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Top 5 Ways to Make a Woman Irresistibly Attracted to You

If you want to attract women, you have to think like a salesman. Know what your clients want, and tune your product–that’s you–to fit the clients’ needs.

In order to do that, you have to do the same thing all marketers do to capture people’s interest with their products: develop killer PACKAGING. Hey, let’s face it: women judge men based on looks. And who can blame them? Before they can get to know you, they only have visual things to judge you on: your clothes, your height, your body language, your status. We men are just like any other product: in order to sell well, we need great packaging!

It all comes down to women’s evolutionary instincts: find the best mate for them and their unborn children. How do they do this? By seeing which men are strong, which ones are successful, and which ones have high status.

While times have changed, still these instincts remain. One evolutionary scientist, Dr. David Buss, did a study of over 10,000 people in 37 countries, on six continents, and found that women value men based on three big things: ambition, status, and financial resources. Similarly, relationship expert, Andrea P. Roberts, suggests that women determine a man’s worthiness based on 3 “T’s”, or “takais,” a Japanese word that represents good qualities: education level, physical height, and salary level. Quite a bit deeper than having a nice ass and big

breasts, isn’t it?

Okay, some of you may be thinking: Well, I’m not tall, and I’m not rich. Now what?!?

The good news is, height and wealth aren’t the be-all and end-all of attraction; they’re just aids to success. It’s similar to saying you want a really expensive car…but that doesn’t mean you’d never drive a Honda. In fact, for a lot of people (including women!), when you learn that Hondas have better mileage than Hummers, they can be more attractive! As Roberts writes, “even an ordinary man doesn’t have to be exceptionally rich or powerful to make women want him. It’s all a matter of the women’s perspective if he ends up taller, smarter or wealthier than them.”

Got that? It’s all about perspective: how you market yourself successfully to a woman. Hey, lots of people know that Creative MP3 Players are better quality than I-Pods, but that doesn’t seem to stop Apple from selling I-Pods like hotcakes, does it? So if you’re short, or of average income, but present your positive traits in the right way, it won’t matter: you’ll become the I-Pods of men! As Roberts writes, “Think of Napoleon, Mickey Rooney or Groucho; they are humorous, artistic or politically powerful men who wooed women into their beds and, horizontally, the height issue wasn’t a factor. Polite and persuasive persistence is the best trait.”

So what we have are five areas that we must market effectively if we want to spark an initial attraction from women. After that, it’s up to you to show what a great guy you are: let her know you’re special, unique, one of a kind. That’s what makes you…a best-seller!

1. Ambition

From an evolutionary stand-point, this one makes complete sense. Think cavemen and cave women in the Stone Age, with some of the weaker cavemen seeking a higher station in the tribe. Who do you think the cave women went for? The men who hobbled along meekly in the bottom of the order…or the men who strived for more and sought a higher place in the pack? Much of a woman’s desire to be with a man who is ambitious and seeks success, is based simply on survival: The more powerful the man, the more likely she’ll survive and live well. Logically, going for a guy who has no ambition means she’s likely to live in poverty and struggle. Not very appealing, is it?

So you have to present yourself as a guy who’s not satisfied with his station in life. This is good for both you and her. If you’re making $6 an hour at McDonald’s and are content to stay there, not many women are going to be attracted to you. But if you’re making $6 an hour and working your ass off to own your own franchise, taking business classes at night so you can learn how to run a business: well, suddenly you’re not so bad-looking! Believe me, women will give men a chance, they want to give men a chance–as long as they see potential. Know that quote, “Behind every great man is an even greater woman”? Show you’ve got potential and direction, and you’ll get that great woman.

2. Status

Again, evolutionary instincts of survival make women naturally attracted to men of high status. High status=good living for herself and her children. Fortunately, projecting high status does not have to be difficult; according to Roberts, “Wearing the right clothes, especially nice shoes, can go a long way toward portraying wealth. Taking on the unshaken or unworried attitude of wealthy men can project affluence. Hesitant, irresolute, bland men come across as having lower incomes and being less reliable.” Got that? You don’t have to be a powerful, articulate man yourself-you just have to project similar qualities.

Some of these qualities include:

* Not putting yourself down. Without being a braggart, talk positively about your accomplishments, job position, and possessions-even if they’re not much. If you treat things as a big deal, other people will, too. Conversely, if you downplay your accomplishments and character, women will, too. Your attitude is contagious, so make sure it’s an enthusiastic, enlivening one that people enjoy.

* Act like you deserve good women. Don’t let women assume a higher status than you. Show them that YOU are the one with higher status. You can do this in a number of ways, including not acting impressed by a woman’s beauty or career (say, she’s a model); teasing her about her clothes or makeup; and asking her to buy you a drink. Chances are she won’t, but just by acting like you deserve it, you raise your status! She’s not such an untouchable goddess in the end.

Remember, as well, that women want to EARN a man; they relish the challenge of luring in a winning catch. So play hard to get: talk to other girls, say you’ve got to be leaving just when things are going well, don’t immediately ask for her phone number. If you act like a man who can have his pick of women, then chances are, you will!

* Knowing people of high status. This is a great one. Get to know the people of power: the club owners, bartenders, maitres’d. Position yourself as a sociable person who’s in the know. When a woman sees you getting special treatment and chatting with high-status people, she’ll see right away that you’re someone of importance. It will also reduce the importance of the other factors, such as height, money, and ambition; immediately you’ve proven yourself valuable.

* Social proof/Female acquaintances. Hey, nothing says, “This guy’s attractive” than having females around him. Of course, the hotter they are, the hotter you look, but even just having average-looking female company can only help: it shows women that other women are interested in you. Do your best to get your female friends and family (sisters, cousins) to come out with you. It’s social proof, and it works!

