Dell | machine-to-machine communications
Micahel Dell Takes On The World
by
Helen BondWe were born out of this turmoil. We didn't have loads of funding
when we started, and we didn't have the all-star start-up team. We
had a high school graduate with $1,000. The company kind of grew up
with change and agility and turmoil, and these destructive things
right in the middle of its DNA. So it kind of thrives on that. If
you change something at
Dell, people say, "Oh great, that's good,
something has changed." If you don't change things at Dell, people
say, "Why don't you change it? What's the problem, there must be a
problem."
AW: How do you see Dell continuing to take advantage of the
Internet?
Dell: The big focus right now is machine-to-machine
communications, as opposed to screen-to-screen and person-
to-person over the Internet. So let's say a company is buying
computers from us standardized on Dell. The old way to do that is
to call us on the phone, and we would come to see you with a
purchase order, send things in the mail, by fax machines - all
sorts of paper flying. We are glad to take orders that way - still
will, we are not proud - send smoke signals or whatever. But our
customers are telling us that if we can create an electronic link
so that when they decide they need 10 or 50 computers for a
particular department, that order immediately goes into our
factory, then the customer doesn't have this paper shuffle going
on.
Then, on the other side with our suppliers, it is kind of the same
thing, but we have also been able to integrate the process. So
today, we will sell something on the order of 70,000 computers. And
whenever we sell a computer, a signal propagates through our system
all the way back to our suppliers. Every single supplier knows
exactly what materials they need to deliver to our factories so
that order can be filled. That allows us to have essentially a
pull-driven instead of a push-driven system. So you get out of this
business of having inventory problems. You don't have any inventory
- what you have is information, and information is a lot easier to
manage than inventory.
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