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When the global giants indulge in traditional competition for market profits, a fresh "blood" has also begun to attract the attention of the industry. At the "2004 Beijing International Automobile Summit", relevant experts predicted that information technology is the "DNA" of the automotive industry. It can provide an efficiency for the automotive industry and enable auto companies to open up the global market. Operational inefficiencies Traditional models hinder the development of the automotive industry Demiggefort, a representative of Apirm Consulting, told reporters that information technology can provide a competitive advantage for the automotive industry, but it does not have a competitive advantage and only companies apply it to processes. When the best industry practice is implemented with an innovative strategy, the advantages can be fully reflected. Unfortunately, in many mature markets in the West today, automakers have invested thousands of dollars in the application of information technology in the hope of promoting the development of the entire industry, but the result has been the formation of thousands of information technologies. Island. He analyzed that this development strategy in the mature market was affected by a lot of problems left over from the original, coupled with the defects of the current auto business development model and the many negative impacts it caused, making the overall business development capabilities of the western mature automobile market Weakening has been the case for the past few decades. "Although China's auto industry has just begun, it can avoid the failure of Western developed markets and can rethink how to better build China's auto industry structure instead of simply mimicking and copying the models that Western developed markets have established. And practice." He said that China can also become the leading market for the global automotive industry. It can build its own business model and apply the "DNA" of information technology. And these information technologies will not be out of date in the next few decades because China’s current auto market is still relatively small compared with North America, Japan, and the European Union. In 2003, China’s auto production was only 4.4 million, and the proportion of auto exports was even smaller. According to the analysis of experts participating in the meeting, in the developed international market, large-scale automobile groups are facing serious problems, and some have the problem of excess production equipment, which has caused problems in the original business model, which has affected the global presence of some international companies. Competitiveness. While China’s production capacity is growing rapidly, China should not want to continue such a model, but rather to create greater flexibility, but to really consider what the user’s future needs are. The model that the West has been implementing for a long time is to produce and sell first. As a result, the entire automotive industry adapts to changes in the market and improves production efficiency. The efficiency of product development is very low, especially in supply chain management and customer service. This is also true of customer value creation. For example, as of the end of April 2004, approximately 4 million cars in the United States were accumulated in warehouses and were calculated to be US$100 billion in U.S. dollars. The main reason for this result was poor communication of information. For the Chinese auto industry, there are great risks in imitating or following this model. “A lot of people think that the advantage of China is that the labor cost is very low, and actually the direct labor force in automobile manufacturing only accounts for 6% of the total cost. Therefore, this low-cost labor advantage does not necessarily lead to lower production costs and The whole car price is reduced." Delong Giraffe believes that the really huge cost should include relatively high manufacturing costs, transportation costs, quality assurance costs, product development costs and sales, management costs, etc., while the automotive companies most need to do Is the use of information technology to reduce the overall cost of the industry. Information technology helps China to be expected to come from behind. “For the automotive industry, we must reorganize old business models and apply the latest and most advanced information technologies to focus on the needs of our customers.†According to Deron Girdle, the industry divided this new model into four. The big chunks are dynamic product development, production according to demand, responsiveness to customer relationships, and interactive personnel management and interpersonal relationships. Manufacturing a car involves many departments and a lot of specific details. Auto companies need to do timely and good internal and external coordination work, but collect, obtain, organize and organize numerous customer information data, and send it back to suppliers and engineers. The production department will allow them to understand all relevant matters. This kind of coordination work cannot be achieved without a good information technology infrastructure. Even though some multinational auto groups have large investments in the original model, it is still difficult to overcome the problems caused by poor communication. However, China can completely cross this step and directly adopt the supply chain model based on Internet information and communication. . For example, he said that when the car is sold after the completion of the production process, these vehicles will be transported through the distribution center to be transported to various places, and frankly speaking, people may not know where the car is, and if it is obtained through wireless technology Vehicle movement information, you can grasp the progress of car sales. Off-site services also require the use of wireless technology. For example, satellite positioning systems can find the location of your workers or drivers. This technology can also monitor the company’s parts service and car supply, and it can also maintain regular records of cars. , so most cars may have 20 to 30 computer programs to control. According to Deron G. Fordt, the old mature market actually hindered innovation, hindered further cost reduction, and prevented the leader from becoming a global leader. However, in China, the business model and infrastructure of many auto companies are still in the primary development stage. In the end, the adoption of other people’s business models or innovations is a challenge for China. It may determine that China’s future will become a follower of the market. Still a leader. News Source: China Economic Times
