Tuesday 19 May 2015

Dell's Competitive Advantage in Prescriptive Analytics


Hello there and welcome to another blog post by the Health Care Bear! I've recently been looking at Dell's position in the Healthcare industry and one talking point that stood out for me was its strategy and focus on prescriptive analytics. As we all know, IBM is at the forefront of the analytics space with Watson but it looks as though Dell is looking to nibble into that market so I thought I'd write a few words on what I've come across during my research and how Dell has a competitive advantage in this area. As always, I'd love to hear what you have to say so please leave your comments below and share this on social media with your friends and colleagues. Let's begin...
  1. Analytics relies on a lot of data: You may be wondering why I included the image at the top as we're not talking about the cloud at the moment. The reason I included this was because of the factoid that Dell manages over 6 billion diagnostic image objects in the cloud, which covers 7% of the US Population (these stats are from 2013 so have likely increased since.) This is a huge competitive differentiator as the larger the data set, the greater the analytical potential. As Dell considers the US Provider market as its largest and most fruitful, it would make sense to focus on this and build up its repository which will simultaneously add potency to its analytical offerings.
  2. Growing ability to speak to the business: Traditionally, Dell has struggled to shake off the perception of being purely IT focused and so usually finds itself speaking to the IT department. A vendor is able to culture much stronger and longer client relationships if it can speak to the business value of the solution it is putting forward. Although this is currently one of Dell's weaknesses, it's interesting to note that its partnership with Deloitte could assist in this area as they will be able to capitalize on each others' strengths and this will help Dell take more of a consulting approach, thereby selling into the business. If it can properly articulate the business value of the prescriptive analytics it is selling, this will increase its win:loss ratio.
  3. Dell has a solid network of partners: The chart below, although from 2011, shows that Dell is partnering with some of the most influential players in Healthcare at this time. When you also add its more recent partnership with CGI, which focuses on cloud solutions, security solutions and vertical-specific analytics, it's easy to see that it is well positioned to not only capitalize on the amount of data at its disposal but also bring in partners' capabilities to expand the possibilities of what can be done with this data.

That's it for today folks, I sincerely hope you've enjoyed this blog post and look forward to hearing from you!

Best Regards,

Jonathan Cordwell
Research Analyst, Healthcare Strategy
ResearchNetwork, CSC
  1. Dell, Future Ready Healthcare IT Programs, 2013, http://www.slideshare.net/dellenterprise/futureready-healthcase-it-platforms-get-to-the-cloud
  2. Dell, Healthcare ISV Alliance Program, 2011, http://www.slideshare.net/ericvanthoff/dell-healthcare-isv-emea-alliance-program-11601716

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