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New Product Development at Dell Computer Corporation

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by

Erica Luna

on 3 December 2013

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Transcript of New Product Development at Dell Computer Corporation

New Product Development
at Dell Computer Corporation

Introduction
Problems Currently
Facing Dell
14 consecutive quarters of rising profit ends w/$10 million loss
Stocks plunge $7 a share to $25
17,000 units recalled due to technical problems
Current Product Development Process
Recommendations
New Product Development Process
w/Core Teams
Informal
Autonomous Teams
Unconsistent & Unpredictable
Unassessed Risks w/Investment
Too much execution variability
Missing a shared vision
Quality issues addressed too late
6. Acceptance Phase
Collecting Feedback
Acceptance Report
Results vs. Planned Objectives
Lessons Learned
1. Profile Phase
Defining the Product
Marketing
Features
3. Implementation
Phase
Built & Tested Prototypes
Instruction Manuals & Service Plans
Orders for Tooling to Suppliers
4. Qualification
Phase
Prototypes sent out to Customers
Feedback on Potential Improvements
Training of Salesforce
5. Launch Phase
Entire Customer Buying Experience
Increased Production
First Shipments Out
2. Planning Phase
Detailed Business Case by Team
Under Scrutinization
Examined Financial Impact on Dell
A presentation by: Darin McGinnis, Erica Luna, & Kassah Kantiok
Alternative Recommendation:
Abandoning LiOn will have adverse effects
Safety
Only 60% proven compatibility
Not having a physical model impacts decision
In conclusion:
Dell has growth opportunities within its product development
Stick with proven product (NiHi)
3 options is best to make decisions
Longer lasting batteries is ideal for success at Dell
Suggested Recommendation:
Satisfying customer base
NiHi battery readily available and proven
Direct sales model
Able to maintain and support Customer relationship
New product development approach
Advantages of sticking with NiHi:
Suggested Recommendation:
Short battery life on NiHi
Current battery not suitable for travel
Potential to impact reputation
Disadvantages of sticking with NiHi:
Alternative Recommendation:
New product development approach
Testing on LiOn
Take a new approach & risk with LiOn battery

Advantages in launching LiOn:
Disadvantages in launching LiOn:
& Conclusion
About Dell
Computer Corporation....
• 1983 - Birth of Dell Computer Corp.
$180,000 Sales in 1st month
• 1985 - $70 million in sales

The Portable Computer Competitors
Microcomputer revolution started in 1970s
Apple 1st to successfully commercialize
IBM pumped $1.5 billion into R&D (double the market size)
IBM enjoyed 42% of market by 1983

& Competition
Full transcript