* Wearing nice clothes. “When a man is well dressed,” writes communications expert, Leil Lowndes, “it signifies his ability to provide for her offspring.” You don’t have to be rich and powerful to wear nice clothes. You just have to show that you’re a man of quality, a man headed towards somewhere who pays attention to dress (something women cna never get enough of). Formal clothes, such as a suit, convey that you are serious about success; you desire good things. So just by wearing a nice sports jacket, dress shirt, and slacks, you let a woman know you’re a man with status. You’re a man who could provide for her and her children.

The colors you wear are vital: Studies show that red, burgundy, and black clothes convey high status. So get yourself some slick black suits or formal wear, a red shirt, and one of my favorites (and girls’!), a sleek burgundy button-down shirt. They all convey regality and strength.

In the case of red, you have the added bonus of sexuality, power, and dominance: definitely good qualities to portray! Go and purchase a nice red polo shirt, or red tie for your suit.

If you enjoy white clothes-the color of purity and cleanliness-then make sure you work on your TAN. White clothes against a dark backdrop make you look exotic, sexy, and well-travelled. You don’t have to be an jet-setting playboy, to look like one!

* Winning body language. Women judge men by the way they move and position themselves; it’s part of their superior communication skills to know what a man is thinking or feeling based on his body language. So, position yourself in the right way: don’t slouch, sit upright, gaze at her knowingly, lean into her to initiate intimacy. I’ve got a great column on body language that will teach you the right ways-and the wrong ways-to project high status.

3. Financial Resources

According to Matthew Fitzgerald, “Studies with college coeds show that when shown photographs of men dressed in high-status uniforms, ties, expensive watches, etc.) and low-status uniforms, these women would be significantly more willing to enter into relationships with the more expensively-attired males regardless of the man’s physical appearance. To a woman, attraction is simple: green is very good-looking.”

Okay, so not every guy has money for expensive suits and watches, and materialism may not be part of your game. However, if you want to impress women, one of the fastest ways is by wearing snazzy clothes, sporting nice shoes (girls LOVE shoes!), and driving an expensive car. Especially when it comes to designer brands, women are VERY keen at spotting high-quality products. It’s just part of their nature; with expensive possessions come high status and ambition, and a more comfortable lifestyle. Again, this all comes from their instinctual drive for survival and prosperity for themselves and their children. By owning the best, you become the best. At least on the surface.

Ultimately, if you want true love it’s up to you to find women who share the same goals and values. If money and status aren’t the most important things in life for you, don’t chase the girls who do prioritize those things. Don’t go for the shallow, bitchy types who only judge a man by how much he can spend on her.

4. Educational Level

Knowledge really is power, and on top of that, it’s an aphrodisiac! Gone are the days when being smart was acquainted with being a nerd; now, knowledge and intelligence are your friends. It’s the easiest way to money, and the easiest way to success. So show it off a little. Let her know your TALENTS, your interests, your areas of special knowledge. As Roberts writes, “Women are drawn to experts like the Crocodile Hunter, Bill Gates and Chris Rock because they’re experts in their industries.” None of those guys is particularly good-looking, but they’re good at what they do, and parlay their knowledge into success, which drives women wild.

A guy who’s an expert is one who is clearly successful and of higher status. At the very least, having a special knowledge means you have the TOOLS for success, and can provide intellectual stimulation for a girl (which, unless she’s a bimbo with an IQ of 70, is quite important for women).

Additionally, just being in school is a great way to show off your knowledge: “If you’re in school, not only are there more women available, but you’ve already demonstrated to them that you’re getting educated. Otherwise, it’s up to you to come across as reliable and credible without making her feel dumb.”

5. Physical Aptitude

Physical height alone is an easy way to catch a woman’s attention, but it’s not the only thing. Again, evolutionary mechanics come into play here. A man who is tall, strong, and athletic is more likely to fend off threats to the woman and her children. He is also more likely to have a strong immune system, which will further aid their chances of survival. So, you can’t blame women too much for valuing these things: in the world of female attraction, it really is a survival of the fittest. Those who show women they are in shape and healthy are much more likely to survive the dating game! Ergo, athletes, bouncers, firemen get the girls.

As for height, it’s all a matter of perspective. We’ve all seen short guys with tall beautiful women. Neil Strauss himself, the best of the best pickup artists, is just 5′6″ yet gets more beautiful women than we can imagine. How? By believing in himself. By positioning himself as a man of high status. By not bowing down to women of greater height or beauty. And by being a guy women know is fun and energetic to be around. In short, he’s got INNER GAME, and when you have that down, nothing can stop you. You may even find yourself dating women who are taller than you!

But remember, presenting a man who’s healthy and strong, willing to stand up for himself and the girl in a fight: that’s the kind of guy who women will go for, regardless of height. Did you know that men with strong immune systems give off pheromone scents that women are instinctively attracted to? If you pay attention to what you eat and go to the gym on a regular basis, you’re going to build your immune system up, and attract women without even trying! So do it, and watch the number of dates you get, soar.

In the end, men are like books: women judge them by their covers. But inside is an even great story. So make your cover captivating, and you’ll become a “best-seller” in no time!

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The Nissan & IBM Outsourcing Agreement

Introduction

In the year, prior to the turn of the millennium, Nissan was a company in a serious financial crisis. Debt had approached $22 billion by 1999. The company had been too complacent, and had taken its prior success, for granted [2].

Did Nissan’s decision to outsource their IT Infrastructure to IBM in 1999 make good sense? Nissan was a very troubled auto-manufacturer in the late 1990’s. Senior executives from the company were known for their conservative outlook on business, and their ‘old boy’s network,’ mentality. Profits were dropping dramatically, eventually forcing the company into the $22 Billion debt that it then faced. There were no signs indicating a change in the market that would encourage profit growth. The vehicle sales needed invigoration.

