Living in Dell Time

In: Business and Management

Submitted By franzferdinand
Words 1671
Pages 7
QUESTIONS 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from this case.

Product Innovation (the development of an improved product)

Dell is the only computer company which offers its customers the built-to-order model. The customers can choose which components they want to have in their computer and can adapt it to their needs.

Process Innovation (the development of a new manufacturing process)
Dell has brought a maniacal focus to shaving minutes off the time to assemble and ship a computer. By studying videotapes of "the build," as they call it, factory managers have slashed in half the number of times a computer is touched by workers. They've counted the screws in a PC and redesigned it so that the major components simply snap in place. The entire process, from the time the order is taken to when the finished PC exits the factory, is wrapped up in four to eight hours.
Organizational Innovation (a new internal communication; introduction of a new accounting procedure)

Dell has a very good communication. As they standing under so much pressure regarding to the fact that they have no inventory, they have to have this skill. There is even a round-the-clock communication with the parts makers overseas existing, which helped them to handle with the lockout in 2002. Without this communication they had never managed it through it. With the built-to-order principle Dell has also changed its financial model (introduction of a new accounting procedure). Dell receives the payment from its customers immediately, through credit cards, online or over the telephone. But Dell doesn’t pay its suppliers until 36 days after it receives payment from the customers, therefore they achieved a cash-convention cycle of negative 36 days. So they are operating with negative working…...

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