IT Strategy for Automobile Distribution Management

A European Automobile giant is famous globally for the superior quality engines. Their global network

exists through strategic partnership with a slew of global and local players. Specifically in India, they

existed through a Joint Venture with a large Automobile enterprise that was part of a large business

conglomerate. The Indian partner in this JV accentuated its capability in building light commercial

vehicles through this JV. The dealer network operated in 2 parts based on the brand of cars they sell or

service. Given the sales growth of the cars from Indian partner was stable, the two brands commanded

different focus, and hence priorities. It wasnt a surprise when the management of the partner companies

decided to part ways.

Based on the decision for separation, the European car maker had flurry of questions to answer:

1. What do they need to do to ensure the brand recall doesnt take a hit?

2. What are the key imperatives they would need to set to ensure no discontinuity in the eyes of customers

and prospects?

3. How do they deliver growth to the corporation in the new set up?

4. What is the time to market?

5. How do they manage the transition in a seamless manner?

The international car maker had the tasks cut out. They had to build up their dealer footprint from

scratch. The existing customers had to be provided a seamless experience switching service. This was a

critical aspect as on the day one of independent operations, the service footprint need to be equipped to

handle the 50,000 cars across the cross section of India. Across 25 cities/ towns, this translated to at least

50 dealers cranking their service capabilities full hog. Inability to service a vehicle would translate to bad

press. This was critical to the business growth plans. The Indian management had taken a call that the

outlook committed prior to the separation decision would still hold.

Private & Confidential (Not For External Circulation)

An automobile dealership typically operates in either format:

a. 2S (Sales and Spares)

b. 3S (Sales, Services and Spares) capability.

Additionally they also drive campaigns independently or as a part of the principals marketing initiatives.

Besides being able to service existing cars, they should be able to propel growth using the existing models

as well as a slew of new models. The distribution channel has to be primed to deliver the volumes. The

business hence came up with ambitious growth plans. Steep outlook in terms of sales growth year on year

was laid out. The decision was to execute the timing of the business separation. It was natural to align this

to financial reporting period, namely March 31. This was less than 90 days away. This translated to laying

out framework of processes for set-up and expansion. Key to success was the technology footprint for

management of the dealer network. In doing such the criteria involved:

i. Scope of the dealer management system capabilities

ii. Time to market

iii. Cost of execution of the build and roll-out of the Distribution systems

Case Expectations:

Your organization decides to participate in the opportunity as a Systems Integrator. In your role in

the Presales Leader,

A. What would be your solution approach (from business and IT perspective) to address the

car makers initiative?

B. Which would be the key parameter for you to go by to elect a vendor?

C. What are credentials / assets/ differentiators youd place for making a solid case to merit award of the contract?

Private & Confidential (Not For External Circulation)