The business information approach helps a business in identifying ways and means of sharing information over the organization and across all of the departments of the organization. This report highlights the business information strategy at Dell, a well known computer manufacturing business. The industry features been led by the important players like IBM, Compaq, Intel, Lenovo, HP, Apple, Microsoft, Dell, Sony, Samsung, LG, etc. The top two manufacturers of personal computers apart from Dell will be Apple and Microsoft plus they pose a stiff competition to Dell and the market is led by the top two to three manufacturers.
After comparing the financial effectiveness of Dell, IBM and Apple Inc, it might be said that the amount of operations of Dell is a lot lower as compared to Apple Inc and IBM. A few of the recommendations made to the firms in the manufacturing market are as follows
Focus on quality of products, adopting ground breaking manufacturing processes, improved customer support, competitive pricing, improved source chain, etc. The strategy for Dell would be to adopt an ground breaking manufacturing process thus helping it to stay competitive by attracting a modification and by developing technologically advanced goods.
This technological change could have an impact on virtually all the aspects of Dell’s business, like control, information needs, business places, staffing requirements, employee training, etc.
The approach in a business corporation plays a key position, be it a business strategy, marketing strategy, HR Strategy, or business information strategy. The business needs facts at all amounts and the accomplishment of the business enterprise can be directly attributed to the amount of information which can be accessed by the employees of any business. A business should strive hard to supply information to the staff, since it is likely to improve the performance of the business as a whole. The business information technique helps a business in identifying ways and means of sharing information across the organization and across all the departments of the business. This report highlights the business enterprise information approach at Dell, a favorite computer manufacturing company.
INDUSTRY SECTOR ANALYSIS
Computer manufacturing sectors differs somewhat from various other manufacturing industries in the form of production and mostly employees make up a comparatively really small proportion of the workforce. Computer manufacturing industry is recognized as most innovative industry. With the moving tendency, improving technology and upsurge in technological innovation, this industry creates its identity and drives a lot of the industry’s development. This industry is also considered as a location for technological and also innovative advancements. This is the only manufacturing market which requires maximum amount of engineers, technicians, and several other technological assistants who can take the study and development work additionally. Furthermore to manufacturing, in addition, it requires promotion of items manufactured by the various segments of the sector that requires more eligible marketing together with sales executives or employees. U.S businesses in this industry manufacture and also assemble the components manufactured in foreign countries, to be able to take advantage of less expensive of development and regulatory and favorable environments.
A lot of the electronic products include unique intermediate pieces that are would have to be purchased from various companies. So these businesses that produce intermediaries and things mostly locate themselves near by to industry so that the companies can acquire their intermediate goods in very less period in order to lower down their inventory costs. Many the computer manufacturing businesses in this industry are incredibly large and several are relatively small.
The computer developing industry has also had its show of impacts of the latest financial meltdown. The computer manufacturing sector was also going through a transformational crisis. The product sales of the major players have decreased significant and the gains have also declined. In fact, some of the suppliers contain incurred losses from their businesses during the crisis. Moreover, the sector has been incredibly competitive recently with an increase of and more medium level makers entering the global markets. The reduced cost computers made by the Indian and Chinese companies have increased the level of competition in the market. There have been various influences using the pc manufacturing industry during the last few years or so. The influences were because of the increase in the quantity of computer manufacturers, make use of latest technologies, rapid reduction in the price of manufacturing mainly because of the outsourcing of components developing ton countries like India and China. Overall, it could be said that there are numerous problems faced by the pc manufacturing industry and it is likely that the near future is going to more challenging for the manufacturers, because they compete hard in order to attract and retain the market share.
The Computer manufacturing industry has experienced a rise in the quantity of computer manufacturers during the last five years roughly. But the industry most importantly features been led by the main players like IBM, Compaq, Intel, Lenovo, HP, Apple, Microsoft, Dell, Sony, Samsung, LG, etc. The very best two manufacturers of computers apart from Dell are Apple and Microsoft plus they pose a stiff competition to Dell and the marketplace is led by the top 2-3 manufacturers. In spite of the most notable manufacturers holding greater shares in the market, the market is widely open for all your other manufacturers. Hence, the open market helps it be all more very important to the manufacturers to adopt effective strategies to be able to achieve competitive advantage and maintain the competitive edge with a look at to raise the sales revenues, profits, marketplace share, and also to improve the wealth on the shareholders.
