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February 12, 2014

Servitisation shifting Dell’s product strategy

Dell to focus on overall customer service rather than products.

By Claire Vanner

Dell is looking to grow its business to focus on its overall services, rather than its hardware, according to its senior program manager.

Speaking at PTC Live Executive Exchange, Ger Marshall of Dell Products said: "Service traditionally was seen as a necessary evil. Suddenly we have realised this is a revenue stream. What Dell is starting to do in growing the business is to offer everything a customer requires."

Discussions at the event focussed around how the concept of servitisation should encourage companies to use technology to report back to customers and moderate performance and consider their customer relations management working alongside their products rather than their individual products.

Dell has always acknowledged services, but now Marshall says that the service element comes as part of its products.

"It’s not just a product in a box anymore," said Marshall. "[Customers] want to talk soltuion, not just a product. We have bought service into the whole picture."

Marshall also spoke of how Dell will look to improve its service offerings as the cost of maintenance comes down.

"Quality [of maintenance] has started to improve so what’s happened is we can move at a faster pace. Budgets are dropping fast so we have to react.

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"It comes back to cost is one of the big drivers. Providing services is a very complex industry. We try to offer customers the best soltuion at the right price, he said."

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