Dell became the master of process engineering and supply chain management. It spent
less on R&D than did Apple or Hewlett-Packard, but focused its spending on improving
its manufacturing process. (Dell spent 1% of sales on R&D versus the 5% typically invested
by other large computer firms.) Instead of spending its money on new computer technology,
Dell waited until a new technology became a standard. Michael Dell explained that soon
after a technology product arrived on the market, it was a high-priced, high-margin item
made differently by each company. Over time, the technology standardized—the way PCs
standardized around Intel microprocessors and Microsoft operating systems. At a certain point
between the development of the standard and its becoming a commodity, that technology
became ripe for Dell.