Slashdot Mirror


Michael Dell Returns to CEO Role at Dell

head_dunce writes "It looks like Michael Dell is jumping back into the big chair at Dell because his company is slipping under the direction of Kevin Rollins. I wonder if they should be looking outside the company for new ideas, or if going back to basics is what needs to be done?"

18 of 165 comments (clear)

  1. Quid Pro Quo? by Whiney+Mac+Fanboy · · Score: 4, Funny

    On hearing Michael was returning to Dell, a reporter asked Steve Jobs what he would do if given the opportunity to run Dell.

    His reply: "What would I do? I'd shut it down and give the money back to the shareholders,"

    Joking aside, how things have turned around hey? Although to be fair to Dell, prior to getting his CEO role back, Jobs also said about Apple "If I were running Apple, I would milk the Macintosh for all it's worth -- and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago.")

    --
    There are shills on slashdot. Apparently, I'm one of them.
    1. Re:Quid Pro Quo? by djupedal · · Score: 4, Insightful

      "Joking aside, how things have turned around hey? Although to be fair to Dell..."

      Want to be fair? Let's take another look at the Dell business model, shall we?

      The industry works according to many 'rules', one of which is the 80/20 citation, saying between two parties, for every dollar transacted at the end, one party will get 80% and the other 20%.

      As an example, let's say HP sells a monitor, that is actually manufactured by Samsung. HP knows it will garner approx. 80% of every dollar transacted on the final sale. One monitor sold, at a retail price of USD100.00, which Samsung charged HP $50 for, means a profit of USD$50.00. HP knows that after all expenses are paid, they will net 80%, or USD $40.00 out of that USD$50.00. Samsung knows that after all expenses are paid on their end, they will net USD$10.00 (20% out of that USD$50.00 profit on the back).

      As an investor, you typically assume that if you buy HP stock, they will work to maintain that 80% - same with Samsung being expected to negotiate their 20%.

      If you learned that HP was settling for 70% and letting Samsung get away with 30%, you might be less inclined to invest in HP and start throwing money into Samsung instead, right? And if that kept up, it would just be a matter of time before HP went out of business, as it rightly should, under such circumstances.

      Dell, on the other hand, ignores the gentleman's agreed 80/20 and pushes for as much more as they can get...90/10, anyone? 95/5? 100/0...? Been there, seen that.

      Substitute Dell for HP in the above, and then consider...what happens? Dell is a GREAT company and investors love the ROI. Samsung, on the other hand, needs to tread lightly - perhaps it can afford to participate at 90/10 for a short time, hoping that Dell will eventually back off and both sides can move towards a profit balance, but if Samsung continues and doesn't pay attention, it soon starts to collapse. Can't pay bills or negotiate decent contracts with suppliers...investors start walking away. Samsung dies because Dell hollowed them out.

      This is the Dell model. Hollow out your suppliers and when one dies, move to another. Scorched earth 21st century style. Nice for Dell, right? Not in the long run, because the day will come when there are either no more suppliers to kill, or no supplier will do business with them. Both of those have happened, and that is where we are today.

      Dell is dead, period, as we know it. Maybe Micheal should consider selling sugared water :) I'd rather he stayed away from business altogether.

    2. Re:Quid Pro Quo? by Whiney+Mac+Fanboy · · Score: 4, Interesting

      Let me preface my reply by saying I've never bought Dell and don't like Dells (but nor particularly dislike them).

      But the business model you describe of butchering your suppliers sounds like wal-mart. And they're not going anywhere.

      Dell's problem is not their business model, but others copying their business model. (apple?)

      --
      There are shills on slashdot. Apparently, I'm one of them.
    3. Re:Quid Pro Quo? by TooMuchToDo · · Score: 4, Informative
      Wal-mart plays hardball with suppliers (I've worked with them personally), but it understands it's place, just as the supplier knows theirs.

      Dell outright butchers suppliers. There is indeed a difference. I suggest looking up both "symbiotic" and "parasitic" on Wikipedia.

    4. Re:Quid Pro Quo? by Heembo · · Score: 4, Informative

      Yea, there is a better way. Take a look at Cosco. They demand that you as a supplier play by a few bulk rules, but otherwise I was SHOCKED to see them pay a very fair price for goods, not to mention they take care of their employees reasonably well; much better than the likes of WalMart. Research Cosco's and others business practices, there is a better way.

      --
      Horns are really just a broken halo.
  2. obligatory by macadamia_harold · · Score: 4, Funny

    It looks like Michael Dell is jumping back into the big chair at Dell because his company is slipping under the direction of Kevin Rollins.

