Road map to competitive advantage!
Saab travels in e-style.
by Jerry Rode
Saab Cars USA recently implemented a corporate strategic plan for ensuring total customer enthu-
siasm. A major component was upgrading its communications network to leverage and migrate existing legacy applications to an e-commerce environment.
Prior to the new system, Saab Cars USA, based in Norcross, Ga., maintained applications on three disparate systems-an IBM AS/400 in Georgia; a System/390 IBM mainframe hosted by Caterpillar Logistics Systems in Peoria, Ill.; and a proprietary Unix-based dealer management and communications system installed at each Saab retailer.
Saab needed to integrate its systems with one another, preserving investment in legacy applications, as well as creating new applications quickly and cost-effectively for its network of more than 200 independent retailers and service locations.
Fast-paced communications developments had outstripped the capabilities of the local Dealer Management System (DMS) and Dealer Communication System (DCS). State-of-the-art 10 years ago, the DMS and DCS were installed as the primary means of gathering sales data and communicating with the network of Saab retailers. With the DMS and DCS, retailers used dedicated terminals, displaying character-based green screens to pass data to corporate systems through a slow 2,400 bps dial-up connection. Even with all their limitations, the applications are still standards in the auto industry.
Each time a transaction-such as inventory, maintenance, or warranty inquiries-occurred, the retailer was required to enter the data into his local systems. The retailer also needed to duplicate the entry and send it to Saab USA headquarters. The process was made even more difficult because different function keys were used depending on whether the application was hosted on the AS/400 or the S/390.
Due to the requirement for duplicate data entry and the cumbersome use of each application, there would often be a delay in getting information from the dealers to the AS/400, in some cases up to a month. This delay caused frustration throughout the sales channels as customers and prospects were constantly being asked to wait for answers to their questions. Given the systems' limitations, enhancing the communications network to eliminate bottlenecks was a primary objective.
Saab set three requirements:
First, simple navigation of all disparate legacy systems-information should never be more than two clicks away.
Second, quick response for transactions-a three-second maximum was set for transaction response time.
Third, ease of use-self-explanatory applications to reduce training costs.
In late 1998, with a goal of establishing a more efficient means of communication, Saab began to design a new system called IRIS (Intranet Retail Information System).
For assistance in designing and deploying the system, Saab enlisted the help of automotive consultants from IBM Global Services. Global Services developed a business strategy for Saab and put together the functional design specification.
IBM's plan included the selection of several key technologies to help integrate the systems, as well as modernize and extend the existing applications. The key element of the strategy was choosing the software, hardware, and connectivity solutions to be used in IRIS.
To integrate the applications residing on the AS/400 and S/390 platforms, Saab chose Jacada for Java from Atlanta-based CST, Inc. Developers used Jacada's rules-based automated conversion environment to generate Java-based GUIs (graphical user interface) for the existing AS/400 and S/390 applications. One key benefit of the software was that the generated application transparently navigates through multiple legacy green screens while presenting a single GUI to the end user. Another was that a graphical environment eliminated the need for end users to learn different function keys.
Saab selected Lotus Domino as the main infrastructure for the middleware layer and as the Web server for the new system. Domino's portability allowed Saab to easily and seamlessly integrate AS/400, S/390, and local systems. There was a great performance benefit of running the Domino applications natively on the AS/400. And, Saab already had many existing Lotus Notes applications within the organization. Using Jacada and Domino, new applications were added to IRIS to ensure productivity and ease of use.
With these new capabilities, dealers can access parts distribution information residing on the S/390 in Illinois, or warranty and finance information which sits on the AS/400 in Georgia, in a seamless, real-time environment. The integration between the S/390 and AS/400 host systems with the local PC applications using Domino and CST Jacada is invisible to users. With the graphical environment, retailers can now quickly and easily navigate through any application. A request from the retailer typically navigates through multiple screens of the legacy application before displaying the results.
Cost was also a key design concern. Retail locations are independently owned and do not have local computer expertise. Saab lowered implementation, training, and maintenance costs by utilizing Internet-based protocols as a means of distributing information. This eliminated the need for its retailers to host expensive servers on site. Instead, IRIS runs on the AS/400 server and is accessed by using a browser through a retailer's PC.
Aside from the PCs, which the majority of Saab retailers already had, the only hardware needed on site is a hub or router and a small satellite dish. The satellite equipment is provided by Scientific Atlanta. Using the Venturi solutions from Fourelle, the satellite-based VPN employs an encrypted link across the Internet to bridge Saab?s intranet in the different geographic retail locations. The network provides its retailers with a much more efficient connection to the system. With speeds of 1.5 Mbps in and 512 kbps out and bursts of 4X for video transmission, the VPN is a complete bandwidth solution and that improves performance and reduces latency.
The retailers are thrilled with the new system. Being able to access a larger variety of more reliable information in less time means that they can more efficiently answer customer questions, locate vehicle inventory, and maintain a complete vehicle history for any Saab car, regardless of where the car was purchased. The result of these improvements is better customer service.
As to the future, the satellite-based communications system accessing corporate legacy applications offers key advantages, particularly when entering new markets. Compared to terrestrial-based communications with higher costs and more lengthy installations, the approach taken by IRIS can quickly offer a competitive advantage. Saab is considering extending the system throughout all 54 countries in which Saab has a presence. General Motors Corp., which owns 50% of Saab, has shown interest in the IRIS development and could potentially incorporate it into other dealer systems within the organization.
Rode is director of IT for Saab Cars USA, Norcross, Ga.
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