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Case | HBS Case Collection | August 1998 (Revised February 1999)

Product Development at Dell Computer Corporation

by Stefan H. Thomke, Vish V. Krishnan and Ashok Nimgade

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Abstract

Describes how Dell redesigned its new product development process after experiencing a major product setback and a significant decline in firm profits in 1993. Dell's new process is challenged during the development of a new line of portable computers when the incoming head of portables has to manage the risk of using a new technology. This case focuses on: (1) product development process design, (2) the costs and benefits of flexibility and structure in uncertain environments, and, (3) managing development risk during and after a financial and market setback.

Keywords: Cost vs Benefits; Profit; Managerial Roles; Risk Management; Product Development; Business Processes; Problems and Challenges; Risk and Uncertainty; Hardware; Computer Industry;

Format: Print 21 pages EducatorsPurchase

Citation:

Thomke, Stefan H., Vish V. Krishnan, and Ashok Nimgade. "Product Development at Dell Computer Corporation." Harvard Business School Case 699-010, August 1998. (Revised February 1999.)

About the Author

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Stefan H. Thomke
William Barclay Harding Professor of Business Administration
Technology and Operations Management

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More from the Author

  • Teaching Note | HBS Case Collection | August 2001 (Revised November 2017)

    IDEO

    Stefan Thomke

    Teaching Note for (600-143).

    Citation:

    Thomke, Stefan. "IDEO." Harvard Business School Teaching Note 602-060, August 2001. (Revised November 2017.)  View Details
    CiteView DetailsPurchase Related
  • Case | HBS Case Collection | June 2000 (Revised October 2017)

    IDEO

    Stefan Thomke and Ashok Nimgade

    Describes IDEO, the world's leading product design firm, and its innovation culture and process. Emphasis is placed on the important role of prototyping and experimentation in general, and in the design of the very successful Palm V handheld computer in particular. A studio leader is asked by a business start-up (Handspring) to develop a novel hand-held computer (Visor) in less than half the time it took to develop the Palm V, requiring several shortcuts to IDEO's legendary innovation process. Focuses on: 1) prototyping and experimentation practices at a leading product developer; 2) the role of playfulness, discipline, and structure in innovation processes; and 3) the managerial challenges of creating and managing an unusually creative and innovative company culture. Includes color exhibits.

    Keywords: Business Startups; Innovation Strategy; Business or Company Management; Time Management; Product Design; Product Development; Business Processes; Organizational Culture; Practice; Problems and Challenges; Creativity; Hardware;

    Citation:

    Thomke, Stefan, and Ashok Nimgade. "IDEO." Harvard Business School Case 600-143, June 2000. (Revised October 2017.)  View Details
    CiteView DetailsEducatorsPurchase Related
  • Article | Harvard Business Review | September–October 2017

    The Surprising Power of Online Experiments: Getting the Most Out of A/B and Other Controlled Tests

    Ron Kohavi and Stefan H. Thomke

    In the fast-moving digital world, even experts have a hard time assessing new ideas. Case in point: At Bing, a small headline change an employee proposed was deemed a low priority and shelved for months until one engineer decided to do a quick online controlled experiment—an A/B test—to try it out. The test showed that the change increased revenue by an astonishing 12%. It ended up being the best revenue-generating idea Bing ever had, worth $100 million. That experience illustrates why it’s critical to adopt an “experiment with everything” approach, say Kohavi, the head of the Analysis & Experimentation team at Microsoft, and Thomke, an HBS professor. In this article they describe how to properly design and execute A/B and other controlled tests, ensure their integrity, interpret results, and avoid pitfalls. They argue that if a company sets up the right infrastructure and software, it will be able to evaluate ideas not only for improving websites but also for new business models, products, strategies, and marketing campaigns—all relatively inexpensively. This will help it find the right path forward, especially when answers aren’t obvious or people have conflicting opinions.

    Keywords: Research; Consumer Behavior;

    Citation:

    Kohavi, Ron, and Stefan H. Thomke. "The Surprising Power of Online Experiments: Getting the Most Out of A/B and Other Controlled Tests." Harvard Business Review 95, no. 5 (September–October 2017): 74–82.  View Details
    CiteView DetailsFind at Harvard Register to Read Related
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