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…
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