BMW Proposal

You can download the word file with the proposal here or just scroll down and read on. While this was not the total of what I wrote to BMW it comprises the basic building blocks from which we could have a place to start.

If you're interested in hearing conversations with BMW customers who's bike have not been fixed then click here.

You can 'right click' and choose "Save As" or click and your browser might automatically choose a location to save the file.

Regards,

David H. Park


1. Consumer advisor/'Ombudsman'

Position overview
Oversee consumer complaints to BMW/BMWNA. Provide management/systems consulting to BMW to improve services.

Problem
Existing situation at BMWNA is "anti-owner". Large negative sentiments in owner community are being created by existing BMWNA attitudes, policies, actions (and non-actions) as well as communications strategies.

Goal
Create a positive, owner-friendly, response-oriented - "the buck stops here and we will help you" culture instead of a "we don't care go to your dealer" attitude (current market perception). This will be customer service which is not just consumer-centric but compliant with BMW's operating needs. This is the kind of service that translates into increased owner satisfaction, repeat purchases, and new sales referrals.

Responsibilities
Listen to the customer dealing with their emotional needs as well as their product/technical needs. Seek best solution both within as well as outside existing guidelines. Intermediate problematic consumer-dealer complaints, interactions, and transactions. Track issues, assist in problem resolution, analyze across the manufacturer-distributor-dealer-consumer ("MDDC") value chain as to why the problem occurred and how in the future it can be avoided/best resolved. Create individual, personalized contact across all customer-BMW interactions which engenders goodwill by exceeding customers expectations every time. Develop enterprise-wide technologies/systems to enable consistent provision of these services across all BMW customer-facing entities.

 2. Consumer Communities—Tame & harness the power of the Internet

Position overview
Bring BMW's use of the Internet up-to-date with best competitive practices and standards

Problem
BMW is not winning the "information war" in the marketplace about it's own customers, their attitudes, complaints, wishes, etc. BMW is not operating in a manner, which acts to “include” its customers including their meeting & information sharing sources. Existing online efforts are do not meet consumer needs. There is a lack of “human intelligence” and an over-reliance on visual marketing in BMW’s on-line strategies.

Goal
Change BMW's view of the consumer Internet as a source of 'apocryphal' information[1] to a view that it’s 'where the customers are'. Make BMW the central portal and source for all BMW related communication including that of individual BMW consumers worldwide.

Responsibilities
Bring together all 3rd party/external BMW online sources under a common technology platform for messaging and communications such that BMW can act as the central knowledge repository and host for these communications. Improve BMW’s online properties’ accessibility and human interface capabilities such that reach and usability are increased. Develop and deploy consumer communication tools to increase interactivity with dealer base such that consumers become valuable source of technical information as well as ‘independent agents’/salespeople.

3. Develop and deploy a dealer improvement strategy based on results oriented listening and constructive cooperative development practices

Position overview
Work with field reps, dealers, BMW corporate to improve dealer operations/practices.

Problem
BMW’s dealer network is in the midst of great change. Overall basic product margins are down while business infrastructure requirements are up. Many dealers do not feel that the field reps are there to help them build their business but rather just to comment arbitrarily and deliver business change requirements from BMW headquarters.  There is a problem with two-way information flow in the distributor-dealer relationship. Dealers feel that they are not being listened to and are also not being serviced in critical areas of their business by BMWNA staff.[2]

Dealers want to be able to discuss key elements of their business given their limited capital resources. Given the size and nature of the motorcycle market[3] many dealers feel that BMW’s current policies are overly restrictive to the healthy development of their business and that BMWNA should operate in a more flexible manner which could be seen as  co-development of a dealer’s franchise not just top-down management by memo.

Also, as it appears that BMW’s dealer strategy is to move to larger centralized ‘corporate style’ stores, many of the smaller ‘mom and pop’ dealerships that historically or currently serve a key segment of the BMW owners/riders[4] are being alienated and/or eliminated. By following this policy of upgrade or be eliminated BMW is removing both the habitat[5] in which the consumers live as well as the knowledge base and support structure from which they engage in BMW oriented motorcycle commerce.

