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  • Essay / Dell, an Innovative Change - 1864

    Dell, an Innovative ChangeHistory of DellMichael Dell, founder of Dell Computers, began his journey to revolutionize the computer industry in 1980. In 1980, Dell purchased its first computer; an Apple II, and took it apart to understand how it was designed and manufactured (Dell & Fredman, 1999, p. xi). In 1981, IBM introduced the personal computer (PC) and Dell saw a business opportunity. Dell switched from Apple computer to IBM PC and started learning every possible component. Michael Dell's hobby was taking computers apart, rebuilding them with improved components and selling them directly to the user, according to Mr. Dell's biography in Smart Computing (2007). “Traditionally in the computer industry, manufacturing companies manufactured computers, which were distributed to dealers and resellers who sold them to businesses and individual consumers” (Dell and Fredman, 1999, p. 11). Dell noticed that IBM was also selling its computers through the distribution method, and in 1984 Mr. Dell made his company official. The original name of Michael Dell's company was registered in the State of Texas as "PC's Limited". The organization transformed and renamed the company Dell Computer Corporation in 1988. At first, PC's Limited purchased disassembled computers, upgraded them, and then resold them for a profit (Dell and Fredman, 1999, p. 14 ). Dell and Fredman (1999) noted that “people were becoming more interested and knowledgeable about computers” (p. 14). Consumers expected improved versions of the IBM personal computer, but IBM had not yet produced an upgrade. Michael Dell decided to create his own personal computer with the vision of improving PC Limited's business. When Dell began manufacturing its own computers, it was the perfect opportunity and timing because competition in upgrading computer systems was minimal. A new upgrade, computer chips, simplified PC design because the new design required only a few sets of chips and a few skilled engineers (Dell and Fredman, 1999, p. 14). By implementing new technology via ASIC (Application Specific Integrated Circuit) chips, this chip helped ease the company's entry into the PC world. After designing its first major PC, known as the Turbo PC, Dell became the second largest PC manufacturer in the United States, with Compaq as the leader. The new improvements proved that Dell was a serious competitor in the PC market and Compaq was inspired to imitate Dell by entering the custom computer business (Saunders, 2000).