Almost forgot to post this announcement by Ford:
FORD CONNECTING TO CONSUMERS VIA E-BUSINESS WITH NEW ALLIANCES
9.15.99
Dearborn, Michigan, September 15, 1999 – As part of its drive to become the world's leading consumer company providing automotive products and services, Ford Motor Company is establishing a new global enterprise to connect to its global consumers. This entity will be responsible for all direct consumer interfaces, working very closely with Ford's dealer body. Ford Motor Company's consumer-connect group will expand Ford's relationship with Microsoft and Trilogy and utilize their specialist skills to make Ford the leading automotive on-line consumer company. The new enterprise will be headed by Ford Vice President Brian P. Kelley, a recent recruit from General Electric.
"Our consumer-connect business has a totally integrated strategy to reach the consumer in conjunction with our dealers at every touchpoint. We already lead the industry with Ford.com rated as the number one site. Ford was the first to make exclusive agreements with community sites, such as iVillage and Digital Entertainment Network, and was the first manufacturer to take an equity stake in an all-makes site," Kelley said. "Ford continues to be at the forefront, integrating our global e-commerce activity from the consumer back through the entire supply chain, including linking our Customer Assistance Centers and in-vehicle communications."
This new business unit will combine retail dealer and e-commerce activity to provide a completely satisfying consumer-focused ownership experience. It will also integrate Ford's global e-commerce activity from the consumer purchase through Ford's entire supply chain.
"There's a revolution underway in the automotive industry – and the consumer is driving it," said Jacques Nasser, Ford Motor Company president and chief executive officer. "Ford intends to stay on the cutting edge and be the global on-line leader."
Ford is partnering with two of the world's leading technology firms to achieve its objectives. Microsoft, the premier software solutions provider, will develop the systems architecture for all web-based platforms. Trilogy Software, a leading provider of enterprise class e-business solutions, will provide the multi-channel commerce applications to facilitate the consumer experience between Ford, the dealer and the consumer. Speed and agility in responding to market demands was key in Ford's decision to partner with these two leading-edge organizations.
"Working with these two leaders over the past year has opened up great opportunities," said Kelley. "We are well on our way to delivering an unprecedented consumer experience."
Ford was the first automotive manufacturer to include its family of brands on a single home page, allowing consumers single-click access to the Aston Martin, Jaguar, Volvo, Lincoln, Mercury, Ford and Mazda brands. Ford.com is already a leading automotive destination, with more visits than any manufacturer per month, according to MediaMetrix. Ford.com provides the consumer with a complete pathway from the shopping experience through the purchase, use and maintenance of their Ford vehicle. In addition to providing the customer with easy access to our products, the site was also designed to meet the needs of investors, media, motor sport enthusiasts and even job hunters.
Ford Motor Company's consumer-connect strategy also includes the BuyerConnection, OwnerConnection and DealerConnection sites. "Providing e-commerce technology to our dealers will keep them on the leading edge," said Robert Rewey, Ford group vice president of marketing, sales and service. "Partnering leading edge technology with our dealers will provide two-to-one marketing. It's a winning combination – over 35,000 fast quotes per month are sent to Ford and Lincoln Mercury dealers."
Using DealerConnection, consumers can find a participating dealer in their neighborhood quickly and easily, review their inventory, take advantage of service specials, and in some cases make on-line appointments for sales or service needs. In addition, Ford is leading industry efforts to strengthen on-line consumer relationships with dealers and Customer Relationship Centers. According to Business Week, Ford Motor Company has used the Net to boost sales per employee some 25 percent over five years.
BuyerConnection provides consumers with a turnkey system that allows them to virtually construct the vehicle of their choice, request a quote from a local dealer, and apply for credit and insurance -- all in one seamless process. With BuyerConnection, Ford Motor Company became the first auto maker to offer an online "request-a-quote" system nationally.
