IBM Brings ASP to the Auto Industry

At the North American International Auto Show on Thursday (Jan 11), IBM introduced a new “e-sourcing” option for automakers and their suppliers that enables them to lease leading-edge business applications over the Internet.

Called, the new service will enable fast, easy and inexpensive access to applications for core business processes for companies of all sizes. Pricing is targeted to be dramatically below current software application pricing.

The ability to access online, or “e-source,” software applications whenever needed should appeal to automakers and their worldwide supply chains. will be especially helpful for smaller auto suppliers who have traditionally found it difficult to adapt leading-edge information technology. Initial applications are for activities such as collaboration, quality management and data interchange. Providers include Synapz of Northville, Mich.; IQS of Cleveland, Ohio; and Lotus Development Corp., a unit of IBM. is a business-to-business services offering designed to interoperate with and complement auto industry and related trade exchanges and e-marketplaces – such as Covisint, e-Steel, RubberNetwork and e2Open – as well as private exchanges such as Volkswagen and Toyota.

E-sourcing is a logical extension of the long established trend within the auto industry to outsource information technology operations. With IBM e-sourcing, companies can get information technology from a variety of providers from one location. For companies with limited IT budgets, e-sourcing is a more affordable alternative.

Juergen Peulen, president of Keykert USA Inc., a supplier of automotive latching systems, said his company intends to use with an initial focus on design engineering collaboration software. “We need the ability to have an engineer at any location share product design knowledge. This will enable our engineers at various global sites to work as a single unified team via the web. By sharing best practices and lessons learned, we can extend our technological competitive advantage.”

William Lang, IBM national practice executive for the automotive industry adds: “ minimizes the risk plaguing the industry because software vendors can bring new solutions to market faster and at less cost by using the delivery infrastructure created by IBM. In turn, the easier access, simplicity and lower-cost will make appealing to end-users.”

Specific tasks and applications initially available at for lease include Business Collaboration, Engineering Collaboration, Quality Management and Web Data Interchange

Initial business collaboration applications include Lotus Development Corp.’s Sametime collaboration tool and QuickPlace project management application. Sametime is a software based real-time collaboration tool that allows users to find others who are online, communicate with them through text chat, and share applications and white boards. Sametime enables employees in different locations to work together in a virtual office environment with real-time language translation. Lotus QuickPlace enables teams to create collaborative work places on the web in seconds with no training or technical help. Lotus QuickPlace also provides task and project management services for extended enterprise teams.

Engineering collaboration applications currently available include Digital Engineering Office (DEO), designed to help organizations collaborate on the product development process. Based on business collaboration tools, it allows managers, professionals and support staff who do not have access to engineering design tools to become more involved in the product development and review process. DEO allows access to engineering CAD, CAM, CAE data and text and office productivity data from a standard browser. DEO also offers language t


IBM’s quality management offering, available in April, will be offered in partnership with IQS Business Systems. It will provide a unified system for helping the auto industry enhance critical quality processes and comply with standards such as QS-000, and its components such as APQP, PPAP and FMEA. Operated in a networked environment, this unified system will be a significant step in helping auto manufacturers reduce costs.

A web data interchange, available in the second quarter, will be offered in partnership with Synapz. It will provide a low-cost alternative to supplement traditional electronic data interchange functions. Services in a variety of formats, including ANSI X.12, EDIFACT and simple spreadsheet or word formats, provide flexibility. The low cost will allow higher levels of supplier participation in the EDI environment., which will be operated by IBM Global Services, was built by the organization using established industry standards including Java and XML. It will provide sophisticated load balancing, security, storage, network management and application management demanded by the automotive industry.

IBM Automotive is one of the top 25 global automotive suppliers, providing e-business solutions to OEMs and their supply chains. IBM and its business partners deliver a full range of automotive specific solutions ranging from process consulting, solution design, IT outsourcing, e-business solutions for B2B and B2C commerce, and integration services that incorporate new technologies while enhancing usefulness of past IT investments.

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