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Ford Motor Company - Case Study

Background (General Facts)

Ford Motors is one of three leading companies producing cars in the United States. Headquartered in Michigan in 1903 by Henry Ford and climbed on a turnover of 150 billion dollars and has reached more than 370,000 employees in 1996 [1]. In 1970, the automotive market for major car manufacturers - General Motors (GM), Ford and Chrysler have been crunched by competition from foreign producers like Toyota and Honda. In 1999, Ford acquired the Swedish model Volvoin an attempt to compete in foreign markets and expand into other regions. In addition, Ford has launched a comprehensive new organizational-engineering of business processes so-called "Ford 2000" plan to restore the infrastructure of society. The process is to reduce their vehicle Centers (VC), only five of the operations that stretched over 200 countries. It also meant cutting redundancies and require Information Technology (IT) for power and the connection betweenFord plants around the world.

To build the infrastructure of the Ford, the company implemented a configuration that is focused on TCP / IP communication on the U.S. Department of Defense supports the basic requirements. In those days, Ford was to serve files to the internal network, unlike many companies, the network is transmitted mainly by e-mail communications. During 1990, Ford has developed a process at low cost Global Enterprise Network Integration (genes) for all links sitesCompromise on the type of connection and wiring for the benefit of comprehensive coverage. At the same time, Ford building Web farm that began in essence a series of hardware and software are managed by a team to build the website of Ford public. The work began with the publication of documents for technical notes and drew pictures of a more advanced, auto shows. As a result, the site has received 1 million hits per day in less than 2 years after the official launch. While the end ofthe 90's, Ford established its web services, increasing the number of published information, the development of intelligent web applications and standards in a period of 12 weeks, the additional acquisition of the Netscape browser to be installed on computers of its users and the creation a B2B server, so that the provider of secure access to intranet Ford.

On the way to service costs and bring more business on the Internet, has worked closely with Ford's competitors in the U.S. market, General Motors and Chryslerto create what later as the "Automotive Network Exchange of" known (ANX), cert. The protocols that enable the delivery of a consistent level of communication on the Internet, sellers have the technology common to all manufacturers. In addition, Ford has focused on the provision of accessible information on its website and treat these benefits with the use of a team to complete the process of adding and updating information on an analysis of management, such as people with information. A final aspect ofFord goal was to try to model its infrastructure, which implements the model of Dell computers, construction to improve their supply chain and supply of safety. The direct model is not good for the automotive industry, as would working with computers as a result Ford was working on his reconstruction of the network of retail and investigations, which finally brings the added benefit of delivery.

Enterprise Architecture Issues

Expanding Ford Regional addressCompetition for the market share claimed costs for infrastructure upgrades
IT infrastructure limitations in the nature of the development of applications based on platforms
Easy access to information and rapid delivery of critical data for key personnel requires an adequate knowledge management organizations process reengineering and restructuring is necessary if the application of new technologies to cut costs and increase efficiency
Breaks the chain and delays can seriouslyImpact on the progress of activities and the market value of the company

Analysis

Infrastructure Upgrade

Since the inception of the Internet in 1960 was much effort to standardize how computers to get produced in collaboration. The year 1982 saw the International Organization for Standards (ISO), which during this time, many ad hoc network systems, have already been using TCP / IP for communication and then adapted as a standard in his model for theInternet [2]. The main driver for IP convergence at that time was the growth of data traffic over wide area networks (WANs) used by local businesses. Also in 1991 the Internet was opened for commercial use, and that lowering the total cost for the operation of the network to communicate with 1 million Internet hosts, which manage only a 1-year period called materialized. Intended as a telecommunications company AT & T, the potential and has worked for the standardization of the network providesVoice services over IP networks, the distinction between voice and data transmission [3] managed.

At the same time, Ford had started its intention to upgrade its infrastructure and took the opportunity offered by the global movement to integrate voice, fax transmission to the network with data transmission WAN and strengthened its operations in Europe and elsewhere . The financial benefits that came from the fact that Ford fit the TCP / IP from the beginning andensure that all its technical infrastructure upgrades in standards. This has made the transition from the Internet is a cost-effective, as could be.

Web Technologies

Intranet using hypertext and multimedia technologies on the Internet. Before 1989, when Tim Burners-Lee, inventor of the Web [4], used as standard application development languages like C and C + + to create desktop applications that are proprietary and dependentPlatform. For example, applications that run on the command line as the operating system based on UNIX, not Windows, and those for personal computers may not work on Apple computers, and vice versa, the work [5]. The invention of HTML (Hyper Text Markup Language) is a new model for applications that the rules of a single compliance program with the "Web Browser". Unlike standard applications, the browser is equipped with a standard interface, which has a very fast learning curve. Users seemnot require additional training to work with web browsers. In addition, administrators need to spend any time you try to install updates to users' computers ", as the Intranet client / server, all updates easier to connect to the Web server [6].

