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South African Automotive Industry Essay

2058 words - 9 pages



Moikangwe BM
18 May 2014


Dept. of Informatics

Table of Contents
5.1. Participants 5
5.2. Data Gathering Instruments 5
Literature Review 5
5.2.1. Questionnaire 5
5.2.2. Interviews 6

Growth of Information Technology in the South African Automotive Industry

'A successful automotive industry is often seen as a symbol of economic success and as a sign of mastery of modern technologies' (TISA (Trade and Investment South Africa), 2003). South Africa has the biggest automotive industry in Africa, the industry has grown to become the principal manufacturing sector in South Africa’s economic growth, which resulted in it being considered as a mature industry (Bandyopadhyay, 2010)

Information technology continues to change and influence traditional business processes of the automotive industry; it has evolved the industry rapidly. The collaboration between the back office (i.e. finance and administration; operations planning and execution; purchasing; vehicle manufacturing; human resources; and inventory management) and front office (i.e. sales, marketing and customer service experience) systems implemented to produce an integrated supply chain that rapidly adjusts based on customer needs is now a great reality, therefore making it likely for all of a enterprise’s IT to be tightly integrated and architected for the Internet (Moodley, 2001).

Throughout this research paper, an examination of the history of the South African automotive industry and the influence that IT has had it making it a leading sector in the continent and a global participant. The paper includes a brief review of existing literature, interviews with automotive manufacturing plants, and an opinion questionnaire amongst the customers. The article comprises six sections: (1) Introduction, (2) automotive industry history, (3) research methodology, (4) IT an engine of the automotive industry, (5) An analysis and discussion of results and (6) Conclusions and recommendations.

The automobile industry is highly technologically intensive, systemic, and institutionalised. The intensity of technology in the industry has been evident since 1885 when Gottlieb Daimler achieved a high speed internal combustion engine with a sufficiently wide power band to enable excellent controlled acceleration of a light motor vehicle. It is has also been highly systemic since 1907 when Henry Ford transformed vehicle production through large-scale parts standardization and process engineering (King & Lyytinen, 2004). The industry is highly institutionalised; it is tied conclusively to local and national government institutions, as well as to other industries such as...

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