Five issues of the bmw

The Bavarian Motor Industry Background

Bayerische Motoren Werke AG (BMW) was founded in 1916 by Franz Josef Popp in Munich, Germany and it was mainly producing aircraft engines. The circular blue and white BMW logo or roundel is portrayed by BMW as the movement of an aircraft propeller, to signify the white blades cutting through the blue sky.

The first aircaraft engine BMW produced was IIIa inline-six liquid-cooled engine in 1918 and it was prefered for its high-altitude performance. With German rearmament in the 1930s, the company again began producing aircraft engines for the Luftwaffe. Among its successful WWII engine designs were the BMW 132 and BMW 801 air-cooled radial engines, and the pioneering BMW 003 axial-flow turbojet, which powered the tiny, 1944-45-era jet-powered “emergency fighter”, the Heinkel He 162 Salamander.

When WWI ended BMW was forced to stop producing aircraft engines by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted where the motorcycles produced where able to brake speed records and win many races.

In 1928-29 BMW started the production of cars where until today its production is being driven by the passion of a luxury sports car and inovative technology.

Implimeantation Of The Five Topics

New technology. New technology is very importand to multinationas companies in order to comunicta and share information.

  • The issue here is the New Technology… implementing it & integrating with the existing ones
  • The second issue is the Organisational Changes Requirements… the difficulty in balancing change in Corporate Culture & Organisational Structure.

Security/threats. In large intustries and especially in the automotive intustry importand is to be able to secure all the vital inforamtion from industrial espionage, hackers or trespassers.

  • The issue here is How important is IT security to management
  • The secont is What are the impacts of IT security breaches?

Ethic/social issues. In todays enteprisec a lot of importance has been given into the ethics of a company and it has great importance fot the companies image and the way the company oparates.

  • The issue here is the use of electronic surveillance
  • The second is Ethical Issues

E-commerce and its issues. Nowadays a lot of corporate giants are using business intelligence and data mining systems in order to have a better view of what the customer prefers and be able t attract more customers.

  • The issue here is the Data security & ethics
  • The second issue is Privacy

Global MIS/risks. A lot of big companies expand to other countries in order to find new markets or cheaper workforce.

The issue here is Consider Partners Collaboration -expertise, funds, etc

Partner and supplier relationship management

Varaiable Option Conidered For BMW

New Technologies

The implementation and integration of new technologies is very importand in the level of compatibility with the previous hard ware systems or software systems. In order to have a Continuous flow of information between all the countries BMW is established we need to check the technological and legal barriers of each country before continuing in the implementation of new technologies.

The Organisational Changes Requirements… the difficulty in balancing change in Corporate Culture & Organisational Structure. In big complex organisations such as BMW the imports of new technologies might disrupt the current infrastructure and that because new computer software may vanquish the need of a customer support canter because everything can be atomically through internet.


The issue here is How important is IT security to management. In the automotive industry it’s important to be able to keep vital documents of the company or prototypes of designs safe from industrial espionage or malicious hackers. The way for this to be done is through with Communications (networks) controls, firewalls or encryption programs.

The secont is What are the impacts of IT security breaches? The impacts of security breach in any organisation can be disastrous in terms of industrial espionage or malicious phishing programs acquiring information about members of the organisation or employs in order to use their information for internet fraud. A catastrophic breach can be easily avoided with firewalls and separate back up drives.

Ethic/Social Issues

The issue here is the use of electronic surveillance. BMW uses electronic surveillance in order to be protected from bad employs or spies. In this case through agrremnts made with the government in companies owned building BMW has the right to have an electronic surveillance system but must have a sing informing the persons entering the buildings about the cctv.

The second is Ethical Issues. BMW as multinational company known thought out the world is also directed by its image in ethical issues. Since BMW has a fun club in the internet it is obliged by the law and for ethical issues to have the information of the members strictly confidential and not be exploited for commercial reasons.


The issue here is the Data security & ethics. BMW uses e-commerce in order to have information on the customer’s like’s dislike’s and be able to be more attractive to customers. All the information’s are gathered by business intelligence programs. Internet users entering the company’s site are being monitored on what they browse the data collected are being stored in order to be analyzed in the design of an attractive offer. All information gathered is a part of the legal authority on the company’s web site.

