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History of Dell

Everyone has heard of Dell, being one of the world's leaders in the computer technology industry will do that. Dell was created by Michael Dell at the age of 19 in 1984. Dell was established with $1,000 in starting money and was ran out of the freshman's dorm room at the University of Texas. In 1987, Dell became an international company when it opened its first locations in Europe. After only eight years of being open, Dell showed up for the first time on the Fortune 500 list of business. Since Dell started, they have become a worldwide leader in the computing industry, especially in their e-waste recycling programs and their developments in the use of computer technology in the medical field. Recently, Dell has begun to expand their customer base by developing various types of software that can be utilized by consumers (Dell.com, 2016).

Companies like Dell show that the American Dream is possible in today's business climate. Michael Dell has taken his vision and developed it into an international name in the industry. Over their twenty-two years of existence, they have led the way in many endeavors, many of which have been copied by competitors. Being able to develop a product or division that brings something new to the industry is always challenging, but businesses can still do it.

New Division and Products

Over the last decade, it has been obvious that getting consumers connected is the prime goal of many technological developments. Smartphones have become mainstream, many of them keeping users connected to almost every aspect of their lives. Other devices that keep consumers connected are home security systems, some vehicle computers, appliances, thermostats and even the lighting in your home. The biggest concern with these devices will always be security, but another problem is one device or application that can control all things easily, as well as allow the devices to communicate together.

The new division of Dell will be known as the SMART Division. It is their goal to take what Dell already does well, bring quality products to the masses at a cost effective price. The products they will be tasked with developing are products to help consumers create the perfect SMART home. Some of, but not all, the possible products they will be producing will include thermostats, video monitoring devices, Whole Home Audio, Smoke/Carbon Monoxide detectors, garage door openers, Smart door locks, connected appliances, and connected lighting. All of these devices must first have a hub created that makes operating them all more efficiently and allows them to be connected. The ability for customization is necessary, and that is something in which Dell already excels.

The products created by the SMART Division will allow for complete automation of the home. The best part of these products is they will either A) be developed by Dell or, B) in partnership with other businesses be able to communicate with the central hub that Dell will create. With Dell's recent integration of software development, the SMART products will all contain software designed by Dell that will allow the devices to communicate with one another. Customers will be able to customize their purchase(s) to their needs so that they will be able to buy what they need and can afford. Each product category will contain multiple options at various pricing levels so as to have something that is affordable for all. Having products to make a home connected and being able to have them all talk to each other, thereby making them accessible is the prime concentration of the SMART Division

Achieving a Competitive Advantage

For the SMART division to be successful, it is necessary to create a competitive edge over their competitors. Connected products are nothing new, and there are many products currently on the market that achieve a connected home. According to the website Tom's Guide, in an Article dated May 4th, 2016, several competitors already have a grip on the smart home gadgets categories. These competitors include Samsung, Ecobee, Nest, Amazon, Roost, Chamberlain, Kwikset, Leviton, and even Sleep Number (Prospero & Wolpin, 2016). These are just a few of the many companies that are already leaders in their product line. How does Dell create a competitive advantage over their competitors?

First, Dell has to play on their strongest current strategy, costs. They already strive to offer the best products for their customers at the lowest prices possible. Keeping up with this mission will be the first concept of the new division. A lot of the products that are currently on the market are priced to a point where they are considered a luxury that many people choose not to purchase. By being able to keep the costs low, it will allow for more consumers to be able to afford the "luxuries" and feel that getting their home connected is at an affordable price. It is the belief of the Dell SMART Division that everyone, given the opportunity to do so, would like to connect their home, so giving them affordable options is the priority.

Another way the Dell SMART Division can obtain a competitive advantage is by forming Alliances with existing companies. At first, it may be hard to develop new products such as thermostats and connected appliances, so creating strategic partnerships will be necessary. Developing the software and hardware capabilities is within Dells "wheel house" of knowledge, so finding partners that already make the needed products is required to achieve success. Some vital partners could include Amana or Maytag in regards to appliances and maybe even Honeywell with regards to thermostats. These three are household names that are already known for their superb products lines, and it is these partnerships that can help the Dell SMART division become successful. These businesses should be willing to partner with Dell to help create these new products because anything that will help consumers decide to purchase their product(s) over others creates a competitive advantage for them as well.

