the internet will be your business

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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. - PowerPoint PPT Presentation

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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

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