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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (23850)	12/2/1997 9:43:00 AM
From: Gabriel008	Read Replies (3) \| Respond to of 176387

Jim, I've been doing some research on the supposedly revolutionary BTO & CTO systems. The more I look into it the more I'm convinced it is nothing more than a passing fad and will fade away very quickly leaving a very bad taste in the mouth of CPQ and other OEM's who have foolishly adopted it. Check out H&Q research report- Streamlining the Technology Supply Chain: An Investment Overview hamquist.com The only meaningful statements are as follows; "sucess...measured in terms of supply chain versus supply chain" [i.e., direct model versus the BTO model] "...increasing overlap of service offerings creates the potential for significant revenue dislocation among previously distinct segments of the supply chain." [i.e., BTO model] I believe that CPQ has, in desperation to counter DELL, adopted this system without really considering the consequences: losing production control and therefore QC; shipping more units at a lower ASP. In effect, they are losing value-added profit margins and are transferring this to certain key retailers who, as you point out, are less than loyal to the OEM's. In the final analysis BTO & CTO are nothing more than convoluted models that will transfer greater power, control & leverage to the large retailers. DELL has nothing to fear.