Business Model Innovation at Dell

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Dell preferred to recruit people with an inquisitive nature and a willingness to learn. The company looked for people who had a healthy blend of experience and intellect; people who were not afraid of making mistakes while attempting to innovate and who had the capability to look at problems from a different angle and come up with solutions...

Michael Dell believed in an entrepreneurial style of management. He encouraged employees to take risks even if they made mistakes. Dell recalled his personal experience : "There was a relationship between screwing up and learning. The more mistakes I made, the faster I learned."...

In 2003, even as it faced a PC industry in slump, Dell believed there were major opportunities in new product categories such as servers and storages and in overseas markets. In mid-2001, Dell had an estimated 22% share in 45% of the global market and only 5% in the remaining 55%. Meanwhile, the company continued to streamline its already well oiled supply chain...

Exhibit: I: Sales Break-up by Product (2002)

Exhibit: II: Sales Break-up by Market Segment (2002)

Exhibit: III: An Illustration of DELL's Build-to-order model

Exhibit: IV: Values

Exhibit: V: Dell's Ambitious Growth Plan

Exhibit: VI: Beyond the PC

Exhibit: VII: The Dell culture: Key tenets

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