The BMW Group's e-Business Strategy

The BMW Group masterminds the growing network of core processes by a
fully integrated corporate program Munich. In all, the BMW Group has
more than 28 programs based on a common e-Business strategy and
currently in the process of implementation continuing on through the
next few years. The Company is convinced that this strategy will
significantly improve the entire chain of added value, implementation of
the various projects already being completed or scheduled for the next
three years. Internet-based communication services form the foundation
for our internal and external cooperation. All major corporate
processes are therefore performed on four platforms interacting on an
interdisciplinary basis. The four central platforms are: B2B Business
to Business B2C Business to Consumer B2D Business to Dealer B2E Business
to Employee Internet-based communication services also provide the
foundation for the BMW Group's cooperation with partners, suppliers and
dealers. Mutual utilisation of applications, services and marketplaces
is both quick and efficient, smooth, controlled operation being ensured
by a high level of standardisation. Coordinated operation of all basic
services, platforms and other solution components is ensured by central
management giving the BMW Group optimum performance, flexibility and
cost efficiency in its e-Business activities. Instead of insular
solutions, the BMW Group's e-Business strategy provides a fully
integrated corporate program. The existing systems already used within
the BMW Group are being adapted to the new technology by means of an
integration layer, old systems either being upgraded to Web standard or
replaced by new applications. Wherever they are not yet in place, basic
services and platforms are being established quickly and in an
integrated process again masterminded by central management.
Networking the e-Business program Standardised e-Business activities
serve to network the core processes, establishing the foundation for a
global network and ensuring a very high standard of cost efficiency at
the same time. This network serves to integrate the supply chain,
guarantees direct customer support, allows parallel development through
the integration of suppliers and, accordingly, speeds up processes in
general. This, in turn, allows the BMW Group to respond more quickly to
the needs of the market. It also helps to speed up the time required
for developing new models and shortens the gap between the customer's
order and the actual delivery of the vehicle. Last but not least, BMW
is able in this way to give the customer information more quickly and
streamline its internal processes. Networking gives the customer
all-round support by the Company itself, by dealers and other service
providers. The virtual world furthermore enhances the customer's
experience of BMW. The supplier benefits from online access to supply
chain and quality data on customer cars and is able at the same time to
conduct parallel developments. Logistics partners control the supply
chain in real time, save resources, and support the maintenance of
deadlines. Dealers, finally, also benefit from such a networking
process through the complete transparency of their offers and services,
and associates of the BMW Group have the advantage of better
integration and information, while at the same time they are able to
work increasingly on the basis of networks. Product creation (PEP) The
philosophy of the BMW Group in development is to integrate the
activities of the FIZ Research and Development Centre, of BMW Plants
and suppliers, as well as our purchasing and procurement functions.
Using gateway, network and software integration technologies, BMW is
able to make more flexible use of resources in development and optimise
the exchange of information. The changeover to an online data and
system network joining BMW, design offices and suppliers allows the
practical implementation of the design-in-context philosophy. With
current product, process and project data becoming available
simultaneously within the development network, the BMW Group is able
furthermore to benefit from substantial time and quality potentials.
And last but not least the selection and management of development
partners and suppliers are also supported by the Internet. BMW's
efficient quality lifecycle management is extended by Internet
technologies and ensures the consistent availability of vehicle data
throughout the entire lifecycle. Systematic storage of such data
supports the continuous process of improvement both within the Company
and with BMW's suppliers. The vehicles built by the BMW Group are
furthermore prepared for innovations during the product lifecycle by
standardised interfaces, in-car services such as telematics and online
communication with much shorter development periods thus offering new
potentials. Innovation management serves to promote the exchange of
know-how between internal and external providers of knowledge. The
Internet, finally, provides new possibilities of efficiently
determining, distributing and assessing innovations. From order to
delivery (KOVP) With the focus on all processes from order to delivery,
the BMW Group considers the complete supply chain and order fulfillment
process including purchasing/procurement and supplier relationship
management (SRM). In future suppliers will use the B2B platform as
their main tool for exchanging all relevant information with the BMW
Group. Apart from data required in purchasing/ procurement, this also
means online planning data and data in vehicle development. Supplier
relationship management organises all flows of information throughout
the entire cycle of supplier relations. Workflow-based applications
support Purchasing and other areas interacting with suppliers (eg
selection of suppliers, comparison of quotes, cost and quality
management). e-Procurement serves to automate the
purchasing/procurement process from the recognition of demand all the
way to final payment. A further option is to handle at least some
procurement processes whenever necessary by electronic marketplaces.
