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Dell recently announced a major reorganization that will make all its customer business segments (Public, Large Enterprise, Small Medium Business and Consumer) report to Steve Felice, who has been named president and chief commercial officer. The reorganization will be effective February 4, 2012.
The move is aimed to make Dell a better sales organization that is more customer-focused and collaborative. [1]
We currently have a $21.12 Trefis price estimate for Dell.
Move Will Improve Sales Capabilities as well as Operational Efficiency
Dell, which has taken a hit in the PC market in the last few years, has put tremendous efforts in to transforming into an enterprise services focused firm like Hewlett-Packard and IBM. The recent move to unify its sales and marketing operations shows that Dell is equally committed to creating a more streamlined and operationally efficient organization which is a good sign for investors.
In today's quickly changing markets, it has become absolutely necessary for organizations to better connect with their customers and respond quickly to their rapidly shifting needs. Making customer-focus a high priority will help Dell forge long-term relations with customers, which will likely bear fruit in the coming years.
In addition to helping serve customers better, the move will simplify Dell's sales organization and make it more responsive by boosting the go-to-market capabilities. This will allow the firm to accelerate the delivery of innovative and practical solutions. All of these factors will also help generate operational efficiency which could result in a much needed boost to Dell's margins.
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