The Dell Business Model Dell delivers highvalue industrystandard

The Dell Business Model Dell delivers high-value industry-standard solutions that help maximize business flexibility and optimize ROI Customer Most Efficient Path to the Customer Single Point of Accountability Industry Standard Technology Build-to-Order Low Cost Leader 業 程與管理系 產業電子化協同實驗室 9

Business to Business Dell’s Focus On The Customer Corporate Business Global Public Sector Government Latin Business America Canada Education/ Medium Corporate Healthcare Business US Consumer n Americas/ International Small Large n Consumer Small/Medium Business Dell is organized based on customer needs, characteristics and size q Needs-focused vs. product-focused q Direct accountability and resources q Continuous customer feedback Consistent organization across all 業 程與管理系 regions 產業電子化協同實驗室 10

Single Point of Accountability Dell’s business model creates streamlined and fast access to the right resources Products - Desktops Dell Customer Account Team - Technical Sales Experts - Product Marketing Specialists - Product Service Specialists - Program/Project Mgmt Experts - Services Account Managers Customer ACCOUNT - Storage - Workstations - Switches - Software - Notebooks - Peripherals - Servers Dell Services MANAGER Direct Online Alternatives - Support Services - Professional Services - Customer Training & - Certification - Managed Services - Financial Services 業 程與管理系 產業電子化協同實驗室 11

Collaborative R&D Dell listens to you, drives focused R&D to solve your problems, and delivers the high quality products and services you need. Products Services Internal R&D $437 M Key Industry Partners $9. 3 B Customer SOLUTION Software Collaborative R&D Emerging Technologies $335 M Invested 業 程與管理系 產業電子化協同實驗室 12

Services Throughout the Lifecycle Dell makes it easy to manage standardized technology through its entire lifecycle – cost-effectively Asset Disposition • Asset Recovery Services Pre-sales Consulting • ROI Analysis • High Availability Arch. /Planning • Network Architecture • Technology Transitions • Application Migration Planning Evaluation Acquisition • Flexible Financing • Premier Pages • Custom Configurations • High Performance Arch. /Planning Upgrades Deployment • Managed Transactions • Image Management • Application upgrade deployment • Factory Application Installation Maintenance • Flexible & Tiered • Premiere Enterprise Support Options Support • Installation Services Management • Custom Support • Remote Alert & Resolution • Proactive Notification and Downloads of Upgrades Packages • Training and Certification • Complete Care of Customers’ IT staff 業 程與管理系 產業電子化協同實驗室 13

Build-to-Order Test all systems before they ship Integrate software & peripherals in the factory Build-to-Order Dell engineers, designs and builds our own systems Customers • High quality products with low failure rates • Enhanced IT staff productivity • Ease of deployment • The solution you want, when you want it 業 程與管理系 產業電子化協同實驗室 14

A Global Partner We specialize in helping businesses and institutions like you meet their information technology needs around the world International 31% 80% Business & Institution North America 20% Consumer 68 % Americas Revenue Global Sales & Support Worldwide Revenue Global Manufacturing n Dell offices in 34 countries n 50, 000 contracted in 170 countries n 6, 700 Dell service personnel N. America - Austin, TX - Nashville, TN S. America - Alvorada, Brazil Europe - Limerick, Ireland AP/Japan - Penang, Malaysia - Xiamen, China 業 程與管理系 產業電子化協同實驗室 15

Low Cost Leader Vendor owned material Supply Chain Management (Pushed by the Planning Process) Dell owned material (Pulled by the Replenishment Process) Results • 3 days of inventory • Inventory turns of 122 per year Customer Dell Factory HUBs Dell Factory Suppliers Local Suppliers Dell works with suppliers to minimize the amount of inventory in the total system by giving them long-term volume forecasts to use for manufacturing forecasts. Suppliers keep inventory close to Dell at logistics centers, from which product is shipped to Dell only when needed, keeping inventories at a minimum. 業 程與管理系 產業電子化協同實驗室

Low Cost Leader Business Process Improvement: Six Sigma • • • Increase employee empowerment through the use of BPI Expand sharing of improvement ideas & engagement of teams Intensify coaching and mentoring on BPI project Foster Winning Culture through the integration of BPI into Performance Plan & IDP Incorporate BPI Performance Metric as part of Incentive Bonus Modifier 1. Define What’s the problem? Who can fix it? What’s the process? FY 03 Results Worldwide SAVINGS $839 M Tell others. BPI 5. Control Model 6. Report Did we improve? Did we save money? 2. Measure Can I explain a problem with data? 3. Analyze What’s the real problem? 4. Improve Let’s improve the process! 業 程與管理系 產業電子化協同實驗室 17