Since Ford set up its own intranet, was the goal, the creation of Web applications by analyzing first the "Mosaic", the first form of web browser. The engineering department of Ford is using web languagesTo create the first Web site in 1995. In 1996, the team began to build applications that use the standard "Netscape" browser, which was used on all computers in the company, and cuts to a standard model for the life cycle of development. There was a significant reduction of training costs through the user interface of web applications. He also represents the speed of the development of critical applications available to different individuals in society. For example, a B2B Web siteSuppliers and enables secure remote access to various sections of the intranet Ford. In addition, the development team has created a demand like a virtual teardown on the website of Ford when Ford's engineers could car parts in the test of competition and evaluate new technologies. The alternative would be a real journey in a physical place where the tears of Ford cars were tested on the parties.

Knowledge Management

While there are many definitions of knowledge, each companyto adjust, based on its own analysis, data and information on the acquisition of knowledge. The University of Kentucky, for example, defines knowledge as "an important organization resource. And 'the raw materials, work-in-process and finished good decision process. Various types of knowledge used by decision makers include information, techniques and heuristics , including ... "[7].

Organizations go through different activities that the amount of information collected to manage the formBasic knowledge of the company. Activities include the creation of databases of best practices and analysis of market information, the collection of data classification and filtering, integration of knowledge in business applications used by employees and the development of focal points to facilitate the flow of knowledge and capacity development [8].

Ford had received traffic on the website and each has been the publication of all the materials have been angry at his desk on the Intranet. However, there was agrowing concern about the applicability and usefulness of the material people have been added. As a result, Ford has created a Knowledge Domain-Team "to set the information in nine areas identified as critical to the economy. The process is Ford was based on surveys and specialist input, such as individuals receiving the information, and what is important and what is disturbing in the navigation structure of the Ford "The objective behind this initiative was to reduce the time spent individualsFinding information through appropriate indexing of site content and ensure that what was important could, in due course be called and what is trivial, does not overwhelm the researcher with thousands of results.

Business Re-engineering

In the area of corporate re-engineering of processes of innovation is the set of activities aimed at achieving significant improvements in business. Organizations benefiting from making the process of innovation by the regimeThe identification process, the agents of change, a vision, understanding of the process and the development of a prototype for the new organization. History shows that organizations are not the processes are defined correctly without problems management problems and development of factors of change [9]. If necessary, the introduction of technology, redesign business. Industrial areas were to redesign using information technology to the development, production control, andAdministrative material for generations. However, it is recognized only recently that the company that the merger of IT and business would continue the automation of a fundamental change in how business processes are carried out [10].

Understand whether foreign companies can compete in the U.S. market, that the activity of Ford in a competitive arena needs to implement strategies that competitors] is difficult to imitate [11 As a result, Ford bought Volvo of Sweden tips administration --The European market, and partly owned by Mazda for a competitive advantage with cars1 Japanese [12]. To achieve this goal, we re-engineered its production development and overall corporate organization and processes to reduce costs dramatically. Furthermore, it is understood that the expansion of cooperation and coordination needed, and so planned to create the IT infrastructure on a WAN are connected, that all the offices. In the process of innovation and re-engineering, Ford has setThe cost of measures establishing the network, to build models for the implementation of administrative continuity and meetings for the global alignment of all parties with the process. I would add that when it comes to managing the site, Ford is an awareness campaign for all sectors to understand that Ford uses the Internet to collaborate and research and adaptation of technology as a way to maximize the business value . Ford's goal was to maintain its leadership position inMarket and do so in the most efficient and cost-effective method out there.

Supply Chain Management

Supply Chain Management (SCM) on the coordination between suppliers, manufacturers, distributors, retailers and customers [13]. The basic idea that applications SCM turning around the provision of information for anyone in decisions about the product or the provision of goods involved in the supplier to the consumer [14 Administration]. Studies show that reducingIncrease of error in the distribution of the supply chain, revenue, increases productivity and reduces the order-commitment period [15].

