IT In Action | 05 Jan 2009 : 

Dell has announced that it will be changing the way it runs its enterprise branches.

The company provided a statement outlining a new plan which will see its business units transform from region-based to new segments based on market type.

Dell's new plan calls for the creation of three global branches, each of which will be tasked with running a certain branch for the entire planet rather than a single region. The new segments include large enterprise, public sector and small and medium business.

The new branches will follow the example of Dell's consumer operation, which has already restructured itself as a single global unit.

"Customer requirements are increasingly being defined by how they use technology rather than where they use it," said Dell founder and chief executive Michael Dell.

"That's why we won't let ourselves be limited by geographic boundaries in solving their needs."

The move will, however, have some casualties, particularly at the top of the organisation. The company said that two executives will be stepping down from their positions as part of the restructuring plan.

Global operations president Mike Cannon will step down from his position and go into semi-retirement from the company as a consultant. Cannon will be replaced by Jeff Clarke, who will oversee both global operations and the company's business client product group.

Chief marketing officer Mike Jarvis will also be stepping down and taking a consultant role. He will be succeeded by former Europe, Middle East and Africa marketing vice president Erin Nelson.

The move is part of a larger reorganisation project which Dell has been undertaking over the last two years. Though the moves have lead to some painful financial results recently, Michael Dell believes that the project will revitalise the company in the long run.

"In the past two years we have significantly improved our competitiveness, reengineered our supply chain, broadened our product portfolio and introduced Dell to more people in more places than ever before," he said.

"We have laid the foundation for the transition from a global business that's run regionally to businesses that are really globally organised."