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Living in Dell Time

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Living in Dell Time 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from the case (10 points).

First they are using a production innovation the just-in-time model. (It is a strategy for inventory management in which raw materials and components are delivered from the vendor or supplier immediately before they are needed in the manufacturing process.) Inventory has been a form of security but this kind of security is very expensive because computer parts are fast moving goods, and if your stock is full of these goods you will lose a lot of money. Kevin Rollins the CEO of Dell said, “inventory is like fish, the longer you keep it the faster it deteriorates.” Eleven years ago Dell carried 20 to 25 day of inventory in their warehouses and today they don’t have a warehouse. But if it fails, its manufacturing operations will crash within a matter of hours. But they also said that if you have your stock full of components, always you will have a lot of the wrong stuff and none of the right stuff. Many companies are not sure if it´s good of running so lean in an uncertain world, because you never safe for terrorist attacks or natural disasters.
Another innovation is when they miss a forecast and they see they are running out of 15-inch flat screens they make for example a one week special of 17-inch screens in that time they sell it cheaper and so they lead the customer what they should buy. Supply-chain expert’s call this “demand shaping”, because its direct-to-the-customer model allows it to shift demand to match what its suppliers can deliver.
The organizational innovation and also the commercial innovation of Dell is the build-to-order model with this model they receive the payment from its customers immediately with the order, through credit cards, either online or over the

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