A look at how Michael Dell is transforming his vision of virtual integration into reality.
Written in 2007; 1,504 words; 6 sources; MLA; $ 49.95
Paper Summary:
This paper discusses how Michael Dell's vision of creating a direct selling organization that can quickly customize laptops and PCs, has directly lead to the disintermediation of an entire layer of distribution channels, and with it, transformed the development of supply chain partnerships that could scale to meet Dell's global growth. The paper looks at how Michael Dell's vision of virtual integration forces an entirely new set of dynamics on suppliers, the limited resellers the company relies on, trading partners and the many integration points that the Dell Value chain has both internal and external to the company.
Outline:
Executive Summary
Measuring Progress Towards Virtual Integration
Dell's Areas of Measurements regarding Virtual Integration
The End Game: Dell's Mass Customization Strategy
From the Paper:
"The internal culture of Dell is highly focused on analytics and the ability to quickly measure, monitor and modify direction. The fulfillment of the virtual integration vision is only verifiable through an extensive set of analytics, which is exactly what Dell invests heavily in to measure their progress to this goal. Dell specifically concentrates on inventory turns and the Return on Invested Capital, velocities of the small percentage of pre-build configurations through distribution channels, share of market within the government, educational and enterprise markets in addition to many other metrics specifically chosen to measure the efficiency of their e-business strategies, this company has also had to become very centered on metrics. "
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