Ford's thrust on e-commerce and internet

By Ramnath Subbu

MUMBAI, JULY 16. In its quest to be a web-enabled global enterprise, Ford Motor Company (FMC) of the U.S. has planned a major thrust on e-commerce and the internet.

FMC has set itself a very clear and focused view on the internet. In order to help achieve its goals, the company set up Ford ConsumerConnect (FCC) in October 1999. Mr. James C. Gouin, chief financial officer, Ford ConsumerConnect, said, ``Internet is a technology that will help us transform the business. Ford's views on the internet is that the consumer will win. Also, it would be to our competitive advantage to act quickly. Through the internet, we should be able to lead change, especially in overseas markets.''

Further, Mr. Gouin said that FMC will use ConsumerConnect as the e-technology pipeline to connect to its customers. ``We are looking at e-enabling every process of Ford although it will be several years before this happens. The U.S. is the furthermost along in Internet and then Europe. We are moving along in our Asia, South America and South Africa operations also. By end of 2001, we will be able to have got it across everywhere globally. We plan to enter the Indian market in 2001. We already have an equity stake in MSN CarPoint and we will be asking them to assist in our e-commerce foray in India. We are also open to entering into strategic alliances with Indian portals.'' he said.

The company is also very clear that to bring its plans to fruition, it would need to have the best partners. It has, therefore, tied up with a host of companies.

Over the last eight months, FMC has invested $ 100 million in B2B ventures and $ 250 million in B2C ventures internationally. Also, as part of its aim of becoming a seamless organisation, it is networking its vendors and dealers in India with its Indian subsidiary, Ford India Ltd. (FIL).

As part of its e-business landscape, in B2B, FMC's strategic priorities are setting up an operating exchange with four original equipment manufacturers (OEM) and two technical partners, getting FMC systems/ processes ready for the exchange and engaging global suppliers.

In line with this, Covisint - a five way Memorandum of Understanding (MoU) among FMC, GM, DaimlerChrysler, Renault and Nissan was signed last month and four key suppliers were invited to join the Advisory Council. The MoU for setting up Covisint was initially signed between FMC, General Motors and DaimlerChrysler. The Advisory Council is responsible for the orderly formation of the company and as such looks into all matters relating to formation of Covisint. Toyota has also signed a Letter of Intent. Also, 14 suppliers have been invited to join the Customer Advisory Council to shape future product offerings and 40 suppliers have been offered revenue share incentive to maximise participation and value of exchange.

In the B2C landscape, FMC has considered four important factors including dealer connectivity, manufacturing capability, a good brand and a good technological engine. In B2C, FMC's strategic priorities are to maximise CarPoint and CarClub, to integrate the Trilogy venture and to accelerate progress in built to order (BTO) and order to delivery (OTD).

Last year, FMC was the first automotive manufacturer to take an equity stake in the all-makes automotive site, CarClub.com which has established an on-line niche, providing unique auto-related products and services to club members. Its joint venture with Microsoft for MSN CarPoint is to create an easier way for consumers to design and order the car they want and when they want it.

Late last year, FMC entered into a joint venture with Trilogy, a leading provider of enterprise class e-business solutions. The software will provide multi-channel commerce applications to facilitate the consumer experience between FMC, the dealers and the consumers.

The company's website, www.Ford.com has over 1.5 million unique visitors per month and according to Media Metrix, is the top OEM site. A retail BTO was launched in Canada in May 2000. It also set up an Internet Fleet BTO which is an industry first and enables companies to order fleet of vehicles for employees over the internet. The Buyer connection on the site is generating over 1000 leads per day.

Ford pre-owned.com showrooms have been set up in the USA in Atlanta, Boston, New York, Oklahama City and San Francisco and a national expansion is in the offing. This site already boasts over 100,000 unique visitors per month and already more than 2,100 units have been sold through this site.

Percept@ is a network of call centres and has been set up with the objective of operating world-class, web-enabled customer relationship centres globally. Percept@ generated $ 45 million revenue and is already profitable in 2000. It assumed control of the Toronto centre in April 2000 and opened an Australia centre in April 2000. All UK call centres are expected to be up and running by late August 2000. Percept@'s aim is to allow Ford vehicle owners to connect to the centre via telephone, fax or e- mail in case of vehicle emergencies or for assistance in directions, reservations etc. Additionally, the centre will be able to provide a detailed record of the vehicle to include both sales, service and financial transactions. All this to enhance the management of the continuing relationship between the consumer and Ford.

Another thrust of FMC is Telematics which is the convergence of telecommunications and computers in the automobile to enable the delivery of products and services into the automobile. telematics enabled vehicles will start rolling out in 2001 and will touch about 4.5 million vehicles by 2005. In the area of Telematics, FMC, in partnership with Sirius, plans to offer 100 channels of satellite radio programming including 50 commercial-free stations. This is expected to be offered across the U.S. by early 2001. Also in the offing are services like Vehicle Emergency Messaging Systems (VEMS) which is like the Lincoln's Remote Emergency Satellite Cellphone Unit (RESCU) and the Jaguar Assist.

FMC will equip some of its 2001 model vehicles with voice- activated telematics systems offering advanced security features and information access. These will be standard on select `Lincoln' luxury models and optional on Ford `Focus' in Europe. The telematics systems will include the option of voice activated access to personalised internet information, industry news, stock quotes and weather. This telematics rollout is to be expanded to virtually all vehicles world-wide over the next several years.

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