Charles Iles, Mitsubishi Motors Australia corporate affairs manager, confirmed to ZDNet Australia that the automotive giant had awarded a contract to upgrade its aging enterprise systems to SAP and its implementation partner IBM Australia.
There were also indications that the system overhaul would require participation from business process re-engineering firms.
"The way we are going to do our business in the future is going to change," said Iles. "We have a lot of old legacy systems and, like a lot of organisations, a lot of those systems are passed their used-by dates for the way you want to take the business".
The project is expected to take 18 months to two years to complete.
Mitsubishi said the project would parallel a significant redevelopment of production processes within its plants. The first car Mitsubishi has designed to mesh with its new process is expected to roll off the production line in time for a 2005 release date.
Iles said the company had made a substantial investment in the new model project and that its current systems were insufficient to support what the company wants to do with the new car.
The new business strategy that the systems are designed to support will keep Mitsubishi in step with trends throughout the global automotive industry toward making manufacturing plants more flexible for the car market.
Iles said new supply chain management and logistics systems would shorten existing turn-around times between its plants and dealerships, while preserving diversity in customer orders for individual specifications such as colour.
SAP and IBM will be under a great deal of pressure to ensure the project runs smoothly to meet deadlines for the project, which were set mid-to-late 2002. Industry observers close to the deal are already concerned that any hiccups in the project could delay the new cars' arrival at dealerships.
"If we're introducing a car in 2005 sometime and it's now 2003 obviously we've got to have it done well in advance for the car being released," said Iles.
Currently, said Iles, the project was proceeding on schedule.
Establishment of the deal between the IT goliaths and one of the world's largest car makers has coincided with recent criticism of technology outsourcing specialists.
Frank Sassone, senior manager for IT services for DaimlerChrysler Australia, has reportedly been critical of the IT industry, warning outsourcing specialists to lift their game.
