BMW's Managing Information Systems

Management information systems (MIS) pertain to those systems that enable company leaders to make choices for the effective functioning of businesses. Management information systems are composed of computer resources, individuals, and processes utilized in the current business enterprise. MIS also pertains to the company that establishes and manages majority or the entirety of the computer systems in the company in order that leaders can make choices. The objective of the MIS based company is to provide information systems to the different levels of corporate leaders. MIS experts establish and aid the computer system all over the organization. Trained and knowledgeable to deal with company computer systems, these experts are in charge in some manner for almost the entire computers, from the biggest mainframe to the portable computers.

Company Overview

BMW is a German vehicle and engine producing organization established in 1916. It also manages and creates the MINI brand, and is the mother organization of Rolls-Royce Motor Cars. Mainly, BMW Group Brands are MINI, BMW and Rolls-Royce (BMW Education Programme 2009a). BMW is famous for its efficient and durable cars. And its mission statement is being a leader in the world as premium product provider and also premium service provider( BMW Education Programme, 2009b)

BMW has established a reputation as both an engine producer and the manufacturer of luxury vehicles. They built the 3, 5 and 7 series, the M5, which represents sheer power, or the Z8, an innovative car. BMW has also proven its capability to resurrect legendary cars, reviving the legendary Mini and its acquisition of the Rolls-Royce brand (BMW Official Website, 2009). While the company’s main office is still based in Munich in Germany, it has ten manufacturing plants all over the globe – seven in Germany, one in Austria, one in South Africa and one in America, and sales units in sixteen nations where the vehicles are transported (The BMW Group, 2009). Aside from the vehicle segment, it stays as one of the important European producers of engines for civil aviation, through its partnership with Rolls Royce. Power merged with innovation is what BMW stands for.

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Overview of MIS of BMW

The present automotive industry is classified by increasing product diversity and brief development periods. One of the important activities is to enter the market quicker by organizing the product development and production start-up procedures. One can attain this streamlining by doing a huge number of effectively coordinated procedures in parallel, utilizing a data structure that has all the data regarding the product and its types and is available at each phase to all people included in production planning (Clarke, 2007). This process, pertained to as integrated product and process engineering, is at available when one utilizes mySAP Automotive.

mySAP Automotive integrates SAP Business Suite programs with customized operations to aid BMW- as well as other manufacturers, vendors, sales, and service companies – attain substantial benefits by merging the whole engineering, production, marketing and service business sector.

With mySAP Automotive merged within the operations of BMW, the company is able to improve important business procedures – and attain important company objectives:

* Competent staff and talent with effective procedures for workforce and talent acquisition

* Financial stability with improved procedures for financial performance control

* Operational effectiveness with improved procedures for operations control

* Product and service dominance with improved procedures for product control

* Excellent client value with improved procedures for sales and service

mySAP Automotive is particularly created to address the needs and challenges of the BMW and the automotive industry. It is a comprehensive and effective solution for BMW that encompasses business procedures from engineering design, preparation, manufacturing, purchasing, sales and service (SAP for Automotive Website, 2010). Created to be a comprehensive and holistic management information system, mySAP Automotive is organized based on various market sectors that create the foundations of automotive industry.

Roles of mySAP Automotive in BMW

Provide information across various departments

a) Operations

More than any operational aspect, operations of BMW have been affected by significant developments in technology. As a consequence, production processes have evolved. For example, inventories are given just in time in order that huge sums of funds are not used for storing large inventories (Kiley, 2004).

mySAP Automotive offers solutions for BMW in terms of vehicle and procedure modeling, preparation and manufacturing implementation. mySAP Automotive helps BMW ins terms of the improvement of the planning of the manufacturing process.

Consolidated product and process modeling is attained within BMW through mySAP Automotive, where the modeling of every vehicular model and production procedures from the initial prototyping stage to the manufacturing stage is accomplished in one framework (Kidd, 2000). This minimizes information redundancy and the necessity for interfaces as information is saved in a solitary system. Cooperative engineering with suppliers provides new opportunities for more effective and quicker product development with suppliers online.