The second issue is Privacy. Information gathered for the research of the company is to be kept confidential and private for the company use only. In my opinion the company should keep the record for the use of new ideas and records of royal customers.

Global MIS/Risks

The issue here is Consider Partners Collaboration -expertise, funds, etc. In global companies operating in different countries in the world means co-operations with several other organizations or parties. Since BMW has factories in Germany Austria South Africa and America they need to have partners with vehicle construction knowledge in order for them to be more efficient and improve the quality. This why in countries that BMW has factories BMW it has educational programs with technical, managerial and specialist training as well as providing assistance for higher education.

The second issue is the Partner and supplier relationship management. BMW operates factories and dealerships in all over the world so it is very important to have a constant communication with all the partners and the suppliers. The best solution is a global system network between all the partners and suppliers using web services in order to be informed on any supply needs and the daily development.

Lessons Learned So Far And Options Considered Differently.

In a global company like BMW there are many risk of the regarding the information systems and the information technologies. In the automotive industry it is very important to have a comparative advantage over your rivals by being innovative and have a better understanding of the customers needs. All the information that is gathered and stored it’s of critical importance to keep them safe away from industrial espionage or hackers or phisers. It is also important to have all the internet or business application from programs like Trojan viruses, viruses, worms, or spasms because the can slow the performance of an application or even worse destroy it losing all information that are not stored. There is a big risk of internet crime of stealing personal information or information extortionists.

There is a great importance from keeping your data systems or applications protected from all the possible intruders either living like hackers or social engineers or non living like programs viruses worms etc.

New technology is being conastly developed either in information systems telecomunications or sience. New technoligy in the case of BMW means better production better informaion systems and comunication between all the dealerships and factoris acros the world. Inforamtion technology is based on information systems and information sharing technologies witch they are supported by communication networks such us the internet intranet or extranet wich it can be either cable or WiFi. This way multinational compaies like BMW can communicate with the factories and offices around the world and keep a constand flow of information through private server. So in todays wolrd the new technology can give the competitive advantage to help sustaining a healthy bussines with an excelent communication with factories all over the world.

Ethical issues play a major part in global companies for their legal perception of the law on workforce and the public image of the company. BMW is using 29% of its earning in educational programs in third world countries something which shows respect for the workforce and a good public image. Nike for example had ethical legal issues because it had child workers in their factories.

Ethical and legal issues also play role on the information systems gathering information about the customers or fun clubs of BMW through the internet or using electronic surveillance for security in private areas.

In this case all information gathered or the video recorded from the surveillance cameras is legally restricted to be on public broad cast and BMW has secure storage places for all this material.

E-commerce is the new way for global companies to have detailed information on their customers through surveys or intelligence programmes like data mining or predictive analysis to be able to have a better understanding of the customers choices and like in order to attract them or dislikes in order to improve. All those are part of the new technologies implemented by global companies that make full use of the internet. Of course all those information are to be used only by company’s special personnel for the design of a new product or the improvement of an existing one.

Major manufacturing companies that want to expand in to other countries either for its market of for the cheap labour they use globalisation systems in order to be in contact with all the factories all over the world. Global information systems like extranets XML web services electronic data interchange etc. in order for BMW headquarters to have full knowledge of all production in all of the factories scattered across the world they need to have a clear direct link with all the factories and dealerships. Its also important to have partners with who they can have a good communication and be trained in a level of mutual understanding this is why BMW has training programs teaching managerial and manufacturing courses in order to improve the quality and the efficiency.

Conclusion And Improvement Ideas.

In the end as we can see through the big history of BMW from 1916 to today BMW is a colossal in the industry area with factories all over the world and the need for information systems and technologies in order for the headquarters in Munich to coordinate the manufacturing plants and assembly plants all over the world with out delays from the suppliers.

However the future of the e-commerce and information system is a long way a head because a new technology is being developed so the potentials of more effective communications and more improved security systems for the newly developed threats to the security of a system.

So in the end global organisations like BMW will constantly rely on information and communication systems and new technology in order to operate though out the whole world.


management information systems:managing the digital firm laudon & laudon 9th edition 8th chapter

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