Ge Energy and Ge Healthcare

2444 Words Jun 23rd, 2010 10 Pages
GE Energy and GE Healthcare Case Study 1. What are the business benefits of using information technology to build strategic customer relationships for GE Energy and GE Healthcare? What are the business benefits for their customers?

Technology is no longer an afterthought in forming business strategy, but the actual cause and driver. Networking and data storage & analysis technologies enabled GE to gain a competitive advantage by providing unique products and services to their customers. What were those services? For GE Energy and GE healthcare it was remote monitoring and diagnostics of equipment and GE invested a lot into this. An interesting note abut GE energy from the case is how unlike many of their competitors had at that time
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There was continual monitoring where as before the monitoring was done by clinic staff of techs that were onsite for routine maintenance. They formed a truly unique and efficient network. 3) Promote Growth. This different and innovative network setup allowed them to expand all over. Whether they want to expand regionally or globally they have the IT to monitor and diagnose their products from anywhere in the world. No need to setup full staff in each location because they could do more than anyone else from a single location and dispatch techs to take care of problems before they occur and could train customers only when needed. In addition they were able build in switching costs. They invested in Information System people, support personnel, hardware and software (upgrade, update) and large networks that their customers were dependent on and thus long relationships were formed. 4) Alliances. GE was able to work with its customers and adhere to their needs in ways that were less expensive with their pay by use idea. This was able to be done via the networking they set up. They also worked with techs in the area of their customers and provided info so they could make the necessary repairs without having to physically check the products and decipher or troubleshoot onsite. 3. How could other companies benefit from the use of IT to build strategic customer relationships? Provide or propose several examples of such uses. Explain how each
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