Critical Issues in Managing Information System in Organization Essay Example

Fundinguniverse.com (n.d.) also reports that 67 percent of Dell's revenue comes from the United States, while 22 percent comes from Europe, the Middle East, and Africa. The remaining 11 percent comes from the Asia Pacific region.

Dell directly markets its products to consumers, businesses of all sizes, government agencies, healthcare institutions as well as educational institutions through sales representatives or telephone-based sales. They also sell their products online via their website.

Fundinguniverse.com (n.d.) highlights several significant milestones in Dell Inc.'s history. Michael Dell established the company in 1984 and it went public in 1988 with 3.5 million shares of company stock. In 1991 they introduced their first notebook PC followed by establishing subsidiaries in Australia and Japan two years later. Additionally,in 1996 they started selling over the Internet and launched a line of workstations in 1997.

By 2001,Dell had achieved dominance in the worldwide PC market,resulting them rebranding as Dell Inc.in2003to encompass their wider business pursuits.Following this achievement,Micheal Dell announced his plan to step down as CEO while still remaining chairmaninthe year2004

Success Factors

Dell's success can be attributed to their pricing flexibility, which allows them to provide high-technology products to customers while maintaining sustainable profits.

Dell's direct business model allows them to comprehend their customers extensively, leading to the offering of personalized products. The ability to customize provides Dell with a competitive advantage by meeting various user needs. Imagine owning a product that is specifically designed for you, available at an affordable price, and produced by a well-known brand. This ensures triumph.

SWOT analysis of DELL

Dell, being one of the world's most excellent and renowned trademark brands, is often

viewed positively.

Dell's overall strength is highlighted by its SWOT analysis, which also reveals weaknesses. Dell is a well-known brand and a leading global PC manufacturer that initially focused on PCs. Later, the company introduced a direct-to-customer business model, offering on-site product service with advanced technology. This approach has significantly reduced operating costs compared to profits by eliminating retailers and selling directly to customers. Dell prioritizes building direct relationships with customers, including corporate and institutional clients, resulting in exceptional customer service both before and after sales. To ensure reliability, service, and support, Dell customizes each system to meet customer specifications. The company efficiently manages procurement, manufacturing, and distribution processes to provide competitive prices while staying up-to-date with the latest technology compared to companies that use indirect distribution channels. While Dell does not manufacture its own components, it maintains control over its supply chain through sourcing from suppliers and assembling computers using relatively inexpensive labor.

Dell is improving and expanding the competitive advantage of its direct model by utilizing the internet's efficiencies throughout its entire business. To keep inventory costs low, Dell rapidly turns over inventory every six days on average. However, Dell's weakness lies in having a wide range of products and components sourced from different countries. Being known as a maker rather than a creator, Dell lacks the ability to easily switch suppliers when creating customized products.

Dell lacks retailer relationships, solid dealers, and proprietary technology. Their target market primarily consists of corporate and government institutional customers, neglecting the college student segment. This decision adversely affects their ability to form relationships with educational institutions, resulting in a mere 5% of total

sales revenue. Additionally, Dell's products are not designed for home users, further exacerbating the challenges posed by their direct method and customization approach, which does not utilize distribution channels.

Dell creates custom-built products based on customer specifications, which can result in longer production times. This leads some customers to choose alternative brands. However, Dell also capitalizes on opportunities by introducing a variety of new products and pursuing diversification strategies. Furthermore, customers today have a greater understanding of computers, recognizing their importance as a necessity. As their knowledge expands, these customers may seek out Dell's custom-built options for their second computer purchases, as their needs for researching or utilizing additional features grow.

Dell maximizes its potential by using internet connectivity to create a personal website for ordering and accessing information. Since Dell operates exclusively online, they do not need physical retail stores to display their inventory. Online stores make up for the absence of physical stores, offering customers a convenient alternative to shop online instead of going to a physical store. However, Dell also encounters possible risks in the global PC market due to new competitors that may present challenges.

