General Electric And The Industrial Internet Harvard Case Solution & Analysis

Situational Analysis:

Jeff Immelt, the CEO of the General Electric, along with the top management of General Electric is considering whether to introduce industrial internet network in order to boost up the overall growth of the company as well as in order to fuel up the overall expansion of the operations of the company. The top management of the company has received many proposals from the customers of the company proposing the company to provide them with industrial internet services.

In order to provide client based service to the customers of the company, the company is required to build an industrial internet network which would connect the different machines and departments of the company. Moreover, the top management of the company is required to invest approximately 1 billion dollars in order to build up a new software centre in California. This investment would also include setting up a commercial sales function at the headquarters of the company in order to position the new products and services.

The clients of the company not only need the smart software designed for their operations from the company but also intend to receive outcome based services contingent for the improvement of their company’s operations. The customized software and outcome based services would help the companies to enhance the overall effectiveness of their operations by identifying and resolving the weaknesses and problems of the company on timely basis.

Questions:

Whether GE should diversify its products line to sell outcome based services?

Whether the top management of the company is moving fast or not?

How the company would sell and manage such services?

Hypothesis:

H1:Stick with the current product category:

The top management of the company should not step into the service line and should focus more towards the core business of the company.

H2: Introduce Services to its portfolio:

The top management of the company should step into the service line efficiently and effectively.

H3: Hire competitive top management and skilled labour

The top management of the company should hire skilled labour and should ensure that the top management of the company is competitive.

Poof and Action Plan:

It is recommended that the top management of the company should implement alternative # 2 and alternative # 3 as this would enhance the overall revenue and profitability of the company as well as this would ensure the overall growth of the company. The top management of the company should establish a software centre and should start providing the industrial internet services to its clients.

The top management of the company should hire competent staff in the software in order to provide competent services as well as in order to effectively manage the overall diversification.

Since the dependence over IT in the business world is increasing rapidly, this would allow the company to grow robustly as well as it would enhance the overall competitiveness of the company.(Evans, 2013)

In addition to this, the internet network would also allow the company to enhance the overall effectiveness of the operations of the company as it would allow the top management of the company to evaluate and identify the weaknesses in the performance of the company. This would subsequently allow the top management of the company to improve the performance of the company by eliminating the identified weaknesses in the company.General Electric And The Industrial Internet Case Solution

Alternatives:

Sticking with the current product category would enable the top management of the company to specialize in the particular product line and secure a leading position in the industry of that particular product line. However, sticking with the current product category would decrease the overall ability of the company to diversify its products line. This further decreases the overall ability of the top management of the company to globally expand the company.

It is likely that the company would earn economies of scale as well as the operations of the company would be expanded globally if the company taps into the market of service industry. However, there is a risk that the managerial complexities would be increased which would further decrease the overall efficiency of the operations of the company............

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