The competition in the market has been extremely stiff and so it made the computer manufacturers to improve their product line and also to adopt ground breaking manufacturing processes to create latest and impressive products. The computer production industry or market leaders have also adopted innovative ways of stay competitive and boost the market share, thereby leading to the organizational accomplishment. The important point to remember here is that Dell is also one of the industry leaders in the pc manufacturing industry and it also poses stiff competition to the different competitors in the market.
Comparative Effectiveness of Competitors
The comparative functionality of a few of the major computer manufacturing market leaders offers us an insight into the degree of competition that exists among the most notable competitors as well as the posture of Dell in the overall computer manufacturing industry.
The revenues of Dell for the entire year 2009 had been $61.101 Billion and its operating income was $3.190 Billion, whereas its NET GAIN was $2.478 billion. THE WEB income, Operating Income plus the revenues have all displayed an increase when compared with the year 2008, which ultimately shows that there has been a noticable difference in the efficiency of Dell over the last one year roughly.
The revenues of IBM for the entire year 2009 were $95.757 Billion and its own operating income was $17.012 Billion, whereas its Net Income was $13.425 billion. THE WEB income, Operating Cash flow have elevated and the revenues contain shown a decrease compared to the year 2008, which ultimately shows that there’s been a noticable difference in the overall performance of Dell over the last one year roughly with regards to the profitability, but it has lost some component of its market talk about, when compared with its performance during the year 2008.
The revenues of Apple Inc for the entire year 2009 had been $42.91 Billion and its operating income was $11.74 Billion, whereas its NET GAIN was $8.24 billion. THE WEB income, Operating Income as well as the revenues have all displayed an increase as compared to the year 2008, which shows that there’s been an improvement in the overall performance of Apple Inc, over the last one year roughly.
Revenues ($ bn)
Operating Income ($ bn)
Net Income ($ bn)
The above desk shows the financial performance of Dell, Apple Inc and IBM.
The above graph shows the financial overall performance of Dell, Apple Inc and IBM.
After evaluating the financial effectiveness of Dell, IBM and Apple Inc, it really is said that the amount of operations of Dell is much lower in comparison with Apple Inc and IBM. So, it suggests that Dell must adopt progressive strategies in its operations at all levels to be able to compete with its competitors. The positive that complements Dell is that it has been improving its effectiveness and the level of growth is way better than some of the other industry leaders.
Current Technology used in the Computer Manufacturing Industry
During the past, the personal computers used to be therefore big, even bigger compared to the refrigerators, but now-a- days, the personal computers are as small as a PDA, that may fit into a palm of humans. So, this has been possible mainly due to the advanced technology and continuous advancements of technology that is adopted in the computer system manufacturing industry. The latest technology has reduced the size of the computers, hard disks, etc, without comprising on the quality, in fact with better quality and durability for the customers. These computer manufacturing firms have their own analysis and development departments, to be able to continuously look for new ways of manufacturing the computers.
The technology takes on a key role in the achievement of any merchandise and computers are no distinct. The better technology helps the suppliers in manufacturing latest pcs. The technology utilized by the pcs has been so substantially helpful for the people. The technology found in computer making has been beneficial in other industries as well. These latest technologies managed to get possible to use computer in almost all the areas of human life.
Future Technology that works extremely well in the Computer Making Industry
The continuing future of the technology and the developments in the technology looks to become more effective, as there exists a lot of scope for improvement and developments in the technology. The near future technology can make it possible to create much smaller pcs with better features, and better efficiency, compared to the overall performance of the computers manufactured today. With the developments in technology, just about anything is possible. The things that look impossible today are becoming possible and a reality tomorrow. Thus, with the advanced technology anything is possible.
