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- Path: sparky!uunet!paladin.american.edu!auvm!!MARKETING"
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- Message-ID: <9208251831.AA21132@enet-gw.pa.dec.com>
- Newsgroups: bit.listserv.dectei-l
- Date: Tue, 25 Aug 1992 11:31:13 PDT
- Sender: "DEC's The Education Initiative Discussion List"
- <DECTEI-L@UBVM.BITNET>
- From: "ELLEN MINTER * 297-2461 * EDUCATION MARKETING"
- <minter@MR4DEC.ENET.DEC.COM>
- Subject: Digital Press Release - PC's - FYI 1
- Lines: 208
-
- I N T E R O F F I C E M E M O R A N D U M
-
- Date: EDT
- From: Ellen Minter @MRO
- MINTER.ELLEN
- Dept: Education MBU
- Tel No: 297-2461
-
- TO: Remote Addressee ( _decwrl::"dectei-l%ubvm.bitnet" )
-
-
- Subject: Digital Press Release - PC's - FYI
-
- Please remember that U.S. TEI customers get a 9% grant when
- ordering Digital's PCs through DESKtop Direct!
-
- Regards,
- Ellen
-
-
- Edward J. Canty
- Digital Equipment Corporation
- 508-486-6387 or
- Peter Basmajian
- Digital Equipment Corporation
- 508-486-6406
-
-
-
-
- Business Strategy Enhances Digital's Competitiveness...
-
-
- DIGITAL INTRODUCES PC FAMILY BASED ON
- INTEGRATED WORLDWIDE BUSINESS STRATEGY
-
-
- MAYNARD, Mass.--August 25, 1992--Digital Equipment Corporation
- today introduced a family of high-performance, upgradable
- desktop PCs and launched a new, worldwide strategy to increase
- the profitability of its PC business. Components for the
- DigitalR-built, industry-standard DECpcTM LP (Low-Profile)
- family will be manufactured at the company's world-class
- facility in Taiwan and assembled and tested at seven Digital
- "integration centers" worldwide.
- Digital launched a full range of 386- and 486-based
- desktop systems, starting at $899. The family includes a
- 66-MHz 486DX2 system that uses Intel's fastest 486 processor,
- released earlier this month. Five of the six new models offer
- extremely high-performance graphics technology and plug-in
- processor upgrades.
- The business strategy, according to James J. Liu, vice
- president, Personal Computer Group, is designed to increase
- Digital's competitiveness, market share and profitability, and
- to provide customers with the highest-quality products at
- extremely aggressive prices. "We will achieve these goals by
- implementing a worldwide `franchise model,' under which all
- Digital regions follow similar business practices, and by
- tightly controlling all aspects of our entire process of
- product engineering, manufacturing, and worldwide distribution
- to reduce costs," he said.
- One advantage for customers is that Digital can provide
- a consistent product on a worldwide basis. For many large
- companies, product uniformity is an important purchasing
- criterion, because they invest heavily in computer-related
- training and need to install applications, networks and
- upgraded equipment uniformly throughout the world.
- Digital said it will target FORTUNE-class 1000 customers
- and the 5,000 largest enterprises worldwide for its new family.
- Products will be shipped directly to customers from integration
- centers in Springfield, Mass.; Kanata, Ontario, Canada; Tokyo,
- Japan; Taoyuan, Taiwan; Sydney, Australia; Sao Paulo, Brazil;
- and Ayr, Scotland.
-
- DECpc LP Family Models
- The six modular PC family models are configured and
- priced to serve a wide range of applications and users. The
- models are:
- o ENTRY-LEVEL SYSTEM: DECpc 333sx LP uses a 386SX
- processor running at 33 MHz, which typically is 32
- percent faster than competing 25-MHz 386SX machines.
-
- o CPU-UPGRADABLE SYSTEMS: DECpc 340dx LP, DECpc 425sx
- LP, DECpc 433dx LP, DECpc 450d2 LP and DECpc 466d2 LP
- are 386- and 486-based units with clock speeds of 40
- MHz, 25 MHz, 33 MHz, 50 MHz, and 66 MHz, for
- demanding desktop business and technical
- applications.
-
- U.S. catalog prices range from $899 for the DECpc 333sx LP to
- $2199 for the DECpc 466d2 LP. The family is shipping today,
- with limited availability for the next 45 days, Digital said.
- Digital will market the new PCs in the United States
- through its direct sales force, resellers, and Desktop
- DirectTM, its telephone ordering system.
-
- Three-Way Upgradable PCs
- DECpc LP models can be upgraded in three ways: The 386 40
- Mhz model can be upgraded to any of the 486 models; 486 models
- can be upgraded to faster 486 processor speeds, and the speed
- of the 486 models can be doubled through the addition of a
- clock-doubling chip.
