The General Electric Case Study – ‘Can GE Remake Itself as a Digital Firm?’

The General Electric Case Study – ‘Can GE Remake Itself as a Digital Firm?’

Summarise the business and technology conditions causing GE to launch its Internet initiative.
There were numerous conditions, which resulted in General Electric (GE) embarking on an Internet venture. These conditions were a combination of both business and technological motives.
By the mid 1990s, the Internet had become a valuable Information System (IS). GE saw the benefits from business perspectives, which were evident in two different units, namely GE Lighting, and Polymerland (the GE Plastic’s distribution arm).
GE Lighting introduced the Internet for purchasing in 1996, and as a result the purchasing cycle was reduced from 14 to 7 days. Another achievement was having supplier prices reduced by 10 to 15 percent, resulting from open bidding on the Internet from different prospective suppliers. (Laudon & Laudon 2002, p. 33).

Senior management at GE saw utilising the Internet as a means to n...