Tuesday, January 6, 2009

New Dell Web site to share educational technology ideas.

Dell Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Michael Dell Michael Saul Dell (born February 23, 1965, in Houston, Texas) is the founder and CEO of Dell, Inc. Biography
Early life and education
The son of an orthodontist, Dell was born in to an upper-class Jewish family and attended Herod Elementary School in Houston,
said at a statewide education summit in Texas in February that today's Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
generation is poised to use technology in revolutionary ways, but we must work to ensure they can translate that technical proficiency
pro·fi·cien·cy
n. pl. pro·fi·cien·cies
The state or quality of being proficient; competence.

Noun 1. proficiency - the quality of having great facility and competence
from their personal lives to their schoolwork, and ultimately to their careers.

Mr. Dell discussed the importance of information and communication technology literacy, teamwork (product, software, tool) Teamwork - A SASD tool from Sterling Software, formerly CADRE Technologies, which supports the Shlaer/Mellor Object-Oriented method and the Yourdon-DeMarco, Hatley-Pirbhai, Constantine and Buhr notations. , and "figure it out" skills to compete in today's global economy. He says that this is "new territory" for many schools and that Dell doesn't have all the answers but is "an important part of figuring it out."

During his remarks, Mr. Dell encouraged educators, parents and students to register on IdeaStorm, their new Web site devoted to multiple expanding technology areas, to share ideas about how technology can be used to improve today's education system. IdeaStorm lets users interact with each other as well as with Dell product and services development teams.

The most popular education-related topics discussed on the Web site will be considered in the creation of future Dell products and services.

Dell Technology to Enhance Efficiency Of CDC's New Emergency Operations Center

The Centers for Disease Control and Prevention (CDC) will install 229 DellTM computers in its new Marcus Emergency Operations Center (EOC), scheduled to open in the fall of 2005. The new facility, which will become CDC's primary EOC, is designed to help the agency track and respond to disease outbreaks and other emergencies even more efficiently, building on best practices learned over the past year.

The CDC Foundation said it will purchase the Dell systems through a gift from the Marcus Foundation, which committed $3.9 million in 2003 to enable the CDC Foundation to equip the EOC with the best technologies available. Through significant discounts, Dell will help the CDC Foundation save about $180,000 on the equipment.

The agreement was announced here today in conjunction with a visit to the CDC by Dell Chairman Michael Dell. He met with CDC director Dr. Julie Gerberding, CDC chief information officer James Seligman, and CDC Foundation president and CEO Charles Stokes to discuss the role of technology in responding to public health issues.

"The EOC has been an invaluable resource to CDC staff, committed to protecting the nation from emerging infections and responding to natural disasters like the hurricanes that recently hit the southern United States," Dr. Gerberding said. "Standards-based computer systems have been an integral part of our response to these threats, and our new EOC with state-of-the-art technology should take us to new heights in our ability to respond quickly."

The new EOC will manage all CDC emergency operations and enable immediate communication between CDC, the Department of Health and Human Services, as well as federal intelligence and emergency response officials, the Department of Homeland Security and state and local public health officials.

"The ability of information technology to defy geography is one of its greatest attributes," Mr. Dell said. "The CDC saves lives by sharing information across great distances and we're proud of our role in helping make that possible."

The current Marcus EOC was activated after the Columbia Space Shuttle disaster to communicate with state and local public health officials about possible health hazards from shuttle debris. CDC also activated the EOC within hours of learning about the global spread of severe acute respiratory syndrome (SARS).

About CDC

CDC is the nation's health protection agency whose work encompasses two goals: 1) People in all communities will be protected from infectious, occupational, environmental, and terrorist threats, and 2) People, especially those at higher risk due to health disparities, will achieve their optimal lifespan with the best possible quality of health in every stage of life. For more information, visit www.cdc.gov.

About the CDC Foundation

The CDC Foundation is an independent nonprofit enterprise that forges effective partnerships between CDC and others to fight threats to health and safety.

