BMW realises that IT is an integral component of its business and a key factor for ensuring ongoing success.

Delivering new cars that match the ever-shifting tastes and desires of drivers requires an infrastructure that is as flexible as possible and able to turn new ideas into products faster than competitors.

For chief information officer Jurgen Maidl, the core issues are time to market and agility.

'The market for us is constantly changing and we need to be able to react rapidly and adapt our IT systems for new processes,' said Maidl.

'When you're making a decision to implement a major system that will run for seven years or longer, it needs to be flexible enough to change as your needs change,' he said.

'Ten years ago, none of us could have foreseen the massive rise in demand for sports utility vehicles, or the enormous changes in China, so it's crucial for us to have an agile IT infrastructure that can change along with our needs. We need to be able to react to market changes and bring new products to the market - and to our customers - as fast as possible.'

To achieve this aim, BMW places great faith in the IT systems that lie at the heart of its business.

Maidl says that IT is a strategic and technical investment for taking the company forward.

Accordingly, even with tight markets and an uncertain economy, BMW doesn't intend to reduce its spending on technology.

'We don't believe in cutting IT budgets, we just seek to manage it better,' said Maidl.

BMW operates on a principle of allocating funds towards IT projects on the merits of that initiative, rather than allocating a fixed annual cost towards IT.

'If we see that a project has a positive business merit or benefit, then we will allocate funding towards making that project happen. The bottom line is that if we don't invest, we will suffer two years later,' he said.

BMW is investing in two major IT projects at the moment.

The first will help engineers collaborate more efficiently in the product data management process. Maidl hopes to create a system that will enable the company's engineers and controllers to collaborate more effectively, cutting the time to market for new products.

'It's a big initiative for us, and we believe it will speed our new product delivery through improved working processes and by allowing decisions to be made faster,' he said.

BMW is investing millions on renewing its existing systems and migrating to SAP software, which will be at the heart of the system, alongside the design applications used by its engineers and suppliers.

The system will be used in the early parts of the production process, with relevant information being made available to suppliers via a web portal.

Phase one of the project should be complete by autumn, covering the production of one vehicle model, with rollout continuing across all product lines over the next two and a half years.

The second major initiative will enable its manufacturing plants to move closer to a 24x7 production cycle.

'As working habits change around the world, and more working shifts are introduced, we are steadily moving closer to continuous vehicle production,' said Maidl.

But to support this change effectively, the company needs systems that are constantly available.

'We currently have highly bespoke mainframe systems in our plants, which require daily downtime for batch processing,' said Maidl.

'We need our systems to be available all the time to connect with our subsidiaries around the globe.'

BMW is migrating its mainframe environment to an SAP-based system, and using the move to introduce standardised operating processes.

'By moving to common standards, we're not only able to reduce costs, but it makes it easier for us to move people around without any productivity loss,' he said.

For Maidl, reduced time to market is almost a mantra: while he's in charge of the company's IT, expect BMW to be constantly innovating at the core of its business to bring new vehicles to market, faster.

To sell its flashy new models most effectively to the company's upmarket buyers, a customer relationship management (CRM) strategy is also important.

'CRM is one the crucial things that you have to do,' said Maidl.

BMW's strategy has parallels with rival DaimlerChrysler (Computing, 22 May): a portal that dealers can connect to from around the globe, accessing all the information and services they need.

Through the portal, BMW dealers can configure cars, review updated costs and financing options, place orders and manage deliveries of new vehicles.

'They have a direct link to our production lines, which gives them feedback on precise delivery times,' said Maidl.

Web services technology played a key role in the development of the portal.

Like DaimlerChrysler, the system was developed on a J2EE architecture and web services were especially useful in linking information between different companies and applications.

The system, which has been running for about 18 months, is powerful enough to let dealers change or reconfigure customer orders up to six days before the start of production.

'We've been continuously upgrading the portal and adding new functionality, such as new CRM and campaign management tools, as well as a warranty system. When you're selling into a market that is so tough, it's important to be able to provide the best possible service to our customers, and to be able to share knowledge about those customers,' said Maidl.

'The development of this portal was a big step forward in our ability to do that.'