The reality of becoming out-of-date is a significant concern in the computer industry. The narrowing price difference among brands is making it less of an issue for customers. However, this can lead to confusion among customers, potentially causing them to choose alternative brands instead of waiting for Dell's customized computers. While Dell's Direct Model is appealing to customers due to cost savings, other companies are also able to offer computers at competitive prices. This poses a potential threat to Dell's customer

base that values affordability.

In order to maintain its significant market share, Dell needs to make more effort in differentiating itself from competitors. If Dell's growth rate decreases, it could intensify competition and impact the expansion of the computer industry. Currently, Dell holds the largest market share.

Executive Summary

The CIO section discusses the duties and roles of a CIO in managing their business, while the third section examines IT project management specifically within Dell.

In the section titled Legal Issues, all the legal concerns regarding Information Systems are discussed. This section provides facts and case studies to improve understanding of the company's legal aspects. The facts are examined and recommendations are provided.

Roles of CIO in IT business world

The CIO, also known as the Chief Information Officer, is the person in charge of information technology and computer systems that assist in achieving organizational objectives.

The CIO's role in organizations has changed to become a solution provider, prioritizing strategic goals and the importance of information technology and systems. Usually, the CIO delegates technological decision-making to different individuals such as the CFO, IT-centered organizations, the CEO, or employees with expertise in specific areas. The main responsibility of the CIO is to present the organization's IT needs for achieving its objectives and then implement the plan within a budget.

The primary strategies that a CIO should focus on include assessing and improving existing business processes, discovering and utilizing new tools, restructuring the organization's infrastructure and network access, and optimizing the utilization of knowledge resources. Additionally, it is essential for the CIO to stay informed about emerging

technologies to enhance the organization's technological capabilities with current advancements.

The CIO's responsibility is to introduce technology that improves user-friendliness and integrates systems management in organizations. This includes incorporating the Internet and World Wide Web into long-term strategies and immediate business plans. Additionally, as trusted advisors, CIOs also supervise information flow processes and practices within organizations.

CIO Responsibilities

The CIO has multiple responsibilities in the IT field, which are associated with strategic planning. These include accomplishing performance goals, assessing human resource needs, and providing progress updates to the Division head. Additionally, the CIO formulates strategies and plans regarding recruitment and training.

The CIOs have the huge responsibility of promoting useful and efficient design and operation of all major IRM processes for the agency. This includes improving work processes and providing recommendation and assistance to senior managers on IT acquisition and management. Additionally, they must develop, maintain, and facilitate the implementation of a sound and integrated IT architecture. This involves creating an integrated framework for both evolving and maintaining existing IT systems, as well as acquiring new IT systems to achieve the agency's strategic goals and IRM goals.

The federal CIO council has redefined the ten competency areas for the CIO. These areas include policies, strategic planning, performance and result-based management, process improvement, capital planning and investments, leadership management, technology assessment, security, architecture, and acquisition. The scope of the CIO's competencies is broader than anticipated by most individuals, and there is no shame in acknowledging this.

It is nearly impossible for personnel to possess all the skills necessary to stay up to date with the latest technology and handle

an agency's IT infrastructure, as well as provide guidance on decision making and planning. The diagram below illustrates the universally recognized areas in the form of the 'CIO Wheel:' Figure 1: Federal CIO wheel

Dell’s CIO

Dell, the computer and tech giant, has appointed Adriana Karaboutis as their new Global CIO. Previously serving as Dell's vice president of IT, Karaboutis provided support to various departments including product groups, manufacturing, procurement, and supply chain operations.

Ms. Adriana Karaboutis holds a Bachelor of Science degree in Computer Science and a Master of Science degree in Electronics and Computer Control Systems from Wayne State University. She is also a member of the Manufacturing Executive Leadership Board and previously served as the president of the Michigan Council of Women in Technology.

As the Chief Information Officer (CIO), Ms. Karaboutis is responsible for leading Dell's IT organization evolution, ensuring effective and innovative global information management. Her objective is to develop new technological advancements that benefit both the company and its customers.

