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Direct from Dell, Strategies That Revolutionized An Industry (平装)
by Michael Dell, Catherine Fredman
| Category:
Entrepreneurship, Innovation, Corporate history, Process excellence |
| Market price: ¥ 178.00
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¥ 148.00
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 Good for Gifts |
| MSL Pointer Review:
Why is this book so powerful? It talks about the power of having a dream and following it with all your heart. |
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AllReviews |
  1 2 Total 2 pages 19 items |
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Rolf Dobelli, Switzerland
<2006-12-21 00:00>
If you are in the computer business, or in sales, you already know the Dell story. It's about a driven man, Michael Dell, who came up with a simple idea - direct sales - and then expanded his company into the world's second biggest manufacturer of personal computers. Dell's personal story is inseparable from the story of his company, and his book gives readers his unfiltered, first-person perspective. He covers his company's history, challenges, problems and successes in an unvarnished, matter-of-fact style. We highly recommend this book to anyone in the computer industry, to entrepreneurs and to managers who want to make their small businesses grow. |
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Sodalug, USA
<2006-12-21 00:00>
In business, a lot of words and phrases are overused to the point that they lose all their original meaning. "Paradigm" has to be one of the worst. The one that comes to mind when discussing Dell is "revolutionary". Dell is one of the few examples where a word this strong really applies. Taking $1,000 of startup capital to build custom PCs in a dorm room all the way to becoming the worlds leading computer manufacturer and the highest return on investment company in history (ROI = 14,000%) is impressive, but there have been many such basement-business-to-boardroom success stories. The revolutionary part was building the first manufacturing operation that relied on mass customization of an extremely complex product, and succeeding at it. Before Dell, such a technique was considered impossible.
I was struck by the Randian style of Dell's life. Oblivious to the critics laughing at his seemingly na ve attempt to challenge the large, dominant, and established players in a complex and technical industry, Dell proceeds to create an entirely new business and eventually dominates those same critics. Dell is a modern day, real life Henry Rearden, a prime mover whose success benefits the world over. He makes the impossible seem natural, and his modest demeanor masks an unimaginable and limitless drive for success.
Readers expecting an autobiography of Michael Dell may be disappointed; he glosses over his own life in barely half a chapter and quickly gets down to business, so to speak. I was mildly disappointed by this, as Dell seems like a very interesting guy. This was the right choice though, and considering Dell's own personality of economy this seems fitting.
It seems Dell has always been an uncannily direct person, starting in 3rd grade when he purchased a high school diploma from a mail order company in an attempt to save himself another 9 years of unnecessary education. This was a child destined to succeed. He was born with dollar signs in his eyes and was all about the Benjamins before most of us even knew what a Benjamin was. This pattern continued as he earned $2,000 by selling stamps on consignment though an advertisement in a stamp collectors journal. At age 16 Dell earned over $18,000 in one summer by selling newspaper subscriptions by targeting newlyweds from lists he compiled by canvassing county courthouses (the really funny part about that story was that when he told his high school teacher about this, she became angry because it was more money than she made). Finally, the real turning point: Dell's interest in computers leads him to begin upgrading computers for friends of the family. This becomes such a profitable hobby that Dell buys himself a BMW which he drives himself off to college in upon graduation from high school. You all know where things go from there.
From this entrepreneurial beginning, the book succinctly describes Dells early struggles and eventual rise to power. The book is written really as a managerial primer on what it really means to create a "customer oriented" company (again with the buzzwords - but in this case Dell really means it). Dell knows his likely target audience (as always) and the book is divided up into short chapters, each carefully labeled for quick reference. Each chapter is written like an executive summary, with bold headings marking each major subsection. Now that's high "skim value".
Obviously, this is one of those "books every manager should read". Otherwise the books appeal to the general pubic is probably pretty low. Still, anyone who likes a good story of success would enjoy most of the book, and could skip the business-heavy sections. Anyone with an entrepreneurial inkling really should consider checking it out though.