    Dude, Dell's gettin' a Dell.

  3. well by CalSolt · · Score: 4, Funny

    It worked for Apple, didn't it...?

  4. Here's some suggestions for Mike by Centurix · · Score: 5, Funny

    dPod
    dPhone
    dBook

    etc...

    --
    Task Mangler
    1. Re:Here's some suggestions for Mike by Lars+T. · · Score: 5, Funny

      dLusions - of granDell

      --

      Lars T.

      To the guy who modded me down from perfect to terrible Karma - Apple haters still suck

  5. Improve Customer Support by freedom_india · · Score: 5, Insightful

    The first priority of Michael Dell should be to improve Dell's lousy customer service and in-source it to US again.
    If you are selling PC's by mail-orders (sort of), you better have more than good customer service that customers can depend on.
    Even a premium corporate customer care at Dell su8ks big time.
    Apple's phenomenal customer support is the main reason iPod and iMac's still rock.
    If i call Apple and am under warranty, the dude am talking to knows the business and take me step-by-step to solve the problem. (am not even comparing store-based support, since Dell doesn't have many stores to sell from).

    If Michael Dell can bring customer support back to what it was long back, then am sure Dell will rock.
    Corporates love Dell because of its uniform ugly black boxen.

    My bank switched to HP after Dell's customer support was unresponsive for the last time....
    And also ditch the Dell DJ Music Player. Seriously.

    To plagarise Jobs: "Move on from MP3 players. The battle was won long back by Apple.".

    Get back to core business of assembling high-quality PCs and phenomenal customer service.

    Is that difficult Mr.Dell?

    --
    "Doing what i can, with what i have." ~ Burt Gummer
    1. Re:Improve Customer Support by Speed+Pour · · Score: 4, Interesting

      The first priority of Michael Dell should be to improve Dell's lousy customer service and in-source it to US again. Yeah, he's one of the earlier adopters of outsourcing customer support. I hate to say it, but I seriously doubt he's going to reverse that particular decision.

      I worked for Dell briefly, an experience I'll be happy not to repeat. The entire company is very shareholder-centric. I really doubt we're going to see a terribly different Dell from what we saw about 5 years ago. They are still going to build dirt-cheap machines for the 'lowest common denominator' people and they are still going to operate with the previously mentioned 'scorched earth' policy towards their hardware suppliers.

      I'm pretty certain that Michael Dell is being brought back to keep the stockholders happy and to attempt to restore the image. Few people will remember that he made the company the way it is, and I feel that Kevin Rollins is taking the scapegoat role.

      Long gone are the days when Dell computers were the reliable ones that you spent a couple extra hundred on because they really were that good. This is the reason Dell bought Alienware, to try to regain the image of quality machines.

      Also, IMHO, I have to agree with another poster as well, most Dell-branded products were pretty horrible. Axim line was alright and the LCD's were pretty good, everything else (including the computers) was pretty poor. Again, just my feelings on 'em...
      --
      - Nobody would know what RTFA meant if it didn't need to be said all the time
    2. Re:Improve Customer Support by ulysees · · Score: 4, Informative

      Am I the only one who finds Dell support better than other vendors ?

      I've actually migrated large accounts from HP, IBM & Fujitsu to Dell because of the lack of support from those vendors.
      I know it is different for individual users but for large businesses all of my support is provided by native English speakers in the same country as me. On rare occasions you will get an engineer that is 'lacking' but most of the time it's someone who can understand what you are saying and will either identify the problem or book the service call if you've already done the technical troubleshooting.

      Am I the only customer with this experience ???

      --
      The nice thing about standards is that there are so many of them to choose from. -- Andrew S. Tanenbaum
  6. Reboot ? by Rastignac · · Score: 5, Funny

    Now, Michael Dell is the "Dell main director" guy. Kevin Rollins was just a temporary alternative. So, Kevin Rollins was the "Dell alt control" guy. Alt+control+del=reboot. So he is gone now. ;)

    --
    -- Rastignac was here.
  7. Re:One change in direction that wouldn't go amiss by the_womble · · Score: 4, Informative

    1) Dells gets paid for placing the bloatware: it keeps the price down and boosts their margins.
    2) Lots of people ARE gibbering idiots.
    3) Many people have low expectations of PCs
    4) They are quite likely to blame software problems on MS anyway.
    5) Corporate buyers will do a clean re-install anyway.
    6) Home users will probably have the machine just as bloated with malware in a week anyway. The is the reason for 3 above.