Mergers were the flavor of the day in the automotive industry during the late 1990’s. Nissan executives approached Daimler Chrysler and Ford to discuss a possible merger, but there was no interest from either of the companies [2]. There was only one alternative left, which was to reinvent themselves and reduce unnecessary overheads. This was the defining point that led to the business process outsourcing decision.

This paper seeks to answer the question “Does the cost of implementing an in-house solution outweigh the benefits or does Business Process Outsourcing (BPO) make more sense?” We reviewed the example of the automotive manufacturer, Nissan, when they decided to outsource their entire Information Technology department to IBM in late 1999, to answer our question.

Nissan – A brief history and the events leading up to the BPO decision

I. The Boom years

Nissan was established in Japan in 1933 as a heavy industry manufacturer. After the Second World War they turned their attention to automotive vehicles. In the 1950’s, they finally had an impact on the global market with the introduction of the Datsun branded sedans and small pickup trucks. The company eventually opened full-time operations in the USA in September 1960 [6].

The company experienced dramatic growth with the introduction of the ‘Z’ series sports sedans in the early 1970’s, with the 240Z becoming the fastest selling sports car of all time. This success led Nissan to the top of the U.S. vehicle importers market by 1975. Vehicle sales in the USA topped over 250,000 units per annum by 1970 [6]. The company was young, its leaders dynamic and the future looked very bright. They were competing for the U.S. market with the likes of Ford, Chrysler, and General Motors, showing improved quality and production efficiencies over their competitors.

The company was growing at a phenomenal rate, opening new manufacturing plants around the world on a regular basis such as Australia (1976), Spain (1980) and the United Kingdom (1984) [6]. There was no respite to the pace of growth and new business generation coming from the company.

In 1983, the company began the worldwide marketing of vehicles under the Nissan name which was felt to have a stronger quality image and started the six year transition from Datsun to Nissan on vehicles, dealerships, facilities and marketing materials. Sales continued to grow, eventually reaching 830,767 in 1985 [6]. The decade closed out with resounding success for Nissan with their domination of the North American market.

In 1993, the mid-line Stanza sedan was replaced with an all-new Altima and non-competitive Japanese-designed minivan was replaced with a new U.S. created Quest, which was the first minivan with car-like handling. Sales came roaring back in 1994 to near-peak levels of 774,405 [6].

In 1996, sales began to slip once again, fueled by a change in American vehicle tastes. Trucks and SUVs gained market share at the expense of sedans and sports cars [2]. Nissan’s position as a manufacturing driven company, which helped them in the ’80’s and early ’90’s, then had new problems with the dollar/yen balance which began to hurt their competitiveness against market driven companies.

Unlike their competitors, Toyota and Honda, which were focused on key volume segments, Nissan did not dominate any individual segment and competed in identical segments against Toyota and Honda.

Unfortunately for Nissan in the 1990s, the Japanese “bubble economy” burst, a downturn in Europe coincided, so there was more pressure in the U.S. to perform. Unfortunately U.S. customers didn’t have a genuine brand reason to shop Nissan except for the ‘best price’ deal.

Former Nissan president, Mr. Nakamura, announced a “Back-to-Basics” plan. The key elements of the plan were to reduce inventories, eliminate unrealistic sales targets, and increase dealer profitability. Unfortunately for Nakamura and Nissan, the plan did not work [2].

II. Trouble looms for the auto-manufacturer in 1990’s

In the early 1990’s, trouble began to brew in the organization. The once revered executives at Nissan were now viewed as arrogant members of the old-boys club and were ignorant to the changing needs of their customers and the overall automotive market, in general.

As the company progressed deeper into debt, it met with more challenges. Nissan’s business partners and suppliers were charging a premium for their goods and services. Nissan was obliged to meet its financial commitments and by so doing placed itself further into debt. Finally, the company was in debt to the tune of $22 billion. Even the company’s financers were tightening the noose around them. Nissan felt the situation was hopeless.

III. Steps taken to address issues

Nissan executives were looking for a way out, a way to rescue the company from entering into bankruptcy. The first approach was to find a partner. Both the newly established DaimlerChrysler and the Ford Motor company were approached, but both organizations rejected the idea of a merger [2]. Finally, Renault, the French automotive company recovering from a similar predicament, decided to enter into negotiations with the flailing Japanese company. A senior executive at Renault, Carlos Ghosn, was a huge supporter of the merger idea.

After much negotiation, the Japanese Ministry of Economy, Trade and Industry agreed to allow Renault to purchase a substantial stake in Nissan. The Nissan-Renault alliance was born and Ghosn was appointed Chief Operating Officer.

Nissans Executive decisions and major events

I. Creating a global alliance vision:

The following is excerpted from the Nissan/Renault alliance vision:

“The Renault-Nissan Alliance is a unique group of two global companies linked by cross-shareholding. They are united for performance though a coherent strategy, common goals, and principles, results-driven synergies, shared best practices. They respect and reinforce their respective identities and brands.”[2]

The Alliance set itself three objectives, with the goal of being amongst the best three automotive groups in the following areas:

1. Quality.

Achieve customer recognition as being a quality and value added product.

2. Technology.

Lead in key technology development and implementation with a focus on excellence in specific areas of the automotive business.

3. Operating Profit.

Consistently generate a high operating profit margin and vigorously pursue growth.

II. Appointing a new leader

Ghosn, given his enthusiasm for the merger, his demonstrated tenacity, and his experience of the automotive industry, was a natural choice for a senior position at Nissan. His initial appointment as Chief Operating Officer (COO) was just a temporary assignment. In 2000, he was named President and in 2001, he was appointed Chief Executive Officer (CEO).

