Ford Connecting to Consumers Via E-Business Initiative
16 September 1999
Ford Connecting to Consumers Via E-Business Initiative FORD - CONSUMER-CONNECT The Scope of Ford's consumer-connect. Internet consumers seek automotive-related information and transaction capabilities from a variety of sources. Ford's integrated strategy connects with consumers through multiple touchpoints. (PRNewsFoto)[KC] DEARBORN, MI USA 09/15/1999
DEARBORN, Mich., Sept. 15 -- As part of its drive to become
the world's leading consumer company providing automotive products and
services, Ford Motor Company is establishing a new global enterprise
to connect to its global consumers. This entity will be responsible for all
direct consumer interfaces, working very closely with Ford's dealer body. Ford
Motor Company's consumer-connect group will expand Ford's relationship with
Microsoft and Trilogy and utilize their specialist skills to make Ford the
leading automotive on-line consumer company. The new enterprise will be
headed by Ford Vice President Brian P. Kelley, a recent recruit from General
Electric.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990915/DEW020 )
"Our consumer-connect business has a totally integrated strategy to reach
the consumer in conjunction with our dealers at every touchpoint. We already
lead the industry with Ford.com rated as the number one site. Ford was the
first to make exclusive agreements with community sites, such as iVillage and
Digital Entertainment Network, and was the first manufacturer to take an
equity stake in an all-makes site," Kelley said. "Ford continues to be at the
forefront, integrating our global e-commerce activity from the consumer back
through the entire supply chain, including linking our Customer Assistance
Centers and in-vehicle communications."
This new business unit will combine retail dealer and e-commerce activity
to provide a completely satisfying consumer-focused ownership experience. It
will also integrate Ford's global e-commerce activity from the consumer
purchase through Ford's entire supply chain.
"There's a revolution underway in the automotive industry -- and the
consumer is driving it," said Jacques Nasser, Ford Motor Company president and
chief executive officer. "Ford intends to stay on the cutting edge and be the
global on-line leader."
Ford is partnering with two of the world's leading technology firms to
achieve its objectives. Microsoft, the premier software solutions provider,
will develop the systems architecture for all web-based platforms. Trilogy
Software, a leading provider of enterprise class e-business solutions, will
provide the multi-channel commerce applications to facilitate the consumer
experience between Ford, the dealer and the consumer. Speed and agility in
responding to market demands was key in Ford's decision to partner with these
two leading-edge organizations.
"Working with these two leaders over the past year has opened up great
opportunities," said Kelley. "We are well on our way to delivering an
unprecedented consumer experience."
Ford was the first automotive manufacturer to include its family of brands
on a single home page, allowing consumers single-click access to the Aston
Martin, Jaguar, Volvo, Lincoln, Mercury, Ford and Mazda brands. Ford.com is
already a leading automotive destination, with more visits than any
manufacturer per month, according to MediaMetrix. Ford.com provides the
consumer with a complete pathway from the shopping experience through the
purchase, use and maintenance of their Ford vehicle.
In addition to providing the customer with easy access to our products,
the site was also designed to meet the needs of investors, media, motor sport
enthusiasts and even job hunters.
Ford Motor Company's consumer-connect strategy also includes the
BuyerConnection, OwnerConnection and DealerConnection sites. "Providing e-
commerce technology to our dealers will keep them on the leading edge," said
Robert Rewey, Ford group vice president of marketing, sales and service.
"Partnering leading edge technology with our dealers will provide two-to-one
marketing. It's a winning combination -- over 35,000 fast quotes per month
are sent to Ford and Lincoln Mercury dealers."
Using DealerConnection, consumers can find a participating dealer in their
neighborhood quickly and easily, review dealer-posted inventory, take
advantage of service specials, and in some cases make on-line appointments for
sales or service needs. In addition, Ford is leading industry efforts to
strengthen on-line consumer relationships with dealers and Customer
Relationship Centers. According to Business Week, Ford Motor Company has used
the Net to boost sales per employee some 25 percent over five years.
BuyerConnection provides consumers with a turnkey system that allows them
to virtually construct the vehicle of their choice, request a quote from a
local dealer, and apply for credit and insurance -- all in one seamless
process. With BuyerConnection, Ford Motor Company became the first automaker
to offer an online "request-a-quote" system nationally.