About Dell

Dell Inc. (NASDAQ: DELL) is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Company revenue for the past four quarters totaled $45.4 billion. Dell, through its direct business model, designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained www.dell.com.

DELL: Where's The Competitive Advantage?

Time was, Dell (DELL) was the king of computer sales. Dell marched past everyone. After Dell passed her firm, Carly Fiorona tried to retake the top-vendor crown by having her company Hewlett Packard buy Compaq (the reason HP's stock symbol is now HPQ). This worked -- for a bit. But the combined company was itself promptly surpassed by Dell in U.S. market share. Dell looks unstoppable, no?

Based on their relative growth rates, it seems Dell is likely to achieve the worldwide title again.


What has Dell got going for it?

Founded by Michael Dell while he was in college, the company offered what others didn't: it offered what people wanted. Instead of offering a couple of fixed configurations, Dell offered to custom-prepare the exact configuration buyers wanted. Since you can't have an inventory of custom machines, retail stores were incompatible with his sales model, so Dell shipped directly to customers, cutting out the middle man.

Online sales were a big boost for Dell: it allowed Dell to make sales to people who hadn't found a Dell catalog laying around. It put a Dell store on every connected desktop. Dell was lauded as a supply-chain wizard, and its lean, low-inventory operation was the envy of PC vendors. Tying up less capital in inventory amplified its return on equity. Fast delivery and custom assembly mated with highly-competitive prices to create a virtuous cycle of sales and fulfillment. Dell snared numerous institutional contracts to supply whole enterprises with computer hardware, locking in ongoing order streams from businesses, schools, and students.

What's not to like?

First: Dell has no moat.

Everything Dell does correctly can be copied by careful operators. Custom computer preparation (e.g., RAM amount, hard drive number and capacity, CPU speed, and screen size) is now so ubiquitous that the absence of options is now the exception. Supply-chain management may not be easy, but the careful operator can duplicate Dell's feat: Apple now tops Dell in supply chain management. Like Disney, well-known in its market but not unassailable, Dell has no readily-identifiable, durable, competitive advantage over industry peers (even if its prospects for survival appear solid).

But Dell has another problem.

Dell is also a commodity vendor. When selling commodities (in the absence of market manipulation), sellers bid each other down in the fight for sales, and to choke off competitors' margins. (The alternative is to offer a differentiated product that cannot be considered a commodity, because the differentiated product lacks the requisite feature of commodities: an available supply of true substitutes.) Unlike HP, which has substantial intellectual property in its high-margin software and consulting businesses, and can offer enterprises a differentiated deliverable, Dell is just a box vendor.

The math on commodity vendors is not good. Without a differentiating feature like customization (which, being now standard, is no longer differentiating) or single-source software (which HP can offer to enterprises and Apple can offer to consumers), one expects Dell to compete chiefly on price against rivals like Acer and Lenovo for the world's commodity PC business. Lenovo, which bought IBM's PC business when IBM realized commodities weren't its bag, is growing globally -- and so is Acer. Dell has serious competition, even as it claws back the top-PC-vendor crown from HP. Fighting on price has an unsurprising result: reduced profit margins. Anyone surprised by this hasn't thought about how the business works. In the PC business, margins can get so thin the size of the profit can depend on the fees manufacturers glean from software vendors to install teaser applications and other garbage-ware on their customers' computers before they are shipped -- a practice that is so irksome that some buyers now actually pay resellers to remove the advertisement-ware, which in turn threatens the manufacturers' ability to make profit on the machines at all.

How safe are profits in a market like that?

Michael Dell, who once famously said that if he ran Apple he'd close shop and give the money back to the shareholders, has had to watch Apple's market capitalization pass and dwarf that of his own company. Being one of only two companies to increase customer satisfaction may place Dell ahead of its dreadful showing last year, but leaves the cost-cutting commodity vendor in poor position relative to Apple. Yet, it's much worse even than that: Michael Dell has had to watch Apple beat Dell in Dell's own area of strength -- supply chain management. Is there nothing Dell can do that others can't learn to do better?