As CEO, Ghosn was very aware that the ‘buck’ stopped with him. He was the final decision maker. Some important and very serious decisions were made to save the ailing company. Ghosn had to use all of his valuable experience gained from rescuing other organizations, such as Michelin and Renault, to save Nissan.

III. Decision making to save a troubled auto-manufacturer

With Ghosn’s arrival in Japan in the spring of 1999, he immediately set about researching Nissan’s root problems. The newly appointed COO had a management philosophy that stated “you must always start with a clean sheet of paper because the worst thing you can have is prefabricated solutions… you have to start with a zero base of thinking, cleaning everything out of your mind.”[2]

For the first few months, Ghosn flew around Japan, meeting and greeting employees at all levels, absorbing information and formulating a plan. He used this information to plot a picture of Nissan from a global perspective, identifying issues, and problems that had created the dispersed, unprofitable organization.

One of the many issues Ghosn identified was the lack of communication around the organization. Seniors managers around the world were aware of some of the issues that caused the downturn of fortune in the company. They even had solutions to them, but had lacked the necessary authority to implement or communicate the solutions back to Corporate Headquarters.

Finally, the major issues were whittled down to five key issues: [2]

• Lack of clear profit orientation. Nissan was not focused on driving profit, but were rather focused on market share and ended up having to buy their market share at the expense of the declining profits.

• Insufficiently focused on customers and too much focus on competitors. The company was too concerned about the competition introducing a new line which would have dug into the Nissan market share. For example when Volkswagen introduced their new Jetta sedan Nissan saw a significant decline in their Maxima sales.

• Lacked cross-functional, cross-border, and intra-hierarchical lines of work in the company. Nissan seemed to operate as separate islands scattered throughout the globe. There was no centralized purchasing function or in fact any of the other major business activities. The organization was not making maximum use of its global presence or buying power.

• Lack of sense of urgency. The executives in Nissan were complacent in their activities. Things had gone so well for the company in the preceding 60 years that they felt that there was no reason to embrace change.

• No shared vision or common long-term plan. Senior management within Nissan did not have a joint plan for the different brands within the company. Each division did their own thing with little or no thought for the greater good of the company. An example was the Z series that had achieved phenomenal success throughout the 1970’s and ’80’s but was suddenly dropped from production when sales dropped. The obvious thing to have been done was to test the market with a modernized design. Instead Nissan chose to ignore the market and drop the brand.

To address the issues, Ghosn announced the Nissan Revival Plan on October 18, 1999. This seven-point plan was aimed at reducing costs and debt as well as creating and launching new automotive brands to raise sales and market awareness. The goals announced in the plan were far-reaching and encompassed: [2]

• The reduction of operating costs, net debt, global head count, and vehicle assembly plants and manufacturing platforms (the latter in Japan).

• The generation of new product investment through the launch of twenty-two new models.

The cost-cutting plan called for centralization of purchasing, procurement, human resources and information technology. By centralizing these essential functions, the plan aimed to assist the company in achieving its aggressive cost reductions.

Expenditure, particularly in the information technology function, was perceived as being out of control. Ghosn’s message to senior level executives was clear, “cut costs in every possible area.” If that meant outsourcing non-core activities because somebody else could do it cheaper, then that had to be fully investigated and determined. The management was ruthless in their execution of the plan [2].

Nissan looks at Business Process Outsourcing as a means

I. Will outsourcing non-core activities save money?

There are well-documented records of company’s saving money and others of outsourcing horror stories. Success really depended on the situation and the provider.

Most experts agreed, though, that you needed to use BPO in strategic decisions, for example refocused efforts on core competencies and not merely for cost cutting activities [1]. Stephen Withers of ZDNet said in his on-line article that you should only “use BPO for strategic purposes, not to take advantage of a (possibly transient) cost saving.” Withers then asked the reader, “Does outsourcing the IT Infrastructure make sense?” To answer that question corporate Chief Information Officer’s (CIO’s) would need to have completed extensive research and have done a thorough analysis of their business processes.

This is exactly what Nissan’s CIO did, or rather what Ghosn told him to do. The company had invested over 80 billion yen (over $US760million) in 1998 on IT services, but their processes were still not providing the management with the infrastructure that would assist in building their competitive edge [5]. The final decision was made to approach various outsourcing service providers for the much needed help.

II. Does outsourcing the IT infrastructure make sense?

If Information Technology (IT) truly was a commodity, like gasoline or electricity, then companies only competed on price, with very small profit margins. In that event, the decision to turn over IT to an outsourcer was as simple as it was a century ago to turn to motor vehicles instead of using the horse and cart. However, while personal computers and the networks they run on may be standardized, the services provided by IT outsourcers vary in many ways. Services such as data analysis, application development, and IT decision-making allowed companies more competitiveness in the market therefore, those elements of IT are far from being viewed as commodities [8].

With regards the decision to outsource, many factors were considered in Nissan’s case. Ann Moynihan in her article in the Albany Business review states “Outsourcing can help you: [3]

• Reduce and control operating costs.

• Free staff to focus on core business.

• Gain access to specialized skills and technologies.

• Introduce positive change.

• Gain control over a difficult-to-manage function resulting from uneven workloads, insufficient or unskilled resources.”

With Nissan, in 1999, this was exactly what they were looking for. Refocused staff efforts, introduction of positive change and control gained in all critical areas led to the outsourcing decision.

The choice of IBM as Nissan’s outsourcing partner was a strategic one. In the late 1990’s there were not many outsourcing companies that had the breadth or the global reach that IBM had. Competitors such as EDS and CSC were not considered because they were only outsourcers and could not offer the hardware and software technology that Nissan required to update their infrastructure [5]. If either one of those competitors were selected over IBM as a partner Nissan would still have faced the same infrastructure issues. IBM was the only logical partner.