Dell succeeds in distilling the major reasons for Dell's success into a fairly compact book. And he goes on to describe how his philosophy is applicable to any and every company. While most management books are meaningless buzzword dictionaries, Dell crafts a real world guide to creating a successful company. Being customer oriented is more than a buzzword for Dell, it is a philosophy. Dell claims to spend upwards of 40% of his time dealing directly with customers, finding out what they want, need, and are unhappy with - name another CEO who is this committed to his customers. Dell respects his customers, which is exactly where many firms fail. Similarly being direct is no gimmick. To organize your entire firm around and just one level away from the customer is a guiding philosophy for the design of Dells corporate structure. |
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An American reader, USA
<2006-12-21 00:00>
Overall I found this a very easy read. This is due in large part to the level of reading which is about high school sophomore level. I feel that's okay though, because there are many times that people want to impress us with their knowledge and write right over the heads of others, the result: their point is completely missed.
The most important part of the book, as it relates to the strategies, is found in Part I. The strategies are what made Dell Computer Corporation so successful and for me personally, I would have loved to work for this company. Dell Computer Corp. embodies the values that I admire such as being direct, empowering your employees, talking with your customers, your suppliers, your competition so as to bring them into the company - their strategy of the "Direct Model". The "direct model" also brought on the advent of the virtually integrated organization. This is an organization linked not by physical assets, but by information. Perfect for the technology times we live in.
I feel that this is one book from which many CEO's and small businesses can learn from, as well as individuals. Mr. Dell sees no end to the growth and believes that they have the right model for the Internet age. A final quote from the book about the real key to their success I believe says it all.
Their success:
It comes from knowing our strengths and being open to experimentation. It comes from the determination to learn from our mistakes and look for ways to continually improve. It comes from being willing to challenge conventional wisdom and having the courage to follow our convictions. It comes from an innate fascination with eliminating unnecessary steps.
Well worth taking the time to read. |
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R. Dickson, USA
<2006-12-21 00:00>
The book was written by the founder and current CEO of the number two computer manufacturer in the world, Dell Computers. It is written in two parts. The first part is written almost like a biography of Michael Dell and depicts some of his experiences he had while starting and running his first company. He takes us from childhood moments to today's challenges. He writes about successes and mistakes providing insight, hindsight, and lessons learned on each. In the second part, he writes to entrepreneurs who desire to do what he has done. It is written like a cookbook providing the recipes for success that he has learned. The second part incorporates all the ideals that were expressed in the first section.
There are a few themes that continue to appear in this book. The number one thing expressed is Dell Computer's selection of its method of bringing the product to the customer. This one concept is the driving factor in every other activity the company pursues. The author terms it the "direct method". It means selling straight to the consumer and avoiding the middleman. Dell further distinguishes its delivery method in that they customize each computer to the customer's order. It is, and was, a very different way to sell mass manufactured computers. The industry method has been for computer manufacturers to make a particular model, pass it to its distribution channels and let the retailers worry about selling the product, that is let the product sell itself.
Dell Computer makes nothing until it has received an order for it. They abhor the retail process. Michael Dell's book explains in detail the benefits to be obtained from such a practice. First and foremost, the computer industry is a constantly changing environment where new products are introduced at an astronomical rate. With the retail method (termed indirect), the manufacturer has to worry about getting the products that are on the self off the shelf and into consumers hands. This has resulted in considerable delays in introducing new technology to the individual consumer, as the company does not want to put a bigger, better, cheaper computer on the shelf next to its older version. Instead they pass these dinosaurs on to the unsuspecting consumer then restock with the new models which incorporate the new technology. Sometimes the retailers must make drastic markdowns in order to move these older products. These losses are borne by both the retailer and the manufacturer due to industry standard covenants.
Another major benefit of the direct method is that the company receives instantaneous feedback from its buyers. Offering a large selection of various components, Dell is able to immediately see the market's direction for various components. As consumers order directly, Dell is able to see market trend as it occurs. Armed with this information, Dell can alert its suppliers who can either plan to increase or decrease production. Dell has tapped its customers preferences and does an exceptional job at meeting their expectations. Their strategy mandates the incorporation of customer feedback into their process. They in sense acknowledge and cater to the boss - the client.
