Where do these competences fit into the Value Chain?
Dell, started in a college dorm, delivers custom built PCs direct to
customers. It has created a whole segment and forced competitors
to change strategy with this “buy-direct” and “made-to-order”
strategy
• As results indicate, this strategy is paying off
• What is sometimes not highlighted is that this is a strategy enabled
by leading edge supply chain and manufacturing processes –both
enabled by technology
• A customer can build their own computer by using an automated
product configuration engine. The order is then electronically linked
to manufacturing and supply chain. Thus demand is always met and
materials are always brought in time, reducing inventory costs
• Dell’s use of technology to create a world beating business model
and its movement from a college dorm to these heights is testimony
to the power of information technology
• Where do these competences fit into the Value Chain?
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