IT Management: Ford Motors SAP Implementation Analysis Report

This report examines the implementation of SAP within Ford Motors, analyzing the current business processes and identifying key issues and opportunities. The report begins with an overview of Ford's organizational background, highlighting its position in the automotive industry. It then delves into a comparison of literature analysis with current practices, identifying risks related to market analysis, industry evolution, database management, and stakeholder management. For each issue, the report provides a detailed analysis, supported by literature and real-world examples. Furthermore, the report explores opportunities for improvement, focusing on areas such as fuel-efficient vehicles, hybrid electric engines, market diversification, and restructuring plans. The report concludes with a summary of the key findings and recommendations, emphasizing the importance of SAP implementation for enhancing Ford's business processes and achieving its goals. The report aims to provide insights and recommendations for Ford Motors regarding the implementation of SAP, contributing to its growth and operational efficiency.

Running head: IT MANAGEMENT
IT Management
(SAP Implementation in Ford Motors)
Name of the Student
Name of the University
Author Note:

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Abstract
The report is prepared for Ford motors for implementation of SAP in the current organization
and replace the current information system. The main issues faced by the organization is
analyzed for the implementation of the system and given in the report. The issues contain the
different types of risk that can occur during the implementation of the SAP system. The next
section of the reports describes the different types of opportunities that can be used for the
mitigation of the issue. For the identification of the opportunity different literatures are studied.
Recommendations are given for the selection of the best methodology for the implementation of
the SAP in the current business process of Ford motors.

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Table of Contents
Introduction..........................................................................................................................3
Organization Background....................................................................................................3
Compare the literature analysis with current practice.........................................................4
Issues Studied......................................................................................................................4
Issue 1: Risk in market analysis.......................................................................................4
Issue 2: Industry evolution...............................................................................................5
Issue 3: Improper Database management........................................................................6
Issue 4: Risk in stakeholder management........................................................................7
Opportunities Studied..........................................................................................................7
Opportunity for Issue1.....................................................................................................7
Opportunity for Issue2.....................................................................................................8
Opportunity for Issue 3....................................................................................................8
Opportunity for Issue 4....................................................................................................8
Conclusion...........................................................................................................................8
References..........................................................................................................................10

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Introduction
The report is created for Ford Motor that have a requirement of implementation of SAP
in their current business process for the management of the growth of the organization. A cloud
based web application is selected for deployment such that the initial investment cost of the SAP
system should be kept minimum (Chang 2016). The risk and the advantages of the
implementation of SAP in the current business process is analyzed before the deployment of the
system. The problems with the current system is also analyzed for aligning the system with the
business needs and management of the different business operation (Tetteh and Quansah 2017).
The report is created for provided an idea regarding the organization background of Ford.
After that, a comparison has been provided regarding the literature analysis with the present
practices. The coming pages provide an idea regarding four kinds of issues which needs to be
tackled. The last section of the report provides an idea regarding various kinds of opportunities
which are needed to be tackled.
Organization Background
Ford Motor company is considered as one of world largest organization in automobile
industry. It is considered to be world largest producer of trucks (Singhla 2014). Under the given
leadership of Henry Ford, the organization has implemented lime methods for mass production.
The organization manufacture cars which are affordable to middle class consumer. Ford is
known to be second largest vehicle organization manufacturer in United States. Ford is a
subsidiary of Hertz organization which is considered as one of the largest rental organization. It
is considered to be world’s largest provider of automotive financing (Ekman, Thilenius and

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Windahl 2014). Vehicles manufactured by Ford markets comes under the brand Lincoln, Mazda
and lastly Volvo.
Ford manufacture a large number of methods which is all about manufacturing various
cars and managing large-scale management (Jia et al. 2017). It is mainly inclusive of workforce
which can easily engineer manufacture sequence by assembly of lines. Currently, Ford is
considered to be fourth largest manufacturer of world-class vehicles that are sold on annual basis
(Lee and Tang 2018). In addition to Ford, it also owns Volvo cars of Sweden and also has small
stake in Japan.
Fig 1: Ford Motors
(Source: Tetteh and Quansah 2017)

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Compare the literature analysis with current practice
Issues Studied
Issue 1: Risk in market analysis
The growth of the automobile industry across the globe has been a great opportunity for
different automobile companies. However, there have been several risks with the growth if
industry in the market (Acharya, Schaefer and Zhang 2015). Different new companies have been
rising in the market. The increase in the completion the sale of automobiles has been increased.
Ford Motors has been facing a decrease in their sales for some years due to bad inventory
control. According to the first question, productivity has been an important factor for the
development in the Ford Motors in the market. Increment in the sales of the sales of motors has
been enhanced with the implementation of ERP module in the company.
The implementation of SAP has been a positive venture for the company. SAP has helped
in maintaining the number of sales of cars in the market (Barnes 2014). The use of SAP
software has been helping in providing a descriptive approach to monitor sales and business of
the company in the market. According to it the IT manager, productivity has been an essential
element for the development if the company (Chang 2016). The correlation with the customers in
the market has been helping in enhancing the sales of motors in the market.
Issue 2: Industry evolution
Enhancement in technology has been modifying the cars and other-other vehicles across
markets (Tetteh and Quansah 2017). There has been a huge evolution in the automobile industry
in recent years. Therefore, Ford Motors need to change their strategies and business plans with
changes in the market. The company has been using their old software that has been creating