By seeing future trends so quickly, Dell is able to modify its product line as changes occur. New technology is embraced, and if successful, can be delivered within days to the consumer. Success rates can be measured within minutes of product offering due to the direct method.
As a byproduct of the direct method, and another leading theme of Michael Dell's book - inventory is king. Early in the company's history, they learned a valuable lesson: attempting to get ahead of the market, Dell made a large purchase of RAM chips which it used extensively in its products. Within days of their "look ahead" inventory purchase, new technology made the chips virtually useless. The company took a huge loss on the inventory and posted its first quarterly loss ever as a result.
The author explains that Dell now keeps only 6 days worth of inventory, where the industry standard is 40. He explains that he can incorporate new technology with 6 days to market.
Prior to reading this book, I would have only purchased a Dell by coincidence. Today I am sold. I will buy from this company.
The CEO, a college dropout, appears to have learned his lessons via “on-the-job" experience and does an good job of bringing them to the reader. |
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Winston Kotzan, USA
<2006-12-21 00:00>
If you are interested entrepreneurs and how they became billionairs, I would recommend this book. If you want to start your own company, then I would definitely recommend this book.
Direct from Dell is divided into two parts. The first part is about how Michael Dell gained an interest in computers and decided to become part of the industry by selling computers. The book then shows what risks he took and what he did to overcome the challenges of running a business. It also talks a little bit about the marketing strategies used to get Dell where it is today. You will find out how Dell had to structure the company because it's structure was not efficient enough to handle its explosive growth and how Dell overcame problems such as inventory management.
The second part of the book gives a more in-depth description of Dell's marketing strategies. It tells you what he does to make his business more efficient. Reading this will give you a new perspective on managing company resources, developing consumer-focused goals, and making relations with other companies a key to your success. I'm sure that most entrepreneurs will find this part of the book particularly interesting.
Overall, this book was very good. Not only does it teach a lot about business management, but it is also entertaining. The most entertaining part of the book was when it talked about Michael Dell's earlier years and business adventures, such as how he ended up making more money than his high school teacher by selling newspapers. I think anyone who reads this will find something interesting. Even people who are not interested in starting their own company can also probably learn how to make work more fun and efficient. |
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Charles, USA
<2006-12-21 00:00>
In the world of the CEOs of major IT companies, Michael Dell is like an open window on a Spring day. As a regular reader of the trade journals, hardly a day goes by without my reading about Gates, McNealy and Ellison etc. launching verbal grenades at each other. At times, it appears that their primary goal is to pump their egos rather than run a successful company. However, I cannot recall ever reading a negative comment about others attributed to Michael Dell. After reading this book, it seems likely that there is no memory lapse. While the descriptions are somewhat soft about the true competitive nature of the business of selling computer equipment, Dell explains much about how he views the world of business.
Without a doubt, his story is one to pay attention to. At 19, he dropped out of school and started a company that is now worth over 30 billion dollars. This tremendous growth in value was also based on sound business practices and not just due to a ride on the dot-com elevator. Those principles are elegant in their simplicity and effectiveness. Creating and supporting a quality product that is needed is always a way to success, although so many seem to have forgotten that over the last few years. Furthermore, although Dell clearly wishes to promote his company, the book is not a collection of marketing blurbs, but an honest look at the problems that incredible success creates. Always sounding like someone who really believes that the customer must be treated well, his statements never contain that false tone so prevalent in material churned out by marketing types.
