ADL Automotive Executive; Current Topics for Senior Management "Autos and the Net"

Spring | 2000 Automotive Executive Current Topics for Senior Management Autos and the net. ADL specialist Jochen Funk looks at the potential of the net from an industry standpoint. Could GM become an acquisition target for AOL? Evolution rather than revolution characterises the motor industry as a whole. Whilst the sophistica- tion of production methods at every level of supplier and manu- facturing quality have risen to impressive heights, the response time to changing customer habits is slow and development times lengthy. Motor sales and services traditionally comprise a network of specialist medium sized car dealers who know how to push the product to the market. The current overproduction in the car industry, however, should make a transition to market-pull strategies mandatory. This will prove challenging. "Evolve to survive in the E-Business revolu- tion" was the strong call made by Lorenzo E-Business Be involved or watch the Lamadrid, CEO of competition get ahead. How do you shape up? Jochen Arthur D. Little at the Funk examines the present and potential future, including World Economic Fo- mobile commerce ......................................... Pages 1 - 2 rum. "Management teams who do not Digital Marketplaces embrace and exploit the new technologies will soon see their business out-performed by start-ups who have a more & E-procurement mature level of thinking." Innovation in e-business examined by Dr. Wolfgang Bernhart ................................................................... Page 3 Set against this traditional pattern, the pioneering enterprises of the E-Business age are flexible, take fast decisions and pro- Brand-consistent mote entrepreneurship at every level. This has brought them Behaviour The next major battleground. quickly into the realm of global service providers. Their re- markably rapid ascent has led to a stock market capitalisation Ralf Landmann looks to improve your frontline´s perfor- that enables them to raise equity funds rivalling the capacity mance......................................................................... Page 4 of well-established industries. (cont. page 2) Arthur D. Little Automotive Executive Spring | 2000 Waking to new potentials vices. Here, planning and production You have in This awoke the interest and appre- can be optimised so that a new pro- your hands the hension of the quicker think industry duct, web cars, specifically made to first edition of executives. As Mark Hogan of GM´s be sold over the web, can evolve. the Arthur D. new E-Business unit states: "We've Little Automo- The fourth and currently final sector come to realise that if we don't move tive Executive. is where the entire business model with Internet speed, we could be- It is a basic can shift. While the car is likely to come extinct." With the writing so distillation of remain the core of the offering, other prominently upon the wall, what can some of the expertise we have gained services can be included. the industry do? over many years, and from many pro- At this level even payment becomes jects, applied to current matters affecting In effect, there have been four steps open to change, perhaps with sub- the motor industry as a whole. It is our so far in the inter relationship be- scribers opting for a monthly paid intention to publish the Automotive tween the car makers and the net. total mobility and communications Executive every three months. The next Initially, manufacturers created web package. A situation which seems tai- issues will be sent to you by e-mail – if pages using multiple choices and 3D lor made for companies already you return the attached fax-notice or virtual showroom technologies, ideal- send us an e-mail. Push to get the internet into the car Source: Durlacher, Arthur D. Little In the meantime, on behalf of all the Enormous rise of mobile users New Services and Business automotive staff at Arthur D. Little, may I 800,1 million wish you good reading and prosperous 23 billion Euro 6% Entertainment business.