and use the information they give us to develop and improve our products and services.
you've seen is tremendous growth in productivity and reductions in the cost of technology to where most of the cost is in the service vs. the product.
We understand customer requirements and then synthesize those into solutions.
we've made infrastructure services more repeatable, more execution-oriented, more of a quality focus, and that's made them more accessible.
use those markets in our supply chain strategy.
Data points.
If you look at our supply chain, we are an information-driven business. Let's say on a given day we sell 190,000 computers. Those orders come into Dell through a variety of mechanisms -- it could be an SAP or Oracle link with a customer, online or on the phone. The orders generate signals within nanoseconds that tell our suppliers what to deliver to our factories around the world. We have replaced inventory with information. What you have is a much more finely tuned machine in terms of rapidly delivering against customer expectations with high quality and with great efficiency.
Dell on Dell
We have consistent business processes. We don't work through dealers and distributors. We have a consistent environment for sales, for support, for manufacturing. This means that when we bring up a new factory, there’s already a set of systems which are basically identical to our other factories in the world. We don’t have to reinvent these things, so it gives us much more scale and leverage.
MICHAEL DELL: The history of our industry is one of companies that develop proprietary hardware and often have proprietary services that go along with them. These companies charge incredible sums of money for those products. They often rent software that goes along with those products. They'll charge you $250 an hour to make it all work, and they'll stay there until all your money is gone. (Laughter) That's not our model.
Service our products.
We've really bet the whole company on scale out – our vision of the Scalable Enterprise.
we believe that with the transition to 65 nanometers, Intel is going to take a decisive lead once again in microprocessor performance, in performance per watt.
we have a lower cost structure and because we sell direct to customers.
we have developed our own technologies for doing things that address customer pain points – like understanding when they're low on ink and letting them order new supplies directly from the Internet. It's a pretty simple thing but it actually provides value.
reductions in the hardware acquisition costs.
We’ve dramatically driven down gross margins in the industry. We’ve provided more value, which has accelerated the accessibility of these products and made the market much larger in terms of units.
Dell is really all about productivity
Our direct model allows us to build relationships with customers and use the information they give us to develop and improve our products and services.
you've seen is tremendous growth in productivity and reductions in the cost of technology to where most of the cost is in the service vs. the product.
We understand customer requirements and then synthesize those into solutions.
we've made infrastructure services more repeatable, more execution-oriented, more of a quality focus, and that's made them more accessible.
use those markets in our supply chain strategy.
Data points.
If you look at our supply chain, we are an information-driven business. Let's say on a given day we sell 190,000 computers. Those orders come into Dell through a variety of mechanisms -- it could be an SAP or Oracle link with a customer, online or on the phone. The orders generate signals within nanoseconds that tell our suppliers what to deliver to our factories around the world. We have replaced inventory with information. What you have is a much more finely tuned machine in terms of rapidly delivering against customer expectations with high quality and with great efficiency.
Dell on Dell
We have consistent business processes. We don't work through dealers and distributors. We have a consistent environment for sales, for support, for manufacturing. This means that when we bring up a new factory, there’s already a set of systems which are basically identical to our other factories in the world. We don’t have to reinvent these things, so it gives us much more scale and leverage.
MICHAEL DELL: The history of our industry is one of companies that develop proprietary hardware and often have proprietary services that go along with them. These companies charge incredible sums of money for those products. They often rent software that goes along with those products. They'll charge you $250 an hour to make it all work, and they'll stay there until all your money is gone. (Laughter) That's not our model.
Service our products.
We've really bet the whole company on scale out – our vision of the Scalable Enterprise.
we believe that with the transition to 65 nanometers, Intel is going to take a decisive lead once again in microprocessor performance, in performance per watt.
we have a lower cost structure and because we sell direct to customers.
we have developed our own technologies for doing things that address customer pain points – like understanding when they're low on ink and letting them order new supplies directly from the Internet. It's a pretty simple thing but it actually provides value.
reductions in the hardware acquisition costs.
We’ve dramatically driven down gross margins in the industry. We’ve provided more value, which has accelerated the accessibility of these products and made the market much larger in terms of units.
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