The Use of ICT at the Volvo Plant in Skövde, revisited

Abstract

This paper focuses on the changes in the flows of communication related to the interplay between the use of information communication technology (ICT) and the new organizational structures of transnational corporations (TNCs). The purpose of the study is to support an analysis of how the pattern and the use of different means of communication are influenced by the type of message. The analysis is based on both quantitative and qualitative studies and aims at increasing the knowledge of the use of ICT in business. The study has been performed by documentation of the communication flows from the division of engines at the Volvo-plant in Skovde located to the southwestern part of Sweden. Communication flows registered in March 1992 are compared to flows registered mainly in March 1997. The surveys include different means of communication such as telephone, fax, electronic mail, mail and business trips. Furthermore, qualitative studies (through interviews) were carried out in spring 1993 and spring 1998. This qualitative approach was used for examining the type of information and type of work connected to different means of communication. Some events influencing the structures of customers and suppliers and thereby the flows of communication are observed during the 5 -year periods. At the surveys in 1992 and 1993 the alliance between Volvo and Renault was still a reality. The alliance was created in 1990 and ceased in 1994. However, by this cooperation Cléon was added as a customer place. Further, the plant at Kalmar has been closed. The plant in Uddevalla has been both closed and reopened even if the production has been reduced and is directed towards other types of cars. The use of different means of communication has tended to increase with the exception of regular mail. Problem-oriented issues are often transmitted by telephone. Fax, e-mail and mail usually transmit informative messages. A special note concerns the need for personal contacts, which is very pronounced when carrying out specific projects. As a result of the changes of the structures of customers and suppliers, the geographical pattern of contacts has changed. The customer structure has changed from being Swedish towards being foreign-oriented. The structure of suppliers is characterized by the development towards fewer but stronger suppliers. At the same time, the frequency of deliveries has increased. A consequence of this is the need for more communication. The tendency is towards a strengthening of the global and the local/regional levels and a weakening of the national level.