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


To: Indelible who wrote (114044)4/3/1999 9:49:00 AM
From: TechMkt  Respond to of 176387
 
Excert from an INTERNET WEEK artcile.

Fez
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...Perhaps the company that best exemplifies how the Internet can change business models is Dell Computer, whose massive online selling effort is "a shift from managing inventory to managing information," said Richard Owen, vice president of Dell Online. Owen described how Dell's inventory cycles shrank from 70-plus days to one week. "The key to reducing inventory is providing better information to the value chain."

Dell's site brings in $14 million in daily online revenue, gets more than 25 million hits per quarter and has more than 13,000 extranet Web sites for large accounts, Owen said.

Equally important, he said, is the degree to which customer service has been automated via the Web. Dell Online handles 40,000 e-mails, 500,000 file downloads and 400,000 order-status inquiries per month.

To create an infrastructure to manage such massive user self-service, Owen said companies should spend twice as much building a support infrastructure as they do an e-commerce backbone.

"Technology is relatively cheap. Spend your money on customer service," said Steve Westley, vice president of marketing and business development for online auction site eBay Inc. "Technology is not how you differentiate yourself, by and large. It's how close you are to your customer."