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* * * * Dell: (From HBR, April 1998) The individual pieces of Dell’s strategy-customer focus, supplier partnerships, mass customization, just-in-time manufacturing-may all be familiar. But Michael Dell’s business insight into how to combine them is highly innovative. Direct relationships with customers create valuable information, which in turn allows the company to coordinate its entire value chain back through manufacturing to product design. Dell describes how his company has come to achieve this tight coordination without the “drag effect” of ownership. Dell reaps the advantages of being vertically integrated without incurring the costs, all the while achieving the focus, agility, and speed of a virtual organization. As envisioned by Michael Dell, virtual integration may well become a new organizational model for the information age. Cisco: (From TBR, Q3 1998) Cisco’s supply-chain strategy is based on outsourced manufacturing to key suppliers, a virtual enterprise of information sharing with suppliers, strategic suppliers in new product introductions, and single demand forecast for the entire supply chain. Cisco’s virtual enterprise of information and e-commerce reaches down the channel to strategic partners, resellers, and customers. Cisco is successfully developing strategic alliances and channel partners to increase growth and to reach new market opportunities. Customers are seeking what they consider a strategic partner to deliver end-to-end networking solutions to reduce costs, integration efforts, and business risk. Cisco and its partners are successfully capitalizing on this trend. * Dell: (From HBR, April 1998) The individual pieces of Dell’s strategy-customer focus, supplier partnerships, mass customization, just-in-time manufacturing-may all be familiar. But Michael Dell’s business insight into how to combine them is highly innovative. Direct relationships with customers create valuable information, which in turn allows the company to coordinate
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