Brian Gladden, Dell's Chief Financial Officer, stated that Adriana Karaboutis has successfully transformed Dell's manufacturing operations, streamlined the product offering system, and simplified the supply chain. These changes have facilitated a quick and efficient transition for newly acquired companies under her management. Gladden also emphasized Karaboutis' significant contributions in advancing Dell's strategy to become a comprehensive enterprise solutions and services provider. Gladden expressed confidence in her critical role as Chief Information Officer (CIO) in continuing to maximize IT productivity for Dell and its customers through powerful and flexible solutions.

BYOD- Dell CIO Adriana Karaboutis

Adriana Karaboutis, Dell's Global CIO, clarifies that BYOD

is aimed at creating a highly mobile and resourceful information environment for Dell's 103,300 employees. To shift from being solely a hardware vendor to becoming a provider of comprehensive solutions for businesses of all sizes, Dell is concentrating on transforming its foundation from hardware orders to the management of software and service offerings. As the company embarks on this endeavor, the CIO is guiding the IT domain.

The working environment has been adjusted to accommodate mobile work, allowing employees to utilize their own personal mobility devices from home. Our main focus has been on implementing a bring-your-own-device (BYOD) policy that encourages employee mobility. This includes identifying the preferred devices of our employees and ensuring we can provide them with sufficient security measures to safeguard company data, while also minimizing expenses. We have transitioned from a facilities-centered approach to one that facilitates remote work by implementing a connected workplace.

Adriana Karaboutis stated that our employees desire mobility devices, consumerization, and an equally satisfying experience in the work environment as they have at home.

CIO of other companies

According to Commonwealth Bank CIO Michael Harte, innovation remains a top business priority this year. Harte believes that true innovation lies not in the technology itself, but in the establishment of a culture where individuals regularly collaborate and ideas are constantly shared among team members and the community or customers.

The Commonwealth Bank has placed emphasis on its real-time banking platform for its primary advancements. These advancements encompass not only the product or technology, but also the cultivation of an innovative culture. In the previous year, the bank conducted an internal innovation festival

consisting of seminars and workshops aimed at understanding customer needs and creating new products and services. Additionally, they launched the Unleashing Innovation campaign to encourage staff and university students to contribute ideas on leveraging technology for customer benefits. ING Direct's CIO, Andrew Henderson, revealed that cloud implementation is underway through a data center transformation project and deployment of their private cloud named "Bank in a Box." As part of this initiative, they have replicated their bank over 900 times within their private cloud environment.

"Bank in a Box" decreased overflow expenses by 30% and enhanced flexibility and capability. The private cloud allows users to easily create virtual versions of channels, middleware, core banking systems, customer and bank data, application support, training, and innovation lab practices. In the past, it would require three months and a team of 10 engineers to replicate the bank for a significant project. Now, it only takes 10 minutes and teams can generate as many replicas as necessary.

According to Andrew Henderson, our recent launch of Living Super utilized over 60 replicas exclusively, resulting in faster delivery of the new business and significant improvements in quality. Dr. Peter Lawrence, the CIO of the Department of Defense, states that the defense department is streamlining its core applications and implementing shared service agreements. This process involves phasing out around 3000 complex legacy applications and substituting them with Oracle's database and middleware products.

The defense department is enhancing their current Defense's Oracle PeopleSoft application to offer human resources and payroll services to more than 100,000 full-time and reservist personnel. Dr. Peter Lawrence states that the project's objective is to merge

various PeopleSoft HR systems into a single off-the-shelf version of PeopleSoft, with minimal customization. This will not only streamline the number of Oracle databases in the PeopleSoft domain but also create possibilities for future advancements.

Influence of DELL

Dell has empowered countries, communities, customers, and people worldwide to utilize technology to achieve their aspirations. Dell management expresses their views on solution technologies and their perspective on the path to a streamlined enterprise. Customers rely on Dell to provide technology solutions that enable them to accomplish more from any location in the world. The symbol of hope for a new economy has introduced the idea of an efficient business.