Did the relationship work between Nissan & IBM?

I. A further look at the relationship between IBM and Nissan

In a joint IBM and Nissan press release published in Tokyo on June 19, 2000, the two companies announced that they were “Extending their global partnership for information system (IS) operations which Nissan Motor Co., Ltd. and IBM agreed in October 1999, Nissan and IBM today jointly announced that Nissan will outsource its IS operations in Japan, to IBM Japan.

The service includes Nissan’s regular maintenance and operational activities as well as part of its application development, but excludes the planning and design of new systems. The two companies will start operations from October 1. [7]

In North America, Nissan has outsourced these same operations to IBM Corp. since October 1999. This latest agreement in Japan is expected to further accelerate the standardization, integration and centralization of Nissan’s IS on a global level.”

Ghosn further noted, “The Nissan Revival Plan cannot be accomplished without effective information systems. Following upon the recent agreement with Japan Telecom, this latest partnership with IBM puts in place the global infrastructure which is key to support Nissan’s long term profitable growth.” [4]

II. Hypothetical view of the Return-on-Investment model used

Before they could calculate their Return on Investment (ROI), Nissan first had to look at the Total Cost of Ownership model proposed by IBM. Total Cost of Ownership (TCO) is a type of calculation designed to help consumers and enterprise managers assess both direct and indirect costs and benefits related to the purchase of any IT component. The intention was to arrive at a final figure that will reflect the effective cost of purchase, overall [8].

The TCO model used, had to calculate the costs that were required, beyond the fees of outsourcing. The organization had to evaluate specific criteria’s that could have added expense to the outsourcing project. They also had to calculate the ongoing expenses throughout the lifetime of the contract [8].

Then, after calculating the payback period, Nissan were in a position to calculate their ROI. Once the numbers were crunched, a thorough financial and risk analysis was conducted. The ROI measured the profit or cost savings realized. It was calculated by estimating, for a 3-year period, the investment was made and the resulting profit created through that investment.

The results were conclusive. Nissan and IBM entered into their agreement and operations scheduled to commence on October 1, 1999.

Conclusion

I. Did Nissan’s BPO reach its stated objective?

Nissan’s stated objective for the outsourcing of the IT infrastructure was to control expenditure, improve efficiencies, and update the infrastructure. By outsourcing to IBM, Nissan achieved all of its goals.

In controlling expenditure, outsourcing gave companies the opportunity to have a predictable monthly budget for expenditure. That amount may or may not have been lower than current expenditures but the component that was crucial to a large organization such as Nissan was that the amount is predictable. There was no variable component to the pricing. The only time the pricing may have fluctuated was when additional services, which were out of scope of the contract, were required.

In Nissan’s case, that was never a requirement. The company was in the first stage of a major, global, restructuring project and there were no new initiatives taking place.

The second objective in the BPO was to improve efficiencies. IBM is the world’s largest information technology company with revenues close to $100 billion [9]. When companies outsource their operations to IBM they are gaining best-of-breed technologies, excellent consultants and some of the best systems architects money can buy.

The way that any global outsourcer makes its money is by achieving economies of scale. The only way to achieve these economies of scale is to ensure that they deploy the best hardware, software, and infrastructure possible and make that equipment work to maximum efficiencies. By taking full advantage of this best-of-breed technology, Nissan met its second and third stated objectives.

II. What if the IT Infrastructure had been retained in-house?

If Nissan had decided to retain its IT infrastructure in-house and attempted to implement an updated and modernized system, it would have lead to a significant increase in their expenditure. Ghosn’s prime objective, when he took over the company in 1999, was to reduce expenditure by 700 billion Yen [2]. He was not interested in spending any additional money to modernize existing equipment.

To support the intended improvement in competitiveness, Nissan had to ensure that their infrastructure supported the additional workload. There was no way they could do the intended improvement in efficiencies without external support. Nissan did not have the expertise and the additional work force to handle the required upgrades and the reengineering of business processes.

III. Final assessment and summation of the relationship

Robert Greenberg, Nissan’s CIO of North America was on record as saying in 2006 that, “We were happy with the services from IBM but the world had changed.” This comment sums up the relationship as it stands now, almost 8 years later [5]. When Nissan announced its Revival Plan, in 1999, the company had very clear objectives; cut costs, and return to profitability.

Nissan was looking for help in 1999 and IBM fulfilled this role for their IT Infrastructure. Greenberg also stated in his Q&A that “One of the things that also took place with the original outsourcing to IBM was we probably outsourced too much.” [5]

Greenberg was not working for Nissan when the original outsourcing decision was made in 1999; he only joined the company in 2005. He is on record though as saying that he thought that they should have either retained some of the infrastructure in-house or perhaps have multi-sourced, thereby ensuring that they had the best possible solution and price.

In 2006, when the contract came up for renewal, the CIO decided to put everything out to bid and compare what the other vendors were offering with what IBM had provided for so many years. The decision to look at new vendors was actually excellent timing for the company as Nissan had decided to relocate their North American corporate headquarters from Los Angeles, CA to Nashville, TN and any transition could be timed to coincide with the move.

Ultimately, what Greenberg opted to do was to accept IBM’s proposal to “manage desktop systems, network services, help desks, dealer systems, and other key infrastructure elements for Nissan North America.” He then outsourced the application and maintenance to an Indian firm, Satyam and brought the remainder of the services back in-house [5].

