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

To: The Phoenix who wrote (60911)	8/25/1998 7:21:00 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 176387

Gary, developing web sites which function quite well. Dont confuse a website with erp functionality. Anybody can develop a website. The question is what is behind it - does the company in question have a superior supply chain management system in there. If they do, then they will not buy the components until they get the order, they will logistically manage the goods (possibly involving production in a hub and spoke distribution network etc). Dont want to bore you with this but it is very complicated. Amazon and CD Now etc are simple products so there is no comparison. Dell and any computer maker have PTO models (Pick to order) which are complex products forming a higher level product which can be sold. In order for Compaq to compete against Dell, they need to tackle the beast of ERP/SCM. I dont know if they have done that - if you find out the answer, then you will know whether cpq is a good investment. Sun has NOT been able to do it, which is ok given their high margin business but they will have trouble if they ever try to compete with Dell. Cisco, I dont know, its such a well managed company its seems like they can pull off anything. I know this hasnt totally convinced you but just food for thought. MH

To: The Phoenix who wrote (60911)	8/25/1998 10:49:00 PM
From: WBC	Read Replies (1) \| Respond to of 176387

Gary, You don't seem to understand that the entire Dell ERP system has evolved over say 10 years, to such a level of sophistication, that it would take enormous staff and financial resources, not to mention wicked $$$ to even implement 80% within 2 years. It would be a stunning feat to accomplish that..in the meantime Dell will have perfected the model even further so that, IMHO, it will be close to impossible to catch Dell in 5 years. The competition need to plot a new course to intersect Dell's model & performance, otherwise they will always be playing catch-up...that's assuming that they get it right..there would be awesome "valleys of despair' during the ERP implementation that could severely affect their business focus & performance..then they have to deal with their existing channels...do suggest that they run parallel distribution channels during the phase-in ? It's really difficult & dangerous to switch canoes in the middle of the race ! There really is a significant barrier to entering the BTO direct model.