In 2009 when the auto market in China sky rocketed, most auto companies invested their core resources on new car production and sales, whereas their internal management building was neglected. After studying the data management systems of some auto companies (especially auto sales companies) for a period of time, we found most of them only have department databases rather than an integrated company database that makes overall plans and manages the business of the whole company.
Auto companies’ data management systems have the following problems: First, each company has a number of independent department databases leading to data barriers and information silos. Secondly, the database is incomplete due to design flaws. Thirdly, the data quality is poor as a result of insufficient basic data maintenance and digitization. Fourthly, the databases are not designed with clear aim and thus not effectively used. At last, the data management system is imperfect, without paying sufficient attention to details.
How to solve those extensive and complex problems of auto companies?
Improvement of information technology
Large-scale and systematic data cleansing is the first step. To clean the data, we need to build a set of data cleansing standards, based on which duplicated and incorrect data will be eliminated. And after that, the basic data will be managed in a standardized manner.
The second step is data integration. The data integration can be implemented at data level, system level and application level. To integrate the databases at application level is the most difficult, having low success rate. Integration at system level means to build a comprehensive database and incorporate each of the previous databases as an independent module or sub-system. And basic data should be included as a separate module, and maintained by a special person with an aim to ensure the uniqueness of the source of each piece of basic datum. As for integration at data level, we can achieve that either by establishing a data mart or using the method of Master Data Management. Comparatively speaking, establishing a data mart is a rather a superficial cure, while Master Data Management is the way to tackle the problem from the root.
Improvement of organizational structure
It is an ongoing trend that an auto company establishes an independent information management and application department. The department collects and integrates information management and application demands by all other business departments and then builds or improves the information management system from a company perspective.
In reality, business departments and dealer outlets are the end users and beneficiaries of the information system. Therefore, when the information management department performs its duty, it should bear in mind the interest of the whole company, and balance the interests of various departments. After collecting the demands of all departments, the information management department shall integrate, process and plan them at a higher level, and eventually convert the demands into technical requirements. Meanwhile, before finalizing the technical requirements for system development or improvement, the department shall fully communicate and then confirm with the business departments about the system plan, to prevent any misunderstanding or ignorance of their demands.
Improvement of management system
The purpose for establishing the information system is to improve the efficiency, convenience, accuracy and intelligence of the company management mechanism. With the system, auto companies will be able to implement the “Data culture” internally, and change employees’ ideas fundamentally. Attention should be paid to details of the data management. Any detailed improvement on management flows and regulations will lead to the improvement of data quality.
According to the research findings of Sinotrust, the supportive government policy and exuberant demand have created a market with annual production and sales of 20 million vehicles. In such a gigantic market, the competition will become intense in a very short time. Those companies who have sound and flexible management systems will be able to secure their advantages in market.
Author: Lou Lei & Sun Jun, Consultant, Business Decision Solution, Sinotrust Automotive Marketing Solutions
Tiger Li, Director, Business Decision Solution, Sinotrust Automotive Marketing Solutions
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