When asked about the decision to bring IT back in-house, Greenberg said, “By bringing it in-house you increase the alignment. It’s a matter of building the knowledge internally [that] can be used to help drive the business activity, which is much harder when a business analyst function is sitting within a third party.” [5]

IV. Does the cost of implementing an in-house solution outweigh the benefits or does BPO make more sense?

As Stephen Withers stated in his article, BPO decisions should not be made for cost-cutting exercises but rather for strategic directions [1]. In other words, companies should not view BPO as a cost saving tool. Outsourcing the IT operation makes sense when an organization is looking to improve efficiencies and business processes or when they cannot attract, or retain, the human capital who have the expertise and ability to modernize or improve the infrastructure.

Nissan’s CIO Robert Greenberg thought that he would actually save money by bringing some of the work back in-house because he was “not paying margin on the individual [headcount].” [5]

Some of the individual lessons that Nissan’s Greenberg has learnt from the outsourcing agreement with IBM has been that certain services developed by the IT organization can indeed be outsourced or developed externally. However, he felt strongly about retaining in-house IT skills in such value generation areas as business analysts who have a strong understanding of the business, sometimes even better than the business customer does. Insourcing these skills could result in ideas and dialog with the business, with the end result being a service delivery or product development than can then be outsourced.

In summary, the answer to the question, ‘Does the cost of implementing an in-house solution outweigh the benefits or does Business Process Outsourcing make more sense?’ is that it depends. It depends on the available skills; it depends on the overall objectives (cost saving vs. process improvement) and it depends on the organization. For the most part the majority of major corporations world wide that have been through an outsourcing contract or are in an outsourcing contract will agree that there are substantial benefits to implementing an outsourcing contract and there substantial benefits in retaining those skills in-house. What each organization needs to do is ascertain which of those benefits outweigh the other and base their decision on that analysis.

Works Cited

[1] Withers, Stephen. “BPO: Save money or fix your processes?” ZDNet.com

[http://www.zdnet.com.au/insight/business/soa/BPO-Save-money-or-fix-your-processes-/0],139023749,139156391-10,00.htm 17 August 2004. Downloaded October 22, 2007

[2] Magee, David. Turn Around: How Carlos Ghosn rescued Nissan. New York: HarperCollins Publishers Inc, 2003.

[3] Moynihan, Ann. “Outsourcing enables owner to focus on core business.” http://www.bizjournals.com/albany/stories/2002/10/14/focus10.html October 11, 2002. Downloaded October 22, 2007

[4] IBM Press room press releases. IBM.com “Extending Their Global Partnership, Nissan, and IBM Announce IS Outsourcing for Japan” http://www-03.ibm.com/press/us/en/pressrelease/1670.wss June 19, 2000. Downloaded October 19, 2007

[5] Thibodeau, Patrick. “Q&A: Nissan CIO reshapes automaker’s IT”

[http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=110024&intsrc=industry_list] March 29, 2006. Downloaded October 23, 2007

[7] McDougall, Paul. “IBM, Nissan Outsourcing Deal Spans The Globe” http://www.informationweek.com/outsourcing/showArticle.jhtml?articleID=181502685 March 10, 2006 10:00 AM. Downloaded November 02, 2007

[8] Ikin, Paul. IBM Representative on Nissan Global team. 1998 to 2001.

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Ford Motor Company – Case Study

Background (General Facts)

Ford Motors is one of three leading automotive manufacturing companies in the United States. Based in Michigan in 1903 by Henry ford and grew to reach revenue of $150 billion and more than 370,000 employees by 1996 [1]. In the 1970’s, the automobile market for the major auto makers – General Motors (GM), Ford, and Chrysler- was crunched by competition from foreign manufactures such as Toyota and Honda. In 1999, Ford acquired the Swedish Volvo model in an attempt to compete in the foreign market and expand to other regions. Furthermore, Ford launched a full organization re-engineering business process plan called “Ford 2000” aiming at reestablishing the company’s infrastructure. The process meant reduction in their Vehicle Centers (VCs) to only five covering the operations that spanned 200 countries. It also meant cutting redundancies and requiring Information Technology (IT) to be the driving force and the link between Ford centers worldwide.

In building Ford’s IT infrastructure, the company focused on implementing a setup that supported the TCP/IP communication protocol based on the U.S. department of Defense requirements. At those days, Ford internal network was meant to serve files transfer unlike most companies that used the network mainly for email communications. Throughout the 1990’s, Ford developed a cost effective Global Enterprise Network Integration (GENI) process to link all its locations compromising on the type of the connection and the cabling in favor of full coverage. During the same time, Ford started building its Web Farm, which was basically a set of hardware and software managed by a team for building Ford’s public website. The work started by publishing documents for technical references and moved to more advanced images from a live auto show. As a result, the website received 1 million visits a day in less than 2 years after its official launch. Throughout the end of the 90’s, Ford established its web services by increasing the amount of information published, building more intelligent and standard web application in 12 weeks period, purchasing more Netscape browsers for setup on its users’ machines, and creating a B2B server to allow the suppliers secured access to Ford’s Intranet.

In the path towards service cost reduction and bringing more business through the web, Ford worked closely with its competitors in the U.S. market GM and Chrysler to establish what came to be known as “Automotive Network Exchange” (ANX) certificate. The protocols aimed at providing a unified communications standard through the Internet to enable suppliers to provide common technology for all manufacturers. Moreover, Ford focused on making information on its web site more accessible and useful by deploying a team to manage the process of adding and updating information based on an analysis of how humans deal with information. One final aspect of Fords endeavor was to try to build a model through its infrastructure that benefited from the model implemented by Dell computers to improve their supply chain and delivery process. The direct model would not work well for automotives as it would with computers, as a result Ford worked on its retailing network remodeling and identifying what would eventually give it the extra edge in delivery time.