Imitation or Innovation China's Auto Faces the Temptation of Information Technology
When the global giants indulge in traditional competition for market profits, a fresh "blood" has also begun to attract the attention of the industry. At the "2004 Beijing International Automobile Summit", relevant experts predicted that information technology is the "DNA" of the automotive industry. It can provide an efficiency for the automotive industry and enable auto companies to open up the global market. Operational inefficiencies Traditional models hinder the development of the automotive industry Demiggefort, a representative of Apirm Consulting, told reporters that information technology can provide a competitive advantage for the automotive industry, but it does not have a competitive advantage and only companies apply it to processes. When the best industry practice is implemented with an innovative strategy, the advantages can be fully reflected. Unfortunately, in many mature markets in the West today, automakers have invested thousands of dollars in the application of information technology in the hope of promoting the development of the entire industry, but the result has been the formation of thousands of information technologies. Island. He analyzed that this development strategy in the mature market was affected by a lot of problems left over from the original, coupled with the defects of the current auto business development model and the many negative impacts it caused, making the overall business development capabilities of the western mature automobile market Weakening has been the case for the past few decades. "Although China's auto industry has just begun, it can avoid the failure of Western developed markets and can rethink how to better build China's auto industry structure instead of simply mimicking and copying the models that Western developed markets have established. And practice." He said that China can also become the leading market for the global automotive industry. It can build its own business model and apply the "DNA" of information technology. And these information technologies will not be out of date in the next few decades because China’s current auto market is still relatively small compared with North America, Japan, and the European Union. In 2003, China’s auto production was only 4.4 million, and the proportion of auto exports was even smaller. According to the analysis of experts participating in the meeting, in the developed international market, large-scale automobile groups are facing serious problems, and some have the problem of excess production equipment, which has caused problems in the original business model, which has affected the global presence of some international companies. Competitiveness. While China’s production capacity is growing rapidly, China should not want to continue such a model, but rather to create greater flexibility, but to really consider what the user’s future needs are. The model that the West has been implementing for a long time is to produce and sell first. As a result, the entire automotive industry adapts to changes in the market and improves production efficiency. The efficiency of product development is very low, especially in supply chain management and customer service. This is also true of customer value creation. For example, as of the end of April 2004, approximately 4 million cars in the United States were accumulated in warehouses and were calculated to be US$100 billion in U.S. dollars. The main reason for this result was poor communication of information. For the Chinese auto industry, there are great risks in imitating or following this model. “A lot of people think that the advantage of China is that the labor cost is very low, and actually the direct labor force in automobile manufacturing only accounts for 6% of the total cost. Therefore, this low-cost labor advantage does not necessarily lead to lower production costs and The whole car price is reduced." Delong Giraffe believes that the really huge cost should include relatively high manufacturing costs, transportation costs, quality assurance costs, product development costs and sales, management costs, etc., while the automotive companies most need to do Is the use of information technology to reduce the overall cost of the industry. Information technology helps China to be expected to come from behind. “For the automotive industry, we must reorganize old business models and apply the latest and most advanced information technologies to focus on the needs of our customers.†According to Deron Girdle, the industry divided this new model into four. The big chunks are dynamic product development, production according to demand, responsiveness to customer relationships, and interactive personnel management and interpersonal relationships. Manufacturing a car involves many departments and a lot of specific details. Auto companies need to do timely and good internal and external coordination work, but collect, obtain, organize and organize numerous customer information data, and send it back to suppliers and engineers. The production department will allow them to understand all relevant matters. This kind of coordination work cannot be achieved without a good information technology infrastructure. Even though some multinational auto groups have large investments in the original model, it is still difficult to overcome the problems caused by poor communication. However, China can completely cross this step and directly adopt the supply chain model based on Internet information and communication. . For example, he said that when the car is sold after the completion of the production process, these vehicles will be transported through the distribution center to be transported to various places, and frankly speaking, people may not know where the car is, and if it is obtained through wireless technology Vehicle movement information, you can grasp the progress of car sales. Off-site services also require the use of wireless technology. For example, satellite positioning systems can find the location of your workers or drivers. This technology can also monitor the company’s parts service and car supply, and it can also maintain regular records of cars. , so most cars may have 20 to 30 computer programs to control. According to Deron G. Fordt, the old mature market actually hindered innovation, hindered further cost reduction, and prevented the leader from becoming a global leader. However, in China, the business model and infrastructure of many auto companies are still in the primary development stage. In the end, the adoption of other people’s business models or innovations is a challenge for China. It may determine that China’s future will become a follower of the market. Still a leader. News Source: China Economic Times