Organizational Communication 6

OC VI Case Study Case Study: Dell Computer Corporation Traditional PC industry model vs. the Dell model Title In order to understand how a clear strategy of communication will raise individual performance, foster ongoing employee and supervisor development, and increase overall organizational effectiveness, it can be helpful to review a case study that demonstrates the principles. Krovi et al. (2003) compare the traditional computer industry communication model to the Dell Computer Corporation communication model. Dell Computer Corporation created an innovative strategy for communication that removed non-value added portions of the information flow. By communicating directly with the suppliers and the customers, the company shortened the time between order and delivery. Selling computers directly to customers over the Internet, offering a build-to-order sales service, and then linking suppliers and customers directly through the organization has resulted in a rapid- response communication strategy. Donald Cushman and Sarah Sanderson King (2003) explain that Dell created four rapid- response systems that allowed real-time communication via the Internet. The communication strategy employed by Dell involves reducing the time it takes to get the product or service to the customer. It also assists in streamlining its dealings with suppliers. BBA 2026, Organizational Communication 2 First, Dell developed a rapid-response sales link to its online customers that leUt NcuITstxomSTerUsDoYrdGerUaIDndEtrack their purchase through every stage of the manufacturing and distribution process (Cushman & Sanderson King, 2003). This type of communication between the company and the customer became so popular that it has been copied and implemented by many other companies. Indeed, it is a standard communication process in the online sales industry today to provide up-to-date information about the stage of manufacturing, packaging, and shipping to the customers via e- mail or text message. Dell also allowed customers to customize their purchase in order to meet their unique needs. Cushman and Sanderson King (2003) explain that Dell has worked with an Internet superstore since 1998, which provides everything a customer would want to customize on his or her computer. Dell tracks these preferences to build product-communication profiles. The choices a customer makes during one part of the customization process will prompt other notifications of useful add-ons or services. These choices are designed to meet the customer’s needs. When filling out the order form for a new computer and choosing options, the phrase “Dell Recommends” appears next to upgrades or add-ons. The Dell model assists the company by providing a better way to manage the flow of information from the customer and to then use that information to increase sales. Title The second rapid-response system in the Dell communication strategy deals with providing customer service (Cushman & Sanderson King, 2003). Dell created a worldwide, multilingual service that is online or toll free and is available 24 hours a day, seven days a week. This service assists customers with issues, and the company monitors the service interactions in order to develop maintenance profiles for their products and to develop repair sequences for each type of problem. The third rapid-response system links all of Dell’s suppliers, workers, managers, and customers to the value chain. As Cushman and Sanderson King (2003) relate, the company monitors the information and then uses it both internally and externally. The company will receive information on coordination sequencing and quality control, for example, and develop performance profiles for suppliers, managers, and workers. Along with the feedback, the company conducts online training and workshop programs to develop stakeholder skills. Finally, Dell has a rapid-response communication system for the continuous improvement of all organizational activities. This system is designed to help develop teamwork between the

outsourcers, suppliers, managers, and staff. A goal of 20% improvement is set each year. Each of the teamwork processes is monitored and effective team leaders and members are identified and rewarded (Cushman & Sanderson King, 2003). The four rapid-response communication systems—sales, services, value chain, and continuous improvement—are all designed to increase organizational performance. As Cushman and Sanderson King (2003) note, this communication system is a key to Dell’s success. The organization’s stakeholders all have a real-time and interactive way to communicate; the profiling activities guide the communication so that it is targeted on customer needs, product use, and service issues; the value chain targets updates as customer needs and technology develops; and the continuous-improvement program helps the organization stay ahead of competitors. References Cushman, D., & Sanderson King, S. (2003). Communication best practices at Dell, General Electric, Microsoft, and Monsanto. Retrieved from http://www.sunypress.edu/pdf/60758.pdf Kaplan, R. S. (2001). Strategic performance measurement and management in nonprofit organizations. Nonprofit Management & Leadership, 11(3), 354-370. Krovi, R., Chandra, A., & Rajagopalan, B. (2003). Information flow parameters for managing organizational processes. Communications of the ACM, 46(2), 77-82.