Ford often compared the process of their supply chain that Dell, in an attempt to stop the gaps in their process and reach the level of success, Dell has achieved. The difference in distribution pattern between Dell and Ford is in collaboration with the retail sector. Since Ford can not jump, retail as a central point of distribution, which has worked on aNetwork of retail stores that are in their possession. Ford made sure stores are not interested in each other in terms of turnover and gave them a standard appearance to establish himself as a representative of companies in the retail consumer automobiles. In addition, extensive re engineering initiatives have been taken to Ford external network, improving the correlation with the smaller suppliers. In this way, Ford made sure that the key providers of data access to the customer forecastPurchase and information on trends in production to allow faster processing of orders for the delivery cycle. Ford's vision was to create a model that allows flexibility, predictable processes, and delivered the product at the right time for consumers rights.

Conclusions

Ford is an example of how traditional organizations can adapt to mature, which is up to date and maximize business value. The process that was necessary for the continued support of Ford management. Furthermore, itdepends on an agreement between the issue as a key to success. The correlation was not limited to internal employees, but extended to cover a competitor to achieve mutual benefits, working with suppliers to maintain the same reasons and the appropriate infrastructure and training programs for all vision and objectives can learn organization.

Ford technological progress came at a time when the Internet was not yet reached its full potential. The introduction of fiber opticlate 90s and the significant increase in bandwidth would have contributed to Ford and to support the cost of an average compound represented by their offices. In addition, the service provider, server hosting, but a few players, that is why Ford preferred to manage their Web servers and maintain the effort for the 24 hours of uptime and security, said limited.

From this case study, I realized the magnitude of the commitment large companies have to maintain their market position. These companieswho know how to make the revolving character of the business, in the sense of how easy it is, if not keep pace with the changes. The process of Ford also shows the need for fast thinking and resources in situations that might seem to be unfavorable. The way Ford ventured into overseas market with the acquisition of local producers has been a strategic decision, not only allowed Ford to merge different technologies, but also saved them the extra costs for the construction of production facilitiesCenters in Japan and Europe.

Recommendations

Nursing leadership in the market requires innovative companies willing to review in order to be successful.
IT: the concentration of corporate restructuring and the transformation of the role he would play in understanding the demands of justice in society
Design and modeling is crucial in coordinating the work with large groups.
The design of Web pages is not content, but to understand what adds value and how people interact withInformation.
Knowledge management is a plan, companies must develop, as part of their initial business process modeling
It is not wrong to seek for large companies, for proper implementation of adapted by other companies.

References

Robert D. Austin and Mark Cotteleer, "Ford Motor Co.: Maximizing the business value of web technologies." Harvard Business Publishing. 10. July 1997.harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml; jsessionid = WDARNHINBSYKSAKRGWCB5VQBKE0YOISW? id = 198,006 (accessed July 30, 2008).
Computer History Museum, the history of the Internet of the 80s. 2006 computerhistory.org/internet_history/internet_history_80s.shtml (accessed July 30, 2008).
Darren Wilksch and Peter Shoubridge, "IP Convergence in the telecommunications sector globally." Defense Science & Technology Organization. March 2001.http://www.dsto.defence.gov.au/publications/2400/DSTO-TR-1046.pdf (accessed July 30, 2008).
Computer History Museum, the history of the Internet of the 80s.
Joseph H. Wen, "From client / server, intranet. Information Management & Computer Security (MCB UP Ltd) 6, no. 1 (1998): 15-20.
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David J. Skyrme, "Knowledge Management Solutions - making IT contribution." ACM SIGGROUP Bulletin (ACM) 19, no. 1 (April 1998): 34 to 39, 34
Thomas H. Davenport, Process Innovation: Reengineering Work Through Information Technology (Watertown, MA, Harvard Business Press, 1993), 28
Thomas H. Davenport, "The New Industrial Engineering: Information Technology and Business Process Redesign." Sloan Management Review 31, no. 4 (Summer1990): 11-28, 12
Gary M. Erickson, Robert Jacobsen and Johny K. Johansson, "The competition for market share in the presence of strategic assets Invisible: The United States market cars, 1971-1981." International Journal of Research in Marketing (Elsevier Science) 9, no. 1 (March 1992): 23-37, 23
Austin Cotteleer, "Ford Motor", 2
Henk A. Akkermans, et al. "The impact of ERP on supply chain management: results of an exploratory Delphi study of the European Community. European Journal of OperationalResearch 146 (2003): 284-301, 286
Thomas H. Davenport and Jeffrey D. Brooks' business systems and supply chain. " Journal of Enterprise Information Management 17, no. 1 (2004): 8-19, 9
Kevin B. Hendricks, Vinod R. Singhal, and Jeff K. Stratman. "The impact of enterprise systems to business success: a study of ERP, SCM, and CRM system implementations." Journal of Operations Management 25, no. 1 (January 2007): 65-82.

Air ForceCivil Engineer CIVIL ENGINEERING INFRASTRUCTURAL

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