OwnerConnection was designed to develop a virtual community of owners with whom the company can establish an ongoing relationship. This site is an electronic forum that helps gather feedback from current owners while building long-term relationships. Ford owners can take advantage of it in a variety of ways. For example, in addition to providing a process for two-way communication, it provides maintenance schedules through Quality Care; provides a direct link to special offers from Hertz; and connects the owner to other Ford resources. This interaction allows Ford to gather customer data, study owner profiles, identify problems, better address customer needs and improve customer satisfaction, providing valuable insight about Ford consumers – all with the speed, efficiency and cost effectiveness of the World Wide Web.
Ford Motor Company was also the first OEM to establish exclusive relationships with Internet community sites. Ford is an exclusive partner of iVillage, the leading on-line women's site, and a charter sponsor of Digital Entertainment Network (DEN), targeted at the Generation-Y audience. "These community sites offer us the opportunity to connect with consumers in their own electronic neighborhoods, in areas of interest to them," Kelley said.
In addition, Ford was the first automotive manufacturer to take an equity stake in an all-makes automotive site, Carclub.com. Carclub.com has established an on-line niche providing unique automotive-related products and services to its club members.
Together, these web sites create a unique relationship model in which the Company and dealers are united to serve the consumer; delivering value-added content and functionality for comparison and purchase of Ford brands, products and services. These sites also serve as a platform to harvest robust, real-time consumer data.
Development and marketing of in-vehicle communications will also be part of this new business unit. Today, interactive Web-based solutions coupled with global positioning system (GPS) technology offer the potential for in-vehicle products and services to substantially enhance the consumer experience. This initiative reinforces the bond between Ford and its customers by providing ongoing and frequent customer touchpoint opportunities.
Ford has also been recognized as a leader in e-commerce initiatives involving its supply base. The Ford Supplier Network (FSN), underway for more than two years, enhances Ford's dynamic trading position by delivering real-time product development, manufacturing and quality data to more than 16,000 users at 1,800 suppliers. For example, a recent on-line bidding process for selected fasteners saved more than 20 percent on Ford's purchase cost in a matter of minutes. In order to capitalize on similar opportunities in other commodities, Ford will be launching a Web site to buy and sell steel.
In addition, Ford global manufacturing plants have common logistics processes and IT systems to integrate the supply chain, manage inventory and improve manufacturing operations that will be leveraged through the development of a complete Internet supply chain architecture.
"Our focus is not on delivering e-business to Ford – it's already here in full force," Kelley said. "My focus is on ensuring that our eye remains on fulfilling consumer needs and that e-business delivers shareholder value."
Kelley, Ford vice president and chief executive officer of this new business venture, was vice president and general manager for sales and distribution with General Electric's Appliance division prior to joining Ford in July. Before his five year stint with GE, Kelley spent 11 years with Proctor & Gamble, serving in various brand management positions. He is a 1983 graduate of Holy Cross College, where he earned a bachelor's degree in Economics.
The Intranet also plays a key role in making business practices more efficient, effective and robust within Ford. Ford has won a number of awards for its integration of its Internet into day-to-day business practices. Approximately 110,000 employees are linked by Ford's Intranet, with more than 80 percent logging on daily. All employees receive a weekly state-of-Ford message from Nasser. On average, Nasser receives about 200 suggestions and comments each week. More than a half-million product- design resources, production-management tools, and strategic-information assets reside on Fords massive Intranet.
Best Practice Replication (BPR) is a web-enabled business process that has helped Ford replicate proven practices around the world. Best Practice replication is a business process for the collection and approval of high-value, proven practices that can be replicated or copied across many plants or functional areas of an organization. BPR has identified approximately $900M of value and delivered over $590M in value since the program started in 1996. Over 2,700 proven practices have been collected and have been replicated more than 4,200 times thus leveraging a proven business improvement to its greatest extent. BPR is deployed in 19 countries, and is used at over 100 Ford locations that include 85 manufacturing plants, Customer Service Distribution Centers, and sites in Product Development.
I welcome your comments. You can email me at steveb@fordnews.com
Teflon |
