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IT Strategy

Sr. Strategy Implemented Direct Impact Other outcomes


No
.
1 Implementation of Dell  Order processing  Direct relationship with
direct model, so called, became much faster. the customers became
“made-to-order”, which is  Distribution channel possible.
backed up by information became less costly.  Dell became able to
systems and related  Inventory problems provide customized
technologies and were resolved. computers & other
applications.  No. of errors decreased components/accessories.
significantly as the  Forecasting of sales etc.
manual intervention became more precise.
was minimized, leading  As per demand,
to less loss in profit. Production volume and
staffing management
became easier.
 This move provided space
for more production
capacity.
 Disadvantages of
traditional distribution
chain were easily
avoided. Customers were
able to track the progress
of order.
2 Restructuring of  Information became  Going global became
organizational structure: centrally available. easier and manageable in
Dividing customers in  Roles and terms of staffing and
groups as ‘Relationship’, responsibilities of sales fulfillment of individual
’Transactional’ & ’Mixed’, representatives became tasks and goals.
Managing ratio of outside more distinctive and  So, Sales force became
& inside sales precise as per region more efficient.
representatives, and and as per their
mapping all these with customer group.
DCS (Dell Catalog Sales) &  Sales targets and
BSD (Business Systems achievements became
Division) along with region more transparent.
wise presidential
operations and segment
wise vise-presidential
operations.
3 Dell’s adoption of online  Inherent advantages of  Automatically, technical
channel for its product internet were gained person was able to see
offerings’ information, instantaneously by the diagnostic data in
order and support. Dell’s sales event of customer query;
departments. They are leading to less time on
compiles in the list telephone per call.
below along with other  No. of calls were reduced
benefits. as the basic information,
 Sales personnel could manuals, updates etc
focus more on sales were available on
activity as non-value internet in a jiffy reducing
activities were taken burden on both side.
care by internet and (Customer as well as Dell
computers. technician.)
 Transaction time and
cost reduced marginally
as purchase
functionality was
improved and service &
support data was easily
available online
reducing the telephonic
conversation time
between customer and
technical specialist.
4 Providing Premier Pages  Potential customers  Usage of ASP (Active
were given customized Server Pages) enabled
data related to all deals Premier Pages’ scalability
with Dell and that too to great extent, making it
on customers’ web more efficient and
portal also. effective.
 This proved as effective  Data can be updated
management control more instantaneously on
tool for customers, demand, than static
reducing work load of pages.
recurring activities of
service, querying,
product configuration
etc.
 This provided reduced
cost of ownership for
customers.

Challenges
 When online system was implemented, sales personnel were afraid that computers would
replace their work, but this was resolved by giving proper understanding of their roles in new
model with increased responsibilities and opportunities by means of gaining more time for core
activities and reducing time for non-core activities to be done by computers. Moreover they
were given training for using computers and information systems and internet.
 As the concept of paying online was new and not trust-worthy for many customers, Dell
representatives had to make them understand the security issues and conformance for the
assured protection.

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