Forrester Research: Forrester Retail Insights Automotive First Look: Research & Event Highlights From Forrester

 09 July 2003
New From Our Auto Team
Few industries are as global as automotive. But as the saying goes, you've got to "think globally, act locally." So we've started a series of in-depth looks at North American and European consumers:

Say Bienvenidos To Hispanic Carbuyers
Buying The Wrong Car Hurts Satisfaction
What Influences New-Car Buyers?
Coming Soon:
What Europe's Carbuyers Want Online

Over the next few months, look for more research into some of auto's international issues, like OEM-dealership integration, telematics, and product life-cycle management.

Service Parts Management
In an industry obsessed with launching sexy new vehicles as often as Hollywood makes movies, service parts management (SPM) seems like a dull detail. But with ERP, CRM, and supply chain projects largely built out -- and new-car sales stagnating -- the aftermarket is finally getting attention from IT innovators. For example:

PwC Consulting (now IBM Global Services) and i2 Technologies helped Toyota develop an SPM system that cut inventory by 10%, or $30 million, in the first year.
Vendors like Viewlocity and Exemplary already help suppliers like Goodrich and Autoliv with production planning -- and they'll also integrate demand for service and repair parts.
Leading suppliers like Johnson Controls already use RFID technology to track parts in production -- so look for RFID to spread to service parts sooner rather than later.

Read more about these and other accomplishments in our new four-part brief series, which includes:

Carmakers Bet On i2 For Service Parts Management
Coming Soon:
CGEY Helps Auto Suppliers Craft Service Parts Strategy
US TREAD Act Means Global Service Parts Profits
The X Internet Fixes Auto Service For Good


Catch Carbuyers Crossing Channels
Hopping from OEM sites to third party sites to dealership sites and back again, auto shoppers are the ultimate cross-channel consumers. To find out how innovators in several industries are building world-class multichannel customer experiences, join us with InterActive Corp. CEO Barry Diller and leaders from JetBlue Airways, Amazon.com, Origins, and ESPN at the 2003 Forrester Consumer Forum in New York, N.Y., from September 21 to 23, 2003.


New-Car Buyers Find Independent Sources Most Important
New-Car Buyers Find Independent Sources Most Important

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Welcome back to Automotive First Look, a newsletter about our recent and upcoming automotive research, events, and activities. This is just our second quarterly edition, so we're eager to get your feedback on the format and the content. Please send comments, suggestions, and questions to markbunger@forrester.com.

Automakers' failure to align production with customer demand keeps profits low -- just 1.5% in 2002. During the past six months, we've been examining the topic of sensing automotive demand. Pioneering individuals at nearly every automaker are starting to prove that there's a link between what consumers do online and what they buy offline -- showing that analyzing consumers' demand signals can help fix the industry's problems with production, incentives, allocation, and promotion.


Auto's First Demand Dashboards Emerge In 2003 Analyzing demand signals holds promise: Using consumer configuration data from its Web site, Subaru saved the launch of the Impreza WRX by inverting the mix from 75% automatic to 95% manual transmissions. But with so many OEMs in financial crises, there's little budget for the tools, time, or people to do it. In order to get the ball rolling without breaking the bank, Forrester proposes that automakers construct demand dashboards:

The first demand dashboard doesn't have to be an enterprise application serving thousands of far-flung users. Instead, it should be a place to gather and present high-level demand data and analyses. Keep the technology simple so that the dashboard is easy to disseminate and is useful for many audiences. Get started with something as basic as a page on the company intranet where data analyzers can post their latest forecasts for interested constituents to read and review.

Auto's shift to a demand-driven model will take years, but demand dashboards are a way to get started now. As the first of many iterative steps forward, demand dashboards should be designed to eventually integrate with installed analytics tools from Manugistics and Trilogy, as well as dealer systems, data management, ERP systems, and market data from sources like Chrome Systems and R.L. Polk. In the future, we'll keep examining new areas around this topic, such as:

  • How importers like Audi in the US or Toyota in Europe can compensate for their relatively long lead times.

  • How automakers can respond in cases where there are very few or very weak demand signals.

  • How carmakers should work with dealer-management system (DMS) providers like Reynolds & Reynolds, ADP, and EDS to get better demand data, such as showroom traffic and days-on-lot.

    Automotive isn't the only industry that's learning to decode demand signals. Be sure to check out my colleagues' research, for new data and more insights. A few pieces of brand-new demand analytics research that I highly recommend are:

  • Helping Supply Chain Cope With Demand
  • Why Web Site Analytics Matter
  • BI Platform Shootout

    If you know of a company or a colleague who's making strides in analyzing demand or have a product or service that automakers should know about, let us know -- via email or the next time we meet in person.

    Best regards,



    Mark Bünger
    Senior Analyst, Automotive Research

    P.S. Are there other people in your organization who should receive Automotive First Look? They can subscribe via the link to our email subscriptions page below. Or just send an email address in a reply to this message, and I'll add them to the distribution list. Thanks.



    Research Referenced In This Issue
    If you printed this email, get links to the research featured in this week's issue by going to www.forrester.com/go and entering the five-digit number of the report you'd like to read.

    Auto's First Demand Dashboards (16335)
    BI Platform Shootout (16748)
    Buying The Wrong Car Hurts Satisfaction (17034)
    Carmakers Bet On i2 For Service Parts Management (16878)
    Helping Supply Chain Cope With Demand (16673)
    RFID: The Smart Product (R)evolution (13834)
    Say Bienvenidos To Hispanic Carbuyers (16909)
    Sensing Automotive Demand (14586)
    Start Sensing Auto Demand With Configuration Data (16505)
    What Influences New-Car Buyers? (17033)
    Why Web Site Analytics Matter (16367)   


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