Now that the dot-com bubble has burst, all companies doing business on the web appear to be facing hard times. With his practical approach and focus on the delivery of a quality product, you find yourself rooting for Michael Dell to continue to be successful. His is a company that should be a model for how to do it right without feeling the need to constantly stab at your competitors. |
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Michael Ramm, USA
<2006-12-21 00:00>
Michael Dell has penned the story of a small computer companyfrom Texas that has gone on to be one of the biggest powerhouses inthe direct consumer marketing industry. He shares his secrets of success, that sometimes appear to be almost common sense, except for the fact that none of the other companies do some of these things. While not a biography of Dell, the man nor the company, it is a good roadmap for the IT entrepreneur to succeed.
I, one day, hope to start my own company in in the computing industry, and he has given me the handbook for success. I read the book in under 36 hours, I could not put it down. I saw many applications to implement some of the ideas that he talks about at the University HelpDesk that I manage. I think that managers at all levels and in all industries can benefit from read "Direct from Dell".
How much can the CEO of a company that does $40 million dollars a day on the Internet know about business?....a whole heck of a lot!
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D. Nishimoto, USA
<2006-12-21 00:00>
Between 1984-87, Michael Dell managed has taken his company from a $1,000 hobby to a $160 million business. In 1999, it was worth $18 billion and had experience a 36000 percent growth. Dell computer company is a "Good to Great" company. Michael Dell exhibits the type of leadership that a "Good to Great" company should have. Dell's Big Picture: Build a business on what people want instead of what you think they want:
1. listen to the customer
2. respond to the customer
3. deliver what they want.
Success is a matter of learning and identifying core strengths. Every new growth opportunity has a level of risk Try to identify potential problems early and fix them. Pace investment to match progress. If there was a way to get something done more quickly and easily, I wanted to try it. Eliminate the middle man. Opportunity is part emmersion and part instinct.
Dell's Competitive strategies:
1. faster speed to market
2. superior customer service
3. commitment to produce high quality and high performance product
4. rapid entry to the internet.
The PC was going to be the business choice for the future. Surround yourself with smart advisors. If you hire good people they will bring other good people to the organization Dell's Two golden rules: Distain inventory and Always listen to the customer. Always sell direct. Build your infrastructure as you grow. Slow and steady growth with a focus on liquidity. Communication is the most important tool in recovering from mistakes. Interject functional excellence and maintain accountability. Segment by customer. Segmentation offered the solution to rapid growth. Maximize strengths to improve profit. The quality of information is proportional to the amount inventory. Focus on getting quality information and decreasing inventory. Information Technology must reduce obstacles to the origin and flow of information. Acheive velocity by selecting the minimum number of parts that will cover the largest portion of the market sector. Dell's view on company culture: moblize around a common goal, invest in long term goals, don't leave the talent search to human resources, cultivate commitment to personal growth, and get involved.
Dell's list of donts:
1. Don't be satisfied
2. Don't waste precious resource
3. Don't play hard to get
4. Marry high tech and high touch
5. Don't forget the customer have different fears, questions, and sensitivities.
Dell's beliefs about the customer:
1. See the big picture
2. Run with suggestions from the customer
3. Always think bottom line (find ways to help the customer cut costs)
4. Make yourself valuable to the customer.
5. Be a student.
Dell's guidelines for communication:
1. Don't underestimate the value of information
2. Communicate directly with the customer
3. work toward increasing demand verses supply
4. think real time
5. R&D must deliver value-added stuff for the customer
6. Get online and learn from the customer. Focus on the customer and not competition. |
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Eric Kassan, USA
<2006-12-21 00:00>
The story of Dell Computers is an enjoyable story of how an entrepreneurial young Michael Dell couldn't contain his enthusiasm for his business idea and took it all the way. Without much to guide him beyond his instincts he made some mistakes, but he admits to these and describes them so readers can learn from them as he did. Of course, far more can be learned from what he did right. One of the more noteworthy approaches he mentions is that Dell rewards success by *reducing* the responsibilities of the successful manager- an act many use as a negative disciplinary measure in other companies. The reasoning is that after a division grows from a $10 million market to $200 million, by cutting it back to $25 million, it will be easier for the manager to focus on this smaller block, understand it better, and again grow it to $200 million or more. |
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1 2 Total 2 pages 19 items |
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