Final answer:
Dell is the company that became an industry leader in the late 1990s by changing its operations to a direct-to-consumer sales model, allowing customization and reducing costs.
Step-by-step explanation:
The second-tier computer company that utilized a drastic change in its operations function to become an industry leader in the late 1990s is Dell. Dell revolutionized the personal computer (PC) industry with its direct-to-consumer sales model. This radical business approach allowed customers to customize their computers during the ordering process and eliminated the need for traditional physical retail outlets, reducing inventory and streamlining operations. By adopting this model, Dell was able to offer lower prices and quicker delivery times, which proved to be a significant advantage over competitors and propelled them to become one of the leading PC manufacturers.