GROUP ASSIGNMENT

MANAGING INFORMATION SYSTEMS IN ORGANIZATIONS

Submitted by:
Farheen Tashfeen Qayyum TP040123
Ayub Mohammad Ali TP035355

Module Code: CT053-3.5-2-MISO

Intake Code: UC2F1505IBM
HAND OUT DATE: 26th October, 2015
HAND IN DATE: 15 JANUARY, 2016

Table of Contents
1.1 Current Market...........................................................................................
1.1.1 Companys Background:......................................................................
1.1.2 GM Mission Statement:........................................................................
1.1.3 GM Vision Statement:..........................................................................
1.1.4 Aims and Objectives:...........................................................................
1.1.5 Business Activities:..............................................................................
1.1.6 Customers:...........................................................................................
1.2 Porters Five Forces Analysis: (Farheen Tashfeen Qayyum
TP040123).......................................................................................................
1.2.1 Threat of Competitive Rivalry..............................................................
1.2.2 Threat of new entrants........................................................................
1.2.3 Threat of Substitutes...........................................................................
1.2.4 Bargaining Power of Buyers.................................................................
1.2.5 Bargaining Power of Suppliers.............................................................
1.3 SWOT Analysis: (Ayub Mohammed Ali TP035355).................................
1.3.1 Strengths...........................................................................................
1.3.2 Weaknesses:......................................................................................
1.3.3 Opportunities:....................................................................................
1.3.4 Threats:..............................................................................................
1.4 Strategic grid:..........................................................................................
1.4.1 Factory Quadrant...............................................................................
1.4.2 Support Quadrant..............................................................................
Content Management System: (Ayub Mohammed Ali
TP035355)................................................................................................
1.4.3 Strategic Quadrant............................................................................
Plant Floor Control Network (PFCN): (Farheen Tashfeen Qayyum
TP040123).............................................................................................
1.4.4 Turnaround Quadrant.........................................................................
1.5 Current IT Position...................................................................................
1.5.1 Plant Floor Control Network: (Farheen Tashfeen Qayyum
TP040123)...................................................................................................
-

Objectives of the PFCN.......................................................................

2

Functions of the PFCN........................................................................

1.5.2 Content Management System: (Ayub Mohammed Ali

TP035355)...................................................................................................
-

Objectives of CMS..............................................................................

Functions of CMS................................................................................

2. Recommended IT initiatives for achieving Business strategies.................

2.1 Autoline Kerridge Dealer Management Systems: (Ayub
Mohammed Ali TP035355)........................................................................
2.1.1 Benefits...........................................................................................
2.1.2 Risks and Concern of the IT/IS initiative..........................................
2.2 Data Communication Modules: (Farheen Tashfeen Qayyum
TP040123)...................................................................................................
2.2.1 Benefits...........................................................................................
2.2.2 Risks and Concern of the IT/IS initiative..........................................
3. Conclusion.................................................................................................
4. References.................................................................................................
5. Work Breakdown........................................................................................

1. Discussion of the companys current market and IT position

1.1 Current Market

1.1.1 Companys Background:

Founded in Michigan by William Durant in 1908 and now owned by the

US government, General Motors is the largest automobile company in
the world after Toyota. GMs largest markets are USA, China, Canada,
UK, and Germany. It has around 4,500 dealers, 284,000 employees and
multiple labor unions, and offers a huge variety of vehicles in more
than 120 countries globally. It initially started with Buick, but it soon
grew big and had acquired more than 20 companies. The General
Motors Company is now a smaller and leaner company and has only
four brands working with it: Chevrolet, Buick, GMC, and Cadillac.
(General Motors, 2016)

1.1.2 GM Mission Statement:

4

"G.M. is a multinational corporation engaged in socially responsible

operations, worldwide. It is dedicated to provide products and services
of such quality that our customers will receive superior value while our
employees and business partners will share in our success and our
stock-holders will receive a sustained superior return on their
investment." (General Motors, 2016)

