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Overcoming stakeholder barriers in the automotive industry: building to order with extra-organizational systems

The automotive industry must significantly change its outdated and unprofitable ‘sell-from-stock’ business model to a streamlined ‘build-to-order’ model. Extra-organizational systems (EOS) enable multiple firms to share industry-level systems linked by electronic portals and hubs. Successful EOS implementation requires a coordinated effort among various stakeholders including customers, dealers, vehicle manufacturers, first- and second-tier suppliers and logistics firms. However, each of these stakeholders erects different but significant structural, managerial, user and technical barriers to EOS. This paper analyses these stakeholder barriers and prescribes how they must be managed in order to implement EOS successfully. Three recommendations raise concern over (1) the differentiation between EOS and inter-organizational systems, (2) industry dynamics, particularly the role of suppliers and customers and (3) supply topology, i.e. the importance of World Wide Web services and standards in creating electronic markets.