【管理信息系统案例分析】REFINING AND EXTENDING THE BUSINESS MODEL.docVIP

REFINING AND EXTENDING THE BUSINESS MODEL WITH INFORMATION TECHNOLOGY: DELL COMPUTER CORPORATION It isnt so much that we have a new economy, as we have a new understanding of the importance of technology in the economy. Paul Roemer, quoted in the Wall Street Journal, May, 1999. “Dell Computer Corporation is perhaps the purest example of the efficiencies made possible by information technology.” New York Times, January 2, 1997. Introduction1 The exceptional performance of Dell Computer in recent years illustrates an innovative response to a fundamental competitive factor in the personal computer industry—the value of time. Product life cycles in the PC industry have shrunk from about 22 months in 1988 to six months in 1997,and the price/performance of key components has continued to double every 18 months or less. As a result, excess inventory depreciates rapidly. In addition getting new, quality products to market on time is critical to maintaining competitiveness in an industry where customers are willing to pay a premium for the latest technologies and reward quality by repeated purchases. Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to market quickly, enabling it to increase market share and achieve high returns on investment in a highly competitive industry. The impact of Dell’s success on the industry is seen in the efforts of other leading PC makers and distributors to develop their own direct sales and/or build-to-order capabilities. The Dell case illustrates how one business model may have inherent advantages under particular market conditions, but it also shows the importance of execution in exploiting those advantages. In particular, Dell’s use of information technology has been vital to executing both elements of its business model—direct sales and build-to-order—and provides valuable insights into how IT can be applied to achieve speed and flexibility in an indust