Enterprise Architecture Issues

Ford’s regional expansion to address the competition for market shares demanded cost management for the infrastructure upgrades
IT infrastructure places limitations on the type of application development based on the platforms
Easy access to information and prompt delivery of vital data to key individuals requires proper knowledge managementOrganizations reengineering and process remodeling is necessary when adapting new technologies to maintain the cost and increase efficiency
Supply chain errors and delays can severely affect the progress of the business and the market value of the corporation

Analysis

Infrastructure Upgrade

Since the inception of the Internet in the 1960’s, much effort has been made in standardizing how computers connect to it. In 1982, the International Organization for Standards (ISO) realized that during that period many ad hoc networking systems were already using the TCP/IP protocol for communications and thus adapted it as a standard in its model for the Internet network [2]. The main driver for IP convergence, at that period, was the growth in data traffic through wide area networks (WANs) established by local companies. Furthermore, in 1991, the Internet was open for commercial use, and that demanded a reduction in the total cost of operating the network to cope with 1 million Internet hosts that materialized in only 1-year time. Telecommunications companies like AT&T understood the potential and worked on standardizing the network offering voice services over IP networks that managed the separation between voice and data transmission [3].

At the same time, Ford had launched its plan to update its infrastructure, and seized the opportunity brought by the global movement of integrating the voice, fax transmission network with data transmission and expanded its WAN to include its offices in Europe and elsewhere. The financial benefits also came from the fact that Ford adapted the TCP/IP protocol from the beginning and made sure that all its technical infrastructure upgrades adhere to the standards. This made the transition of its system to the Internet as cost effective as it could be.

Web Technologies

Intranets employ the hypertext and multimedia technology used on the Internet. Prior to 1989, when Tim burners-Lee invented the Web [4], most applications used standard development languages such as C and C++ to create desktop applications that were proprietary and dependent on the platform. For example, applications running on a command-based operating system such as UNIX would not run under Windows, and those working for PCs might not work on Apple computers and vice versa [5]. The invention of HTML (Hyper-Text Markup Language) introduced a new model for applications that conform to the standards provided by a single program, the “Web Browser”. Unlike standard applications, the browser brought a unified interface that had a very fast learning curve. Users seem to require no additional training to work with web browsers. Furthermore, system administrators did not have to spend time installing upgrades on users’ machines, since the Intranet client/server architecture facilitated all the updates through the connection with the web server [6].

Since Ford established its Intranet, it was aiming at building web applications through the initial analysis of “Mosaic”, the early form of web browsers. The technical department at Ford used web languages to create the first web site in 1995. In 1996, the team started building applications making use of the unified “Netscape” browser that was deployed on all machines at the company, and working on a standard template to cut on the development life cycle. There was a substantial cut in training cost due to the user-friendly interface of web applications. Furthermore, the speed of development made vital applications available to different individuals across the company. For example, the B2B site allowed suppliers remote and secured access to various sections of Ford’s Intranet. In addition, the development team created an application as a virtual teardown on Ford’s website where Ford’s engineers could examine parts of competitors’ cars and evaluate any new technologies. The alternative would have been an actual trip to a physical location where Ford tears down cars to examine the parts.

Knowledge Management

While there are many definitions for knowledge, each company might adapt its own based on how it analysis data and information to acquire knowledge. The University of Kentucky, for example, defines knowledge as “a vital organization resource. It is the raw material, work-in process, and finished good of decision-making. Distinct types of knowledge used by decision makers include information, procedures, and heuristics, among others… ” [7].

Organizations go through different activities to manage the amount of information they collect to form the knowledge base of the company. Activities include creating databases of best practices and market intelligence analysis, gathering filtering and classifying data, incorporating knowledge into business applications used by employees, and developing focal points for facilitating knowledge flow and building skills [8].

Ford was excited about the traffic it was receiving on the Web site and everyone was publishing all the material they have on desk on the Intranet. Nevertheless, there was a growing concern about the usability and usefulness of the material people were adding. As a result, Ford created a “Knowledge Domain Team” to build complete information in nine areas that were identified as vital to the business. The process Ford took was based on surveys and specialists input in how people perceive information, and what is considered vital and what is distracting in the structure of Ford’s website. The aim behind the initiative was to reduce the time individuals spent in searching for information through proper indexing of the website content, and making sure that what was important could be accessed in due time, and what is trivial did not overwhelm the researcher with thousands of results.

Business Re-engineering

In the area of organization’s re-engineering process innovation is the set of activities that achieve substantial business improvements. Companies seeking to benefit from process innovation go through the regime of identifying the processes, the factors for change, developing the vision, understanding the current process, and building a prototype for the new organization. History shows that organizations who define their processes properly will not have problems managing the issues and developing the change factors [9]. When introducing technology, business redesign is necessary. The industrial fields have been using Information Technology to remodel processes, control production, and manage material for generations. However, it is only recently that companies recognized that the fusion of IT and business would go beyond automation to fundamentally reshaping how business processes are undertaken [10].

When foreign companies were allowed to compete in the U.S. market, Ford understood that to succeed in business in a competitive arena it needed to implement strategies that competitors find difficult to imitate [11]. As a result, Ford bought Sweden Volvo to enter the European market, and partially owned Mazda to have a competitive edge with Japanese cars1 [12]. To achieve that it re-engineered its production development activities and global corporate organization and processes for dramatic cost reduction. Furthermore, it understood that expansion requires collaboration and alignment, and thus planned to establish the IT infrastructure through a WAN that connected all the offices. In the process of innovation and re-engineering, Ford has set policies to manage the cost of establishing the network, built models for continuous implementation, and organized global meetings to align all parties with the process. Adding to that, when it came to managing the website, Ford facilitated an awareness campaign for all the branches to understand that Ford is using the web to collaborate and research and adapting information technology as a way to maximize its business value. The goal for Ford was to maintain its leadership in the market and to do that in the most efficient and cost effective method that is there.

