INFORMATION & TECHNOLOGY MANAGEMENT AT DELL

8/7/2019 INFORMATION & TECHNOLOGY MANAGEMENT AT DELL

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INFORMATION &

TECHNOLOGYMANAGEMENT AT

DELL

SUBMITTED BY:ABHISHEK SINGH(10/MBA/03)

PARUL TANDON (10/MBA/33)

SAURABH MARWAH (10/MBA /51)


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DELL

Dell Inc. is an American multinationalinformation technologycorporation based in

Round Rock, Texas, United States, thatdevelops,sells and supportscomputers andrelated products and services.

Bearing the name ofits founder, Michael Dell,

the companyisone of the largest technologicalcorporationsin the world, employing more than103,300 people worldwide.

Dell is listed at #38 on theFortune 500 (2011).


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DELL contd.

Dell hashad notable mergers and acquisitionsincluding Alien ware (2006) and Perot Systems

(2009). Asof 2009, the companysold personal computers,servers, data storage devices, networkswitches,software, and computer peripherals. Dell alsosells

HDTVs,cameras, printers, MP3 players and otherelectronics built byother manufacturers. The companyis well known for itsinnovationsinsupplychain management and electroniccommerce.


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Dells Business model


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Traditional distribution system of the PC

industry wasindirect model often referredto as the channel


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Weakness

It wascommon for PC makers tohave up to 90

daysofinventoryon hand and in the channel.

The highinventorycosts and lackofresponsivenessof the indirect channel meant

that there was an opportunityfor someone whocould find a waytocircumvent the channel.


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The company that seized this

opportunity wasDell

Direct marketing

Selling directlyremoves two linksin the supplychain where inventorycould build up.

Provide better service to them, and promoterepeat or expanded sales to them.

Build-to-order production

Allows Dell tointroduce new technologies assoon as the customer wants them.

Makesit possible to adjust production to demandveryquickly.


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USE OF I.T IN DELLSSUPPLY

CHAIN MANAGEMENT


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E-COMMERCE

Dell was an earlyand enthusiasticconvert to theInternet,creatingits first web site in 1994 andmoving manyofits business activities to theInternet ahead ofitscompetitors.

Alsoitsbuild-to-order manufacturing processeswere alreadyin place, makingit easytooffercustomers the opportunitytoconfigure productsonline just as theyalreadydid on the telephone.


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Dell also used the Internet to linkitself more

tightlytoits large customers bydevelopingextranetscalled Premier Pages (nowrenamed Premier Dell.com). Dell haddeveloped over 50,000 Premier Pages for

thousandsof businesscustomers bymid-2000.These are used for configuration,ordering,services, and support, all customized to thecustomerssystems and needs.


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Coordinating with Suppliers.

Dell uses electronic data interchange (EDI)technologywith all ofits business partners tosend

and receive standard transaction information suchas purchase orders,invoices, and shippingschedules.

Withkeysuppliers and contract manufacturers,italsosets up extranets that give these partners accesstoorder information and forecasts from Dellsinternal systems,including the Dell OrderManagement System (DOMS).


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Coordinating with Service Partners

Dell provides technical support tohome and

small businesscustomers through phone andextensive web-based support. It outsourceson-site repairs to HSB customers to their partnercompanies(such as BancTec, etc.).

The objective ofonline service and support is toreduce total costs and improve customersatisfaction.


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Dells G-2 architecture The G-2 architecture is layered, with a Web browser user interface

sittingon top of an applications layer,a message broker, and adatabase

The keyto thisstructure is the message broker layer, whichisbased on an IBM MQ series application integration system. It servesas an information bus, linking all applications and databases toeachother.

It also allows new data enginesor applications to be added to thesystem without having to make changes throughout the system.


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SCM System Servers


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The Old SolutionProprietary Unix-based Servers

Dell IT group ran its SCM database applications

on large, expensive, proprietaryservers based onthe UNIX OS. However, as the companygrew,servers lacking the necessarycapacityhad to bereplaced with even larger, more powerful

servers.


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The New SolutionOracle 10g RACon Dell PowerEdge Servers

By2005, the performance of the proprietary

system was becoming a concern, with manyofthe batch processes taking a long time to

completethe end-of-quarter batch process job,

for example,could take up to 31 hours.


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The New SolutionOracle 10g RACon Dell PowerEdge Servers

Replaced the Sun servers with Oracle RAC 10gclustersof Dell PowerEdge 6650 servers, each with four Intel

Xeon processors.

While the previoussystem could not scale beyond onephysical server, the current system allows Dell IT to

easilyadd servers to the clusters tohandle increasedwork loads.


