Impact of Information Systems on the Automobile Industry

1. INTRODUCTION

Today, Information systems have come a long way in creating new services and provided solutions and a better chance for certain issues facing automobile industry. Automobile Industries have taken advantage of this to bring into more desirable and excellent operations, improve value to their products and to their customers, as well as enable new business standard, style and image. In this research paper, we will explore the use of Information Systems in vehicles, the arrangement of Information Systems to sustain business operations of manufacturers, and the effect of doing so on automobile industries.

2. TRANSFORMING THE NATURE OF COMPETITION IN THE AUTOMOBILE INDUSTRY

Installed systems inside vehicles have become a process of differentiation to understand customers looking for cars with more than just the ability to transport people from one point to another. Introducing of information systems inside vehicles has enabled manufacturers to provide their customers with extra functionality, by means of improving the desirability of the the product towards satisfying customers and at the same time enabling new business style and models through the supplying of efficient services to customers. And this changes the existence of competition in the automobile industry

I. Stronger Brand Differentiation

Where there is rapid growth comes increased competition; similarities in products across manufacturers have reduced brand differentiation across the board. The problem now is the severe rise of copycat companies and manufacturers that copy designs and specifications of cars, and proceed to undercut the original manufacturer’s profit margins. So to improve their brand standing, every manufacturer’s individually have resort...

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