Versatility and effectiveness in manufacturing within BMW is attained through the Model-mix preparation and immediate needs preparation feature of mySAP Automotive. Model-mix preparation enables BMW to improve the manufacturing sequence particularly essential for the company. Immediate needs preparation allows quicker processing of assembly and parts requirements of make-to-order setting as against the basic MRP.

b) Accounting

In BMW, all accounting documents are managed by all accounting managers (Laudon, 2007). In this case, mySAP Automotive offers solutions that improve the accounting procedures and policies of BMW. mySAP Automotive offers solutions that improve the accounting activities of the company, enabling them to respond more quickly and effectively to the industry demands.

c) Finance

mySAP Automotive offers financial data to all financial managers within BMW including the head of the finance department. The head of the finance department of BMW studies historical and present financial outputs, predicts long term financial necessities, and tracks and manages the usage of money over time utilizing the data produced by the mySAP Automotive (Buxmann, 2004).

mySAP Automotive offers solutions that allow sales and pricing of cars through configuration, status monitoring of cars, sales and allocation of available components. Car customization and pricing online improved car sales of BMW by providing clients with the alternative of customizing their cars (Seese, 2008). Once the car is customized, car customization and pricing will identify the price of the car according to the customization. Car search and locator allows BMW to look and find cars that satisfy the particular configurations, attaining quicker delivery to clients.

d) Marketing

mySAP Automotive aids the marketing initiatives of BMW in the aspect of product development, dissemination, pricing choices, advertising, and sales prediction (Forquer, 2005). More than any other operational aspect, mySAP Automotive depends on outer sources of information. These references include rivalry and clients, for instance.

e) Human Resource

mySAP Automotive also helps with BMW’s initiatives connected to employees, leaders, and other staff working within the company. Due to the fact that the role of the human resources is important to all other aspects of the operations of BMW, mySAP Automotive has an important responsibility in guaranteeing company development for BMW (Sankar, 2006).

2) Facilitate decision making at the three tiers of management

a) Operational Level Systems

To make the operational level decision making within BMW very simple and effective, mySAP Automotive helps in offering and disseminating updated data to proper users. mySAP Automotive is created to improve the reporting of data that will be critical in the correct decision making within the operational level of BMW. mySAP Automotive is able to immediately gather and edit information, summarize outcomes, and able to cope and correct mistakes immediately.

b) Management Level Systems

mySAP Automotive has automated and manual internal controls that help in the management level decision making activities in BMW (Kogent, 2009). Data is obtained through proper editing and inner control checks. A detailed inner and outer audit program is used within BMW through mySAP Automotive.

c) Strategic Level Systems

To have an improved strategic level decision making, information within BMW is analyzed and organized effectively and uniformly through mySAP Automotive. Gaps in the manner data is gathered and documented can alter data and trend analysis. Aside from this, since information gathering and documentation procedures will alter over time, so BMW management has created effective processes to enable systems developments through mySAP Automotive. These processes are always well defined and noted, effectively communicated to proper workers and has a monitoring system that aids in the strategic level decision making of BMW.

3) Serve as efficient means for managing business processes

The establishment of mySAP Automotive within BMW is the consequence of the implementation of an environment of system management. The owners are the users of mySAP Automotive who understand current client needs and also have budget authority to finance new projects. In order to manage its business processes efficiently, BMW has strived in establishing ownership that advocates pride in its business procedures and aids guarantee accountability. Even though mySAP Automotive does not really completely minimize costs, the establishment of this important system, and its effective usage, minimizes the chances that erratic choices in business processes are done due to unreliable data (Dickersbach, 2005). Erratic business decisions essentially waste resources. This may lead in a detrimental impact on profits and/or capital.

Management always guarantees that mySAP Automotive is established on a logical process that includes the following stages:

• Proper investigation of system options, approval areas as the system is established or obtained, and task management.

• Program establishment and negotiation of deals with suppliers.

• System’s integration and management. Management always takes into account the usage of business management processes to track development as mySAP Automotive is being integrated. Inner controls are created into the procedures and periodically assessed by auditors.

Application of mySAP Automotive in BMW

mySAP Automotive obtains customized production orders from BMW’s planning system. The orders involve the components necessary to manufacture every vehicle; the X5, for instance, has lots of parts included in the car list of materials. mySAP Automotive produces the delivery timeframes for every component to match BMW’s assembly-line preparation and organizing policies.

BMW sends these comprehensive analyses and accurate JIT delivery timeframes to its suppliers. Major suppliers get the data through electronic data interchange (EDI). Other suppliers enter the mySAP Automotive official site, where BMW states the requisites to offer the latest data on its delivery necessities (Kuhlin, 2005). By logging online, suppliers can check this data in actual time, including release time frames, procurement files, receipts, and engineering files.

When they send components, the suppliers send BMW forward transport notifications to give BMW with accurate data on component figures and delivery schedules. Components entering at the BMW premises are then obtained and shipped immediately to the line. There, BMW utilizes mySAP Automotive to check manufacturing status in actual time (Dickersbach, 2007). mySAP Automotive takes note of the manufacturing validation and components consumption data every three minutes. Components used during manufacturing are eliminated from the inventory list, and expenses are posted to compute the value of work in process.