OwnerConnection was designed to develop a virtual community of owners with
whom the company can establish an ongoing relationship. This site is an
electronic forum that helps gather feedback from current owners while building
long-term relationships.
Ford owners can take advantage of it in a variety of ways. For example, in
addition to providing a process for two-way communication, it provides
maintenance schedules through Quality Care; provides a direct link to special
offers from Hertz; and connects the owner to other Ford resources. This
interaction allows Ford to gather customer data, study owner profiles,
identify problems, better address customer needs and improve customer
satisfaction, providing valuable insight about Ford consumers -- all with the
speed, efficiency and cost effectiveness of the World Wide Web.
Ford Motor Company was also the first OEM to establish exclusive
relationships with Internet community sites. Ford is an exclusive partner of
iVillage, the leading on-line women's site, and a charter sponsor of Digital
Entertainment Network (DEN), targeted at the Generation-Y audience. "These
community sites offer us the opportunity to connect with consumers in their
own electronic neighborhoods, in areas of interest to them," Kelley said.
In addition, Ford was the first automotive manufacturer to take an equity
stake in an all-makes automotive site, Carclub.com. Carclub.com has
established an on-line niche providing unique automotive-related products and
services to its club members.
Together, these web sites create a unique relationship model in which the
Company and dealers are united to serve the consumer; delivering value-added
content and functionality for comparison and purchase of Ford brands, products
and services. These sites also serve as a platform to harvest robust, real-
time consumer data.
Development and marketing of in-vehicle communications will also be part
of this new business unit. Today, interactive Web-based solutions coupled
with global positioning system (GPS) technology offer the potential for in-
vehicle products and services to substantially enhance the consumer
experience. This initiative reinforces the bond between Ford and its
customers by providing ongoing and frequent customer touchpoint opportunities.
Ford has also been recognized as a leader in e-commerce initiatives
involving its supply base. The Ford Supplier Network (FSN), underway for more
than two years, enhances Ford's dynamic trading position by delivering real-
time product development, manufacturing and quality data to more than 16,000
users at 1,800 suppliers. For example, a recent on-line bidding process for
selected fasteners saved more than 20 percent on Ford's purchase cost in a
matter of minutes.
In addition, Ford global manufacturing plants have common logistics
processes and IT systems to integrate the supply chain, manage inventory and
improve manufacturing operations that will be leveraged through the
development of a complete Internet supply chain architecture.
"Our focus is not on delivering e-business to Ford -- it's already here in
full force," Kelley said. "My focus is on ensuring that our eye remains on
fulfilling consumer needs and that e-business delivers shareholder value."
Kelley, Ford vice president and chief executive officer of this new
business venture, was vice president and general manager for sales and
distribution with General Electric's Appliance division prior to joining Ford
in July. Before his five year stint with GE, Kelley spent 11 years with
Proctor & Gamble, serving in various brand management positions. He is a 1983
graduate of Holy Cross College, where he earned a bachelor's degree in
Economics.
Note: The Intranet also plays a key role in making business practices
more efficient, effective and robust within Ford. Ford has won a number of
awards for its integration of its Internet into day-to-day business practices.
Approximately 110,000 employees are linked by Ford's Intranet, with more than
80 percent logging on daily. All employees receive a weekly state-of-Ford
message from Nasser. On average, Nasser receives about 200 suggestions and
comments each week. More than a half-million product-design resources,
production-management tools, and strategic-information assets reside on Fords
massive Intranet.
Best Practice Replication (BPR) is a web-enabled business process that has
helped Ford replicate proven practices around the world. Best Practice
replication is a business process for the collection and approval of high-
value, proven practices that can be replicated or copied across many plants or
functional areas of an organization. BPR has identified approximately $900
million of value and delivered over $590 million in value since the program
started in 1996. Over 2,700 proven practices have been collected and have
been replicated more than 4,200 times thus leveraging a proven business
improvement to its greatest extent. BPR is deployed in 19 countries, and is
used at over 100 Ford locations that include 85 manufacturing plants, Customer
Service Distribution Centers, and sites in Product Development.