About GE & their products Past Scenario Present Scenario Use of IT Comparative Analysis Case Study Questionnaires 8/2/2012 3 Case Introduction Internet offers for large- scale storage and data analysis. IT provides -Continual monitoring of products -Access at customers’ sites -Cheap connectivity -Building strategic customer relationships 8/2/2012 4 Case Introduction GE -General Electric company GE is an American Multinational Conglomerate Corporation. Premier model for downstream service expansion. Motto- Imagination at work Headquarter – Fairfield, Connecticut, United States.
Chairman & CEO -Jeffrey Immelt CIO -Gary Reiner 8/2/2012 5 Case Introduction GE DivisionsGE Capital, GE Energy, GE Technology Infrastructure, GE Home & Business Solution. GE Market ActivitiesGeneration, transmission and distribution of electricity (e. g. nuclear, gas and solar), lighting, industrial automation, medical imaging equipment, motor & railway locomotives etc. 8/2/2012 6 Before using IT • Lack of network connectivity. • Poor customer relationship. • Equipment failure created customer dissatisfaction. • Customers had to pay hefty regulatory compliance fines. 8/2/2012 7 After using IT.
GE Energy: Invested heavily in IT for remote monitoring and diagnostics. Deploy a technician ahead of a failure as opposed to on a planned schedule. Charge $500 to $600 per hour for technical support (while most manufacturers can not charge >$100 per hour for the same technician). 8/2/2012 8 After using IT GE Energy: Additional tasks -Customers’ spare parts inventory. -Complete access to data and knowledge about the status of the equipment. Monitoring everything in ‘real time’.
Huge customer dependency. 8/2/2012 9 After using IT GE Healthcare: Typical customerMedical radiology clinic for a MRI machine GE has tended to lease their machines 8/2/2012 10 After using IT GE Recognition & Ranking: • • • • • • • No 6 largest firm(Fortune) No 14 most profitable firm(Fortune)
No 7 company for leaders (Fortune) No 5 best global brand (Interbrand) No 82 green company (Newsweek) No15 most admired company (Fortune) No 19 most innovative company (Fast Company).
8/2/2012 11 Case Study Questions(1) 8/2/2012 12 Answer large- scale storage and data analysis. Continual monitoring of products. Access at customers’ sites. Cheap connectivity. 8/2/2012 13 Answer Using IT for remote monitoring and diagnostic Deploy a Technician ahead of a failure Take on additional tasks Managing a customer ‘s spare parts inventory Increase the Profitability Providing complete access to data & knowledge about the status of equipments 8/2/2012 14 Answer Using IT for network monitoring, diagnostic and data analysis of the customer’s service data( Demographic data).
To estimate the number of “images” that will be required over the life of the contract 8/2/2012 15 Answer Using IT to analyze the Demographic. To estimate the amount that they will charge their customer. Full Payment = Leasing fee + Using fee ( number of images) 8/2/2012 16 Answer
Benefits for customers: Save time and costs. Customers are provided with info, instruction about the products. High-quality maintenance services 8/2/2012 17 Case Study Questions(2) • What strategic uses of IT discussed in this chapter and summarized in Figure 2. 3 and Figure 2. 5 do you see implemented in this case? 8/2/2012 18 Answer Strategic Uses of IT: • Differentiate( consistent the high-quality power) • Innovate( improve quality, network efficiency) • Promote Growth( manage regional, global business expansion) 8/2/2012 19 Answer • Invest in advance IT applications that build barriers to entry against competitors.
• Invest in IS people, support personnel, hardware, software ( upgrade, update) and networks. 8/2/2012 20 Case Study Questions(3) • How could other companies benefit from the use of IT to build strategic customer relationships? Provide or propose an example of such uses. 8/2/2012 21 Answer Example: [ www. hp. com ] Hewlett Packard • Checking serial number for registration and checking warranty duration online . • Finding the spare accessories. • Device drivers are easy to find online. 8/2/2012 22 Answer • Leasing & Financing: Help customers transition from existing equipment to the latest technology.
• Reduce risk for customers.
8/2/2012 23 Motive Gary Reiner: “We are not waiting for end-of-the-month or end-of the-quarter or even end-of-the-week results anymore before we act. We now respond continuously. ” “To monitor everything in real time. ” 8/2/2012 24 CONCLUSION • Using IT of remote monitoring and diagnostic for those products sold to customers. • Using IT in analyzing the Demographics for charging the full payment to customers. • Save time and costs. • Many companies in the world are following this way. 8/2/2012 25 Any Question ? 8/2/2012 26 Thank You 8/2/2012 27 Figure 2. 3 8/2/2012 28 8/2/2012 29 8/2/2012 30 8/2/2012 31 8/2/2012 32