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Auto Industry Accelerates Toward E-Business

28 August 2000

Auto Industry Accelerates Toward E-Business, But the Road Ahead is Unclear

              CSC and Automotive Industries Second-Annual Survey
                     Examines IT Issues in Auto Industry

    EL SEGUNDO, Calif., Aug. 28 Automotive industry executives
are quickly realizing the importance of the Internet, but are uncertain how to
make e-business technology work for them, according to a survey sponsored by
Computer Sciences Corporation and Automotive Industries.
    According to the survey, which polled more than 200 senior-level
executives representing a cross-section of the global automotive industry,
60 percent of the participants report that their corporate leaders now view
information technology (IT) as an investment, rather than a cost -- up from
50 percent in 1999.  However, "determining the appropriate use of e-business"
tops the list of technology issues cited by these respondents.
    Faced with a broad array of strategic possibilities, e-business investment
decisions are rising to the CEO level.  The impact of the Web's explosive
growth and consumers' desire to sit in the driver's seat have also prompted
senior executives to take a greater role in developing their organizations'
e-business strategies.  E-business presents great opportunities, but success
will hinge on determining how, when and where to apply new "e" technologies.
    "Companies know that e-business gives them a chance to make a fundamental
shift in their approach to the market with respect to both consumers and
suppliers," said Bob Baxendale, principal and automotive industry expert in
CSC's Consulting Group.  "Most realize that all systems -- including
enterprise resource planning, customer resource management and product data
management -- are evolving into e-business, so e-business is no longer a
separate discipline.  However, the question that 88 percent of survey
respondents are trying to answer today is, 'How do we put this technology to
its optimal use?'"
    According to Baxendale, the real issues are the ability to focus on the
consumer and seamlessly link people, projects, systems, departments,
supply-chain partners, dealers and customers to fulfill consumer requirements.
    "Connectivity and information transparency are the keys to full
supply-chain integration," Baxendale said.  "In order to deliver
consumer-centric results, these critical elements must be integrated into all
business processes, including product data management, data warehousing,
workflow management, quality control, enterprise resource planning,
manufacturing systems and, of course, customer relationship management."
    Supply-chain integration continues to be the common theme for achieving
cycle-time reduction, as well as making significant vehicle order-to-delivery
time reductions.  However, there are many other benefits, including improved
planning process, reduced costs, lower inventories, improved quality, and
increased responsiveness to consumers' requirements.
    The second annual "Information Technology Issues in the Automotive
Industry" survey is an in-depth report on the changing role of IT as it
relates to the strategies and initiatives of auto companies worldwide --
including systems, part and after-market suppliers, distributors and vehicle
assemblers.  A summary of the report can be found at
http://www.csc.com/econsult/auto.