Dell Chief Information officer Roles and Improvement

Published: 2021-09-15 01:00:08
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New roles of Chief Information Officer (CIO) DELL
DELL was once known for its outstanding customer service and well-oiled supply chain, but now is struggling to gain back the admirer of its customers. In 2006, the company reported disappointing quarterly financial results as they have lost market share and its title as largest computer manufacturer in worldwide. Hewlett Packet (HP) is leading now in the world, leaving DELL behind it. US Securities and Exchange Commission (SEC) has launched an investigation on DELL on their accounting practices and found out that they have falsified quarterly financial statements due to fulfill Wall Streets' expectation. [Meridith Levinson, 2007] In 2009, Robin Johnson plays an important role in DELL as CIO till now. Previous CIO Steve Schuckenbrock has also contributed to DELL from 2007 till 2008. Below are the studies on the roles that they have performed to enhance DELL business.

The role of CIO in the late 20th century has been changed ceaselessly as we all know that new technologies, organizational structures and business models in coming 10, 20, or 80 years will evolve. [Ivan Schneider, 2011] As CIO, Robin Johnson has to focus on service support, service delivery, service desk and security management. Each of this service has it's extend to enhance the DELL business.

Current Strategy
Be Efficient Enterprise Model
The CIO is practicing to make Dell as Efficient Enterprise whereby they reduce cost in expenditures on data centers, servers, and system engineering. In 2008, the company's IT budget has consumed approximately US$1.2 billion annually. In 2009, Dell has reduced spending of US$150 million and plan to cut another US$200 million. Robin Johnson claims that Dell's total cost savings will be close to half a billion dollars in coming years where they avoid of building a new data center. He follows the principles of standardization, simplification, and automation. The fewer operating systems, the fewer tools that need to look at those operating systems, the fewer people needed to run the tools. These entire principles enhance efficiency. [Robin Johnson, 2009]

Robin Johnson highlighted the issues that he faces in dell which nearly up to 100,000 global employees. He would want to accomplish on improving IT across the global operations to integrate IT infrastructure at Dell with company's business strategy. To do so, this step has cost more than 1billion euro. The outcome of it gave the company a position that leads the market. This is to lead a complete transformation in technology to achieve Dell's vision across all business area. CIO is satisfied with the IT transformation, but however, the hardest challenge for him is repositioning and relocating the management. Managing IT is less about IT knowledge and on reason of continuous improvement and cost base of IT matter. Innovation is not about to manage tool world, but giving the best alternative to Dell.


Outsourcing
In 2006, Dell changes its business strategy by outsourcing. The strategy is to plan to expand its operation across the globe which is called as US-centric. By focusing on others countries that have emerged as top IT and Software hubs, the company can reduce number of services which they provide in-house. Dell is expanding into growth markets in countries like Brazil, China, India and Central Europe. [Dotmarketer, 2006] By practicing outsourcing, it allows company to focus more on core competencies which leads to better productivity.

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