Automobile Industry and Information Technology Essay

Automobile Industry and Information Technology - Essay Example Technology has been a part of automobiles, in one form or another, for quite some time now. In the 1960s and 1970s the typical 'backyard mechanic' could invariably be found tinkering on his pride and joy - his car. Whether it has brand new, or a collector's item, the fact was that just about anyone with any mechanical aptitude at all and a set of wrenches could do any number of standard repair jobs on a vehicle back then. But, times have certainly changed - and it happened before we even knew it. Where once, you could open a car hood and identify just about everything under there, today, you might just as well be looking at components of the space shuttle. It started small enough - a computer brain to control some of the car's basic functions. However, to even attempt to perform any repairs on a modern vehicle, practically requires a degree from MIT. Of course, technology has surpassed merely the practical applications to improve performance. The sagging automobile industry has also been turning to the field of information technology to find ways to improve sales. ... With so much competition, foreign and domestic, the consumer has more choices today than ever before - and they know it. A customer will not simply purchase the first thing they see, but will compare and contrast makes and models - as well as features and accessories. Not only do consumers want options on their vehicle, they are also demanding options in ways to make the purchase. Enter information technology. 1.1.2 Entering the auto industry's second century, there are clearly powerful signs of change that could foretell the next dominant production standard. At the core of many of these changes is the Internet, which is already transforming how information is used and how coordination is managed in this most complex of industries. According to Holweg and Pil, in a book published by MIT Press in 2004, E-business offers tremendous potential for reducing waste and inefficiency, redistributing activities along the value chain, and providing new means for collaboration. These benefits will become evident in product development, procurement, manufacturing, and distribution separately, but the greatest impact will result from end-to-end integration of the value chain, from the final customer back to initial product planning. Consumer desires for customization will challenge the industry's long-established push approach to distribution and sales. As expectations are raised by information technol ogy experiences in other parts of their lives, e-powered consumers will be drawn towards build-to-order models where they play a co-design role and production is pulled by real-time information about their preferences (MIT Press 2004). 1.1.3 For both the manufacturer and the dealer, this opportunity is substantial. By better