Q. What are the change management challenges that Dell is faced with and how is it overcome?

Change Management Challenges that DELL faces The following are the change management challenges (key points) that Dell is faced with End to end change is not just optional Employees as resources are needed to market product group services. Need to identify the interdependencies Changes in the supply chain are linked. Dell uses more metric focused methods Eg. Developing a scorecard with expected results, forecasts, costs New SC capabilities are used. Need to Leverage the activities Imp need to improve performance by following good practices and phased releases. Evident shift in product ->marketing->sales->services Need to know at what time to move the current changes.

Each of the following points can be taken and be used to provide an elaborate explanation. But these are the key factors of the Change mngt challenges that DELL is facing.
Q. How difficult is it to find synergies and how does DELL find them? Or Use of Syenergies for DELLs Supply chain Transformation - DELL makes use of many types of synergies like Product, Product Description, Money, Logistics, and ordered Fulfillment. - Eg. When a company is investing in business, it is important to view revenue impact which most companies focus upon. But at the same time, the companies need to pay attention to the impact that synergies bring to a business. The Sr. Management spends a lot of time deciding the percentage of impact the new investment bring to the business, but not much importance is given to the role played by Synergies. Also if the number of synergies is examined, without the ability to capture the potiential benefites the process would fail, so even though it is different , it is important that we focus on it.

-Need to focus on Synergies like Procurement and Product design which are implemented in DELL

Here we can explain what Synergy is and its importance in DELL SC.
Q. What is the function of the programming office in Program Management? Is it still actively used? Or Program Management used in DELLs Supply chain Transformation -Prog Mngt tells us about the leadership of the transformation. - change management focuses on end to end transactions. - Big premium on Collaboration skills - Grid out the work to merge the details -Tearing work down into different Workstations (Workgroups) Eg. Marketing, Sales, Tools - Importance on People and Culture address ways of getting different groups of people to work together - hence, Prog Management is still used and is still undergoing transformation - Trusting this process can pay rich dividends -Involves all areas of SC management so it is very imp.

Main points are discussed and can be elaborated.

Q. Given the complexity of operation of movable SC is DELL better of focusing on Customer Value Proposition in multiple SCs? or DELLs customer value proposition in multiple Supply Chains Small scale companies usually focus on a single channel that requires complexity which differs from the methods used by large businesses. When a company has different operations to capture market share, there is a need to make use of different customer value propositions. Therefore, even when a company specializes in a single channel, it may need multiple supply chains. Eg Amazon.com makes use of multiple SCs just like DELL does. They have products that are suited for different genres of customers; Eg low value slow products for slow moving customers to high value products for fast moving customers. Therefore Amazon focuses on the illustration of relationship between customer value propostion and the operation strategy. Hence we can conclude that a company that focuses on a single channel need not necessarily have a single supply chain strategy.

This ans is quite comprehensive and I have tried to explain it in my own words.

Need for DELL to continue to change the SC strategies when required. It is important to understand that we live in a dynamic world with the need of the customers are constantly changing and constant enhancements in technology that help reduce the amount of effort and make the tasks at hand look much easier. Hence a single supply chain strategy will just not work. Dell puts in a lot of effort to try to formulate new strategies to enter new markets. There is a need to continue to adopt new strategies by laying down a strong framework which requires governance. So as the customer requirements change the supply chain strategy needs to be modified. DELL makes use of its fantastic connectivity to reach out to its customers and assure them that they shall get what they ask for.

This ans is quite comprehensive and I have tried to explain it in my own words.
Role of Technology in transformation in DELLs Supply chain and complex network structure. In DELL Supply Chain strategy, the Process is developed first. The Recourses and the Technology used to create the process are developed later. As the process changes , new technology has to be used (the technology changes) DELLs supply chain is one of the biggest areas that makes use of the constantly changing technologies which is still in the planning space. Eg. The push and the pull are very different approaches (can explain more on push vs pull.assignment question, will provide if needed). So the historic Pull approach used by the companies does not have the flexibility that is needed to accommodate new planning strategies. Technology is used for market support, analysis. Need for technology as you switch from one strategy to another. Design logistics and Network Structure used can be discussed. Hence, a complex network design is needed to optimize the network.

