BMW AG: The Digital Car Project
BMW AG: The Digital Car Task
©2007, Stefan Thomke, All Rights Reserved
" One time permission to reproduce
The situation text A & M granted simply by
Harvard Organization School Posting. "
Sept 25, 2008
MIDTERM – HBS Example
BMW AG: The Digital Car Project (A & B)
Specific A we
I di id d Assignment
HBS Portion A: 9-699-044
and HBS Portion B: 9-699-045
Publisher (s): Stefan Thomke, Ashok Nimgade
Describes ho the The german language a tomoti e firm BMW is definitely tr ent to red ce it is de elopment time b how
half using computer-aided technologies. To leveraging these solutions fully inside the very competitive automotive industry, AS BMW HYBRID is confronted with the challenge of changing its operations and firm, gradually building new creation capabilities. This kind of tension between old as well as the new can be played in BMW's style area, that has historically recently been area
in charge of much of BMW's strategic merchandise positioning. Concentrates on:
Managing vehicle development, with an emphasis on exterior hair styling; New computer-aided technologies and their potential effect on development efficiency; and The company and method changes needed to gradually create a firm's advancement capability.
CAD CAE Organizational change Merchandise Design Product Development Reengineering transform,
Philippines; Automotive industry; DM 50 billion revenues; 115, 000 staff; 1997 2-4-6
The Digital Car Job
Block one particular: BMW's Merchandise Positioning and Development Method The purpose of this introduction block is to develop an understanding of how BMW competes and why industry dynamics put pressure on it to change how AS BMW HYBRID competes and why sector dynamics set pressure on it to change •
Question: What does the BMW brand and its products stand for? � Query: What is the role of product development at BMW? � How has it changed over the last twenty years?
Ho has it altered o er the last t ent hearing?
Question: What are the competitive changes in the automotive industry� around 1997 and how does it affect BMW? ”
Question: How serious is the new threat from Japanese auto firms? � Should BMW respond at all or are its products in a different� league than the Japanese and U. S. firms?
Question: How can BMW benefit from shorter development? What are the risks? �
AS BMW HYBRID AG:
The Digital Car Project
Stop 2: The newest Process: Program or Derivative Project?
a)BMW doesn't know yet if this new process will work; and that� b) introducing it through its functional managers is going nowhere. � As a result, senior managers decide they have to test it on a real project. •
Question: Which will project should senior managing test the modern process about? The type 3-series or the flagship 7-series platform?
Problem: What are a number of the risks of going with either project?
Question: Is BMW ready for a 50% cut of development time? Why not 30% or 40%� 50%
30% or 40% first? �
The Digital Car Project
Block three or more: Technology Advantages and The usage (B-Case)
Question: Let me take you to BMW's design process which is considered� to be one of the most critical steps in their overall development process. b
my spouse and i h we
ll d l
As Chris Bangle, what would you recommend with respect to: –
Introducing Computer‐Aided Styling (CAS) tools? �
Significantly reduce the number of clay models to designers? � Or leave the decision to the designers on how to use the tools?
Question: Does it even make sense for BMW to follow other companies and fully � embrace CAS? ( Note that a similar question can be raised in the A‐case� discussion: � Should BMW even benchmark itself against other companies � debate: " Should certainly BMW actually...