The last way that the Dell SMART Division can create a competitive edge is by creating a differentiation from their products versus their competitors. The best way they can do this is by having a product integration strategy. Many of their potential competitors don't have product integration; one has an appliance, one has a thermostat, one had the video monitoring equipment, none of which work together. By having one central application that can control all the possible devices, it will create an easier user interface for the products and make consumers gravitate towards the Dell products because it will work with the other products they already use in their home. Making all the devices work on Dell technology will create a demand for the goods that can be controlled via one application rather than several.

Vision and Business Model

The vision of the new division is to control the home even when you’re not. Every product that Dell SMART Division creates must move towards this goal, to ensure that consumers can have control over their home when they are not home. As tempting as it may be to integrate other products into the group, if it does not work in the home, it does not belong in the division. Examples could include vehicles, watches, and even personal computers; if the product does not have integration within your home, it will not be able to be controlled by the Dell Smart home software.

To help achieve this vision, Dell must market their products to the masses as they already do with their computers. Smart home technology is for everyone, not just the well to do. By making products cost effective and creating strategic partnerships they can create a market for the products that they will develop. The SMART division will utilize existing groups within Dell to contribute to building and designing their products as well as distribution. Currently, consumers can log on to Dell.com and customize their computer purchase to their needs and wants. Why not make this possible with the new Smart home products?

As well as utilizing the Dell divisions to help create the products, the new division can also use already in place supply chain features. Many of the suppliers for Dell can produce the new products necessary to increase the market presence of the new SMART home products. By utilizing already existing supply chain concepts, it will help keep the costs of the products down, which makes them available to more consumers.

Alignment with Existing Vision and Mission of Dell

The current mission of Dell is “Delivering technology solutions that enable people everywhere to grow and thrive (Dell, 2016). " This is a very simple yet effective mission that the SMART Division must adhere to. The products that the new division wants to create simply are meant to "enable people everywhere to grow and thrive." Being able to see what is in your refrigerator when you are at the grocery store, having a home security system, baby monitoring, and being able to control your thermostat while away from the home all contribute to making people grow and thrive. All of the products create a sense of control for consumers as well as safety features that will make all feel more comfortable with their lives.

The vision statement of Dell is simply, "powering the possible (Dell, 2016)," and that is what the SMART division is there to do. The concepts that they are looking at creating aren't new, but the idea of controlling all the features from one location is new. It is possible to monitor all your SMART home devices from one place, but it hasn't been done successfully yet. The Dell SMART division can "power the possible" by sticking to their vision statement of being able to control your home even when you're not home Anything is possible as long as someone wants it to be.

Vision and Mission and the Strategic Direction

The strategic direction of the SMART division is simple, provide products and software that will make consumers' homes SMART homes and connect their devices together. Creating the right partnerships and the right products will be vital to the success of the new division. The vision statement of the new division controls your home even when you're not, will help employees stay focused as to what their goal is and develop products that connect consumers to their homes. The software interface that the division will develop will allow for everything to connect to it, so if you are updating the software for new products it will be easy so that they are not limited in regards to what products they can create.

The new division is sticking with the mission of Dell, to deliver technology solutions that enable people everywhere to grow and thrive (Dell, 2016). This new division does exactly that, creates products that help better the lives of the consumers. By making sure that you provide customers with the best products at the lowest prices, you can ensure that people everywhere will be able to grow and have their homes connected at all times.

Guiding Principles and Values

Overall, the SMART division will ensure that the products they create are safe from outside threats. It is their responsibility to ensure the safety of their user's homes, which makes security their first focus. Ethically speaking if they do not put security first, then they will open themselves up to a lot of problems especially if their system or the home systems of their users compromised in any manner. With many of the major data breaches that have affected both private and public entities, the first and most expressed principle that they must adhere to is security.

Culturally speaking, we are in a new world, where everyone and everything are slowly becoming connected to something. So it is vital that the SMART division sticks with the trends of society and the cultures by not crossing any lines with their products. Take for example that in some cultures women are not to be seen without a covering on their heads by anyone but their husbands. So marketing video devices in cultures where this is the case may not go over so well.

It is the social responsibility of Dell and the SMART division to ensure that the creation and manufacturing of their products does not harm the ecosystems and the economies of those involved. Many of the products that the SMART division will develop can easily be done so in existing plants of Dell or the strategic partners they obtain in development stages. Thus, economy's will be bolstered by increased production, which leads to more income for workers in those areas. Most of the products will use existing components or variations of them so ecosystems should not be affected by the creation of these new devices. Plus, Dell is the world's leader in e-recycling (Dell.com, 2016). The new products may be able to be created using materials harvested during the recycling of old products.