Goal
A stronger diversified dealer base resulting in better customer/potential customer interactions, and improved sales volumes/margins. Changes in the distributor-dealer relationship whereby the dealer is viewed both as a customer as well as partner. Development and implementation of business practices that harness the best of each individual dealer and make their unique market position/skills a valuable part of the entire network. Improving the capabilities of dealers to sell more BMW product in the marketplace through co-operative refinement of their business plan and operations is the ultimate goal.

Responsibilities
Get back in touch with the dealer base to communicate the new ‘openness’ in BMW’s dealer development strategy. Examine each dealer’s unique market position to help them develop market development strategies, which fits their capabilities and resources. Consult with dealers to develop individual and specific lists of what they consider to be impediments in their working relationship with BMW and work to resolve these issues.

4. Develop communications extranet for BMW dealers worldwide

Position overview
Interconnect BMW’s dealers with each other, their distributor, and BMW (manufacturer) via an Internet standards based electronic extranet so that they can share information such as video files, informational audio clips, service bulletins, customer service history, early warning defect bulletins, and consumer complaints/maintenance suggestions.

Problem
Dealers not benefiting from low-operational and development costs of web-based applications and knowledge base platforms currently available. Disparate operational systems contain features that are either not used by dealers, used in different manners, or that don’t interconnect to deliver a high enough value to both the user (dealer/distributor) and the recipient (customer) given the time requirements of the system.

Goal
Flatten and broaden information sharing amongst BMW dealers, distributor, and factory to improve product repair knowledge resulting in improved customer service and satisfaction. Capture, evaluate and incorporate 3rd party repair suggestions in an open manner such that a complete picture about a product’s developing maintenance history can be made. Multiply the value of the ‘human capital’ in the BMW network by “e-knowledge” and “e-training”. Make dealers smarter and more capable operators in specific areas of their business through working together and as a result also part of the same goal– to make BMW’s motorcycles the most desired and profitable brand in the business - no matter what their individual competitive plans are.

Responsibilities
Work with existing technology systems providers to BMW to develop an analysis of individual systems capabilities and interfaces. Develop and deploy distributed rich media/web application information servers which use low-cost Internet based communications brining dealers in better touch with themselves as well as BMW. Build a “knowledge architecture” which helps people manage information flow by tapping external information sources for solutions as a force multiplier. Make learning and improvement a continual process for the entire BMW dealer network by creating an e-learning source that is based on their own experiences as well as information from BMW.


 

[1] (Officially quoted BMW view), Source, MCN Consumer News, September, 2001, From BMW’s response to Steve Knapp’s letter to BMW customer service

[2] This has manifested itself in many ways from not receiving ad slicks at all or on time to be able to place newspaper ads, to non-responsive interaction on consumer complaints, to working with the dealers on product allocation, etc.

[3] Defined as the total market including accessories and services.

[4] Viewed from a geographic perspective (e.g. conveniently located to existing/potential customers) and/or a historical market position perspective (e.g. dealer has sold/serviced BMWs to create loyal owners or occupies a niche position in the marketplace).

[5] BMW dealerships should be thought of as unique ecosystems. Some like the Amazon will be large while others like a tidal pool may be small. Within each of these ecosystems however live creatures (‘customers’) all of which are valuable to the overall healthy functioning of the BMW economic system.

Careful thought and consideration should be given to maintaining through variable dealer network planning and/or evolutionary improvements such that a “one size fits all” dealer network strategy does not cut off key influencers/contributors to the BMW economic ecosystem. Self reconfiguring/adaptable business processes instead of large scale “earthmoving style” (e.g. management by memo and spreadsheet) business practices can enable positive change to occur while maintaining value from smaller contributors.


Home- (Main)   BMW Problems 1-Audio     BMW Problems 2-Emails    BMW Problems 3 - Commentary