Client demand for BMW’s new X5 sports car and its famous Z3 models needed a solution that would effectively increase and assist streamlined manufacturing. mySAP Automotive aids the company to minimize order-to delivery time, improves its supply chain initiatives in the aspects of demand planning and monitoring and locating of material deliveries, and enhances inventory precisions all over its production facilities- allowing BMW to tremendously minimize time to client for its efficient cars.

Benefits of MIS for BMW

Effective Solution

BMW had been utilizing a customized data solution to handle its supplier and logistics needs. The organized was able to finish its integration of mySAP Automotive only a month after this management information system became accessible. mySAP Automotive provides BMW an effective, measurable structure that can be widened and changes to consider new functionality or developments in business procedures.

mySAP Automotive offers BMW with top notch Internet operations and the commonly utilized business procedures – from production preparations and purchasing to sales and allocation- for a total supply chain management remedy. The effective coordination between BMW and its business partners aids the engineering and massive manufacturing of customized products (Woods, 2006). BMW takes advantage of actual coordination on the Internet and instant pipeline visibility, enabling them to track developments in the midst of the development and manufacturing stages.

Immediate Access to Data

Important BMW business procedures are merged with mySAP Automotive so data stored in BMW systems can be readily viewed, including prediction requisites on a component stage, sales orders, and car bills of material. Since mySAP Automotive is not that hard to integrate, BMW is able to connect it with its modernized warehouse. The information system’s transparent setting and expandability have also allowed BMW to immediately merge its own programs into the enterprise site for suppliers in mySAP Enterprise Portals.

Aside from industry-based solution, BMW is utilizing mySAP Automotive for logistics, financing, and workforce improvement tasks. The organization has also established Internet programs for supplier quote establishment and investigation for manufacturing components, which have been integrated to the mySAP Automotive.

Enhanced efficiency

mySAP Automotive enables BMW to optimize profit opportunity, handle and limit expenses, enhance quality, and speed up time to delivery.

Minimized risk

Updated data regarding projects, procedures, functional performance, and markets provide BMW initial signs of changes in demand, client needs, and financial situations.

Improved visibility and management

Improved analytics enable BMW to determine accurately where they’re getting product and manufacturing expenses, allowing them to maximize efficiency in all of its resources (Knolmayer, 2009).

Quicker time to market

mySAP Automotive speed up the period to market by improving interaction, enhancing coordination, and managing consistent information in the whole procedures.

Widened reach

With mySAP Automotive, BMW is able to control the whole value chain, interacting through enterprise sites and allowing holistic coordination among workers, suppliers, and clients.

Increased sales

mySAP Automotive allow BMW to predict and cope up to market demands, determine new business trends, and exploit new ways to increase market share and profits. Assistance for business management allows procedures like car sales, car service, components management and finance to be effectively monitored by BMW (Missbach, 2000).

Enhanced supply chain management

Locate-to-order and make-to-stock procedures offer perspectives into the client needs, inventory, and capability – allowing BMW to address client demands.

Improved aftermarket service

With mySAP Automotive, BMW is able to know client demands, improve customer service, and offer excellent assistance to improve revenues in the top end aftermarket business.

Reduced overall expenses of ownership

mySAP Automotive minimizes overall expenses of ownership by offering high end features and removing the necessity for the expensive interfaces needed by other information systems.

Easy integration

mySAP Automotive effectively mergers important aspects of BMW’s operations, including supply chain management, product life-cycle management and business management (Stanford-Smith, 2001). mySAP Automotive offers BMW a centralized, merged foundation, so the company doesn’t have to manage an information base of various systems.

Conclusion

The structure of mass manufacturing was initially introduced by Automobile industry a long time ago. But at present the industry is confront world competition and the demands of the industry have completely evolved. The clients are not anymore contented with limited options. They say what they need, the time they need it at the proper place. Clients are always perceived as an important resource for automotive companies.

To address the demands, make-to-order manufacturing is essential rather than mass production. Here the effectiveness relies on speed; the pace of acknowledging market needs, the pace of establishing new frameworks, the pace of purchasing raw materials, the pace of manufacturing and the pace of shipping the products to the proper environments. Coordination the whole industry stakeholders-providers, dealers, and clients – is important.

The mySAP information system of BMW is offering seamless flow of data to organizing the operations. mySAP Automotive is more than a mere Supply Chain Management information system. mySAP Automotive provides a centralized information structure for engineering, supply chain management, purchasing and business management. Regardless of whether the organization is a car manufacturer like BMW, a provider of car parts or dealer, mySAP Automotive aids these organizations to concentrate on their clients. Important strengths of the mySAP Automotive information system lies in offering established processes, improved program tools, and open technology to obtain their mySAP Automotive information system up and running immediately – and helping to attain their business objectives.