IT in Automobile Industry

Group 5, Section A

Value ChainStrategies & ModelsIT in Automobile IndustryBusiness IntelligenceWeb 2.0Cloud ComputingSuccessFailure

Value Chain

Market Survey

Product Development Procurement

AssemblyLogisticsMarketing

Dealership Sales Service

Mediation Strategies

Traditional

• New & Used cars

• Eg. Car Dealers

Remediation

• Used cars websites

• Eg. FirstChoice, TrueValue

Network based

• Used cars classified

• Eg. Online ads

Business Model

Automobile Industry

Integrated

Exclusive Vehicles

Disintegrated

Mass Produced Vehicles

Operating Model

Co-ordination

Diversified

High

Low

HighLow

Deg

ree

of In

tegr

ation

Degree of Standardization

Replication

Unification

Business Strategy

Customer Value Proposition

• Rolls Royce

Profit Value

• Tata Motors

Process Oriented

• Toyota

Blue Ocean Strategy

Toyota Prius: First mass-produced full hybrid car

Launched in Japan, 1997

Third generation (2009) sold 1 million units

IT in Automobile Industry

Online Surveys

eBuild, Simulators and R&D

Training

ERP

Logistics & Tracking

Sales and Service Database

Online Ads/Websites

Business Intelligence

Complete Integration between BI & ERP system

Provides accurate and latest data

Basis for making Strategic decisions

Business Intelligence is used to Generate the MIS reports

Web 2.0

Listen

Engage

Triage Infrastructure

Measurement

Cloud Computing

Present Trends

Maps

Android

Cloud Types for Automobile Industry

• Business Processes as a Service• e.g. indirect procurementBPaaS• Software as a Service• e.g. CRM, eCommerceSaaS• Platform as Service• e.g. Application servers, databasesPaaS• Infrastructure as a Server• e.g. Storage and File SystemIaaS

Advantages

Reduced

Cost

Virtualization

Standardization

Automation

Cloud Network

The Future

CD’s will become obsolete

Multibrand Dealer

Mercedes-Benz mbrace

Security System

Then Now

The Big Benefits

Faster deployment of new capabilities

Improved consistency and quality of new capabilities

Increased efficiency in use of IT resources

Faster integration with vendors suppliers and customers

Success

Highly Process Oriented

Lean Production System

IT used to Standardize & Integrate process

Best Practices in Industry

Failure

Mass Production System and no IT, 1990

Kia declared bankruptcy in 1997

No trainings and No incentives

No proper Standardization

Tried LPS, but opposed by employees

One fine day…