Name : Pankaj Kumar Roll No. –PGP14036 , Section –A Assignment #3 : Product Development at Dell Computer Corporation Q1. What competitive forces are shaping the computer Industr in ear 1!!3 " Ans. 1: B t!e ear 1""3 , #ue to tec!nolo$ical tec!nolo$ical a#%ancement o& 'tora$e ca(acit , 'o&t)are
,inter&ace' * increa'in$ com(etition com(etition #ue to entr o& ne) manu&acturer manu&acturer an# #i'tri+utor' co't )a' #ri%en #o)n #ra'ticall an# t!u' it le# le# to increa'e increa'e in #eman# #ue to t!i' t!i' (er'onal com(uter' com(uter' 'ol# &a'ter t!an %i#eo ca''ette ca''ette recor#er an# almo't a' &a't a' -' . !e emer$ence o& Porta+le * /a(to(' com(uter com(uter )ere increa'in$ )!o'e #e%elo(ment )a' )a' relie# on 'e%eral tec!nolo$ical +reakt!rou$! an# &ir't acce'' to t!e'e tec!nolo$ie' $a%e an com(etiti%e e#$e to t!e com(anie' , t!e a#%ance tec!nolo$ical com(onent' are lat /iui# cr'tal #i'(la' 'creen' , com(act !ar# #ri%e #ri%e #i'k' t!at con'ume le'' ener$ , im(ro%e# +atter tec!nolo$ tec!nolo$ , urt!er 2om(an ell in%e'ti$ate# cu'tomer (riorit an# market reuirement an# came u( )it! &ollo)in$ im(ortant &orce' )!ic! )ere &oun# '!a(in$ t!e (orta+le com(uter in#u'trie' an# con'umer (urc!a'e +e!a%ior #e(en#enc : 1. ). 3. '. &. 0. ,.
o$ Cost ost %&' %&'( *icr *icrop opro roce cess ssor or %3& %3&( ( +att +atter er if ife e %),( %),( -cre -creen en eso esolu luti tion on %1&( %1&( eli elia/ a/il ilit it %11 %11( Weight %! %!( the thers %13 %13(
!u' t!e #e%elo(ment o& Porta+le com(uter' * la(to(' in com(uter in#u'tr )a' (lain$ a' t!e major com(etiti%e &orce in '!a(in$ com(uter in#u'tr a' cu'tomer 'tarte# 'eekin$ &or t!e'e #e%ice' . Q). What has /een the fate of Dell prior to and in 1!!3 " Its financial situation Its Customer /ase Its product 2ualit Its product development process Ans.): inancial situation
Prior to 1""3 : !e Net 'ale' 'ale' o& ell )a' contri+ute# + (ro#uct' onl i.e. e'kto(' e'kto(' * /a(to(' , an# t!e )ere continuou'l increa'in$ t!eir 'ale' + ca(turin$ !i$! e'kto( market' + 1"" t!eir 'ale' reac!e# to 5014 illion , )it! $ro'' (ro&it o& 546"illion 1""3 : !e rate o& increa'e increa'e o& 'ale' #ro((e# +ecau'e ell 'tum+le' t!e %iolate# t!eir earlier e'ta+li'!e# +u'ine'' mo#el an# trie# in retail retail , #ue to )!ic! in%entor control +ecame #i&&icult
&or ell an# a##e# to t!i' t!ere &ir't line o& (orta+le' al'o #i'continue# , it' (ro&it' al'o 'la'!e# to 510illion Its Customer /ase
Prior to 1""3 : !e #ell )a' more into e'kto( 'ellin$ +u'ine'' till t!e #e%elo(ment o& Porta+le /a(to(' , an# 'u((lie# to cu'tomer' like 7il com(anie' * $o%ernment a$encie' an# it matc!e# nee#' o& !i' cu'tomer i.e. ualit * rea'ona+le (rice , t!e )ere al'o (ro%i#in$ 4!r com(laint !otline an# !i$! ualit 'er%ice al'o 'u((orte# ell to )in man cu'tomer an# $ro) uickl . 1""3 : ue to ca'! crunc! an# &ailure to co(e u( )it! (ro%i#in$ (orta+le #e%ice' t!e loo'e man cu'tomer an# t!e al'o &ace# tou$! com(etition #ue to (rice re#uction o&&ere# + com(etitor' , a(art &rom t!i' ell note+ook' al'o &ace# tou$! com(etition +ecau'e t!eir (ro#uct )a' +a'e# on ol# 386 'erie' micro(roce''or , )!erea' ri%al' o&&ere# 4869+a'e# micro(roce''or . Its product 2ualit
Prior to 1""3 : ell )a' 'ucce''&ul to a''ure (ro#uct ualit + eten'i%el (re9te'tin$ all t!e con&i$uration' o(tion' , it )a' al'o 'u((orte# + 4!r tele(!one 'u((ort ''tem , ;n a##ition to t!i' al'o +uil# 'tron$ relation'!i( )it! t!eir 'u((lier' an# t!e e&&ecti%el +ecame t!eir (artner' an# t!e la'te# t!i' (artner'!i( )it! 'u((lier' a' lon$ a' t!e maintaine# t!eir lea#er'!i( in tec!nolo$ an# ualit . 1""3 :
Prior to 1""3 : !eir (ro#uct e%elo(ment (roce'' remaine# an in&ormal (roce'' run + autonomou' team an# it )a' centere# aroun# e(erience# #e%elo(er' , )!ile 'uc! a((roac! #eli%ere# 'ucce''&ul (ro#uct' , t!e re'ult' )ere neit!er con'i'tent nor (re#icta+le , ri'k )ere not a''e''e# , e'i$n (ro#uct' )ere &reuentl t!ro)n &or manu&acturin$ an# t!u' it &aile# to #eli%er t!e reuire# ualit . 1""3 : >it! t!e in(ut' &rom aca#emic con'ultant an# &ailure o& in%e'tment make #ell 'enior mana$ement reali?e# t!e nee# &or 'tructure# a((roac! &or ra(i# (ro#uct #e%elo(ment ccle' in com(uter in#u'tr , in 1""3 #ell mana$ement or$ani?e# (ro#uct #e%elo(ment team aroun# core team' o& #e%elo(ment (ro&e''ional' &rom 'e%eral #i&&erent &unction' , t!e 'tarte# re%ie)in$ (roce'' e%er 3mont!' , in )!ic! #e%elo(ment )ork )a' re%ie)e# , tec!nical an# market ri'k' )a' a''e''e# t!e ne) (roce'' inclu#e' &ollo)in$ (!a'e' , Pro&ile (!a'e' , (lannin$ (!a'e , ;m(lementation (!a'e , uali&ication (!a'e , launc! (!a'e , acce(tance (!a'e .
