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Learning to ask Better Questions – Dell Computer’s Approach

October 3rd, 2009 · View Comments · Uncategorized

I recall a lesson from business school. When confronted with the perils of cash flow shortages and inventory obsolescence, Dell Computers changed the rules by asking better questions.

In 1982, before Michael Dell started to ask better questions, the industry worked like this:

screen-shot-2009-10-03-at-95043-am1

Dell changed the world by making a few small changes to the model:

screen-shot-2009-10-03-at-95055-am

Michael Dell dropped out of school, and got a $300,000 loan from his family to run with this idea. Last year, Dell’s net income was 2.9 Billion on 61 Billion in revenue – and employs 76,000 people worldwide.

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  • http://yovia.com/blogs/mikenolan/2009/10/04/learning-to-ask-better-questions-of-your-employees-from-harvard-business-school/ Ask Better Questions » Blog Archive » Learning to ask Better Questions of your employees – From Harvard Business School

    [...] If we can explore the solutions together we can leverage our resources with local, regional, state and federal agencies, and draw upon the knowledge of our business partners to find the better answer. Maybe instead of a larger credit line, they come up with a solution like Dell computer’s Billion Dollar idea. [...]

  • http://yovia.com/blogs/mikenolan/2009/10/24/4-ways-to-look-at-innovation-and-new-venture/ Ask Better Questions » Blog Archive » 4 ways to look at Innovation and New Venture

    [...] Innovation #1 – Process innovation:  This is selling the same items and services in a whole new way.  Think Wall Mart linking consumer buying behavior directly to manufacturers by innovating the use of bar codes for the first time.  .  How can you innovate your process to better your business?  Think big – think bold.  Reduce your supply chain – or turn it upside down?  Rethink you marketing strategy to a pull rather than push strategy?  Turn your payables into financing, ala Dell computer? [...]

  • http://yovia.com/blogs/mikenolan/funding-working-capital/ Funding Working Capital | Ask Better Questions

    [...] What’s the right number?  Depends – restaurants have a very short cycle – they buy food for cash and sell for cash the same day.  Ship builders have incredibly long cycles – years and years.  Dell computer made a billion dollars by figuring out how to pull off a negative cash cycle. [...]

  • http://sbdc.rndc.org/2010/02/understanding-working-capital/ Understanding Working Capital | Small Business Development Center

    [...] What’s the right number? Depends – restaurants have a very short cycle – they buy food for cash and sell for cash the same day. Ship builders have incredibly long cycles – years and years. Dell computer made a billion dollars by figuring out how to pull off a negative cash cycle. [...]

  • http://forum.webfaction.com/viewtopic.php?pid=14477 Barbra Canul

    This is a good summary, I was wondering if I could use this piece on my website, I will link it back to your website though. If this is a problem please let me know and I will take it down right away.

  • admin

    Sure! Thanks…

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