Information systems of ford motor company

Information systems of ford motor company Since Information System is a concept for competitive advantage which defined in the early 80s, there are lots of companies invested at information technology. Until now, there is a survey shows that information technology investment is being more and more in every company. It is showing that, Information system is a foundation for conducting business today. In many businesses, survival and the ability to achieve strategic business goals is difficult without extensive use of information technology. It is because information technology can help a company more easy to gain competitive by achieving operational excellence, developing new products and services, enhanced customer and supplier intimacy and exploiting digital markets. So nowadays, information system is very important for every company. This essay will discuss how useful of information system in business, by using Ford Motor Company as an example which using information system to enhanced customer and supplier intimacy in customer relationship management system (CRM). Ford Motor Companys organization and environment The Ford motor company was formed in 1903 by Henry Ford whose aim was to provide the people with a cheap and affordable car that any middle class employed person could own. Ford Motor Company is a famous company which selling automotive. It is also a global automotive industry leader based in Dearborn, Michigan. It manufactures or distributes automobiles across six continents. In 1995, Ford had embarked on an ambitious restructuring plan called Ford 2000, which included merging its North American, European, and international automotive operations into a single global. Ford 2000 helps company reduce the cost by reengineering and globalizing corporate organizations and processes. The major reengineering projects were initiated around major company processes such as Order to Delivery (OTD) and Ford Production System (FPS), with goals such as reducing OTD time from more than 60 days to less than 15 days. Ford also launched a public Internet site in mid- 1995; by mid- 1997 the number of visits to the site had reached more than 1 million per day. A companywide Intranet was launched in mid- 1996. And by January 1997 Ford had in place a business-to-business capability through which the Intranet could be extended in a secure manner beyond company boundaries into an Extranet potentially connecting Ford with its suppliers. Ford teamed with Chrysler and General Motors to work on the Automotive Network Exchange, which can help suppliers to manage different means of interaction with each automaker to be consistency in technology standards and processes in the supplier network. In the supply chain area, there was general agreement that information technology also could be deployed to dramatically enhance material flows and reduce inventories, substituting information for inventory, as the expression went. So in the plan of Ford 2000, for meeting the aim on reengineering projects, having a nice supply chain management systems and customer relationship management systems can help the company more close to suppliers and customers which can easy to reduce the cost on order to delivery system and ford production system. As that time Internet revolution unfolded in parallel, Ford Motor Company created new possibilities for reengineering processes within and between enterprises by using Internet. Fords Existing Supply Base The existing supply base was in many respects a product of history. Start in early 1990s, Ford had begun to try actively to decrease the number of suppliers the company dealt with directly. Rather than using a large amount to buy individual components, it shifts to have long-term relationships with a subset of very capable suppliers who would provide entire vehicle subsystems. By doing that, Ford can easier to have a well link with major suppliers which can help Ford easier to improving a range of techniques such as just-in-time and total quality management. Ford Motor Companys SCM and CRM technology of Information system Ford Production System In restructuring plan, Ford 2000, the most important is reengineering projects; one of these projects is Ford Production System, it is an information system to achieve a close relationship to suppliers. Its aim is that improve the process on making motor to be more pull-based system, with synchronized production, continuous flow, and stability throughout the process. To achieve that, Ford could tell suppliers exactly when and where certain components would be needed days in advance, and buffer stocks thus could be reduced dramatically. If this system can work successfully, the benefits would be felt throughout the supply chain. Order to Delivery For another key process Ford reengineering projects is looking for improve the customer relationship management system. The information system to do that is Order to Delivery, the purpose of this system was to reduce to 15days the time from a customers order to delivery of the finished product. The Order to Delivery vision was to create a lean, flexible, and predictable process that harmonized the efforts of all of Fords components to enable it to provide consumers with right product in right place at right time, which means that it can help Ford Motor Company meet the just-in-time technique. By achieving Order to Delivery, Ford believed that it would provide better quality, higher customer satisfaction, improved customer selection, better plant productivity, stability for its supply base, and lower dealer and company costs. Ford Retail Network On 1 July, 1998, Ford Motor Company launched the first of its Ford Retail Network ventures in Tulsa, Oklahoma, under the newly formed Ford Investment Enterprises Company. The principle of Ford Retail Network was that giving consumers the highest level of treatment and create an experience they would want to come back to again and again. The showrooms would be consolidated to focus resources on creating a superior selling experience, while the number of service outlets would increase to be closer to customer population centers. Then Ford can reduce the cost on advertising as well as more and more on using Internet to provide the service to the customers