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The Internet Will BE Your Business. Richard Owen Vice President, Dell Online Worldwide October, 1999. “The Internet could be considered the ultimate extension of our direct business approach.”. Dell Computer CEO Michael Dell Austin-American Statesman 2/26/97. Keys to Building Momentum.

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the internet will be your business

The Internet Will BE Your Business

Richard Owen

Vice President, Dell Online Worldwide

October, 1999

slide2

“The Internet could be considered the ultimate extension of our direct business approach.”

Dell Computer CEO Michael Dell

Austin-American Statesman 2/26/97

keys to building momentum
Keys to Building Momentum

Deliver

  • Deliver frequently, consistently and to expectations.
  • Evangelize internet usage to executives, marketing, sales, and customers.

Evangelize

  • Empower an organization to transform your business.

Empower

empower a transformation
Empower a Transformation

Create aWeb Culturefast, focussed, fun

Build New Processes

don’t just put old ones online

Forget ROIat first, it will come later

Provide Executive Sponsorship

to give authority

evangelize to integrate
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
deliver in internet time
Deliver in Internet Time
  • Fast and frequent
  • “Make it happen”
  • Concept test bed
  • Momentum builder
  • “Perceived” ROI

Incremental

  • Slow and difficult
  • Legacy issues
  • Internal efficiencies
  • “Real” ROI

Replacement

  • Fast and slow
  • Easy and difficult
  • “The next big thing”

Innovation

results to date
Results to Date

$30

$30

Online Sales Reach 25% of Total Sales

Premier Pages Introduced For Small Business

$25

$20

Michael Dell’s Challenge -50% Online Revenue

500Premier Pages Online

Millions of Dollars per Day

$15

3,000 Premier Pages Online

$14

$10

Premier Pages (Customized Extranet) Launched

Premier Pages With Customer Specific Dynamic Pricing

$6

$5

$5

Dell.comLaunched

Gigabuys.com Launched

$4

$3

$1

$0

4/96

4/97

4/98

4/99

  • Dell On-Line Sales
slide8

“Internet will

BE your business.”

Dell Computer CEO Michael Dell

IDC European IT Forum, 09/13/99

slide10

Velocity

Efficiency

Customer Experience

What?

How?

Why?

www.dell.com

slide11

Velocity

What?

www.dell.com

Velocity

speed to quality
Speed to Quality

Fast Tech

Fast Tech

Fast Tech

www.dell.com

Velocity

turning our business inside out
Turning Our Business Inside Out

eSupport

B2B Commerce

Customer Care

Premier Pages

Value Chain

B2C Commerce

Share data and develop common applications to eliminate redundancy and ensure consistent experience

Recruiting

Internet

Data/Common Services

Intranet

Role Specific Applications

  • 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

Manage the Business Applications

Intranet applications, including:

  • Financial reporting
  • Pay and Performance Mgmt.
  • Benefits changes
  • Corp. Director

www.dell.com

Velocity

slide14

Efficiency

How?

www.dell.com

Efficiency

services efficiency
Services Efficiency

Resolution Without Onsite Dispatch

80%

INDUSTRY

27%

Source: DataQuest, June 1998

www.dell.com

Efficiency

dell openmanage
Dell OpenManage

www.dell.com

Efficiency

commerce efficiency
Commerce Efficiency
  • Customer Standards and Pricing
  • Build your own quotes
  • E-quotes & Purchase Authorization Workflow
  • Paperless POs

“Dell’s system is so efficient that it’s like going to the supply room and grabbing a box of pencils.”

BancAmerica, 2/98

www.dell.com

Efficiency

slide18

Customer Experience

Why?

www.dell.com

Customer Experience

what drives e loyalty
What Drives E-Loyalty

62%

Quality of customer service

Quality of customer service

is a more important

driver to repeat online sales

than product or price.

19%

Product price

Source: BizRate.com

www.dell.com

Customer Experience

focus on customer experience
Focus on Customer Experience

Customer Loyalty

Brand Equity

Increased Market Share

Customer Focus

www.dell.com

Customer Experience

customer conversion through experience
Customer Conversion through Experience

100%

80%

60%

40%

20%

1 2 3 4 5

Very Dissatisfied Indifferent Very Satisfied

“Apostles”

Zone of Affection

Zone of Indifference

Loyalty

Zone of Defection

“Terrorists”

Source: The Service Profit Chain, 1997

www.dell.com

Customer Experience

experience enhances lifetime values
Experience Enhances Lifetime Values

Enhanced Value

Enhanced Value

Enhanced Value

Relationship Duration

Retention

Related Sales

Referrals Provided

Word of Mouth

Source: The Service Profit Chain, 1997

www.dell.com

Customer Experience

premier pages sm service
Premier PagesSM Service
  • Customized Extranet Sites
  • E-Commerce
  • Information Sharing
  • Service and Support

www.dell.com

Customer Experience

b2b customer integration
B2B Customer Integration

Customer

Dell

Requisitioning

Acknowledgement

Internet

Worklfow

Reconciliation

Order Submission

Notification

Logistics

Order Management

System

Tracking

Procurement

System

B2Be Direct -

Connecting Customers Directly to Dell

Creating a direct business relationship and providing an end-to-end e-commerce solution.

www.dell.com

Customer Experience

personalization
Personalization

Web experiences customized based on total relationship with Dell

www.dell.com

Customer Experience

personalization shifts online experience
Personalization Shifts Online Experience

FROM

TO

  • Multiple / Independent sites
  • “For Everyone”
  • Store Metaphor
  • High Tech
  • Not-Sticky - Buy and Go
  • Personalization Only Available to Premier Accounts
  • Responsive / Passive
  • Site Changes Are Mass Segment Focused
  • Transactional Focus
  • Know Customer Only by What They Buy
  • High Touch
  • Site is Better For Me With Each Visit
  • Relationship Focus
  • Proactive - Makes “Smart” Offers
  • Personalized Service to Every Customer (Mass Customization)
  • Know Individual and Prospect According to Behavior
  • Community Metaphor
  • Market of One
  • Sticky - Return and Commit
  • Community of Interrelated Sites

www.dell.com

Customer Experience

slide27

End-to-end direct business,

leveraging the internet