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Measured Performance Improvement


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SITUATION

Founded in 1984, Dell is a premier global provider oftechnologyproducts and services. The companyattributesits

success to a persistent focuson delivering the best possiblecustomer experience through a direct sales model. Byconnecting directlywithcustomers, Dell can best understandtheir needs and provide effective solutions.

Tosupport its business model, Dell maintains a strongemphasison operational efficiency, reducingcosts andpassing those savingson tocustomersin the form ofgreater

value.


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SITUATION CONTD.

Although Dell is focused on minimizingcostsin all areasofitsbusiness,one area where the companycontinuallyworks to

do more with lessisin the management and support ofitsgloballydistributed IT infrastructure, whichincludesapproximately100,000 Windows-based desktop and laptopcomputers and 13,500 Windows-based server computers.

Of equal importance to Dell is ensuring the reliabilityandsecurityofitsglobal IT infrastructure. Based on a Dell onDell philosophy, Dells IT approachcalls for running virtuallyall areasofits businesson the companysown products.


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WHAT WAS REQUIRED?

In the past, Dell used a number ofserver monitoring

products tohelp ensure the availabilityofits

mission-critical systems.

However, none of those productscould scale to

support the companys worldwide environment,

makingit difficult tocentralize server monitoring. In addition, none of the products provided sufficient

monitoringcapabilities to alert IT staff to all

possible typesofsystem failures.


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WHAT WAS REQUIRED? CONTD.

Another capabilitythat Dell needed was:1. A waytoquicklyand efficientlydeploynew

software updatesespeciallysecurity-relatedonestoits thousandsof Windows-based serversand computers.

2. Similarly, Dell needed a software distributionsolution that would help reduce the time and effortassociated with the deployment of newsoftware,allowing the companys IT resources to focusonother needed work.


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SOLUTION

Dell isoptimizingits abilityto manage its

extensive IT infrastructure with:MICROSOFT

SYSTEM CENTREIT MANAGEMENT

SOLUTION

MANAGEMENTSERVER 2003

OPERATIONSMANAGER 2005


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Microsoft Systems

Management Server 2003


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1. Provides Dell with a full-featured solution forthe deployment, maintenance,inventorying, and

support of bothcomputer and server software.

2. FLEXIBILITY:The companys use of Systems Management Server

began in 1999 with version 2.0, with five regional

hierarchies used tosupport the companysglobalcomputer environment. In 2004, Dell upgraded toSystems Management Server 2003,consolidatingthose five regional hierarchies to a single globalhierarchy.


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3. Distribution of new software to all Windows-basedcomputers and server computers. New PCs are delivered tousers withonlythe Windowsoperatingsystem andMicrosoft Office Professional installed, All otherapplications are made available for installation on an on-demand basis through Systems Management Server. Userssimplygo to a list ofseveral hundred advertised programsand choose what theyneed, and Systems ManagementServer pushes those applications down to users PCs.

4. UPDATES:Dell is using Systems Management Server to deploysoftware updates to bothcomputers and server computers.


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Operations Manager 2005


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Dell selected Microsoft Operations Manager 2005 asthe foundation ofitsserver monitoringinfrastructure

because Operations Manager met more requirementsthan anyother candidate product did.

1. Scalability:

The Operations Manager infrastructure used tomonitor Dell production systems runson only24server computers,yet it has the capacityto monitor24,000 servers worldwideclose to twice itscurrent

workload.


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2. It gave support for high-availabilityscenariossuch as agentfailover.

3. It helped in database clustering.

4. Role-specific Operations Manager management packssuch as those that are available for Microsoft ExchangeServer 2003 and SQL Server 2005give Dell the tools and

knowledge needed to properlymonitor those applications.Each management packprovides a set of monitoring ruleswith predefined thresholds, a built-in knowledge base withtroubleshooting and resolution information, and scripts thatcan be used toquicklyand efficientlyresolve issues.


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BENEFITS of Microsoft

System Center IT

management solutions


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Global Scalability:

Dell is taking advantage of the strongscalabilityprovided byMicrosoft SystemCenter solutions to meet its IT

management needs with minimal relatedinfrastructure.

Mission-Critical Reliability

System Center solutionssupport itsdirect, build-to-order business model,enabling IT staff toimmediatelydetectand address anypotential problems


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Enhanced Security

Uses System Center solutions for fast, efficientdeployment ofsecurity-related software updates.

Dell alsois makingits environment more secure byusingits newsolution to prevent users from installing

programs that are not delivered through SystemsManagement Server.

Improved End-User and IT Staff Productivity

It provides a consistent support experience regardlessof

whether the user is working locallyor remotely. With Systems Management Server,installed computer

applicationscan follow users as theymove to a newcomputer, ensuring that theyalwayshave access to theapplications needed to do their jobs.


