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10 e business myths

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10 e business myths

  1. 1. 10 e-business myths10 e-business myths …corresponding e-business realities “There is no such thing as an old economy company or a new economy company.” - Brian Kelley ConsumerConnect Ford Motor Company Inspired by and taken from an article in Automotive News written by Ralph Kisiel; published July 10, 2000
  2. 2. e-businesse-business mythmyth #1#1 Auto Dealers will disappear or their marketing position will be marginalized e-businesse-business realityreality #1#1 Auto Dealers who accept the Internet as a tool to better satisfy and please consumers are getting stronger and capturing more of their AOR market share.
  3. 3. e-businesse-business mythmyth #2#2  Build-to-order, where a consumer orders a vehicle and expects it in several days, will dramatically alter the automotive industry. e-businesse-business realityreality #2#2 Before that happens, consumers must demand it. At this time, most consumers do not want Build-to-order. Consumers are satisfied with selecting from vehicles in dealer inventory.
  4. 4. e-business reality #2e-business reality #2 projectionprojection The automotive industry is moving to an operating system best described as “Build-to-demand”, in which consumer demand drives what plants will build and what dealers order and bring into their inventory.
  5. 5. e-businesse-business mythmyth #3#3 The Internet will only be used by customers to gather information and not to buy. e-businesse-business realityreality #3#3 During the next 24 months, consumers will become more confident and comfortable using credit cards online. The better they get at buying books and clothing online, the more likely they will buy a vehicle that way.
  6. 6. e-businesse-business mythmyth #4#4  Customer Relationship Management will be a big competitive advantage for some dealers. e-businesse-business realityreality #4#4 Consumers will dictate how they want to interact. Dealers who respond most effectively to customer-demanded relationship management models will retain a higher percentage of their customer base.
  7. 7. e-businesse-business mythmyth #5#5 Customer Satisfaction is paramount to each dealer’s success. e-businesse-business realityreality #5#5 The age of the never-satisfied customer is near… The consumer will guage automakers and dealers against competition that the industry has never thought of before.
  8. 8. Five More To Go!!!Five More To Go!!!  Restroom use…  Cigarette relief…  Water or beverages…  Brief phone call…  Check messages…  Check email…  Get up and stretch…  Get some fresh air… Are we ready for a break?Are we ready for a break?
  9. 9. e-businesse-business mythmyth #6#6  European countries are behind the United States in Internet applications and e-commerce participation. e-businesse-business realityreality #6#6 Europe developed as a wireless society… The United States developed as a computer-based wired society. Europe and the USA will end up in the same place in 24 to 36 months – SEAMLESS. Americans will learn a lot from Europeans.
  10. 10. e-businesse-business mythmyth #7#7 The Internet makes commodities of brands and products. e-businesse-business realityreality #7#7 Dealers should stop thinking about building their “Brand” and start thinking about building their community of users and consumers who are part of that “Brand”… This will drive VALUE to a dealership over the long term. Brands can be grown and destroyed in a short time on the Internet.
  11. 11. e-businesse-business mythmyth #8#8  The debate rages on… Who owns the customer? The dealer, or the manufacturer? e-businesse-business realityreality #8#8 No company or layer within manufacturing and distribution owns “The Customer”!
  12. 12. e-businesse-business mythmyth #9#9  B2B is for manufacturers only and is simply about procurement and buying goods cheaper. e-businesse-business realityreality #9#9 B2B will start with OEM procurement because that represents the path of least resistance. B2B will move into supply-chain management and product development, and ultimately, into the complete integration of this economic ecosystem called the automotive industry.
  13. 13. e-businesse-business mythmyth #10#10 There are “old economy” companies and “new economy” companies. e-businesse-business realityreality #10#10 There is no such thing as an old economy company or a new economy company, but there ARE winning and losing companies based on their ability to leverage the resources, intelligence, people, structure, facilities, technology and processes required to win in this information age.
  14. 14. e-business reality #10e-business reality #10 projectionprojection The winners will NOT be “New Economy” companies, but rather “New Economy THINKING” vs. “old economy STAGNATION”.

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