The productivity gains have slowed down despite the significant increase in productivity by IT over the past two decades due to disproportionate spending on daily operations. However, an effective way to increase efficiency and create shareholder value is to extract hidden pools of resources. In addition to this, Dell also helps its customers with consistency and turning generalization into action. They distribute targeted high-impact projects without relying on expensive consultants, which is their vital way of life.

Furthermore, Dell offers rapid proof-points to CIOs on how technology can be accelerated without aggravation. Dell also provides a service for remote infrastructure management and cloud-based software, which automates costly tasks. These products and services allow customers to maximize uptime, minimize costs, and increase flexibility. As the leader, the CIO drives innovation through open architecture and ensures the best value by transitioning customers from high-cost proprietary systems and mission-critical applications.

Dell has addressed the software company's high cost system ERP by migrating it

to open-architected x86 solutions with Intel® Xeon® processors. Additionally, Dell has implemented internal technologies to enhance efficiency, save costs, and automate its own operations.

CIOs in future

To sum up, all modern CIOs can anticipate an exhilarating future. Each CIO must adjust to the continuous changes in order to fulfill the growing demands and expectations of the business. This will necessitate implementing clear enhancements in enterprise efficiency.

Cloud computing is a revolutionary technological advancement that provides fully virtualized configuration, continuous modernization with mobility, and modular service with consistent performance. It combines various trends to create a significant transformation in the workplace, specifically designed for individual users. This signifies the future of business mobility, influenced by the increasing influence of social media, the growth of remote work environments, the emergence of new mobile devices, the need for tech-savvy employees, and shifts in IT expectations.

The demand for individuals with knowledge in end-user technology is increasing as the use of innovative technology becomes more valuable in the workplace for both employees and organizations.

Critical evaluation

Leadership, communication, and project management are essential skills that all CIOs need to have in order to influence the overall success or failure of an organization.

The leaders of the company have the skill to listen to their team members and create a business plan. These plans are then discussed and negotiated by individuals from different departments, both internal and external. Dell's CIO is prepared to expand their development process to all companies struggling to achieve their goals. Their important service involves listening, influencing, negotiating, and delivering what their customers need, exceeding expectations

in advance.

Dell is a top solution seeker and has successfully expanded its services through advanced mobility capabilities. Dell strives to stay current with the technology revolution and maintain smooth operations. However, the necessity for consultation varies among business owners.

Dell Inc. offers a diverse range of products, such as desktop PCs, storage devices, software, and servers.

The United States Securities and Exchange Commission (2012) states that Dell Inc. focuses on making information technology simpler for customers, offering them a wide range of choices and making it easier for them to purchase customized products and services. They also prioritize environmental responsibility in all their business operations. In 2012, Dell Inc. earned $62.1 billion in revenue, which was a one percent increase compared to 2011. The decline in demand for personal computers has affected the sales of Dell Inc., Hewlett Packard, and Lenovo.

The increase in consumer interest for interactive electronics demonstrations has resulted in a decrease in online and phone sales, causing Dell to face strong competition from Apple Inc. and Samsung. This heightened competition has led to a decline in Dell's market dominance, prompting the company to prioritize connecting with customers through communication channels and restricting third-party outlets. Within Dell Inc., investment management will provide updates on leadership, productivity, resource utilization, and long-term cost management.

The recommendations will be evaluated to determine which ones can effectively generate stable revenue and enhance competitive advantage.

Investment Management of Information Technology Enhanced by Leadership

Michael Dell, the founder, Chairman and CEO of Dell Inc., started his journey at a young age. His biography shows that he was driven by

a desire to enhance processes, leading him to work towards obtaining a high school diploma while being in the third grade.

According to a newspaper advertisement, passing "one simple test" would make him eligible for a diploma (Dell, 1999). The New York Times review of his biography praised Dell Inc. for being exceptional and resourceful as an information technology company. Through Michael Dell's dynamic and practical leadership, Dell Inc. has successfully overcome numerous economic challenges. His visionary investment in the idea of eliminating intermediaries and selling computers directly to customers has been successful and has resulted in innovative and customer-focused service.