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USE OF IT IN

PRODUCTION(FACTORY) ATDELL


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FACTORY AUTOMATION

Toshape Dell IT into a more global organizationDell performed extensive analysesof

manufacturingsoftware and selected best-of-breed applications for global deployment. One of the first areas addressed wasfactory

control.

selected applications performed their specificjobs well, but none of them were designed todirectlycommunicate withor control theproduction line hardware.


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Unlike other manufacturers Dell, builds a highmix ofcomplex,customized productson a high-

speed production line.

It relieson specialized applications todetermine,in real time, what needs tohappen

with a particular order.

It needs a measure ofclosed-loop control, butthe business logicis toocomplex to residecompletelywithin the SCADA layer.


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DEVELOPMENT OF A NEWINTEGRATION LAYER

Dell IT elected tostandardize on CIMPLICITY andProficyTracker software to build itsglobal factory

control integration layer. Dell IT plans tocreate this layer tointegrate itsglobal manufacturing applications with the factoryline hardware and enable an efficient, manageableproduction line.

The production line would be fullyautomated. Provide comprehensive routing and tracking

functionalityfor everyproduct moving down theline.


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Dell IT built an additional layer using theMicrosoft .NET Frameworkto provide a

common,simplified interface between therouting and tracking application and otherfactorysystems.

Alsokeytosuccess was the inclusion ofstrongprogram and project management functions aswell as alignment with businessowners tohelpensure that expectations and timelines were met.


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ADVANTAGES OF INTEGRATION LAYER

Effective factorymonitoring.

Dell can gather manyproduction metrics withmuchgreater detail and accuracy.

It enables to monitor keymetrics.

Tracker applicationsinterface with the

production line controllershelp to report onequipment performance & efficiency.


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FACTORY VISIBILITY ANDMOBILEMANAGEMENT

Applications at the SCADA layer focused onlyon asingle section of a single factory.

Creating a new application layer and makingit aglobal standard was nosmall task.

Dell deployed Tracker applicationsin a new factorywhere it could comprehensivelytest, troubleshoot,

and refine system performance.

It helped in ensuringhigh levelsofstabilityandavailabilityonce products began rolling down theline.


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ADVANTAGES

Because a common application layer nowconnects to the factoryfloor from end to end,administratorscan monitor total factoryoutput,current throughput, and work-in-progress levelsin real time & in detail.

This detail gives the factoryoperationsstaffincreased visibilityinto their operations.


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AUTOMATION ENHANCEMENTS INCREASECONTROL AND RETURN ON INVESTMENT

Dell hascalculated that the increased operationalvisibilityalone could save US$3.7 million peryear at

a single Dell factory.

Dell hasseen increasesin overall system reliability.

Implementing a common layer in place of a largenumber ofindividual applicationshashelpeddramaticallyreduce the number of application-related incidents.


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Increased control over the routingof materialthrough the factory.

It has enabled several business processenhancements.

Dell anticipates an annual ROI in excessof US$40

million related to these ancillaryprojects.

Hence Dell IT has helped significantlyincrease the efficiencyand manageabilityofthe companys core business.


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CONCLUSION


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Advantages of IT in Dell

Inventory:

Dells daysofinventoryhave dropped considerablyover the last fewyears. Their inventorylevel is thelowest in the industry.

Manu

factu

ring:Dells production cycle time is7hours,on average,

while itsorder turnaround time is7 days,onaverage. The automation of production processescontributes to the speeded-up cycle times.


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Advantages of IT in Dell Cash management:

Dell has a cashconversion cycle of 8 days. Thisis because Dell oftenreceives payment from a customer on an order before it paysits

suppliers for parts used to fulfill thisorder.On average, Dell converts a sales transaction intocashin less than24 hours.In contrast,indirect PC sellers must buycomponents to producePCs, then push the PCsinto the channel and wait for payment.

Administrative overhead:Dell is among the most efficient firmsin the industry. Dells SG&Adeclined from 15% in 1993 to 9.8% in 1998. Bycontrast,over thatsame time period, Gateways SG&Ahasincreased from 7 to 14%,and Compaqs SG&Aheld steadyaround 12% until jumping to 20%in 1998.


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Advantages of IT in Dell

The highlyprofitable corporate (relationship)customer market has exhibited greater growththan the consumer (transaction) market between1991 and 1997. Relationship customersaccounted for 59% of net salesin 1991, whereastheyaccounted for 70% in 1997.


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THANK YOU

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INFORMATION & TECHNOLOGY MANAGEMENT AT DELL