BUSINESSWEEK ONLINE : FEBRUARY 28, 2000 ISSUE
INFORMATION TECHNOLOGY

Ford's Net Strategy: Where the Rubber Meets the Information Highway


Ford has launched an e-business strategy to rewire the auto maker. The ultimate 
vision: To use the Net to do everything from ordering a car to linking 30,000 
suppliers. Here is the game plan:


WHAT                HOW

RETAILING           Set up BuyerConnection Web site
                    and joined MSN CarPoint site, where
                    consumers can order custom-
                    assembled cars, track their pro-
                    gress, and apply for financing.

CUSTOMER            OwnerConnection Web site lets
SERVICE             owners get online help, manage
                    their warranty service, and
                    check on financing.

SUPPLIERS           Launched auto-exchange Web site
                    for online purchasing and swap-
                    ping of information between
                    30,000 suppliers and 6,900
                    dealers.

MARKETING           Teaming up with Yahoo!, TeleTech,
                    CarPoint, iVillage, and bolt.com to
                    monitor the interests and buying
                    patterns of Web-surfing customers.

DIGITAL             Equip new cars with Web
DASHBOARD           access, satellite phone services,
                    and e-mail capabilities.

FINANCING           Shift more of the activities of
                    Ford Credit to the Net for
                    online financing and collections.

WIRED               Offering all 350,000
WORKERS             employees a computer,
                    printer, and Net access for
                    $5 a month.


WHAT                GOAL

RETAILING           Reduce working capital by shrink-
                    ing excess inventories and wipe out
                    costly rebates needed to move
                    unwanted cars off dealer lots,
                    thus saving up to $650 per car.

CUSTOMER            Improve service with 24-hour
SERVICE             access. Gather better data on
                    customer problems. And cut costs
                    with automated help.

SUPPLIERS           Save up to $8.9 billion a year in
                    discounts and reduced transaction
                    costs on parts, raw materials, and
                    supplies. Speed data exchange
                    with partners while collecting up to
                    $3 billion a year in exchange fees.

MARKETING           Improve factory efficiency by
                    anticipating customer demand.
                    Funnel data on customer
                    preferences to car designers.

DIGITAL             Make Ford the carmaker for an
DASHBOARD           Internet generation. Collect millions
                    of dollars in fee-based services.

FINANCING           Cut service costs by 15% to 20%,
                    while boosting revenues by reaching
                    new customers.

WIRED               Makes the workforce Web-savvy so it
WORKERS             will quickly adopt the Internet initi-
                    atives, while enabling the CEO to
                    send weekly e-mail to employees.


_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

BACK TO TOP
RELATED ITEMS
At Ford, E-Commerce Is Job 1

TABLE: Ford's Net Strategy: Where the Rubber Meets the Information Highway

Fear and Loathing in the Showroom



INTERACT
E-Mail to Business Week Online

 
Copyright 2000-2009, Bloomberg L.P.
Terms of Use   Privacy Notice