Q3. Wh Dell senior management introduce 14month development process" What are the tring to change or improve" Ans. 3 : ell 'enior mana$ement intro#uce 18 mont!' #e%elo(ment (roce'' +ecau'e o&
&ollo)in$ (ro+lem' in earlier (roce'' . 1. !e re'ult o& #e%elo(ment )ere neit!er con'i'tent nor (re#icta+le . . !e ri'k )ere not a''e''e# ri$orou'l in makin$ (roject in%e'tment #eci'ion' . 3. Project eecution e(erience# enormou' %aria+ilit #e(en#in$ on (roject lea#er in c!ar$e . 4. ;t )a' &oun# t!at in man ca'e' team mem+er' #i#nt '!are t!e 'ame %i'ion . @. ualit i''ue' )ere a##re''e# %er late in #e%elo(ment (roce'' . !e 18 mont!' (lanne# al'o co%ere# #etaile# acti%itie' o& eac! (roce'' o& #e%elo(ment o& ne) (ro#uct 'uc! a' , Pro&ile (!a'e' , (lannin$ (!a'e , ;m(lementation (!a'e , uali&ication (!a'e , launc! (!a'e , acce(tance (!a'e . ue to a+o%e rea'on Senior mana$ement reali?e# t!at 'tructure# a((roac! i' nece''ar to a#a(t to t!e increa'in$l ra(i# (ro#uct #e%elo(ment ccle' in t!e com(uter in#u'tr. !e )ere trin$ to im(ro%e an# reor$ani?e (ro#uct #e%elo(ment aroun# core team' o& #e%elo(ment (ro&e''ional' , e'ta+li'! &reuent contact' )it! #i&&erent core team' an# &reuent re%ie)' nee# to +e #one to a%oi# (it&all' o& (re%iou' era , (roce'' o& &un#in$ a (roject +a'e# on ri$orou' ri'k a''e''ment o& market . Q'. Which +atter option should 5ollida6s team select" -ta $ith proven 7i 5i +atter technolog 8echnolog developed / -on 9io7 Differ until the 2ualification phase Ans.' : olli#a '!oul# c!oo'e 3r# Batter o(tion +ecau'e ,7(tion 3 e&er commitment to eit!er
+atter. Cn#er t!i' o(tion +ot! (lan' are con'i#ere# i.e. to Do%er#e'i$nD t!e +atter '(ace * 'econ#l in%ol%e# maintainin$ #ual #e'i$n' &or t!e la(to( one &or t!e ei'tin$ +atter tec!nolo$ an# anot!er &or t!e ne) /i7n tec!nolo$. Ba'e# on t!e #eci'ion tree anal'i', )!ic! (ro%i#e' a co'tEri'k +a'e# (re&erre# 'olution, o(tion 3 i' t!e (re&erre# (lan o& action +ecau'e it illu'trate' t!e a#%anta$e o& t!e Dno ri'kD a((roac!. ;t !a' not con'i#ere# %alue o& +eatin$ t!e com(etition to t!e market )it! a uniue (ro#uct o& /i7N Batter tec!nolo$ ,)!ic! ma (la a major role in (enetratin$ into a market ,t!e #eci'ion tree anal'i' al'o !a' not con'i#ere# t!e o((ortunit co't o& takin$ re'ource' a)a &rom ot!er (roject'. So in or#er to minimi?e ri'k an# al'o 'eek &or com(etiti%e a#%anta$e in (arallel, o(tion' 3 'eem' to +e (re&erre#. ;& t!e o((ortunit co't o& takin$ a##itional re'ource' a)a &rom ot!er (ro#uct #e%elo(ment' i' con'i#ere# to +e 5100 or more, t!en o(tion 1 )oul# +e t!e (re&erre# c!oice. .