  8. The register analysis by SnowWolf2003 · · Score: 4, Interesting

    The register has an interesting analysis on what this actually means. http://www.theregister.co.uk/2007/02/01/dell_brain _one/

    In summary, nothing, as Michael Dell has been actively involved in all decisions anyway, and is at least equally responsible for Dell's downfall.

  9. Wish Dell or someone would go where HP used to be by kcbrown · · Score: 5, Insightful

    Just once I wish some large manufacturer somewhere would adopt the stance that HP used to have, back when Hewlett and Packard were running the show. Back before Queen Bitch of the Universe took over:

    Uncompromising quality.

    Damn near everything they did was done right, and when it wasn't, they went to great lengths to fix it.

    Quality costs money, but you know what? I buy for the long term. I'd rather pay 2-3x up front for something that'll last a lifetime. I'll do that even for equipment that might be obsolete in 5 years because at least I'll know that it simply won't fail in those 5 years because it's built right.

    Computers are harder to do that way, of course, because of the rapid pace of technological advancement, but a good design could make replacement of those bits easy while allowing you to retain the rest. Things like keyboards, mice, cases, power supplies, etc. can be built solid and built to last a very long time because the technology behind them doesn't really change much. As an example, I'm sure many of us here still make use of old IBM buckling-spring keyboards, the kind that are 15+ years old and work as well now as they did when they were new. That's the kind of quality I'm talking about.

    And yet, you basically can't find anyone who builds things that well anymore. It's not "profitable" or some such crap. But I say that's bullshit. HP managed to get away with it until its founders let go of the reins. They had their up times and down times during the reign of their founders, but their customers were loyal because HP could be relied upon to do it right.

    Maybe I'm just looking at things through rose colored glasses, but I still have my HP 41CX and 11C calculators as proof that the equipment they built really was built to last. But who builds things that way these days? Nobody I know of. Not even HP.

    That's something that I think needs to change. I just wish someone would step up to the plate...

    --
    Use 'slashdot stuff' in the subject line in any email you send me if you want to get past the spam filter.
  10. Distorted Visions by Jekler · · Score: 4, Interesting

    I think one of the reasons Dell has been slipping (and I believe it has a lot to do with many corporate failures) is that the executives forget what made the company successful in the first place. The company has become so wrapped up in acquisitions, promotions, and partnerships that they forgot all about building computers. They no longer ask themselves "Which components would make this PC powerful and affordable?" Instead they ask "Which components can we build a computer from, using only our partners' components, that will not compete with any of our other divisions, and is consistent with this month's slogan?" It's a lot like Microsoft. At a certain point they got so wrapped up in their ISP (MSN), web sites, content portals, partnerships, search engines, the whole idea of building an actual Operating System was completely beyond them. For all the jokes people made about Windows back with Win 3.1 and Windows 95, all of it would have been forgotten if they had kept their eye on the prize. Instead, they get distracted by every trend, buzzword, and internet start-up that happens by. Dell has the money, reputation, and manpower to build great computers. Unfortunately they lack the all-consuming vision that makes a company succeed to start with.

  11. Things DELL should change by jonwil · · Score: 4, Insightful

    1.Don't assume all customers are idiots, especially when they call for support.

    2.Hire technical support people that know something about computers. And let them have the power to do real technical support instead of insisting that they follow the checklists.

    3.Don't use proprietary hardware. More specifically, all components inside the machines should be standard as much as possible (for example, use standard PSUs with standard pinouts and not proprietary ones with custom DELL pinouts). Would make it easier for DELL to just switch suppliers if they e.g. decided that brand x power supplies sucked and brand y were better. This gives DELL negotiation power over suppliers (whereas if they had a custom PSU, the company that makes them has more leverage since the costs to have another company continue to make the custom PSU are expensive relatively speaking)

    4.This also extends to software. Do not use any proprietary drivers. All hardware should use the same drivers as you would use if you bought the hardware in a box from a retail store. All drivers should have separate installers included directly with the machine and/or be available to download from the web site such that it is possible to install a normal non DELL non OEM copy of Windows on the DELL machine and not have hardware that wont work right because the only way to get the drivers is to install the special DELL version of windows.

    5.Tone down the crap that is pre-installed. All spyware should be removed completely. All demos and time limited software should have uninstall options and also any limitations in the software (such as anti-virus programs with shorter subscription lengths than retail boxed copies have) should be clearly documented.