| BUSINESSWEEK ONLINE : FEBRUARY 28, 2000 ISSUE | ||||||||
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| 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.
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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 | |||||||