Impact of IT on Automobile Sector

Essay by santoshmvsUniversity, Master'sB+, August 2008

download word file, 10 pages 0.0

Table of ContentsIntroduction3How IT shaped the environment4Process Innovation through IT5ProDUCT Innovation through IT7Future Scope and Conclusion9References11INTRODUCTION"Third Wave" organizations, as per Alwin Toffler, are those post-industrialization organizations that bank on technology, digitization and continuous innovation. These organizations revolutionized the way businesses are done and for them innovation is the mantra for survival. One of the important sectors that are feeling the heat is Automobile sector. The competition is so intensive and the customer demands are so high that companies started using technology especially Information technology (IT) to differentiate themselves with others. The market has slowly transformed from a product driven industry to service driven and IT is playing a major role in this slow and inevitable transformation process. IT is revolutionizing the way personal rapid transit is enhanced through cars. Value is added at different levels in the value chain ultimately leading to better value proposition to customer.

Darwin once famously quoted, "In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment".

The above situation perfectly fits for automobile sector where the number of global automakers reduced from peak numbers in mid-1950's to mere 200 in 2000's. In addition to the niche players, only the automakers who produce quality products at affordable prices and listens to customers survive. IT is helping these automakers to achieve the goals through process and product innovation.

Digital manufacturing became the norm where in all the designing of automobile is done through automated tools (computer aided design) thereby reducing the time to design a car and the cost of designing. For testing the product at different levels for different components, automated testing tools are replacing existing methodologies. These automated tools simulate the component/module to be tested and then perform testing...