1.1.3 GM Vision Statement:

"GMs vision is to be the world leader in transportation products and
related services. We will earn our customers enthusiasm through
continuous improvement driven by the integrity, teamwork, and
innovation of GM people." (General Motors, 2016)

1.1.4 Aims and Objectives:

GMs first and foremost goal is to earn customers for life. Their purpose
shapes how they invest in their brands around the world to inspire
passion and loyalty. It motivates and drives them to translate
breakthrough technologies into vehicles and experiences that people
love and desire. It motivates the entire GM team to serve and improve
the communities in which they live and work around the world. This is
how GM plans on building itself into the worlds most valued
automotive company overtime. (Strategic and Operational Overview,
2015)

1.1.5 Business Activities:

General Motors Company is best known as one of the world's largest
full-line vehicle manufacturer. It designs, engineers, manufactures and
sells cars and trucks worldwide. (General Motors, 2016)
1.1.6 Customers:

General Motors has a huge customer base that keeps in view

customers of all income levels. GM market ranges to both private and
business customers. It manages about over 1 million customers
contacts per hour. (Crumm, 2016)

1.2 Porters Five Forces Analysis: (Farheen Tashfeen Qayyum

TP040123)
Organizations are most concerned about their competitive structure.
One of the most efficient ways to analyze competitive issues to a
company is through Michael Porter's five-force analysis model (Dobbs,
2016), which is as follows for General Motors Company:

1.2.1 Threat of Competitive Rivalry STRONG:

The automotive industry is one of the most competitive

industries, and therefore rivalry among auto companies is quite
intense. (Caridi, 1997)

Since there are four unique brands of automotive companies

under the GM umbrella, the firm faces even more competition
because of each sub-companys separate rivals. (Olson and
Thjme, 2010)

The top four industry leaders, i.e. GM, Toyota, Ford and Chrysler,
alone made up 60.4% of the market in 2015 in USA (Terlep and
Ramsay, 2011). The closeness of competition between the
automotive companies can be seen from the following chart:

Fig 1: Adapted from: Cain, T. (2015). USA Auto Sales Brand Rankings May 2015 YTD - GOOD CAR BAD CAR.

As seen above in the chart, competition between the top four is

close, hence the fight for market share is fierce.

Although GMs product differentiation strategy offers it

reasonable protection from its rivals, GM has to strive hard to
make this strategy successful by devoting enough resources to
each brand (Manz, 2009).

GM has greater production costs as compared to Toyota, etc.,

therefore GM fails to offer competitive prices, but luckily for GM,
there is not much price-based competition as the automotive
industry is considered to be an oligopoly. (Goldberg, 1995)

1.2.2 Threat of new entrants - WEAK:

Threat of new competitors in the automotive industry seems to
be reasonably low due to the already existing globally
competitive companies like GM, Toyota, and Ford. (Tyree and

Pineno, 2009)
A new car industry would require a significant amount of capital
and finances, modern technology and a skilled R&D department
to be able to compete with the established companies with
strong brand identification.

Therefore, the economies of scale represent a substantial barrier for

a new entry, and naturally, low threat to profitability.

1.2.3 Threat of Substitutes - MODERATE:

Substitutes for automobiles are transportation means like buses,
trains, bikes, walking and also the more environment-friendly
energy efficient vehicles like hybrid and electric automobiles.

(Kennedy et al., 1988)

Rising fuel prices, decreasing purchasing power and The Green
Movement are some of the reasons that are making commuters

reconsider their transportation options.

A new car model is highly sensitive to the demand for its

substitute model with similar specifications.

Prices of products like petrol, gasoline, batteries, tires and
vehicle maintenance costs could also be great threats for
automobiles. (Farmer's Guardian, 2008)

Hence, it can be concluded that considering that automakers cannot

control its substitute industries, GM can take these threats as an
opportunity and divert its focus more on penetrating the hybrid market
while it is relatively young.