Supply chain management

Supply chain management (SCM) is about coordinating between suppliers, manufactures, distributors, retailers, and customers [13]. The basic idea that SCM applications revolve around is providing information to all those who are involved in making decisions about the product or goods to manage delivery from the supplier to the consumer [14]. Studies show that reducing errors in supply chain distribution, increases revenue, enhances productivity, and reduces the order-to-fulfillment period [15].

Ford often compared its supply chain process to that of Dell’s, in an attempt to close the gaps in its own process and reach the level of success Dell has reached. The difference in the distribution model between Dell and Ford lies in the middle link of using retail shops. Since Ford cannot skip retail as a focal distribution point, it worked on establishing a network of retail shops that it owned. Ford made sure shops are not affecting each other in terms of sales, and gave them all a standard look and feel to establish itself in the consumer’s market as a prestigious cars sales retail company. Furthermore, extensive re-engineering initiatives were undertaken to enhance Ford external network by eliminating the correlation with smaller suppliers. In that way, Ford made sure that key suppliers have access to forecasting data from customers’ purchasing trends and production information to enable a faster order-to-delivery cycle. Ford vision was to create a model that allowed flexibility, predicable processes and delivered the product at the right time to the right consumer.

Conclusions

Ford is an example of how traditional organizations can mature to adapt what is current and maximizes the business value. The process that Ford went through necessitated the continuous support from management. In addition, it depended on alignment between those involved as a key for success. The correlation was not restricted to internal staff; it extended to cover competitors to reach mutual benefits, to work with suppliers to maintain similar grounds and adequate infrastructure, and to create training programs to educate all on the vision and organization’s objectives.

Ford technical progress came at a time where the Internet was yet to reach its full potential. The introduction of Fiber-optic cables in the late 90’s and the substantial increase in bandwidth would have helped Ford and cut on the cost in endured connecting its own offices. Furthermore, the ISP services that provided hosting servers were limited to only few players, which explained why Ford preferred to manage its own web server and maintain the overhead of the 24 hours uptime and backup.

From this case study, I understood the level of commitment large firms have to maintaining their position in the market. These companies know the revolving nature of business in the sense of how easy it is to fall back if they did not keep up with the change. The Ford process also shows the need for quick and resourceful thinking when faced with situations that might seem to be unfavorable. The way Ford ventured into the foreign market by acquiring local manufacturers was a strategic decision that did not only enabled Ford to merge with different technologies, but it also saved it the additional cost of establishing production centers in Japan and Europe.

Recommendations

Maintaining leadership in the market requires innovative organizations willing to reengineer to succeed.
IT fusion with the business means restructuring and remodeling to understand the role IT would play to meet the business objectives
Planning and modeling is vital when coordinating work with large teams.
Constructing websites is not about content; it is about understanding what adds value and how humans interact with information.
Knowledge management is a plan that companies need to develop as part of their initial business process modeling
It is not wrong for large firms to try to adapt to successful processes implemented by other firms.

References

Robert D. Austin and Mark Cotteleer,”Ford Motor Co.: Maximizing the Business Value of Web Technologies.” Harvard Business Publishing. July 10, 1997. harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml;jsessionid=WDARNHINBSYKSAKRGWCB5VQBKE0YOISW?id=198006 (accessed July 30, 2008).
Computer History Museum, Internet History 80’s. 2006. computerhistory.org/internet_history/internet_history_80s.shtml (accessed July 30, 2008).
Darren Wilksch and Peter Shoubridge, “IP Convergence in Global Telecommunications.” Defense Science & Technology Organization. March 2001. http://www.dsto.defence.gov.au/publications/2400/DSTO-TR-1046.pdf (accessed July 30, 2008).
Computer History Museum, Internet History 80’s.
H. Joseph Wen, “From client/server to intranet.” Information Management & Computer Security (MCB UP Ltd) 6, no. 1 (1998): 15-20.
R. Boutaba, K. El Guemioui, and P. Dini, “An outlook on intranet management.” Communications Magazine (IEEE), October 1997: 92-99.
Joseph M. Firestone, Enterprise Information Portals and Knowledge Management (OXFORD: Butterworth-Heinemann, 2002), 169.
David J. Skyrme, “Knowledge management solutions – the IT contribution.” ACM SIGGROUP Bulletin (ACM) 19, no. 1 (April 1998): 34 – 39, 34.
Thomas H. Davenport, Process Innovation: Reengineering Work Through Information Technology (Watertown,MA: Harvard Business Press, 1993), 28.
Thomas H. Davenport “The New Industrial Engineering: Information Technology and Business Process Redesign.” Sloan Management Review 31, no. 4 (Summer 1990): 11-28, 12
Gary M. Erickson, Robert Jacobson, and Johny K. Johansson, “Competition for market share in the presence of strategic invisible assets: The US automobile market, 1971-1981.” International Journal of Research in Marketing (Elsevier Science) 9, no. 1 (March 1992): 23-37, 23.
Austin and Cotteleer, “Ford Motor ” , 2.
Henk A. Akkermans, et al. “The impact of ERP on supply chain management: Exploratory findings from a European Delphi study.” European Journal of Operational Research 146 (2003): 284-301, 286
Thomas H. Davenport and Jeffrey D. Brooks, “Enterprise systems and the supply chain.” Journal of Enterprise Information Management 17, no. 1 (2004): 8-19, 9.
Kevin B. Hendricks, Vinod R. Singhal, and Jeff K. Stratman. “The impact of enterprise systems on corporate performance:A study of ERP, SCM, and CRM system implementations.” Journal of Operations Management 25, no. 1 (January 2007): 65-82.

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