Product development at Dell Computer Corporation
Problem Definition:
The computer industry, as you well know, is a fast-paced and ever changing business environment. Driven by consumer needs, wants and demands, it is vital for companies such as Dell Computer Corporation to recognize relevant trends and to satisfy a market that requires the most innovative technology available. Now, more than ever, consumers are demanding the most lifestyle-friendly computers available. In particular, the market for laptop computers, which is growing at a much faster rate than that of desktops, is pursuing lighter, more durable computers with the greatest performance capabilities.
The problem that the case pertains to is that of making a decision on what kind of battery technology should Dell go ahead with, or whether to go ahead with the dual development. Each technology NiHi and LiOn has its own advantages and risks involved. The challenge lies in making the decision to go forward with. Consumers want longer and more efficient battery life, without compromising other features. And Dell wants to be the market leader in laptops with their new product offerings.
Intuitively, the best option is to pursue a dual development path. The dual development path entails initially designing two separate models; one which would incorporate the current, proven battery technology (NiHi), and another in which the latest technology would be used (LiOn). Once the availability of the LiOn technology becomes clearer, a decision can be made about which product should be brought to market. This aligns with the interests of Dell by not compromising on market share and being able to offer a new product to the market. The best way to solve the decision dilemma would be by creating a decision tree and calculating the payoffs for each.
Decision analysis:
A) Dell can go ahead with the proven technology of NiHi and have a 100% confidence in the development and marketing. But the option to design a...