The Adoption and Long-Term Usage of an IT System in the Automotive Industry. An international case study of Volkswagen’s package price system

Abstract

The automotive industry is increasingly affected by digitalization and servitization. In the after sales service sector, original equipment manufacturers are developing information technology systems to be used in multiple international markets as a means for providing more efficient customer service. For instance, Volkswagen has introduced an information technology system called Package Price System where the ongoing rapid international rollout has been a priority rather than ensuring that the system is being properly adopted and used in the markets where the rollout has occurred. The aim of this thesis is to analyze how Volkswagen can ensure the adoption and long-term usage of their Package Price System across markets. This thesis is based on a qualitative case study conducted in three different European countries. It was found that the organizational setup of the automotive industry (original equipment manufacturers, importers and dealerships) results in information asymmetry constraining Volkswagen’s ability to ensure the proper implementation and usage of their system. Also, to make matters more complex, markets differed more than expected. The main outcome of the study suggests that original equipment manufacturers must consider the long-term usage of the system in their initial rollout strategy by putting in place an operational concept following the implementation of the system to further support the markets. This can only be successful if those involved at the original equipment manufacturer continue to further develop relationships with their importers. This will require more regular communication and face-to-face meetings with those involved in the adoption and usage of the system.