Integrated supply chain management helps to significantly update the
provision of logistic information to suppliers. Collaborative planning
systems will allow a process of planning with suppliers consistently
synchronised on several levels. This will reduce the stock of materials
required both at BMW plants and with the Group's suppliers. Benefitting
from greater transparency in their stock of orders, suppliers are much
more flexible in planning their capacities and can reliably cater for
peaks and fluctuations even at short notice. Logistics providers,
finally, control clearly defined areas in the supply chain throughout
all levels and deliver their products just in time. The modular
concept allows the transition of individual areas and activities to
external service providers, "transparent" production giving
the responsible transport planners the opportunity to deliver vehicles
quickly and efficiently, using their transport capacities in full. In
the foreseeable future, real-time order management will allow real-time
synchronisation of individual orders, for example when agreeing on
delivery dates based on automatic real-time inquiries coordinating the
production plans of BMW and key suppliers. Customer relationship
management (CRM) Customer relationship management bundles all
customer-oriented processes in Sales and Marketing, with the objective
to ensure an overriding, consistent approach to the customer. New
services serve to establish future-oriented areas of business such as
online telematics services in great demand by customers. A common,
standard approach to the customer, in turn, is ensured by the
presentation of service offers on a B2C platform helping to further
enhance customer orientation and reflecting BMW's self-imposed standard
as an innovative service provider. Global content management as the
foundation for all online offers guarantees a consistent quality of
customer communication via the Internet. Inter-service and
international processes allow the worldwide management of all Websites.
Sales and distribution channels are managed online over and above the
existing field service organisation. This allows dealers to access
expert knowledge at Headquarters according to their specific
requirements on the basis of the BMW Group's B2D platform. e-Business
also allows the establishment of lifecycle concepts. The implementation
of service offers in line with the current value of the vehicle can be
ensured by a direct approach to the customer tailored to each specific
case and vehicle. The establishment of new sales channels in Parts
Distribution provides the foundation for online direct sales and
distribution of parts. Experience gained by existing online shops is
being used for the establishment of inter-divisional concepts.
Internal processes Internal processes comprise administrative services,
internal communication, and all other services directed to our own
associates. All internal processes at BMW are being automated,
presented on a B2E platform, and handled via personalised front-ends
based on Web applications. Associates use the B2E platform in order to
access administrative functions according to the self-service
principle. Applications such as travel planning or time management are
available on each associate's personalised Homepage. With
self-responsibility being enhanced in this way, we are able to handle
jobs and other tasks more quickly and efficiently, that is with less
resources. Further training is supported by e-Learning offers oriented
towards the needs and level of each associate in training. Our
knowledge and information culture within the Company is supported by
establishing a Web-based knowledge management system, a central job and
applicants database serving as the foundation for the Web-based,
integrated procurement of personnel. All internal information is pooled
on an inter-media basis provided by the B2E platform, and is then made
available to associates. Through the Intranet, associates are able to
participate live in corporate events such as plant meetings, product
presentations or press conferences. Suitably processed corporate news
is also presented to the public via the Internet (Business Services).
Last but not least, financial processes are presented through
internationally compatible, standardised systems, workflow support
being based on a consistent database (content pool). Facts and figures
obtained in this process are subsequently provided to managers and
executives online, standardised and kept fully up-to-date via their
personal Homepage (Enterprise Information System).