About cars and computers

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Posted by Yehoram on February 27, 2000 at 18:55:04:

The following is an interesting article that has been published by the wall street journal on February 22nd. It talks about GM quest to sell cars on the Internet. It brings the issue in comparing care and computers.
http://www.msnbc.com/news/372990.asp#BODY

I too, believe that there is a lot in common between cars and computers, except that the evolution cycle has been much faster in computers than it is in cars. Mr. Harold Kutner (GM Purchasing tsar), points at Dell's success in selling computers online. In my opinion, it will require a major shakeout in the automotive supply chain in order to make a similar trend in cars. One important point is that Dell, Compaq or Gateway do not manufacture computers, this allows them to avoid inventories of non selling components, as well as transitioning from platform to platform rapidly. In computers it is possible and common to offer diversity, if GM wishes to successfully emulate selling on the Internet, how soon will they allow customization across their line like a Corvette engine in a Cadillac, or more like in computers, across vendors lines (such as a GM chassis with a Ford engine, and a Chrysler interior)?

One of the main attributes to the computer revolution, is that prices of computers are falling down, and new products are introduced very rapidly. In fact, a recent advertisement for Gateway, is based on the fact that when you buy a new computer, it is already an "old technology". If cars have to sell like computers, their prices must go down, while performance increase. To maintain leadership, the life cycle of a cars must go down, and new models have to be unveiled much faster than they are today.

Among other trends this means that new engines, steering, brakes and suspensions (all depend heavily on metal cast parts) will no longer be able to wait for expensive tools to be made, neither in the development cycle nor in transiting to production. That functional testing of these parts will have to be compacted, and that the transition to manufacturing will become a race. Speaking about this paradigm shift may give us some thinking about this road less traveled.

At soligen, we allow some philosophy work on Sundays, comes Monday we work hard to prove the values of these paradigm shifts.

Have a great week.

Yehoram

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: The following is an interesting article that has been published by the wall street journal on February 22nd. It talks about GM quest to sell cars on the Internet. It brings the issue in comparing care and computers. : http://www.msnbc.com/news/372990.asp#BODY : I too, believe that there is a lot in common between cars and computers, except that the evolution cycle has been much faster in computers than it is in cars. Mr. Harold Kutner (GM Purchasing tsar), points at Dell's success in selling computers online. In my opinion, it will require a major shakeout in the automotive supply chain in order to make a similar trend in cars. One important point is that Dell, Compaq or Gateway do not manufacture computers, this allows them to avoid inventories of non selling components, as well as transitioning from platform to platform rapidly. In computers it is possible and common to offer diversity, if GM wishes to successfully emulate selling on the Internet, how soon will they allow customization across their line like a Corvette engine in a Cadillac, or more like in computers, across vendors lines (such as a GM chassis with a Ford engine, and a Chrysler interior)? : One of the main attributes to the computer revolution, is that prices of computers are falling down, and new products are introduced very rapidly. In fact, a recent advertisement for Gateway, is based on the fact that when you buy a new computer, it is already an "old technology". If cars have to sell like computers, their prices must go down, while performance increase. To maintain leadership, the life cycle of a cars must go down, and new models have to be unveiled much faster than they are today. : Among other trends this means that new engines, steering, brakes and suspensions (all depend heavily on metal cast parts) will no longer be able to wait for expensive tools to be made, neither in the development cycle nor in transiting to production. That functional testing of these parts will have to be compacted, and that the transition to manufacturing will become a race. Speaking about this paradigm shift may give us some thinking about this road less traveled. : At soligen, we allow some philosophy work on Sundays, comes Monday we work hard to prove the values of these paradigm shifts. : Have a great week. : Yehoram :

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