1.2.4 Bargaining Power of Buyers - WEAK:

Since customers now have access to the market information and

price of different products online, they now own strong
negotiating powers, easily able to switch to another auto dealer
with minor switching costs if unsatisfied. But as GM has a vast
supply of loyal customers due to their efficient CRM, they are not
affected heavily by the few switching customers as each
individual customer represents a small proportion of total sales,
and therefore it can be concluded that compared to other
threats, the threat from buyers is insignificant.

1.2.5 Bargaining Power of Suppliers STRONG:

GM requires an abundant supply of parts, raw materials, labour

and services, and the cost of these resources carry a huge
impact on the production costs and the firms profitability.

(Ellram, Tate and Feitzinger, 2013)

The automobile industries have large supplier networks that
exert little bargaining power, but the sole supplier of labour,
United Auto Workers (UAW), has historically provided a lot of
subsidiaries over the wages provided by automotive companies,
which had made supply power a strong threat to profitability.

(Lanham, 2009)
The GM Supply chain is quite complex. It is based on a threetiered supply system which creates an inter-dependent
relationship among the different suppliers and the GM. It
indicates a heavy reliance on each link of the value chain. While
this relationship may lead to smoother operations, but it can also

spell disaster in case of economic or political instability. (Global

Manufacturing
and Supply Chain, General Motors Corporation, 2015)

1.3 SWOT Analysis: (Ayub Mohammed Ali TP035355)

The general evaluation of the company's Strengths, Weaknesses,
Opportunities and Threats is called SWOT Analysis. The SWOT analysis
is a model normally utilized to identify factors that influence an
organization's position in the business sector, keeping the future in
mind. The SWOT analysis for General Motors is as follows:
1.3.1 Strengths:

Among the top four automakers of the world. (Balasundram,

Bexley and McFarlane, 2010)

Largest automobile manufacturer in the US, accounting for

around 18% of the US market share as of May, 2015.

Innovative and constantly improving strategies and visions.

Huge customer base of all income levels. (Balasundram, Bexley

and McFarlane, 2010)

Strong brand portfolio with GM parenting some of the most

successful companies, which are best-sellers in US and China,
accounting for more than 80% of total GM sales.

Thorough knowledge of its home and international markets.

Owns advanced technology and skilled R&D department.

10

1.3.2 Weaknesses:

Non cost-effective structures compared to its competitors.

GM brands do not hold GMs name with their logos, hence there

is low GM brand awareness.

Slow adjustments to the constantly changing trends.
Too many Car Recalls, damaging companys reputation. In 2015,
GM recalled 1.4 million cars on account of fire risk. (Isidore,
2015)

1.3.3 Opportunities:

GM can divert its focus more on penetrating and leading the

hybrid market as Green Movement awareness and fuel prices

increase. (General Motors, 2016)

General Motors meet changing customer needs for smaller and
more fuel-efficient cars by introducing innovate car models and

technologies.
GM should continue to acquire new car companies to gain new
skills, assets and access to new markets.

1.3.4 Threats:

Fluctuating fuel prices cause confusion for GM, as the decrease

in price results in decreased attraction towards electric and
hybrid cars, and increase in price result in less interest in current
GM models. Consequently, decision making becomes complex for
GM, whether to treat hybrid and electric cars projects as losses
or perspective future cars.

Rules and regulations on vehicle emission standards may affect

GM negatively. It might not be very cost effective for the
company to comply with these new standards.
(Infrastructure.gov.au, 2015)

11

The increase in price for raw materials will lift costs for GM, which
is especially not in the favour of GM as it is already not cost
efficient as compared to its competitors.

Increased competition with rivals due to cheaper and better

quality cars, especially from Japan and South Korea.

