Learning Objectives
- Explain what an “omni-channel” business model is and how it should work.
- Judge the comparative importance of the recent customer-facing and customer-enabling technology initiatives at CarMax.
- Appraise the strengths and weaknesses of CarMax’s empowered product team approach, especially as compared to temporary project teams.
- Propose some rules of thumb for selecting roles that should be filled by “two in a box” leaders.
- Convince an audience of business leaders to adopt a product team approach in IT.
Abstract
CarMax became the US’s leading used car dealer by providing a great customer experience in an industry known for bad experiences. Around 2015 the company embarked on a digital transformation that evolved into a vision for an omni-channel business model. This case reviews the company’s transformation journey, highlighting its adoption of empowered teams and two-in-a-box management approaches. The case observes how the company’s transformation helped it respond to the COVID-19 crisis and positioned CarMax for sustained growth.
Appropriate for the Following Course(s)
digital transformation, organizational design, agile product management, customer experience, and enterprise architecture
THERE IS NO TEACHING NOTE FOR THIS CASE STUDY.