Executive Summary
As we move into a new age of innovation, Ford Motor Company must prepare itself for a
long journey ahead. In order for us to move to greater heights we must address three
hurdles: Organizational Complexity, IT Infrastructure Capability, and Customer Service
Focus and Dealerships.
We are a proud and a historic organization; we are the forefathers of the automaker
industry. Our growth has made us a very complex organization, and with complexity
comes issues. Issues once solved will make us one of the leanest organizations in our
industry.
We are living in an age of technology and innovation, and in order for us to have a leading
edge we must continue to invest in IT. We must also make sure our IT infrastructure is up
to the times, and so are our business partners. Together we can build a strong organization
that can stand against all time.
Our customers is what makes our organization what it is today, their ongoing support is the
result of the great work our employees put in every day. That’s why our focus shouldn’t be
anyone but our customers, and how we deliver our service and our products to them.
We have two directions where Ford can go, either follow the footsteps of Michael Dell and
embrace virtual integration, or build a stronger Ford by what I call the Total Customer
Experience. This report entails all details behind the issues that we must tackle first,
backed with a thoroughly analysis of where we currently stand, a detailed walkthrough of
the strategies proposed above, including a recommendation, and implantation strategy, and
monitoring and controls to ensure success.
Teri Takai
Director of Supply Chain Systems
Ford Motor Company
Identifying Issues
1. Organizational Complexity Strategic / Long Term
The most apparent and troublesome issue Ford is experiencing is dealing with the sheer
size and complexity of its organization. The purchasing and product development
departments are: independent to each other by not sharing information, yet simultaneously
connected with decision making, and both deal with suppliers. When we compare Ford,
who has several thousand suppliers, to a lean organization such as Dell, which has 50; we
can quickly see where much of the headaches come from.
2. IT Infrastructure Compatibility Strategic / Short and Long Term
To be competitive, Ford must keep their IT infrastructure up to date. A major bottleneck is
that Ford’s suppliers cannot invest in technology at the same speed as Ford, which
represents a significant long term issue if left unchanged. The lower tier suppliers also face