as the information system can analysis the needs for customers effectively. Using SAPÂ ® software Until now, Ford not only just follows the web-site to provide the service to customers, for achieving total supply chain visibility in real time, increasing dealer and customer service satisfaction and minimizing costs, especially ongoing IT costs, Ford also using SAPÂ ® software, to improve the performance on supply chain management and customer relationship management. Business models for Ford Motor Company Three generic strategies Cost Leadership Under Porter (1985), he regarded the selection of a defendable position within an industry as the end result of a competitive strategic analysis. He argued that successful, profitable companies generally choose to compete on either low costs or by differentiating their products to meet specific customer needs. Although these two strategic options are mutually exclusive, he added a third category of firms as niche players that serve a specific market or product segment. Porters three generic strategies are: cost leadership, differentiation and focus. Henry Ford was a farmers son whose manufacturing genius transformed life around the globe (Ford Motor Company, 2010). So that Ford Motor Company is following the business models which Henry Ford want to be. It is the cost leadership. In the automobile industry, Ford Motor Company can meet its business model, cost leadership. As Porter (1985) stated that cost leadership is about being the lowest cost producer in the industry. For an organization to gain competitive advantage, it must achieve overall cost leadership in an industry it is competing in. To lowest the cost, there are many techniques and methodology for organizations to use. Among the popular and successful techniques used by successful organizations worldwide in enhancing quality, productivity, lowering cost are six methodology, Total Quality Management (TQM), Benchmarking Competitors, Just-in-Time (JIT), Supply Chain Management (SCM), Total Productive Maintenance (TPM) and MRP solutions. When Ford Motor Company developed the information system, it is easier to achieve this business model. It is because Ford using information system to improve the relationship to customers and suppliers. Ford develop the Ford Production System can help it to improve Supply Chain Management system to be a competitive advantage. And also, the Order to Delivery system can reduce the time, which means Ford can easier to achieve the just-in-time techniques. Not only these two reasons, but also the major reason of Ford can achieve this business model, cost leadership, is that Ford through developing information system to get a power on using a cheaper price to buy the material from suppliers. By that, Ford can reduce the cost effectively, thats why Ford Motor Company can achieve cost leadership. Ford developed the information system is focus on enhanced customer and supplier intimacy, it is looking for what customers want to, not for what company what to develop. So that means, Ford is not just focus on narrow target. It is because different customers need different type of cars. Value Chain Porter (1985) stated that value chain model is a systematic way of analyzing all the firms activities and evaluating how they interact with each other. Such an examination is necessary in order to identify potential sources of competitive advantage. For Porter, the value chain can be consisted for five primary activities (including inbound logistics, operations, outbound logistics, marketing and sales, and service) and four support activities (including firm infrastructure, human resource management, technology development and procurement). The value chain of the Ford Motor Company is not all that different from other manufacturers in the automobile industry. However, when Ford Motor Company developed information system, it helped Ford to improve its value chain. In one of support activities, Procurement, Ford through its information system, Ford Production System, to improve the relationship of suppliers, it is not only helping Ford to reduce the cost for buying material, but also working closely with its suppliers to eliminate waste and thereby lower costs for both organizations. This should be a win-win situation for both companies and should help lift Ford from its near-last ranking in supplier relations. The next activity for information system to improve is technology development. Ford through the information system, Ford Retail Network, to understand the value of consumer input and what consumer needed, which can help Ford easier to design a successful modern design technologies. They have initiated tailoring design models after public demand. This method has proven highly successful in recent financial periods. Marketing is also a very important aspect of the Ford. By using Ford Retail Network system, Ford has been working together with dealers or buys all dealers to collect more information to create marketing strategies that help boost sales. This is proven to be the primary basis for the consumers perceived values. Ford has also teamed-up with Caterpillar Logistics and SAP to improve warehousing and its Daily Parts Advantage network for getting spare parts to their dealers. Their hope in partnering with Cat Logistics was to secure a partner with expertise in the automotive supply chain, laying a foundation for development of a new information system. The goal was to obtain end-to-end visibility of service parts, increase the speed of time to market, optimize inventories at each location, and do a better job serving the customer (Supply Chain Brain). Along with Cat Logistics and SAP, Ford is also using an SAS platform that supports customer relationship management (CRM). This SAS platform enhances Fords existing customer relationship database and provides a powerful base for information analysis, data mining and predictive modeling thus enabling highly effective reporting, trending, segmentation, customer scoring, and customer life-cycle analysis all of which support key activities for CRM. As information system can improve lots of activities in value chain, it can help the company to gain the competitive advantage. Problems and challenges in the development of the Information System When Ford Motor