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Saturday, 07.31.2010 |
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| Direct from Dell |
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Product Details
Notes
great book
especially part 1 about his story
he made $2k when he was 12 selling stamps direct
when he was 16, he made $18k selling newspapers
as a freshman in college, he spent $1k to incorporate
he learned to delegate when employees came to him
the direct model is key to understanding your customer
they wrote down specific goals, and set stretch goals
identify your core strengths and ignore conventional wisdom
sales grew at 97% and net income grew at 166% in early 90s
major crises - memory chip inventory and Olympic products
don't create something because you can, ask the customer first
build infrastructure based on need, but allow for growth
liquidity (cash flow), profitability (margins), and growth
run a profit and loss statement on every part of your business
setup clearly defined metrics and get the facts from the data
communicating is important when recovering from mistakes
handle growth through segmentation, focus on specific areas
Dell has 8 days of inventory vs. 55 days in distribution
currently (1999) dell.com has $12 million in sales per day
use the internet in all areas of business, including internal
hire people for their potential, not for their current skills
encourage innovation by letting people learn from mistakes
admit mistakes and address them immediately
measure ROIC - Return On Invested Capital for every area
Dell did extra for big customers, like Premier Pages
their big customers don't want to be in the computer business
this deepens the relationship and gives Dell more advantages
become virtually integrated with suppliers and customers
think about what your suppliers and customers really want
the key is not one great idea, but implementation of strategy |
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