The technology is normally surely likely to play an integral role in the pc manufacturing market. If one firm adopts a latest technology then the other opponents must adopt it or come up with something innovative on the
own, otherwise, they will lag behind and may well not manage to compete in the industry. So, the continuous adjustments in the technology keep the computer manufacturers on the toes, to make swift decisions and adopt effective and progressive strategies to produce top quality computers, mostly a minimal costs. (Buzzel, 1987).
Recommendations for the companies in the Computer Production Industry predicated on the Sector Analysis to remain competitive in the industry
Innovative Making Processes
The companies in the computer making industry needs to stay competitive and they can do thus, by adopting progressive manufacturing processes. The older and outdated manufacturing processes will not help the firms in staying competitive. With a look at to accomplish competitive advantage, almost all of the companies are adopting innovative strategies. The competitive benefit once achieved has to be sustained to be able to stay competitive. The competitive advantages can be achieved and sustained by adopting impressive manufacturing processes. (Parker, 1989).
Focus on the Quality
The companies should always turn to increase the quality of the products at all times. The low quality products will never be helpful in remaining competitive for long. So that you can attractive on the market and in addition stay competitive, a laptop manufacturer must focus on the quality of the products whatever the internal issues. A minimal quality item will survive for much time available in the market. (Swan, et.al, 1976).
Improved Customer Support
The client support and after sales service by the companies are a good idea in remaining competitive. If the concerns of the customers are not answered properly, then chances are that the client will be attracted by other companies with better customer service. So, as a way to stay competitive, the firms should look to enhance their customer support service. (Gale, 1992).
Gone will be the days, when the companies were the purchase price makers, now-a-days, in fact, the customers are the price makers. Quite simply, the customers look for the costs from various manufacturers and finally buy a product from the maker with the most economical price, thus if a manufacturers pricing is not competitive, then your manufacturer will not stay competitive. So, the companies should price their products competitively. (Gale, 1992).
Improved Supply chain for Rapid Delivery
The supply chain generally helps a firm in keeping competitive in almost all the industries and the computer manufacturing industry is certainly no exception. The effective supply chain ensures swift and useful delivery of items to the clients, whereas, an ineffective source chain is the primary reason for the failure of any business to remain competitive. Thus testmyprep, an improved supply chain can help a business stay competitive available in the market. (Parker, 1989).
BACKGROUND OF DELL
The business selected is Dell and it handles the manufacturing of personal computers and its ingredients, and it comes beneath the computer manufacturing industry. Computer manufacturing companies are mainly regarded as electronic manufacturing corporations and these companies produces products like computers, its peripherals, equipments linked to communications, and many more products similar to these products. These products can be utilised at many locations like offices, schools, industries, colleges, together with homes. These products are likewise used for military as well as government establishments. In addition to all this different laptop peripherals or different components are built in into many sector products.
Dell has been a popular manufacturer of Computers, largely Desktops, Laptop computers, Notebooks, and PDA. Dell has emerged as one of the largest manufacturers of computers. Dell competes with the sector leaders and with the very best on the market. Dell grew as a computer system manufacturing company in the entire year 1980’s and 1990’s, looked after became the greatest computer producer at one stage of time. Dell’s core business was to market Desktops, Laptop computers and Servers, etc. Dell also sells various other electronics products, which it acquires from its suppliers around the globe and sell them under the brand name of Dell. The procedures of Dell have raised drastically over the last few years and also have been competing with the best available.
The existing situation evaluation of Dell can help us to analyze the situation plus the various elements that affect the functions of Dell. Following are the elements of situation analysis.
Dell provides a wide variety of customers ranging from individuals, small company to large multinational companies. Dell as well supplies computers and other devices to the federal government organizations in various countries. Its customers are spread all over the world, which makes it a truly global organization. The global consumers of Dell also highlights the presence of Dell, which all across the world. So, it really is satisfying a huge base of customers and so there is lot of scope for increasing the customer base of Dell
The expenses of any company play a key part in the profitability and accomplishment of any company. Higher costs lead to low income or losses in some cases, so it is always better to reduce the expense of manufacturing and also the additional indirect costs. Dell manufactures the majority of the products alone and it also acquires a number of the products from suppliers around the world, with a view to reduce costs. This helps it in pricing its products competitively, therefore helping it to stay competitive in the market.