Company developed the information system, it needs to face lots of challenges. Here are some of them. Costly and timely As Ford is a large company, it is very costly on developing information system. There are complex pieces of software which Ford developed to achieve its competitive advantage. To develop these large system, Ford need to spend its recourses. Not only the cost on buying software and hardware of the system, but also other cost such as consulting fees, personnel costs, training. Also, most of them need to spend time to develop. For Ford Motor Company, it has large team on Information Technology, which needs to hire lots of employees to work. There are costly on the salaries and also it needs spend over one mouth to train the employees to understand the system and use the system. As Ford adopts an enterprise application from SAP, it is very costly to switch SAP and it become dependent on SAP to upgrade its product and maintain its installation. Hard to collect information Some of the information systems which developed by Ford focus on supply chain management. These systems require multiple organizations to share information and business processes. It is difficult for each participant to change of its process and the way it uses information to create a system that best serves the supply chain as whole. Also, there are different policies in different company; Ford cannot collect the information fully for its suppliers as some of the information may be the secrecy. Hard to handle the technology As the technology of information system such as internet is growth quickly, it is not easy for Ford Motor Company to understand clearly about the technology, it will be a risk on losing money when develop that technology. So when developing the information system, Ford needs to make sure it understands what is its usage clearly. Conclusion In short, Ford uses information technology on business manager, SCM and CRM, for enhanced customer and supplier successfully. It can see that information system can help Ford achieve its business model. Nowadays, every company will develop the information system to achieve competitive, most of them have the e-business, too. It is surly that information system is a very useful and major tool to help company to meet their aims. However, it does not mean have information system can help the company to do a successful business, because the most important is that company have a correct business strategy. As the example on Ford, its business model is cost leadership; it is a great competitive advantage at early 1900s when Ford provided Model T cars. However, following the change of environment, it is not work now. So, if a company want to achieve competitive, it is not only focusing on develop information system, but also focusing on the business strategy.

Leadership Profile Essay

When examing what makes a good leader you can ask a very simple question, what I believe to be a very important factor, which is, do they have passion in what they do? Leaders in business today have to have a passion for what they do in order to make a successful and influential leader. The success of any company is only as great as the employees on the forefront make it. Transformational leadership is a form of leadership that occurs when leaders ‘broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and the mission of the group and when they stir their employees to look beyond their own self-interest for the good of the group† (Bass, 1990). Transformational leadership has the ability to generate a higher commitment to the company from its’ employees. I believe that Sam Walton, the Founder of Walmart had this ability. Walmart as we know it today evolved from Sam Walton’s goals for great value and great customer service. â€Å"Mr. Sam,† as he was known, believed in leadership through service. This belief that true leadership depends on willing service was the principle on which Walmart was built, and drove the decisions the company has made for the past 50 years. So much of Walmart’s history is tied to the story of Sam Walton himself, and so much of our future will be rooted in Mr. Sam’s principles† (Walmart, 2012). You can see this principle the moment that you walk in to any Walmart store. There is a greeter there to meet you everytime. Sam Walton made sure that from the time that you walked in the door that you had great customer service experience. Not only will it make the customer feel welcomed, but it will also help repeat business. To obtain this type of customer service level, the leader behind the scenes needs to create â€Å"buy ‘in† from their employees. The employees need to believe in what they are doing and understand the goal of the company. One of the towering strengths of Sam Walton was his unique ability to gain the trust and support of the people around him. He called his customers â€Å"neighbors† or â€Å"guests† and he referred to the managers in his company as ‘coaches’† (Bergdahl). The first Walmart was opened in 1962 and by 1970, the company went public because of how much it had grown. This is a true testament of a good leader having a clear vision of what he wants for his company and what he expect from the employees. His vision alone is what makes him so effective. He believed that offering lower prices and greater customer service can make all the difference to a business. Seeing the success of Walmart proves this theory. Employees easily understand the goal of the company. They too benefit from the lower prices. According to Michael Bergdahl, author of The 10 Rules of Sam Walton, Sam Walton was a man who had a vision, never gave up, and was optimistic. These are just a few of the characteristics of Sam Walton that have affected many people. â€Å"Walton also a leader who close to the employees. Often vanity top executives has led to the collapse of a company. They tend to build a distance (gap) with front-line employees. The bigger of the company, usually the greater the possibility of these leaders have lost contact with the front-line employees. But not so with Sam Walton, he was a leader who humble and modest. Throughout his life, he often visited the front lines of every store. Sam Walton’s leadership style is close to the employee coloring corporate culture of Wal-Mart today† (Bergdahl).

