Although Tesla has proven that it can manufacture the most modern cars in the world, similarly, its founder Elon Musk has consistently claimed that the entire information system and e-commerce platform within Tesla are self-developed.
Most of Tesla's information systems are indeed developed by their own team, as stated today by CIO Jay Vijayan at the Constellation Research Connected Enterprise Conference. The reason is simple: traditional ERP (enterprise resource planning - including IT solutions such as CRM and SCM) systems are not suitable for Tesla. They need a specific system management environment.
Such an ERP system requires higher performance speed and flexibility, and there are no similar products available in the current market. For example, SAP's popular ERP solution is not suitable for car manufacturers like Tesla. Therefore, they need to be self-sufficient.
Vijayan's team of nearly 250 people spent four months completing the development. The new ERP system will serve as the foundational system for this electric vehicle manufacturer. Now, all departments can use this new ERP system for efficient work and communication, and other information systems have also been integrated into it.
In addition to its own ERP system, Tesla has also built what it calls a "world-class" e-commerce platform to provide consumers with a seamless purchasing experience for electric vehicles.
The reason Tesla develops its own enterprise management system is due to the different business model of this electric vehicle giant. For decades, automakers have sold their cars through local distributors in various places, with basically every city in the U.S. having such distributors. However, Tesla sells directly, with all components of the electric vehicles assembled and configured by Tesla itself, and then sold online.
Tesla, as a high-tech emerging company (its stock price has risen by about 6 times this year), has rebuilt a new corporate management system around its own business model, which is indeed impressive.