A few of the competitors of Dell are popular companies around the globe. The opponents of Dell consist of Microsoft, IBM, Apple Inc, HCL, HP, Sony, LG, Samsung, etc. These opponents are popular companies with a broad range of products and a wide base of customers, which as well helps them to tag their presence everywhere. The competition is very stiff in the computer manufacturing market, with the presence of these popular global brands.
STRATEGY FOR DELL
The strategy for Dell is always to adopt an ground breaking manufacturing process therefore helping it to stay competitive by attracting a switch and by manufacturing technologically advanced goods.
Dell must bring in regards to a major change in the size of its desktops and laptop computers. Dell can manufacture modern laptops like Apple, Inc, and therefore would be able to compete with Apple Inc. It could also give Dell an edge over its competitors. Additionally, it gives Dell an chance to increase its market show by serving a fresh base of customers with its sleek products. This is often achieved only by adopting a technology like Apple Inc, or even a better technology than Apple Inc.
Impact on Management
This transformation is likely to impact the administration at Dell. The effect of the technological switch would require dell to effect a result of a change in the manner the administration at Dell operates. There can be a need to include a new of degree of management or to remove an existing level of management positions predicated on certain requirements. With a modification in the organisation based on the structure or the technological changes, the management must also change, as per certain requirements. So, it usually is said that the transformation in the merchandise to be manufactured, will probably bring in regards to a change in management. Thus, it is usually said that there surely is an impact of the change on the control.
Impact on Organization Location
Dell might need to start its manufacturing units to manufacture sleek products, if not it can use the existing manufacturing features to manufacture such products. With a transformation in the computer manufacturing technology, Dell must expand its businesses by starting manufacturing models in new business locations. Dell might need to change it out business from location to another considering its effect on the operations. Almost all of the manufacturing businesses are starting their manufacturing products in countries like India and China, so Dell might consider India and China, as a proposed location to begin its manufacturing systems to manufacture sleek notebook computers, and tiny sized desktops.
Impact on Information requirements of management
The operations needs an upgraded information system, so as to offer an accurate and updated data at all levels, as so when required, (Malhotra, 2008). The information needs of the control at Dell are also more likely to change, with a change in the technology and procedures of Dell. Thus, depending after the information needs, the information system also needs to be upgraded, to ensure that it provides required information to the supervision at all levels, that could ultimately assist in achievement of the goals of Dell.
Impact on Staffing Plan
As talked about earlier, Dell may need to hire additional people to control its new functions of manufacturing sleek laptops. The staffing plan can be likely to alter with a proposed modification in the technology. Some staff might need to be transferred in one position to another, plus some others might be would have to be hired, depending upon requirement. The proposed technical change at Dell can be likely to impact the staffing plan at Dell; therefore, a fresh staffing plan must be developed, considering its operations.
Impact on Training
Dell must also provide adequate training and education to its staff members with a view to upgrade their abilities and increase the productivity and efficiency. Working out and development of employee should be given highest priority, as the remarkably developed employees improve the productivity and overall performance of the organisation as a whole. With a technological change, there will effect on the training supplied at Dell. There are likely to be new training programs, to suit the needs of the brand new business development i.e. incorporating the proposed technological change.
Finally, it could be concluded by stating that the business information strategy plays an integral role in the victory of a business. It also plays an essential role, when an organization intends to bring about any switch in its functions, because, a significant change can be done only with the no cost flow of info. Dell can manufacture streamlined laptops, by bringing about a technological change in addition to a change in its developing method. The impacts of such a switch can be seen on the current management, business locations, data needs of control, staffing, training, etc.
The strategic level of management needs to adopt innovative ways of achieve the targets of Dell. The strategic control plays an essential role in the achievements of any organisation, therefore the key policy changes or developments take place at the strategic level of management. The tactical level of management needs to follow the policies developed by strategic level. Finally, the operational level is responsible for implementing the guidelines and achieving the final objectives.