Essay on Analysis of Comparable Worth and the Common Good

The Federal Government has been struggling for almost four decades now to close the gap between the wages of men and women. In the 1960s, women were paid approximately 60 cents for every dollar men received for their work. Although progress has been made since Congress passed the Equal Pay Act in 1963, equality has not yet been achieved. Today, thirty-six years later, women still earn only seventy-six percent of the wages of men. Early studies found convincing evidence that women were being construed as inferior when it came to their work. Jobs that were dominated by women were paid less than male-dominated jobs, not because they were intrinsically worth less, but because they were dominated by women (Treiman Hartmann, 1981:93;†¦show more content†¦Jobs are judged similar, thus comparable, based on composite ratings of requirements such as skill, effort, responsibility, or other factors valued by an organization. All in all, comparable worth is necessary because discriminatory pay practices of the past were not fully addressed by equal employment opportunity legislation, and thus effects have been perpetuated by conventional pay administration practices (Taylor, 1989). Comparable worth rests on the theory that pay differentials are caused by sex discrimination. It proposes that sexual segregation in jobs has unjustly depressed women workers wages. According to Wittig (1989), we may look at how this segregation has contributed to the wage gap from two viewpoints. Firstly, a significant portion of the sex pay gap has undoubtedly been caused by job placement discrimination, which has placed women into less skilled, less demanding jobs. Secondly, the gap may be caused by female jobs being assigned lower pay, even when the jobs require skill equal to that in male jobs. There are several ways that this discrimination may be sustained: 1) job segregation related to prejudice by employers, consumers, and co-workers; 2) devaluation of jobs performed primarily by women and minority men; and 3) women and minority mens job choices, assertiveness about pay, and other group tendencies (Wittig, 1989). So, how does one go about achieving comparable worth in their organization, you may bee wondering? First, a method must beShow MoreRelatedFinancial Management Of The Healthcare Organization1371 Words   |  6 PagesRatios Analysis Raven Washington MHA 612: Financial Managerial Accounting Professor Jack Lazarre October 27, 2014 The financial management of the healthcare organization needs to handle financial matters carefully in order to perform well. 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My Diary Essay - 2074 Words

My Diary October 11, 1950 I found the diary of my girlhood journey and new life in America yesterday. I feel that the story and lesson I learned from it are priceless and should be told; therefore I am publishing this collection of deep innermost thoughts from my youth for you to read and enjoy. It is my hope that you can look at your life and realize all the things there are to be thankful for. It seems like just yesterday I was first coming to America. I can still clearly feel the wonder and astonishment that rushed through my body that day at the sight of America. The tall buildings aligned with the horizon welcomed me to my new†¦show more content†¦Dad said that people share a tenement like this with other families, but at least we have only the four of us to live here. October 20, 1900 First thing in the morning my family and I went to a tailor to have new clothes made. The clothes are hues of blue and gray, much brighter then the drab brown and white I am used to wearing. Dad says that these clothes are American, and well all fit in better with them because no one will know we just came from Germany. I like the thought of looking American. Dad also said that Emily and I could begin school the following week. I was truly excited after hearing that! School has always been fun for me! Dad will be going to look for work next week. He owned a shop in Germany where he made furniture. Dad was quite famous for his quality furniture, so I am sure he will have the same success here. November 20, 1900 I have been so busy with new friends and school! Im making many friends here, just like I had in Germany. School is a little hard because I came half way through the year, but my teacher said that I should have no problem catching up. Dad was unable to find any work making furniture, but he found work in a shoe factory. He explained to my sister and I that he wont be making much money, but after he saves money for a while he will open his own store. 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