Exchange rate fluctuations threaten GMs profits if the dollar

appreciates against Chinese renminbi, China being GMs second
largest market. (Strategic and Operational Overview, 2015)

1.4 Strategic grid:

The McFarlan Strategic grid is used to analyse the importance of
information technology for companies. It is used to identify the
opportunities to undertake in making an IS strategy plan. It helps in
checking the present and future role that IS can play in the business.
(Cain, 2015)

12

1.4.1 Factory Quadrant (currently high, low in the future): IS here

are related to the daily operations of an organization, and help in
increasing productivity and cost reduction. These IS are designed,
implemented and managed by both business unit and IT executives.
Management is concerned with how to maintain the effectiveness of
these systems. The information systems that lie in this quadrant are
currently running the company, but do not really have a strategic
impact on it, i.e. they do not in any way help the company in obtaining
competitive edge. (Ledgerwood and Nickols, 2006)

1.4.2 Support Quadrant (currently low, low in the future too): IS here
have low strategic impact on the organization. They are basically for
supporting or improving some processes that are carried out and
managed by IT specialists (Agbamuche, 2008). The information
systems in this quadrant help for the smooth working of some of the
companys operations. In the absence of these information systems,
the company shall continue to work smoothly, although it may face
time consumption and tediousness.

Content Management System:

(Ayub Mohammed Ali

TP035355)
CMS has standardized over 500 GM websites, for easy
access in 22 countries.
Reduced the website creation time by 75%, and reduced
technical support time for GMs IS by 80%.
Has saved GM approximately $45 million over the past four
years.

13

The CMS is managed only by the IT department of the company, and

although CMS has helped GM in reducing costs and saving time to a
great extent, the CMS cannot be foreseen to have any huge future
investments done, and does not impact GM strategy.

1.4.3 Strategic Quadrant (currently high, high in the future too): IS

here are usually in organizations that use IT not just for operational
purposes but also as part of the organisations core strategy. IT
initiatives and projects in this quadrant are defined and implemented
by the top management of the organisation. (S.H. Teo and Lian Too,
n.d.)
These information systems help the company gain competitive
advantage over its riavals. They may include systems with complex
technologies, or are systems that affect the company dynamically in
the long run. These systems are highly profitable if successful, and
may prove to be extremely costly in case of failure. (McFadzean, and
Birchall, 2007)

Plant Floor Control Network (PFCN):

(Farheen Tashfeen

Qayyum TP040123)
The dependency of GM is high on PFCN. The failure of PFCN or its
absence will spell disaster for the organization as it has more than 150
plants worldwide which are solely dependent on PFCN. (Mainstay: The
Cisco Connected Factory, 2014). If the architecture of each plant was
different from each other, it would be impossible to manage them
efficiently, therefore PFCN is crucial for GMs successful operating and
for the strategic future of the company as well as the GMs vast plant

14

networks would not be able to survive without this network system

(Cisco Systems, Inc., 2010).

1.4.4 Turnaround Quadrant: (currently low, high in the future): IT

will be a key feature of future strategic planning. Significant top
management involvement in IT (planning) must be established. (S.H.
Teo and Too, n.d.) The information systems in this quadrant are usually
R&D proposals, carrying out new technological concepts. They do not
greatly affect an organizations operations at the present, but if their
performance is rendered successful, they could become strategic
systems for the organization. Organizations cannot depend on these
until success is guaranteed. (Raghunathan, Raghunathan and Tu, 1999)

1.5 Current IT Position

General Motors heavily uses information systems for running its
organization. Some of the information systems used in GM are:
1.5.1 Plant Floor Control Network: (Farheen Tashfeen Qayyum
TP040123)
GM has 150 manufacturing plants worldwide, which used to consist of
500,000 devices, 25,500 plant-floor clients, 3,500 servers and 373,000
robots (Hayes-Weier, 2008). Its engineering and design function had 19
sites spread across 16 countries. To effectively synchronize and
standardize its engineering and manufacturing platforms globally, it
initiated a modern, globally unified business model, called the Plant
15

Floor Controls Network (PFCN), which is an Information network

system, being implemented at more than 150 GM manufacturing
plants worldwide. It aims to establish a common network design, to
deploy and troubleshoot tools across the plant-wide/site-wide
architecture to avoid special tools for each application.
Objectives of the PFCN:

To increase efficiencies and cost-controlling by standardizing

infrastructure components and processes.