Impact on the Organization structure for the DELL transformation Created a sequential supply chain Sales vs Customer Provide new customer capabilities

Help the team learn new sales motion Embedding operating SC larders in Business Unit Rapidly identify gaps Identify new customer requirements Business leverage to new Supply chains Critical element to the sources. Relevant Organisation change for benefactors.

Conclustion
Obviously, Dell poses a unique business model in comparison with other companies in the PC industry. And as a result of the above business model, Dell has achieved a significant cost and focused customer advantages over its rivals. These advantages has helped Dell maintain highly constant growth rate, increase market share, and get very high profitability in an industry that characterized by rapid technology changes, significant supplier and buyer power and intensive competition. Since the business model of Dell involved activities that are highly interrelated and involved continuous organizational innovations, Dells business model was difficult to replicate, making its competitive advantages sustainable. Dells success evoked its competitors such as IBM and Compaq to imitate parts of its business model. However, no rival has been able to replicate Dells business model successfully. It is clear that Michael Dell became one of the youngest billionaire thanks to his clever business model, which is different with other competitors in the PC industry.

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The key to success at professional services is being different than competitors in a way that matters to the clients day. 1 What is a Value Proposition? Searching the web, a number of definitions come up and quickly begin to illustrate the concept and its importance related to business management and marketing:

A description of the value that a product, service or process will provide a customer. Should be defined abstractly to assure one understands who all the competitors are. Thus, rather than saying one provides customers with books, one should consider saying that one provides education or entertainment.2 A clear statement of who the target market for a particular product is, of what key benefits the product will deliver, and of the price that will be charged. 3 A value proposition is a clear, concise series of factual statements on tangible results from your products or services. 4

1. The unique added value an organization offers customers through their operations. 2. The logical link between action and payoff that knowledge management must create to be effective; e.g., customer intimacy, product-to-market excellence, and operational excellence [Carla O'Dell & C.Jackson Grayson]. 5

The primary and essential benefit of a product or service. For a company, it is the reason for being. 6 All of the definitions reiterate the importance of the customer/client. Take away all the individualization and personal interpretation and the value proposition is a clearly defined statement that identifies value: value that your client wants, value that you can deliver. The client is key to the entire process the client drives the value proposition There are as many value propositions as there are clients. Each client is unique and has different needs. There is no one blanket value proposition. In order for a value proposition to be effective it has to be customized to each clients specific needs. Defining your Value proposition is an ongoing process, but it is a critical one. Think about shifting your perspective -- its not about selling your services, the value proposition is about understanding and meeting an individual clients needs. A value proposition realizes the constraints and negative climate the client is working under and responds by providing positive solutions or value. Clients are variously constrained by process and finances, and variously motivated by factors including public approval, stakeholder satisfaction, salability, and long-term functionality. New project delivery methods, such as P3 and design-build, reflect these motivational and financial constraints, and involve the outsourcing of architectural services by new types of clients. in the Ontario market,long-term growth for both is likely, and presents opportunities for those firms in Ontario and abroad who choose to deliver value in such engagements. 7 What are the benefits of a value proposition? Strong value propositions deliver results: increased revenue faster time to market decreased costs improved operational efficiency increased market share

decreased employee turnover improved customer retention levels

Sales increase, leads are generated, retention rates rise, and people "get" it. Small and Large companies are realizing the importance of the value proposition. In a speech given by The Boeing Companys Rick Stephens, President, Shared Services Group, he makes a very strong point about the link between value and success: (we) have to ask ourselves every day what value proposition we are delivering to The Boeing Company, because if we don't continue to give value, we cease to existThat's an important message for all of us: even in a large enterprise like Boeing we have to worry about delivering value. We have to recognize who our customers are. We have to understand their expectations of us. More important, we have to understand how they measure those expectations. We have to understand how we're doing against the expectations and we have to understand what we're doing to improve each and every day. 8 An example of a successful value proposition Dell Computers began with the unique value proposition that it would custom build a computer, exactly as and when a customer orders it, and deliver it at a very competitive price, because its "just in time" system eliminated the cost of overhead and mistakes in calculating demand. Research is the first step towards creating a value proposition The elements necessary to begin the process are: recognize who your customers are; understand their expectations of you; understand how they measure those expectations; understand how youre doing against the expectations; and understand what you're doing to improve each and every day.

