Memo to Michael Dell
I was glad to read this morning that you have pulled the plug on your iPod competitor, the DJ Ditty music player. Dell needed this like HP needed HPod. Dell needs all the focus it can muster on its core business, not silly distractions.
But what were you thinking when you issued a statement saying that recalling over four million laptop batteries because of a fire hazard would have "no material impact on the company's finances?" You had to know the word "material" would be dropped from all the headlines. It makes Dell, the man and the company, appear disingenuous. Dell, with its customer-direct model, needs to promote trustworthiness. This instead gives the appearance of being in denial.
It is great that Dell is now using AMD chips, but you are a bit late to the game, this coming just when Intel appears to have leap-frogged AMD in price and performance. What happened to Dell's nimbleness?
I am really worried about you, Michael. You seem to be lost in reveries of the past. No one except perhaps your family cares about what you have done over the last two decades or how you started in your dorm room. Dell the company has had a great strategy as the low cost, direct-custom-order computer company. What you need to do is focus on execution. Some critics are suggesting that focusing on execution is your problem. They say it creates an uninspired culture. They say you need imagination and creativity. They want you to pump more money into R&D. That is not what Dell is about. Dell innovates in customer service, direct ordering and low cost manufacturing to make build-to-order computer purchasing work great. Don't listen to those who would change your core. Dell is what it is and attempting to make it like Apple or anyone else will not work.
Forget imagination. Dell needs to refocus on execution, but that does not equal cutting costs. You cannot cut your way out of your current problems. Instead, you have to fix what is broken.
Your supply chain and manufacturing glitches are the easiest thing for Dell to deal with and I believe you when you say that they are mere hiccups.
Great customer service is core to your strategy. Dell's has deteriorated dramatically in the last few years. Stop denying the extent of the problem and stop quoting surveys that say it is getting better. Admit it sucks and really commit to fixing it.
Online ordering is core to your strategy. It has become very hard for a mere mortal to navigate your web site and feel confident that they can get what they need. Your phone sales staff who backstop the online process seem committed mainly to up-selling. You are sending people to Best Buy with Dell specs in their hands. Get out of denial, admit this sucks and really commit to fixing it.
I am sure you actually know what else needs to be fixed, like the speed of decision-making. Stop reminiscing, get out of denial, admit what sucks and really commit to fixing it.
Fast.
Copyright © 2006 Philip Bookman
Technorati: Dell
But what were you thinking when you issued a statement saying that recalling over four million laptop batteries because of a fire hazard would have "no material impact on the company's finances?" You had to know the word "material" would be dropped from all the headlines. It makes Dell, the man and the company, appear disingenuous. Dell, with its customer-direct model, needs to promote trustworthiness. This instead gives the appearance of being in denial.
It is great that Dell is now using AMD chips, but you are a bit late to the game, this coming just when Intel appears to have leap-frogged AMD in price and performance. What happened to Dell's nimbleness?
I am really worried about you, Michael. You seem to be lost in reveries of the past. No one except perhaps your family cares about what you have done over the last two decades or how you started in your dorm room. Dell the company has had a great strategy as the low cost, direct-custom-order computer company. What you need to do is focus on execution. Some critics are suggesting that focusing on execution is your problem. They say it creates an uninspired culture. They say you need imagination and creativity. They want you to pump more money into R&D. That is not what Dell is about. Dell innovates in customer service, direct ordering and low cost manufacturing to make build-to-order computer purchasing work great. Don't listen to those who would change your core. Dell is what it is and attempting to make it like Apple or anyone else will not work.
Forget imagination. Dell needs to refocus on execution, but that does not equal cutting costs. You cannot cut your way out of your current problems. Instead, you have to fix what is broken.
Your supply chain and manufacturing glitches are the easiest thing for Dell to deal with and I believe you when you say that they are mere hiccups.
Great customer service is core to your strategy. Dell's has deteriorated dramatically in the last few years. Stop denying the extent of the problem and stop quoting surveys that say it is getting better. Admit it sucks and really commit to fixing it.
Online ordering is core to your strategy. It has become very hard for a mere mortal to navigate your web site and feel confident that they can get what they need. Your phone sales staff who backstop the online process seem committed mainly to up-selling. You are sending people to Best Buy with Dell specs in their hands. Get out of denial, admit this sucks and really commit to fixing it.
I am sure you actually know what else needs to be fixed, like the speed of decision-making. Stop reminiscing, get out of denial, admit what sucks and really commit to fixing it.
Fast.
Copyright © 2006 Philip Bookman
Technorati: Dell
Labels: software strategy
posted by Phil Bookman at 10:10 AM
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