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IT in Automobile Industry




                      Group 5,
                      Section A
Value Chain
Strategies & Models
IT in Automobile Industry
Business Intelligence
Web 2.0
Cloud Computing
Success
Failure
Value Chain

 Market         Product
                            Procurement
 Survey       Development




Marketing       Logistics    Assembly




Dealership       Sales        Service
Mediation Strategies



  Traditional         Remediation    Network based

• New & Used        • Used cars      • Used cars
  cars                websites         classified
• Eg. Car           • Eg.            • Eg. Online ads
  Dealers             FirstChoice,
                      TrueValue
Business Model

            Automobile
             Industry




Integrated          Disintegrated




                       Mass
Exclusive
                     Produced
Vehicles
                      Vehicles
Operating Model

             High


                            Co-
Degree of Integration



                                             Unification
                         ordination




                         Diversified         Replication

                 Low

                        Low                               High
                              Degree of Standardization
Business Strategy


Customer Value                          Process
                     Profit Value
  Proposition                           Oriented
• Rolls Royce      • Tata Motors     • 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

        Business Intelligence is used to
          Generate the MIS reports

            Complete Integration
          between BI & ERP system
         Provides accurate and latest
                    data

               Basis for making
              Strategic decisions
Web 2.0


             Listen


            Engage


     Triage Infrastructure


          Measurement
Cloud Computing
Present Trends


                           Maps




Android
Cloud Types for Automobile Industry

             • Business Processes as a Service
BPaaS        • e.g. indirect procurement

             • Software as a Service
 SaaS        • e.g. CRM, eCommerce

             • Platform as Service
 PaaS        • e.g. Application servers, databases

             • Infrastructure as a Server
 IaaS        • e.g. Storage and File System
Advantages


                 Standardization



Virtualization                     Automation




                  Reduced
                    Cost
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

   No proper Standardization


 No trainings and No incentives

    Tried LPS, but opposed by
            employees

 Kia declared bankruptcy in 1997
One fine day…
Automobile industry group5

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Automobile industry group5

  • 1. IT in Automobile Industry Group 5, Section A
  • 2. Value Chain Strategies & Models IT in Automobile Industry Business Intelligence Web 2.0 Cloud Computing Success Failure
  • 3. Value Chain Market Product Procurement Survey Development Marketing Logistics Assembly Dealership Sales Service
  • 4. Mediation Strategies Traditional Remediation Network based • New & Used • Used cars • Used cars cars websites classified • Eg. Car • Eg. • Eg. Online ads Dealers FirstChoice, TrueValue
  • 5. Business Model Automobile Industry Integrated Disintegrated Mass Exclusive Produced Vehicles Vehicles
  • 6. Operating Model High Co- Degree of Integration Unification ordination Diversified Replication Low Low High Degree of Standardization
  • 7. Business Strategy Customer Value Process Profit Value Proposition Oriented • Rolls Royce • Tata Motors • Toyota
  • 8. Blue Ocean Strategy Toyota Prius: First mass-produced full hybrid car Launched in Japan, 1997 Third generation (2009) sold 1 million units
  • 9. IT in Automobile Industry Online Surveys eBuild, Simulators and R&D Training ERP Logistics & Tracking Sales and Service Database Online Ads/Websites
  • 10. Business Intelligence Business Intelligence is used to Generate the MIS reports Complete Integration between BI & ERP system Provides accurate and latest data Basis for making Strategic decisions
  • 11. Web 2.0 Listen Engage Triage Infrastructure Measurement
  • 13. Present Trends Maps Android
  • 14. Cloud Types for Automobile Industry • Business Processes as a Service BPaaS • e.g. indirect procurement • Software as a Service SaaS • e.g. CRM, eCommerce • Platform as Service PaaS • e.g. Application servers, databases • Infrastructure as a Server IaaS • e.g. Storage and File System
  • 15. Advantages Standardization Virtualization Automation Reduced Cost
  • 17. The Future CD’s will become obsolete Multibrand Dealer
  • 20. 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
  • 21. Success Highly Process Oriented Lean Production System IT used to Standardize & Integrate process Best Practices in Industry
  • 22. Failure Mass Production System and no IT, 1990 No proper Standardization No trainings and No incentives Tried LPS, but opposed by employees Kia declared bankruptcy in 1997

Editor's Notes

  1. Kia failure: They wanted to follow the Toyota way. They started restructuring & standardizing.
  2. Kia failure: They wanted to follow the Toyota way. They started restructuring & standardizing.