Acer, which passed Apple in U.S. sales share by purchasing Gateway (which Apple had just passed), was itself passed by Apple, now #3 behind HP and Dell. Oddly reminiscent of Dell's rise and return, no? Will Apple become the next commodity vendor?

To avoid the commodity competition trap, Apple must maintain the distinctiveness of its products and work to increase the value of its platform. Apple has some advantage here, though. The fact that Apple need not pay an operating system licensing fee to an outside vendor for each hardware unit sold means that Apple's marginal costs will be better than other commodity vendors', ensuring that in a cutthroat commodity fight Apple has an edge in lowering unit costs. In short, if Apple and a competitor were to sell the same hardware at the same price, Apple's profit could still be higher on each unit -- because Apple owns and need not pay for the operating system software every vendor must install. Still, falling margins isn't fun for anyone. Apple had best fight to maintain and build distinctiveness, to better resist being treated as a commodity vendor in the PC space.

For Dell, it's too late. Unable to make a distinctive or profitable product in the music space, Dell stands as a vendor of commodity PCs and their commodity peripherals (while hoping customers don't need printer supplies in an emergency, and can wait for Dell to ship them). Dell's profitability will depend on its ability to build machines more cheaply than competitors like Lenovo and Acer while offering them at the prices low enough to compete against rivals fighting for share.

My vote on Dell shares: don't own.

Folks interested in profit in the computer hardware industry might do well to look not at sales share but profit. Since the fight for share can run contrary to the development of profit, mere share should be ignored until one is satisfied with the profitability of the underlying business. (In a business that's satisfactorily profitable, of course, share can be a useful indicator of competitiveness; but without profitability, who cares about share?) HP and Apple both offer hardware to compete with Dell, but each offers distinctiveness through software and services that enhance each company's profitability. (HP's software and service offerings tend to be oriented toward enterprise customers, to whom HP also sells consulting services; Apple's software and services seem aimed at consumers and specific market niches in which Apple can offer all-Apple technology solutions. In this sense, the companies are not exactly head-to-head competitors -- Apple doesn't make printers or offer enterprise consulting -- despite both also being PC hardware vendors.) HP and Apple certainly sell computers, and there is overlap with the commodity business for the simple reason that the companies' computers have substitution options from firms like Dell, Acer, and Lenovo. However, in the market segments where the companies' distinctive features are valuable, HP and Apple will enjoy superior profits on the similar sales, leading to superior overall profitability.

With Dell's margins compressed while the company stands beset by numerous competitors in a commodity business, one would like to see a better angle into the computer business.

Dell to Phase Out Brominated Flame Retardants and PVC by 2009


Via its blog, Dell responded to the recent studies about the environmental performance of the electronics industry by pointing to its chemical use policy (pdf). Interesting bits include: "Dell believes that if reasonable scientific grounds indicate a substance (or group of substances) could pose significant environmental or human health risks, even if the full extent of harm has not yet been definitively established, precautionary measures should be taken to avoid use of the substance(s) in products unless there is convincing evidence that the risks are small and are outweighed by the benefits." In theory, that sounds very good. What about in practice?

Dell is committed to eliminate in our new products all remaining uses of brominated flame retardants (BFRs) and polyvinyl chloride (PVC) by 2009, as acceptable alternatives are identified that will not compromise product performance and will lower product health and environmental impacts.

By email we asked a Dell representative what the company's policy was with regards to the different regulations around the world (Europe, Asia, North-America). We're curious to know if the company plans to make different products to meet each local regulations or if they will meet the toughest one (or go even farther) and sell the same products all around the world.

::Dell's Chemical Policy, ::Dell's Chemical Use Policy

See also: ::Dell Introduces Two New Eco-Friendly Desktops, ::Dell To Produce Low-Lead PC, ::Computer Recycling World Tour by Dell, ::Green Electronics Guide From Greenpeace, ::“Rotten to the Core”: Greenpeace Finds Laptops Still Ripe with Toxins

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