Description
it makes sense to dismantle the ebusiness team which has been set up. The problem of dismantling is that whether they sustain their drive in this direction in the future. So this report tries to analyze whether it makes sense to do it and also the pros and cons by doing so. Also the cost benefits / loss incurred due to the same.
GE Digital Revolution
Problem Whether to dismantle the e-business team that was set up in 1999 to start up e-business in GE. The problem with disbanding e-business team was that whether GE to sustain the e-business drive in the future. For the drive to continue they will not have any predefine team to assist them any further. This would have to be carried out by the line managers who may be unsure of the value proposition of e-business. They may also be stretched by many demands other than their day to day activity. Analysis The 2000 results of GE put online sales at just 5% of the total sales; it was far short of their target of 30%. It could also not meet the target of transacting with 100% of their suppliers online; this figure was just at 25%. Although, the CEO at that time, Jack Welch was satisfied with this result but he wanted more focus and more push for doing as most of their business online. The disbanding of the e-business team will not be the right way forward if GE wants to achieve its long term objective. The team will have to make sure that each and every employee of GE understands the importance of transacting online, be it in e-sell, e-buy or e-make. The team will have to help in conveying the vision of its CEO clearly, to all the employees. The team has to make sure that each employee makes best use of the e-channels set up. It also has to make sure that all partners of GE also follow suit, the buyers should buy from the website directly and the suppliers should transact online. It is also stated that the e-make initiative will decrease SG&A expenses by 30%, implementing this properly and reaping the benefits in this will take time. The team should be kept for few more years. To motivate them GE can have special monetary incentives for the team. As many of the individuals in e-business team would like to move towards higher management role which they think may not be possible by staying with ebusiness initiative. To fulfill the ambitions GE can promote the individuals to become the future Chief Information Officer of other business. The team should continue to support other business thereby fulfilling their ambitions of becoming CIO one day.
doc_920716723.docx
it makes sense to dismantle the ebusiness team which has been set up. The problem of dismantling is that whether they sustain their drive in this direction in the future. So this report tries to analyze whether it makes sense to do it and also the pros and cons by doing so. Also the cost benefits / loss incurred due to the same.
GE Digital Revolution
Problem Whether to dismantle the e-business team that was set up in 1999 to start up e-business in GE. The problem with disbanding e-business team was that whether GE to sustain the e-business drive in the future. For the drive to continue they will not have any predefine team to assist them any further. This would have to be carried out by the line managers who may be unsure of the value proposition of e-business. They may also be stretched by many demands other than their day to day activity. Analysis The 2000 results of GE put online sales at just 5% of the total sales; it was far short of their target of 30%. It could also not meet the target of transacting with 100% of their suppliers online; this figure was just at 25%. Although, the CEO at that time, Jack Welch was satisfied with this result but he wanted more focus and more push for doing as most of their business online. The disbanding of the e-business team will not be the right way forward if GE wants to achieve its long term objective. The team will have to make sure that each and every employee of GE understands the importance of transacting online, be it in e-sell, e-buy or e-make. The team will have to help in conveying the vision of its CEO clearly, to all the employees. The team has to make sure that each employee makes best use of the e-channels set up. It also has to make sure that all partners of GE also follow suit, the buyers should buy from the website directly and the suppliers should transact online. It is also stated that the e-make initiative will decrease SG&A expenses by 30%, implementing this properly and reaping the benefits in this will take time. The team should be kept for few more years. To motivate them GE can have special monetary incentives for the team. As many of the individuals in e-business team would like to move towards higher management role which they think may not be possible by staying with ebusiness initiative. To fulfill the ambitions GE can promote the individuals to become the future Chief Information Officer of other business. The team should continue to support other business thereby fulfilling their ambitions of becoming CIO one day.
doc_920716723.docx