MANAGEMENT INFORMATION SYSTEM

ASSIGNMENT TOPIC: CASE STUDY: MANAGEMENT INFORMATION SYSTEM AT DELL SUBMITTED TO: MS. RABIA JAVAID

SUBMITTED BY: SONIA TAUHID 848 BBA-VII

E COLLEGE FOR WOMEN UNIVERSITY LAHORE COLLEGE FOR WOMEN UNIVERSITY DEPARTMENT OF MANAGEMENT SCIENCES

Management Information System

2011

CASE STUDY: MANAGEMENT INFORMATION SYSTEM AT DELL QUESTION # 1: Comment on the MIS in Dell and suggest the positives and negatives of MIS in Dell? ANSWER:
Management Information System of Dell is a vital part of its operations and its survival in the modern world, it is well updated and it competes well with Management Information System of competitors. The Management Information System of a Dell is created from high standards. The Management Information System helps Dell to achieve its goals and assist the company in reaching its potential.

POSITIVES OF MIS IN DELL: It is efficient management information system of dell that enables it to adapt direct business model and become cost leader in front of strong competitors like IBM and Apple that are using indirect channels. More than 50 percent of the companys computer sales transactions took place via its website, which generated worldwide sales in excess of $40 million a day. Efficient management information system makes it possible to effectively collaborate across boundaries, shared ideas about product designs and value propositions. The result is faster and more customer-focused product and service innovation. The management information system helps Dell in creating strategies that will help the company to conquer any problems and threats from competitors. The management information system also assists the company in processing the needed information. Management Information Systems also helps a dell to create or update its inventory control system. As it enables Dell to make sure that any product the consumer need will be available to them at any given time. It is also what the company uses to know if certain products are still available or and detects misuse of the inventory system that may cost problems to the company. Dell turns over inventory every six days on average, keeping related costs low Management Information Systems of dell helps it to process information. Through the internet or World Wide Web trends and strategies by other companies can be known. After analyzing the trends and strategies used by other companies, an appropriate strategy can be formulated to use by the Dell. Dell introduces the latest relevant technology much more quickly than companies with slow-moving indirect distribution channels. through its Efficient management information system Dell doesn't sell the best or latest technology, but waits until it's a market desire. Through Efficient management information system dell charges zero percent interest to its private and business customers. Its good management, timely information processing and efficient system that Dell provides quick onsite service by using business partners and customized computers better than anyone else.

Management Information System

2011

NEGATIVES OF MIS IN DELL: Management Information Systems of dell is inefficient in the field of proprietary technology as Dell is a computer maker, not a computer manufacturer. The currently used technology by dell is shared by the other major competitors. It buys from a group of concentrated hi-tech component manufacturers. Management Information Systems of dell makes it highly dependent on component suppliers. Dell is good at customization but it often failed when it tried to make innovations for instance In 1991, Dell launched a line of notebook computers, but quality problems and inadequate production planning forced the company to stop selling for a year. It also happens again when dell opens kiosk but after a few time it closed its all 140 kiosks. Feedback Control System provides by dells Management Information Systems also has negative effects. Supervisors may tend to impress the management by submitting false information that indicates extraordinary performance, although in reality, the performance was low. Thus, by receiving false performance data, the management also makes wrong feedback. QUESTION #2: The dell directly sells its computers to the customer whether it will give them good and reliable information or they are lacking in information system due to this move? ANSWER: Dell gives its customers good and reliable information. Dell has a rock-solid supply chain and gets instant feedback from customers about needs and wants via integrated info systems (purchasing patterns online and service partnerships). Due to fast phone service and also quick onsite service dell offers customized products better than anyone else. The March issue of Consumer Reports, included a survey of 4,100 consumers, who gave Dell 62 points out of a possible 100 for its support on desktop PCs. Although it still managed to top competing brands Hewlett-Packard and Compaq, which scored 54 and 51, respectively. Shipments for the company, which pioneered direct sales of computers to consumers, surged 25 percent year over year to 25.8 million units in 2003, making it the world's largest PC maker. While all PC companies talk about the importance of customer service, Dell has been particularly vocal for several reasons. By cutting out the middleman, Dell has a closer relationship with customers, thus taking all the praise from happy buyers--and all the blame when things go wrong. In addition, the PC business is becoming increasingly commoditized, marked by similarly equipped machines and price erosion. One way to stand out from the crowd is to pamper buyers by offering better service and support than competitors. Dell's emphasis on service emanates directly from the top. CEO and founder Michael Dell wrote in his 1999 book, "Direct by Dell," that relatively sketchy support offered by electronics stores inspired him to build his own company. Dell goes so far as to spend time each year manning the phone lines. QUESTION #3: Develop the information flow diagram for dell and suggest some improvement. ANSWER: Information flow diagram for online purchase of any product at dell.com is given below. 3

Management Information System

2011

INFORMATION FLOW DIAGRAM

Customer log on to DELL.com

View the web content i.e. Home, Office, Public sector and large enterprises

Select dell product category: Laptop Desktop computers Phones and tablets Electronics and accessories Servers and networking Software and peripheral Select an item

Personalize the product Get shipping information arrange payment (credit card) View 3D image of item and review summary of order Order flows to production floor If he wants to edit his order

Final and customized product is inspected, packed, and transferred to shippers

Place the order on shopping cart

Checkout

Ordered item arrive to customer.

Management Information System

2011

IMPROVEMENT: Information flow at dell website may be improved by offering free downloads of trial versions of software. Dell may also offer money back guarantee for expensive items. It will be good if before making purchase decision prospective customer may read the views of customers about dell products. QUESTION # 4: MIS is a combination of Management, Information and System or of the three parts of the information system in which area does the Dell lacking? ANSWER: Dell lakes in management as The Company has such a huge range of products and components from many suppliers from a number of countries, that there is the occasional product recall that can cause Dell some embarrassment. For instance, in 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires. On August 17, 2007, Dell Inc. announced that after an internal investigation into its accounting practices it would restate and reduce earnings from 2003 through to the first quarter of 2007 by a total amount of between $50 million and $150 million, or 2 cents to 7 cents per share.[87] The investigation, begun in November 2006, resulted from concerns raised by the U.S. Securities and Exchange Commission over some documents and information that Dell Inc. had submitted.[88] It was alleged that Dell had not disclosed large exclusivity payments received from Intel for agreeing not to buy processors from a rival manufacturer. In 2010 Dell finally paid $100 million to settle the SEC's charges of fraud. Michael Dell and other executives also paid penalties and suffered other sanctions, without admitting or denying the charges. It inefficient management of dell is also obvious from several incidents such as: Closure of Dells biggest call center in April, 2003 terminating 1100 employees. On January 8, 2009 Dell announced the closing of its manufacturing plant in Limerick, Ireland with the loss of 1,900 jobs and the shift of production to its plant in Poland. Dell not able to attract the students of schools and colleges, this segment earns only 5% of total revenues. Lot of criticism against the Dells claim of worlds most secured notebooks.