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Richard Owen Vice President, Dell Online Worldwide October, 1999 The Internet Will BE Your Business
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Richard Owen
Vice President, Dell Online Worldwide
October, 1999
The Internet Will BE Your Business
www.dell.com
“The Internet could be considered the ultimate extension of our direct business approach.”
Dell Computer CEO Michael DellAustin-American Statesman 2/26/97
www.dell.com
Keys to Building Momentum
DeliverDeliver Deliver frequently, consistently and to expectations.
EvangelizeEvangelizeEvangelize internet usage to executives, marketing, sales, and customers.
EmpowerEmpowerEmpower an organization to transform your business.
www.dell.com
Empower a Transformation
Provide Executive Sponsorship to give authority
Provide Executive Sponsorship to give authority
Forget ROI at first, it will come later
Forget ROI at first, it will come later
Build New Processes don’t just put old ones online
Build New Processes don’t just put old ones online
Create aWeb Culture fast, focussed, fun
Create aWeb Culture fast, focussed, fun
www.dell.com
Evangelize to Integrate
with Customers Training and education Demand generation
with Sales and Marketing Hybridization Training and education Sales incentives
with the Executive Team Corporate-wide goals Regular and frequent communication of successes,
failures, and obstacles Training and education
www.dell.com
Deliver in Internet Time
Fast and frequent “Make it happen” Concept test bed Momentum builder “Perceived” ROI
IncrementalIncremental
Slow and difficult Legacy issues Internal efficiencies “Real” ROI
ReplacementReplacement
Fast and slow Easy and difficult “The next big thing”
InnovationInnovation
www.dell.com
Mill
ions
of
Dol
lars
per
Day
4/96
$0
$5
$10
$15
$20
$25
$30
4/97 4/98 4/99
Results to Date
Dell.comLaunched
Premier Pages (Customized Extranet) Launched
Premier Pages Introduced For Small Business
Gigabuys.com Launched
Premier Pages With Customer
Specific Dynamic Pricing
Michael Dell’s Challenge -50% Online Revenue
$1 $3$4
$5$6
$14
$30
500Premier
Pages Online
3,000 Premier
Pages Online
Online Sales Reach 25% of
Total Sales
Dell On-Line Sales
www.dell.com
“Internet will BE your business.”
Dell Computer CEO Michael DellIDC European IT Forum, 09/13/99
www.dell.com
5X
Internet Will Be Your Business
Why?
What?
Customer ExperienceCustomer Experience
www.dell.com
VelocityVelocity
How?EfficiencyEfficiency
Velocity
What?VelocityVelocity
www.dell.com
Speed to Quality
Fast Tech
Fast Tech
Velocitywww.dell.com
Fast Tech
Turning Our Business Inside Out
Data/Common Services
Role Specific Applications
Manage the Business Applications
Intranet applications, including:
• Purchasing - supply chain management• Marketing - product site content management• Sales - order management and customer specific content• SCM - configuration management• Product Engineering - tech support content• Customer Care - service content• HR - job postings
• Financial reporting• Pay and Performance Mgmt.• Benefits changes• Corp. Director
Value Chain
B2B Commerce
B2C Commerce
Customer Care
eSupport
Premier Pages
Intranet
Internet
Recruiting Share data and develop common applications to eliminate redundancy and ensure consistent experience
Velocitywww.dell.com
Efficiencywww.dell.com
How?EfficiencyEfficiency
INDUSTRY
Resolution Without Onsite Dispatch
80%
27%
Services Efficiency
Efficiencywww.dell.com
Source: DataQuest, June 1998
Efficiencywww.dell.com
Dell OpenManage
Efficiencywww.dell.com
Commerce Efficiency
Customer Standards and Pricing
E-quotes & Purchase Authorization Workflow
Paperless POs
Build your own quotes
“Dell’s system is so efficient that it’s like going to the supply room and grabbing a box of pencils.”
BancAmerica, 2/98
Why?Customer ExperienceCustomer Experience
Customer Experiencewww.dell.com
Customer Experiencewww.dell.com
Source: BizRate.com
What Drives E-Loyalty
Quality of customer service 62%
19%
Quality of customer service is a more important
driver to repeat online sales than product or price.
Product price
Customer Experiencewww.dell.com
Focus on Customer Experience
Customer Focus
Increased Market Share
Brand Equity
Customer Loyalty
Customer Experiencewww.dell.com
Loyalty
100%
80%
60%
40%
20%
Zone of Defection
Zone of Indifference
Zone of Affection
“Terrorists”
“Apostles”
1 2 3 4 5
Very Dissatisfied Indifferent Very Satisfied
Customer Conversion through Experience
Source: The Service Profit Chain, 1997
Enhanced Value
Enhanced Value
Enhanced Value
Enhanced Value
Enhanced Value
Enhanced Value
Customer Experiencewww.dell.com
Referrals Provided
Experience Enhances Lifetime Values
Word of Mouth
Rel
ated
Sal
es
Relationship DurationRetention
Source: The Service Profit Chain, 1997
Customer Experiencewww.dell.com
Premier PagesSM Service
Customized Extranet Sites
E-Commerce
Information Sharing
Service and Support
Customer Experiencewww.dell.com
B2B Customer Integration
B2Be Direct - Connecting Customers Directly to Dell
Creating a direct business relationship and providing an end-to-end e-commerce solution.
Customer Dell
Procurement System
Order Management
System
Internet
Requisitioning
Worklfow
Order Submission
Logistics
Acknowledgement
Reconciliation
Notification
Tracking
Customer Experiencewww.dell.com
Personalization
Web experiences customized based on
total relationship with Dell
Web experiences customized based on
total relationship with Dell
Personalization Shifts Online Experience
Customer Experiencewww.dell.com
Transactional Focus Relationship Focus
Multiple / Independent sites Community of Interrelated Sites
“For Everyone” Market of One
Not-Sticky - Buy and Go Sticky - Return and Commit
High Tech High Touch
Store Metaphor Community MetaphorKnow Customer Only
by What They BuyKnow Individual and Prospect According to Behavior
Personalization Only Available to Premier Accounts
Personalized Service to Every Customer (Mass Customization)
Responsive / Passive Proactive - Makes “Smart” Offers
Site Changes Are Mass Segment Focused
Site is Better For Me With Each Visit
FROMFROM TOTO
End-to-end direct business,End-to-end direct business,leveraging the internetleveraging the internet