To standardize the design of each plant network

To enable a single engineering team to manage network

operations worldwide, reducing network downtime.

To establish smooth flow of information between all the

manufacturing plants.

To rationalize and reduce replaceable networks devices, hence

reducing training, support, and inventory.

Functions of the PFCN:

Standardizes each GM plants network design and technology

and all common infrastructure assets & tools.

Integrates all GMs networks and information systems
Delivers to GMs IT team what protocols and services are being

used, i.e. TCP/UDP, IP addressing, VLANs. (R.S.H, 2007)

Establishes a single information pathway and multi-discipline
control platform for GM.

16

1.5.2 Content Management System: (Ayub Mohammed Ali TP035355)

Content management system (CMS), a kind of distributed software

design, put the brand and its direct accomplices in the driver's seat
with complete control of the content, look and feel of their websites.
The objective of a CMS is to make it simple for non-specialized clients
to consistently upgrade content, work together and customize
client/prospect data.
-

Objectives of CMS:

Implement changes to diminish costs and enhance profitability.

Streamline the time it takes to make content live.

Provides more safety to the online content of the company.

Helps reduce errors, since there is one standard hotspot for core
content that is used in multiple places. (Goans, Leach and Teri,
2006)

Functions of CMS:

CMS is where content is first created. It includes professional

authoring tools,

CMS systems allow collaboration tools so a team of people can

work on specific content simultaneously

Standardizes all websites of GMs brands

Provides centralized hosting control and software platform

17

Assists in managing the websites structure, appearance of the

webpages and user navigation

2. Recommended IT initiatives for achieving Business

strategies
2.1 Autoline Kerridge Dealer Management Systems: (Ayub
Mohammed Mohammed Ali TP035355)
A dealer management system (DMS) is an information system
specifically tailored to meet demanding needs of both the dealer and
its customers, endorsing solutions for cost-controlling, increase sales
18

and improve customer service. Autoline Kerridge DMS can efficiently

improve performance of every operational division, whether the aim is
to increase workshop efficiency, manage loaned cars, marketing
campaigns, maximizing sales or reduce parts inventory costs. General
Motors has not yet utilized this particular IS by Autoline Kerridge
because it exceeds their budget (GM team).
2.1.1 Benefits

DMS will provide solutions to GM for seamless integration of data

between its dealers and internal systems.

DMS will streamline all GM operations and information transfer,

hence simplifying daily operations, assisting with parts inventory
management, improving customer service and hence, enhancing
dealer performance.

DMS will provide GM management access to a "full view" of each

customer, with track record of all sales and service history, and
real-time information such as sales numbers, repair orders and
service requests, all on a simple desktop view.

This information will help in understanding customer value and

can be used to identify further business opportunities with them.

It will also assist dealership managers while processing

transactions or responding to enquiries, in making better
decisions and increasing customer satisfaction.

The significant boost in performance and management efficiency

shall naturally lead to GMs having a competitive edge over other
dealerships.
2.1.2 Risks and Concern of the IT/IS initiative
Risks:

19

Since the DMS holds all the companys important and crucial
information, it naturally stands at a great security risk to cyber thieves
and hackers. It is a dealerships legal responsibility to take the
necessary measures to protect their customers personal information.
A breach could mean the loss of important company data, such as
payrolls, sales, banks statements and also customer personal and
financial information. Such damage may wreak havoc for the whole
company, as well as the customers.