Customers in 1989 enjoyed benefits such as a 30-day money-back guarantee. According to Dell & Fredman (1999), the company generated daily sales of $12 million in 1998 by creating personalized web links for customers. Moreover, within just one year of joining social media platforms, Dell Inc. earned $0.5 million in sales through Twitter in 2008. In the following year, Dell established a business-to-business page on Facebook and gained recognition as the leading brand on social media, receiving praise for their influence (Dell Malaysia, 2012).

Investment Management of Long Term Cost Related to Information Technology

Dell Inc. is currently ranked third among the world's PC makers (Coyne, 2011). Manufacturing is strategically dispersed across six locations. Dell has been operating in Austin, Texas since 1985 and in Nashville, Tennessee since 1999 to serve North America. In Eldorado do Sul, Brazil since 1999, Dell serves South America. Limerick, Ireland has been a distribution hub for Europe, the Middle East, and Africa since 1990. Penang, Malaysia has been serving the Asia Pacific and

Japan region since 1996. Lastly, Xiamen China has been a manufacturing location for China since 1998 (Dell Malaysia, 2012).

The chosen locations have been optimized for Dell Inc.'s build-to-order model and direct selling technique, resulting in reduced costs. Manufacturing in these regions also helps avoid tariffs, which can increase unit costs. Dell Inc. is motivated to establish new factories by government incentives such as lower income tax, government orders, tax breaks, and improved infrastructure like roads and utilities.

Each new factory that was established and older factories that were upgraded constantly improved to meet the highest standards. Being closer to markets reduced exposure to foreign exchange risks and transportation costs while increasing efficiency by minimizing production errors. If one factory had a monopoly on supply and defects were found after sales, there would be more recalls. Dell Inc. experienced a global recall in 2006 for over four million batteries produced by Sony, resulting in both companies sharing the cost of providing free replacements to affected customers.

In 2006, Dell Inc. shipped a total of 22 million units, with specific models like Inspirion, Latitude, XPS, and Dell Precision having the battery model (Krazit & Kanellos, 2006). Around one million of these batteries were in countries other than the United States. Despite the Sony product defect association, Dell Inc. did not receive major criticism for their product's ineffectiveness. Additionally, Malaysia is where Dell Inc.'s first global IT support center outside of the United States is located.

According to Agence France-Presse (2007), an additional 1,000 employees were hired in Cyberjaya for round-the-clock IT support and maintenance. Industry analysts, as cited by Whoriskey (2008),

estimate that the utilization of call centers located overseas can lead to considerable cost savings for companies - ranging from fifty to seventy-five percent. Nevertheless, Dell Inc.'s choice to route calls to call centers in Bangladesh, India, or Manila may have caused dissatisfaction among American consumers while aiming for optimal efficiency. Consequently, complaints from the American public include challenges with understanding tonal and accent differences during service calls, as well as repetitive interactions.

According to Whoriskey (2008), American customers have a preference for communication with individuals who speak their language, but this service comes with a cost. The reluctance of American customers to deal with call centers outside the country is often attributed to prejudice. However, in the current economic climate, where even domestic companies are losing jobs, this move is seen as Un-American (Bloomberg Businessweek, 2007). The closure of Dell Inc.'s North Carolina plant faced backlash due to the loss of around 900 jobs and the revenue and incentives previously offered by the State four years prior (Byrnes, 2009). Dell Inc. had negotiated grants and tax breaks worth $280 million (Modine, 2009) but has now agreed to fully repay them after failing to meet the agreed terms. As part of the agreement, Dell Inc. had committed to investing $100 million in the plant and creating 1,500 jobs over five years (Modine, 2009). One argument suggests that incentives should be directed towards small and medium-sized businesses rather than multinational companies like Dell Inc., as it would have a greater impact on both enterprise and business customers they engage with. However, these package incentives are rarely available for growing businesses in the United States due

to factors such as debt, foreclosure, and brain drain leading to a decrease in regional market players.

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