Executing E-Business Strategies - The GE Way|IT and Systems|Case Study|Case Studies

Executing E-Business Strategies - The GE Way

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Case Details:

Case Code : ITSY020
Case Length : 11 Pages
Period : 1995-2002
Pub Date : 2003
Teaching Note :Not Available
Organization : GE
Industry : Varied
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

From its very inception, GE had taken bold initiatives to adapt to changes in the business environment...

E-Transformation of GE

To successfully implement its e-business strategy, GE had to deal with few operational and cultural issues.

The E-Business Initiatives

Through its e-business initiatives, GE expected major improvements on both the buy side and the sell side of the business. On the buy side, the e-business strategy aimed at carrying out the whole negotiation process on the web and performing transactions electronically with GE's suppliers. The strategy also planned to achieve complete automation of the selling process, including customer service and order taking. By October 1999, the sell side sites of several GE business units became operational. The e-business strategy started delivering results from the very first year...

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Reaping the Benefits

GE was able to leverage e-business to achieve significant benefits in the areas of 'customer productivity' and 'internal productivity.'

The 'Real' Benefits?

Although GE claimed to have achieved costs and productivity benefits through its e-business strategy, some analysts felt that GE had not increased its profitability through its e-business initiatives to the extent it could have. In a January 2001 article in The Industry Standard, the author Mark Roberti said that GE was not able to make huge profits because it had not used the Internet to reach out to new markets and create new sources of revenue. He said that to cut costs by moving business processes online, a firm must also eliminate or re-deploy its workforce, which GE had not done...


Exhibit I: Overview of GE's Businesses
Exhibit II: E-Business Projects Categorization
Exhibit III: GE's Financial Highlights

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