Ebook Download Direct From Dell: Strategies That Revolutionized an Industry, by Michael Dell Catherine Fredman

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Direct From Dell: Strategies That Revolutionized an Industry, by Michael Dell Catherine Fredman

Ebook Download Direct From Dell: Strategies That Revolutionized an Industry, by Michael Dell Catherine Fredman

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Amazon.com Review

The PC business is full of rags-to-riches stories. But perhaps none is as dramatic as the rise of Dell Computer. In Direct from Dell, founder and CEO Michael Dell tells how he started his company from a dorm room at the University of Texas with less than $1,000 and built it into an industry powerhouse with a market capitalization of well over $100 billion. What makes Dell Computer unique is not what it sells, but rather how it sells it. Dell was first in the PC industry to pioneer the direct-selling model, a method that competitors such as Compaq and Apple Computer are only now starting to embrace. By cutting out the intermediary and creating a direct link between manufacturer and customer, Dell was able to provide customers with computers that cost less and that were more apt to meet customer needs. Direct from Dell is organized into two parts. The first recounts the history and the enormous growth of Dell Computer. The second part focuses on Dell's management approach, from developing customer focus to creating alliances with suppliers. The book manages to avoid most of the promotional and self-congratulatory air that seem to plague so many first-person CEO tomes. Anyone who has followed the PC industry or would like insight into Dell Computer's success should enjoy reading this book. Well written and easy to read. Recommended. --Harry C. Edwards

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From Publishers Weekly

The results are impressive: a 19 year-old with $1000 starts a company, remains at the helm and on top of changes in the industry for 10 years, and watches the stock rise 36,000% over another decade as his company becomes the second largest maker of PCs in the world, and the largest in the U.S. The founder of the Dell Computer Corporation uses anecdotes from his entrepreneurial life and his company's history to illustrate the "direct model" he developed to do itAone that eliminates the middleman via a host of direct-marketing media and incorporates a full-blown philosophy of doing business. While most of that philosophy's components are familiar (internally, "Reward Success by Narrowing Responsibility"; externally, "Teach Innovative Thinking"; "Retail: First in, First out"; "Hyperlink to the Future"), seeing how Dell put these theories into practice will sustain a reader's interest. Rightly, the custom-built and directly shipped computers that are the company's signature product get the most airtime. While the book, like nearly all in its CEO-authored subgenre, is heavy on self-congratulatory propaganda ("The spirit of the company that remains today was beginning to take hold"), Dell makes an agreeable maverick. Copyright 1999 Reed Business Information, Inc.

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Product details

Hardcover: 256 pages

Publisher: HarperBusiness; First Edition edition (February 17, 1999)

Language: English

ISBN-10: 0887309143

ISBN-13: 978-0887309144

Product Dimensions:

6.1 x 1 x 9.1 inches

Shipping Weight: 1.3 pounds

Average Customer Review:

4.1 out of 5 stars

93 customer reviews

Amazon Best Sellers Rank:

#242,188 in Books (See Top 100 in Books)

I'm not a fan of this book. I had to read this for a supply chain management course alongside reading The Goal by Goldratt and Cox for a different class, and the two are clearly different in terms of explaining how success was made. In The Goal, scenarios are presented and solved--you're reading a story with characters and a narrative that sneaks in production management ideas and how this topic was revolutionized.In Direct From Dell, you're reading 10-15 bullet points reiterated over and over and over again in vague, general phrases that can be applied to almost every single successful business that makes the entire thing sound like Generic Business Owner Takes Full Credit Of Company's Success And Writes Generic Book for Quick Cash and Recognition.You will get some neat, Dell-specific information, but it's almost entirely at the very beginning and very end of the book.Bullet points for running a successful business include:Listening to customersHiring for the futureTargeting demographicsReduce inventoryLearn from the pastAccept mistakesAccept others' helpSound familiar? Congratulations--you've read every other book by every other successful CEO!As stated, there are a FEW points that are specific to Dell, though. Reduction of suppliers, component customization, and selling directly to the customers, taking advantage of the internet. Things that you think are obvious and commonplace now but really weren't back then. But that's it, really--you're not going to get finer details of how these were done (likely because I don't think Mr. Dell, like many owners, really understands the finer mechanics of his machinery once the company got big enough), instead just getting cute anecdotes and vague descriptions of how these work. Lots of cute anecdotes, for sure--you'll be swimming in them before waking up and going "Huh? Why was that necessary?"It's just not a good book. I believe it's successful primarily because enough people have read it and incorporated it into their various management courses that's it's just something of a tradition, now. Make no mistake; Dell is a GREAT story of success, and the TEXTBOOK we used gave VERY CLEAR REASONS why, treating the entirety of Dell's success as an ever going Case Study within the text. But this little "book" doesn't touch on ANY of that when it really should.