Security Measures:
A written security plan should be instituted that outlines how
customer information will be protected and how the affected
customers will be notified of the breach.

A security evaluation program needs to be established that will

constantly assess and analyze the security system.

A single team of IT specialists should be appointed to closely

monitor and update the security system according to new
technologies, threats and trends to ensure long-term success.

A specially designed firewall should be created for DMS to

prevent any unauthorized access from a third party.

2.2 Data Communication Modules: (Farheen Tashfeen Qayyum

TP040123)

20

Introduced in the new models of GM vehicles of 2015, GM is using a

wireless technology 4G LTE system that provides a very high speed
connection which allows multi-connecting with multiple devices
including gaming consoles, remote ignition of the car and sends
important information regarding the car to a mobile device through a
mobile application.
GM can introduce Data Communication Module (DCM) in its
Connected-Car technology that will allow for more secure, safe and
increased connectivity. This LTE DCM enables faster communication
among vehicles and between the vehicle and its owner/driver.

2.2.1 Benefits

The DCM system stays on as long as the vehicle is in ignition,

sending updated information to cloud constantly.

It enables more efficient transfer of information to the cloud,
which can then be obtained by either the owners, mechanics,

smartphones or other vehicles.

It allows drivers to obtain navigation information like maps, road

information, upcoming radars and dead-ends via satellite etc.

The DCM sophisticated alerts system allow easy identification of

any maintenance and servicing issues.

Aggressive driving behaviour can be tracked because DCM
system is able to record driving traits, allowing drivers and the
GM staff to decipher any maintenance or mechanical issues that
need repair, also giving GM insight to refuse certain automobile
models to the customers if they have been known to mistreat

vehicles.
DCM activates an emergency notification system during airbag
deployment, notifying nearby emergency services of an accident.

21

Through a smartphone application, drivers can access vehicle

information in a highly secure environment.

It will also deliver information about the vehicles battery life,
fuel tank level, water level and other fluctuations in the car
architecture.

2.2.2 Risks and Concern of the IT/IS initiative

Risks:
Even though Connected Cars are equipped with many safety features
that notify you of any crashes, speeding or safety alerts, not many
safety measures have been taken to protect them from getting hacked.
Threats to Connected Cars from hackers are:

They could gain access to GMs cloud services, customers

personal, companys financial and work data information.

Hackers and thieves could track the cars location using

vehicles GPS for stealing.

They can also gain access to automobile networks and can be

extremely dangerous for the traffic and vehicle occupants.

They can use special software that have the ability to turn off a

mobile cars engine.

Via a power amplifier or a phone network, hackers can use
smartphones apps to unlock doors, start up car alarms, etc.

2.2.3 Security measures:

By exposing cars to technology, they have become more vulnerable to
hacking, therefore Connected Cars need to be security hardened at all
levels:
22

A proper analysis of all the risks and threats the Connected Cars
will be exposed to.

Data Communications of the vehicle should be encrypted via

HTTPS.

A strong firewall should be established to secure the operating

system and Connected Car apps.

Apps should go through proper screening and testing before

installing them in cars.

3. Conclusion:
The above analysis of General Motors Companys market and IT
positions shows that GM greatly depends on information systems and
has adopted many innovative IT solutions to achieve efficiency and
operational excellence. However, to further improve and to stand
strong in the market, GM needs to introduce new technologies and
systems

like

Data

Communications

Module

and

Dealership

Management System that will give it more competitive advantage.

23

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5. Work Breakdown:
Student Name

Task Performed

Farheen Tashfeen Qayyum

TP040123

29

History
Mission and Vision,
Aims and Objectives, Business

Activities, Customers
Porters Five Forces,
Strategic Grid Analysis
IS: PFCN
IT Initiative: DCM,
Conclusion,
References.

Ayub Mohammed Ali

TP035355

30

SWOT Analysis
Strategic Grid Analysis
IS: CMS
IT Initiative: DMS
References