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issues in the customer satisfaction level. The old model of Ford Motors has been dissatisfying
their customers. There has been enhancement in the technology used in the manufacturing of
cars and motors in the market (Singhla 2014). Therefore, Ford Motors has been lacking in the
implementation of technology in business operations.
The implementation of SAP software has been helping in implementing new technologies
in the company for the development of the company in the market (Ekman, Thilenius and
Windahl 2014). According to the IT manager, the use of the technology has been helping in
boosting the quality and quantity of the motor vehicles in the market.
Issue 3: Improper Database management
Database management has been an important aspect for a business organization. Ford
Motors has been lacking in managing their database. Ford Motors have been manufacturing use
number of motor vehicles in the market. Therefore, there is a requirement for proper database
management in the company (Jia et al. 2017). The SAP implementation has been helping in
maintaining their database in a simpler aspect. The use of SAP software has been helping in
analyzing data and information of vehicles and costumes altogether. Data management has been
maintaining a keen approach in the development in the SQL queries in searching and analyzing
data.
According to the IT manager, the financial department has been an important department
of the company. Therefore, SAP software has been helping in roping proper balance sheet and
cash flow analysis of the sales of the company in the market. The use if the SAP software has
been helping in providing cost-benefit analysis that focuses on profit aimed by the company
within a year (Lee and Tang 2018). These reports have been helping in monitoring and achieving

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goals of the company in the market. The resource of the company has been properly managed in
the company with the implementation of the SAP software. This software has been able to create
a work breakdown structure (WBS) for dividing tasks into small tasks and allocate to specialized
department. This help in maximizing quantity and quality of cars in the market.
Issue 4: Risk in stakeholder management
Stakeholders are the important resources of the company. Ford Motors has been shared
with various stakeholders to increase their profit and better decision-making system. However,
the stakeholder management system has been ruptured in the operation of the company
(Acharya, Schaefer and Zhang 2015). Therefore, there have been problems in the decision-
making system of the company. Managers and other administrators have been facing difficulties
in making decisions in the company. The use of the SAP software has been helping in managing
stakeholders of the company in the market. It has been helping in enhancing the decision-making
system of the company (Barnes 2014).
According to the IT manager, the key skill of a manager needs to be leadership.
Leadership skills in manner help in providing regular path for the employees in the company it
completes their goals and objectives in the company (Chang 2016). The use of the SAP software
has been helping in providing employee database with their skills. This process helps in
maintaining a keen approach to handling employees according to their skills. Training session
and motivation skills might be provided to the employees in order to enhance their skills and
knowledge.

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Opportunities Studied
Opportunity for Issue1
At present, the ford organization is producing a large number of cars which comes up
with low mileage and proper kind of pick up option (Tetteh and Quansah 2017). Ford comes up
with much greater option which is needed for fuel-efficient cars and various commercial
vehicles. The organization aims to produce vehicles which can run on various forms of energy
outside both petrol and diesel. The cars can easily run on renewable energies like biofuels and
solar power (Singhla 2014). This particular point will the help the organization to easily become
a pioneer in the industry.
Opportunity for Issue2
Ford has expanded its business for designing of cars and various commercial vehicles
which are expected to be switched in hybrid electric engines. It mainly occurs due to limited
nature of petroleum (Ekman, Thilenius and Windahl 2014). The given cars are designed on the
basis of proper electric engines which will show more interest to the buyers of the cars. It is
mainly done because of the fact that car which on electricity comes up with repairing cost (Jia et
al. 2017).
Opportunity for Issue 3
Ford organization have diversified their market in India and China. They have mainly
done this so that they can diversify their revenue in this countries which have huge geographical
market and have huge population(Acharya, Schaefer and Zhang 2015). Most of the people in this
countries are very much interested in owning a four-wheeler for their family.

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Opportunity for Issue 4
Ford comes up with a restructuring plan which is needed for improving their performance
of business in North America (Lee and Tang 2018). This particular plan will help North-America
more customer-focused, efficient and lastly product driven. The forward plan focuses on
restoring North America automotive operation for much better profit.
Conclusion
From the above pages of the report, it can be concluded that this report is all about SAP
implementation for Ford Motor. In the report, the organization background of Ford Motor has
been provided in details. After that four issues that risk in market analysis, industry evolution,
improper database management and risk in stakeholder management have been discussed in
details. The last section of the report mainly deals with various kinds of opportunities for this
organization. The ultimate goal of Ford is to become the world’s leading organization in
automobile products and services.

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References
Acharya, V.V., Schaefer, S. and Zhang, Y., 2015. Liquidity risk and correlation risk: A clinical
study of the General Motors and Ford Downgrade of May 2005. The Quarterly Journal of
Finance, 5(02), p.1550006.
Barnes, N.G., 2014. Social commerce emerges as big brands position themselves to turn"
follows"," likes" and" pins" into sales. American Journal of Management, 14(4), p.11.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Ekman, P., Thilenius, P. and Windahl, T., 2014. Extending the ERP system: considering the
business relationship portfolio. Business Process Management Journal, 20(3), pp.480-501.
Jia, W.J., Wang, S., Lu, H., Shao, Y., Lee, E. and Zhang, Y.D., 2017, June. Ford motor side-view
recognition system based on wavelet entropy and back propagation neural network and
Levenberg-Marquardt algorithm. In International Symposium on Parallel Architecture,
Algorithm and Programming (pp. 3-12). Springer, Singapore.
Lee, R.P. and Tang, X., 2018. Does it pay to be innovation and imitation oriented? An
examination of the antecedents and consequences of innovation and imitation
orientations. Journal of Product Innovation Management, 35(1), pp.11-26.
Singhla, J., 2014. Challenges in implementation of enterprise resource planning in india: a case
study of corps of electronics and mechanical engineers: EME.

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Tetteh, U.S. and Quansah, C., 2017. An Examination of The Significance of The Choice of
Dramatic Techniques in Fugard’s Sizwe Bansi is Dead. African Journal of Applied Research
(AJAR), 3(1), pp.1-13.