Let me tell you a story. There was this kid, 12 years old, who saw that his local post office was raising money by organizing a stamp auction. This kid had a truck load of old stamps with him, as stamp collection was his hobby. So he goes out and organizes an auction of his own and raises $2,000 at the end of the event. Over the next few years his entrepreneur skills keep growing. Next at age 16, he takes a summer job of selling a local newspaper subscription. After a few days, he analyses the trend of the sell and finds that his major customers are either newly married couples or those who have recently bought a house. So he stops making random calls, finds the list of people who are going to be married from the local marriage registrar office and reaches out to them, similarly he finds details of those who are looking to buy a new house and reaches to them directly. At the end of the summer this kid had $18,000 in his kitty, more than his teacher had made that year. This kid was none other than Michael Dell.Armed with these skills, Michael, found out that during the initial computing days when he was still finishing school, the big computer companies were selling standard configurations and at much higher cost. So he started a business out of his dorm room, of assembling computers according to the requirements of his customers and started selling assembled computers at a much cheaper rate and importantly giving the customers what they wanted. This initial experience thought Michael that there are two things he had to stick to, if he had to succeed:1) Give the customer what they want, not what you have2) Sell directly to the customerThese two became the guiding principles for Dell Computers which experienced amazing growth of more than 50% every year.In "Direct from Dell" Michael has given very minute details of how Dell actually grew from a $1000 out of the dorm room company to a $60 Billion company. The book is exceptionally detailed, to an extent that I was surprised that a CEO will provide such details of his company. But clear communication is something that Michael has stressed on right from his initial days.This book also details at length about the learning's Dell gathered from their mistakes. One of the learning's which attracted me was Dell's organizational structure. Dell was growing at an exceptional rate and while everybody was busy catering to the customer demands, the internal organization (People & Infrastructure) was stretched and disorganized. Michael then got some outside help and redefined the organization and came up with "Segmentation". What it meant was that, to run the company smoothly, it was broken down into smaller companies each with their own support and sales structure. Since Dell was always a customer centric company, sticking to its principles, the segmentation was done according to the customers. So a customer like GE had its own small Dell company dedicated to it. I have personally worked in one such segmented organization in the past and can vouch for it.Dell was one of the pioneers of the "Direct" selling model wherein they eliminated the resellers and sold directly to the customer. The results of this model were multiple:1) Savings were passed to the customer. Other companies used to sell through the resellers, which meant increased cost2) Customer feedback was immediate. Other conventional companies had very few ways to find what the customer actually felt about their products.3) Online retail thrived. Prior to Dell selling computers on the internet, retail through internet was very limited.Dell however opened up a whole new line of retail which is now exploited by wide range of businessesThis book also outlines how Dell came up with the "Build to Order" model and further reduced the computer costs and passed the savings to the customer. By working in close contact with the three integral pieces, Customer, its employees & Suppliers Dell came up with ways to reduce inventory to as low as "8" days while other companies had inventory as high as "40" days. What this meant, is that, if there was a change in technology or customer demands which is very prevalent in computer industry, Dell was ready to react while other companies were behind by at least 32 days. Other companies would adjust their inventory losses by increasing the cost of other products while Dell would pass the entire savings to its customers. This was possible however by working very closely with the Suppliers in particular.Overall this book can be a blueprint for starting a new business. This is going on my good books shelf.

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Direct From Dell: Strategies That Revolutionized an Industry, by Michael Dell Catherine Fredman PDF