To do this, though, functional areas need to manage costs, plan marketing programs, ensure that needed parts are available, plan manufacturing schedules, hiring (if needed), shift changes, and numerous other data (a/p, a/r, payroll, etc.). The model for Ford is:
(Source: Murthy and Desai)
Thus, on a daily, or ongoing basis, employees in numerous functional areas are able to pull up historical data on models, features, issues; find out stages of development for new models or new programs; chart advertising effectiveness using detailed database parameters, preplan tooling, resource, and supplier needs; access accounting and invoice functions, and, system wide, use the available information for appropriate levels of knowledge management (Maynard 2004).
By department, a needs analysis shows that each individual department has both similar and quite different regular needs for deeper, more robust information. In general, the decision making process at Ford has changed from simply making a presentation to the Board or Upper Management, to thoughtful and considered scenarios utilizing the best available data, much of it in real time. Thus, a brief view of informational needs supplied by Chargeback Ford:
Department
Access Need
Typical Information
Result
Executive Management
Cross-Functional, higher level reports or analysis; conglomeration of data
Better decisions, more real-time data, ability to react to small changes and appropriate levels of PR and crisis management
Human Resources
Daily
Production planning, staffing, training issues; appropriate HR forms, issues, departmental management as appropriate
Ability to manage staff and future needs within the company, increasing moral and loyalty; management of human needs to better provide for overall strategic planning
Finance and Accounting
Daily
Production, purchasing, needs analysis, supplies, projections, resource allocation
Forecasting, data analysis, cross-functional department information
Sales
Daily
Stages of production, inventory management, strategic planning, advertising and marketing issues
Inventory, demographic information, higher level sales analysis, feedback to marketing
Marketing
Daily
Strategic planning, production, what-if scenarios, accessory development, customer profiles, warranty information, demographic and psychographic data
Feedback to sales, planning of strategies, tracking of sales and advertising effectiveness, issues surrounding individual products and/or accessories; dealer relationship and customer service issues
Procurement and Purchasing
Daily
Production needs and pre-planning, special tooling needs, engineering issues
Real time needs assessment, inventory management; cost control, avoidance of duplication of effort
AP/AR Functions
Daily
Invoices, auditing materials, cost functionality
Real time access to information, issues dealt with immediately, auditing of issues done quicker
Vendor Relations
Daily
Orders in/out, inventory management, production scheduling
Inventory management, impact studies, production and preplanning issues; future what-ifs, synergies costs
I.T.
Daily
Usage, system issues, upgrades, unique issues, interface with computer manufacturer
Access to department issues, load statistics, planning for upgrades, appropriate data support
Governmental Regulations
Sales and marketing issues, cross-functional governmental issues, EPA requirements, new issues from Washington and globally
Dissemination of information, access to needed information within moments; real time scenario development
(Sources: Ingrassia and White 1995; McDermott and O'Dell 2001; Murthy; Byrd).
Strategic Issues - Since the early 2000s, Ford's marketing and strategic pricing group has changed their historic strategies due to several external factors that are dramatically changing the industry as a whole:
Longevity -- Vehicles, due to engineering and production advances, are lasting longer and are able to provide higher mileage without significant replacements.
Warranty -- APR, warranties, and ability to get alternative financing has increased.
Additional revenue sources -- due to longevity, service department revenues are down, so alternative approaches to regular maintenance are becoming more important.
Pre-Owned -- Many consumers are waiting until the car of their dreams has 10-20,000 miles, vastly reducing its price, but still giving them adequate longevity; consumers are also keeping their cars longer, not trading as fast, and taking better care of their vehicle.
Demographics -- the continued trend towards suburbs and urban sprawl requires more Americans to drive longer distances and be in their vehicles for a larger part of the day. This has changed perceptions about what is important in a vehicle (assessors, etc.) and vehicles are now seen as extensions of the office in many cases.
Information -- the Internet has changed the way consumers' shop, compare, and finance their purchase. Edmunds.com, KBB.com and NADA provide even more consumer information on price, comparison, and features; Car buying services (autobytel.com, carsdirect.com) have revolutionized the contact with the consumer, often completely by-passing one of Ford's staunch marketing strategies -- the Ford Dealership as part of the community (See: Patton, 2009; Jim, 2002, Ford.com).
Strategically, Ford's marketing department has used accounting data, combined with more sophisticated marketing data to change its approach to the market. Prior to these changes, Ford based its accountancy/marketing strategies more on production costs and return on investment than the intricacies...
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