- The upgradable systems also include industry-leading
- technology specifically designed to run Microsoft WindowsTM
- four times faster than similar machines without the technology.
- Local-bus video directly connects the video processor to the
- CPU, which allows them to communicate at speeds up to 33 MHz,
- instead of 8 MHz on conventional machines. The systems also
- incorporate GUI (graphical user interface) acceleration, which
- recognizes commands used by Microsoft Windows and runs them
- faster. The family's Super VGA video supports resolutions up
- to 1024 x 768 pixels.
- "Windows and menus appear to snap open, and graphs and
- diagrams appear instantaneously," said Roger Matus, director of
- marketing for the Personal Computing Group.
- Ergonomically designed, family models feature a compact
- footprint, offer one of the quietest fans in the industry, and
- support flicker-free 72Hz monitors that reduce eyestrain. All
- models run under Digital PATHWORKSTM, NovellR NetWareTM, and
- BanyanR VINES PC networking software.
-
- Strategy Further Detailed
- Liu highlighted several key measures that have enabled
- Digital to realize substantial cost reductions throughout the
- PC business cycle. These include design modularity of the LP
- family (80 percent of components are common to the family
- members), utilization of the ISO 9000 quality process at its
- MRPII Class A Taiwan facility to ensure high quality and to
- reduce component waste; new packaging techniques, and new
- shipping procedures for system components.
- "We were able to borrow from the 'just-in-time' concepts
- of matching inventory shipments to actual orders," he said.
- "The result is that we can reduce the costs of transportation
- and inventory, while keeping product quality and reliability
- high."
- For example, Liu said Digital's new shipping procedure
- calls for standard bulky components such as monitors to be
- shipped by sea and high-value items such as motherboards and
- daughterboards to be air-freighted. "By setting up the pipeline
- in this way, we enable our regions to mix and match their
- inventories more easily and react to changing local market
- conditions more quickly," he said.
-
- Franchise Model
- Liu said that Digital has established a franchise model to
- govern the operation of the company's regional marketing
- organizations and the seven integration centers that serve
- them. "The franchise model ensures that the regions follow
- Digital's worldwide business practices," Liu said. "As a
- result, customers enjoy major benefits when they buy PCs from
- Digital."
- "For example, large customers can get the same models
- everywhere. These customers save on testing and training,
- because application software works everywhere, network
- compatibility applies everywhere, the customers' internal
- training is valid everywhere, and upgrades are available
- everywhere," he said.
- The franchise model also provides speedier sales, service
- and support, Liu said, because "each Digital region stays close
- to its customers, and that's better for local customers than
- dealing with large, monolithic suppliers. On the other hand,
- our regional operations follow world-class business practices,
- and that's better for large customers than dealing with small,
- local suppliers. In short, our franchise model offers
- customers the best strengths of large and small vendors," he
- said.
- Liu said Digital test-marketed the business strategy
- earlier this year when it introduced a 386-based PC in Asia,
- Australia, South America, and Canada. "We achieved tremendous
- cost savings using the model, and product quality was superb.
- We knew we were successful when we competed against the Asian
- clone makers and won a major order for 2,000 PCs with the Hong
- Kong stock exchange," he said.
-
- Recent Successes
- Digital recently began selling PCs through its Desktop
- Direct telephone sales operation and recently acquired
- 800-SOFTWARE, a large PC software distributor that handles
- thousands of world-class application packages.
- Digital is seen increasingly as a leading competitor in
- the PC market, according to Liu. The company has been recently
- rated as the fastest-growing supplier of PCs in the U.S.,
- according to Computer Intelligence of La Jolla, CA. Also,
- Merisel, Inc., one of the world's largest PC distributors,
- recently expanded its distribution agreement for Digital's PC
- products. Merisel will carry the new DECpc LP family, Digital
- said.
- Digital Equipment Corporation, headquartered in Maynard,
- Massachusetts, is the leading worldwide supplier of networked
- computer systems, software and services. Digital pioneered and
- leads the industry in interactive, distributed and multi-vendor
- computing. Digital and its partners deliver the power to use
- the best integrated solutions -- from desktop to data center --
- in open information environments.
- # # #
-
-
- Note to Editors: DECpc, Desktop Direct, PATHWORKS are
- trademarks of Digital Equipment Corporation. Digital is a
- registered trademark of Digital Equipment Corporation. Windows
- is a trademark of Microsoft Corporation. Microsoft is a
- registered trademark of Microsoft Corporation. NetWare and
- Novell are registered trademarks of Novell, Inc. Banyan is a
- registered trademark of Banyan Systems, Inc.
-
-
-
- CORP/93/781
-