And the key to understanding is knowledge. Its not about making assumptions about what your clients want, but its about listening to your clients, interviewing them and being assured that you are dealing with the facts. The more specific and targetted your value proposition, the better. A successfully tested and proven value proposition is essential to open more doors and close more sales. Due to the new emphasis on value, over the past few years many businesses have had to rethink how they deliver value to their customers. Formulating your value proposition is not an isolated exercise. After formulating on a general direction and vision, it is very helpful to anchor your business strategies in a strong and communicable "value proposition". A complete value proposition includes: agreement on customer needs and interests determination of the content (products and services), connection (sales and marketing channels) delivery (fulfillment infrastructure) systems. determine what parts you provide and what parts partners provide.

Ontarios

Architects

and

the

Value

Proposition

The concept of the value proposition is already in use by several Ontario architectural practices. many practices have extended their service offerings to include activities that provide value to clients in new ways - including conducting feasibility studies, post occupancy evaluations, facilities management, and adding new technology to facilitate project communication and client reporting. The winning value proposition will differ by client.9

Dell hired a digital advertising agency (Grey Interactive) to review its online brand management strategy and provide better CVP. The hired agency conducted management audits with Dells sales staff, management executives, and customer service representatives as well as interviewed Dells existing and target customers. The company also reviewed other similar websites. After extensive research, Grey Intervactive changed Dells website in such a manner that it allowed the Customer to identify his situation and suggest solutions to satisfy his needs, instead of forcing a customer to fall within a predertimined category. The website also incorporated a smart Order Management System that would deal with real time data and suggest a affordable pricing strategy to the user. This increased customer satisfication since the customers were allowed to configure the PC as per their requirements without being forced into buying a similar model that was suitable. In DELL Supply Chain strategy, the Process is developed first. The Recourses and the Technology used to create the process are developed later. As the process changes , new technology has to be used (the technology changes) DELLs supply chain is one of the biggest areas that makes use of the constantly changing technologies which is still in the planning space. Eg. The push and the pull are very different approaches (can explain more on push vs pull.assignment question, will provide if needed). So the historic Pull approach used by the companies does not have the flexibility that is needed to accommodate new planning strategies. Technology is used for market support, analysis. Need for technology as you switch from one strategy to another. Design logistics and Network Structure used can be discussed. Hence, a complex network design is needed to optimize the network.

In DELL Supply Chain strategy, the Process is developed first. The Recourses and the Technology used to create the process are developed later. This method is advantageous because as the process changes over the year, new technology can be used easily. Dells supply chain is one of the biggest areas that makes use of these constantly changing technologies.

For Example, the push and the pull are very different approaches. In the pull

process, the execution is initiated by the response to the orders placed by the customers. Hence it is more of a reactive system as it reacts to the customers demand. Here the demand of the product is known with certainty. In the push process, the execution is initiated by the anticipation or forecast to the customers orders. Hence it can be considered to be more of a proactive system or a speculative system as they respond to speculation rather than an actual demand. So the historic Pull approach used by the
companies does not have the flexibility that is needed to accommodate new planning strategies. Dell, hence made use of the Pull strategy in order to gain a technological stronghold over its competitors by making use of technology for market support and analysis. Dell makes use of technology in order to switch from one supply chain strategy to another in case there is a drastic change in the customers reuirements. It also makes use of technology for logistic design and also a complex network design that is used to support and optimize the supply chain network.

In 2005, Dells Information Technology group was faced with a supply chain management system that had reached its limits on expensive, proprietary servers running the Unix operating system. The group undertook the complete migration

of the system to Oracle 10g Real Application Clusters running on low-cost industry standards-based Dell Power Edge servers. By moving the application to Dell servers when it did, Dell IT avoided significant new expenditures in proprietary Unix-based servers, achieved increased server uptime, and provided an easy path for growing the systems as needed by adding additional servers to the cluster

One example of a major technological change made by Dell was in the year 2005, when the company running on expensive proprietary servers due to which the supply chain management system had reached its limits on expenses. The company undertook the herculean task of complete migration of all the systems to Oracle 10g Real Application Clusters running on low-cost industry standards-based Dell Power Edge servers. By taking this initiative, Dell IT avaoided new expenditures that came from using the proprietry Unix based servers. It was also successful in increasing the server uptime and provided a foundation for other additional servers to form clusters.