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Information Studies on Volkswagen - Case Study Example

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Summary
This study, Information Studies on Volkswagen, declares that mass customization was a term that Joseph Pine, a writer, and veteran identified and used in 1999 when he wrote a book on mass customization in companies. This was a new frontier in which businesses would use a way to compete…
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Information Studies on Volkswagen
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Question 1
Mass customization was a term that Joseph Pine, a writer and veteran identified and used in 1999, when he wrote a book on mass customization in companies. Back then he explained that this was a new frontier in which businesses would use a way to compete (Pine 7). Therefore, Pine explained it as a new-found way in which organizations wanted to use to manufacture, market and deliver their goods and services to the level or options tailored to meet customer’s needs. Pine later wrote another book one year later with Jim Gilmore focusing on authentication of products and mass customization. Hence, concluding that the key goal of making mass customized products is to provide a product that customers wanted and when they wanted to use it (Gilmore and Pine 115).
The advantage of manufacturing a product such as a Volkswagen from a customer’s perspective is that a customer enjoys the product of their choice for a long time. The other advantage is that there are no surprise prices for the customer while buying. Lastly, customers also get to buy cars that meet their needs.
The down side is that the company has to sell it at higher prices which are expensive for customers. The car may at time not be customized the way a customer wants and one has to pay for charges for having the car delivered to your destination.
Question 2
VW’s mass customization approach faces problems from other competitors because the dealer because the dealer can replicate the approach used by VW to offer their own way of “designing and building you own car” (Volkswagen Group of America Inc.). In addition, VW mass customization technique also requires the integration of information systems.
Question 3
Information systems at the tactical and operational level in selling play a major role on e-commerce websites because the systems allow customers to submit their selection and options through the site (Volkswagen Group of America Inc.). The e-commerce website also contains an application where all calculations are made and sent to the client.
When it comes to the role of information system at a tactical and operational level the application and business decisions integrated at the e-commerce website are based on the profile analysis of client. The profile analysis is only enabled through customer relationship management (CRM modules).
Information systems also enable the customer to submit their car preferences which are automatically sent to the company’s system which is the supply chain management module (SCM modules).
Question 4
Prior to the implementation of the CRM, SCM and e-commerce system, I would have suggested 3 main benefits to the CIO at VW. One I would have indicated that the CRM system would enable VW to integrate its business decisions because it had an enabled customer profile platform.
I would say that the company also had the benefit of an automatic calculator that calculated all the associated costs for the customer. It is a strategy that saves on costs because the company would not hire a person for this task.
Lastly, I would tell the CIO at the company that the system also comes with a web application which provides the bill of materials to the company’s SCM system. It is a strategy that uses the lowest production costs for the company.
Works Cited
Gilmore, James, and Joseph Pine. Markets of One: Creating Customer-unique Value through Mass Customization. Boston, MA: Harvard Business Press, 2000.
Pine, Joseph. Mass Customization: The New Frontier in Business Competition. Boston, MA: Harvard Business Press, 1999.
Volkswagen Group of America Inc."Volkswagen Case Study." . N.p.. 20 Oct 2014. . Read More
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