Ge's Digital Revolution Redefining the E in Ge Analysis

Analyzing GE’s corporate-level strategy from 2001 – present with Jeff Immelt as CEO, GE focuses on the growth and development platforms. Technology is the key driving force for GE’s future and growth. Advancements in industries such as energy, health and aviation fueled demand for cleaner and more efficient energy production. GE identified new markets with potential high-growth that offered attractive returns through strategic mergers and acquisitions. As CEO, Jeff Immelt established a process for identifying projects that offered attractive growth potential which were then nurtured and treated as special projects or initiatives that were not subject to strict budget constraints. Immelt introduced GE’s three strategic imperatives as: (1) sustaining its strong business model, (2) strengthening the business portfolio, and (3) driving its growth initiatives. www.ge.com

Six Sigma is a process improvement initiative developed by Motorola that assist organizations in identifying and reducing defects and inefficiencies within their existing business processes. The quality management system is a project-oriented system that drives cost savings and increases firm’s profitability by reducing variation in firm’s processes, products and services. (Russell, 2011). The process begins with four steps align, mobilize, accelerate and govern. Companies begin aligning by constructing company-wide metrics surrounding financial and strategic goals of the organization. These metrics are used to determine the area of the business that requires the most improvement and would have the largest financial

“The world is becoming increasingly digital…Every major corporation needs a [technology] strategy. If not, then you have no real strategy.” (Lohr, 2014) That is a quote from Eric Schmidt, Google’s former chief executive. It’s a premise that many successful companies in this digital age are taking to heart, Google being among them.

Analysis - GE has likely been so successful over the years because of its ability to foresee major trends and capitalize upon them. In the 1960s, for instance, GE was one of the eight major computer companies. Even recently, since 1986, GE has continued to acquire several organizations; portions of NBC, wind manufacturing, universe pictures, aerospace industries, international firms, software and hardware manufacturing, even oil companies abroad. The company culture describes itself as not one company, but many each unit a vast and complex enterprise in and of itself, with a corporate

Google Inc. boasts serving millions of people around the world to “organize the world’s information and make it universally accessible and useful” ("Company – Google."). It has a unique organizational culture that includes high freedom, transparency, stability, and flexibility. Founders Sergey Brin and Larry Page have created a new standard for company culture and success. Through Larry Bock’s book Work Rules!, the google company has had fluctuating levels of success as they learn to navigate this new system of corporation philosophy. Notably, Gmail has been a huge success but Google’s initiative to reward every googler who purchased a hybrid car with $5,000 failed (Bock 324). The company has experienced, however, relatively low failures to their amount of success. They have brought knowledge to many satisfied customers and even produced a mainstream word; people say “just google it!” when they want to know something. Google also shares some of its philosophy with Netflix, another widely successful company.

General Electric is a global digital industrial company that was incorporated on April 15, 1892. They are categorized in the industry of diversified machinery. GE has nine different segments that make up their entire company, these include power, renewable energy, oil and gas, energy management, aviation, healthcare, transportation, appliances and lighting, and capital.

In December of 2005, six years after its founding and twenty-one months after the company went public, search engine giant Google, Inc. had grown into not just probably the world’s biggest and most successful Internet companies, but also one of America’s biggest business success stories. Founded by two Stanford graduate students, Google was in many ways the quintessential American business success story. Sergey Brin and Larry Page (Google’s founders) infused their start-up with an innovative, entrepreneurial culture and established an organizational structure that supported innovation and risk taking. While Brin, Page and their fellow “Googlers” pursued the

Today, with the consumers who are perpetually connected to internet and prefer real-time services, businesses need to have shorter time-to-market and provide seamless multichannel experience to allow consumers to shift effortlessly from one channel to another. The businesses also need to rely of big data analytics and automation to serve customers efficiently. Thus, the nature of enterprise IT is driven by business demand to improve core business processes and bring innovation in the way the business is conducted.

One of the common methods of sustaining quality while managing a project is the Six Sigma process. The Six Sigma system improves products or services by increasing shareholder value, refining quality, promptness, and cost, along with customer satisfaction (Laureani & Antony, 2012). The system is a business strategy that is driven by distinguishing the causes of errors or failures within business processes, and eliminating these causes to produce products and services that meets the client’s requests. The focus of the method is to uncover and resolve the root cause of an issue within an organization prior to issue influencing defects within the product or services being produced (Hunold, 2014). By eliminating the root cause of a problem, an organization can increase the quality of the products or services that are created, decrease cost to the organization, and increase customer satisfaction.

Although originally introduced by Motorola in 1986 as a quality performance measurement, six sigma has evolved into a statistically oriented approach to process and product quality improvement. Many organizations have reported significant benefits as a result of six sigma project implementation, though not all are yet success stories. Antony, J. and Banuelas, R. (2002) defines Six Sigma is a business strategy and a systematic methodology, use of which leads to breakthrough in profitability through quantum gains in product/service quality, customer satisfaction and

Along with that I also learned a lot more about business process reengineering and steps taken to implement that. This paper also shows on how to do a process improvement rather than what to do for the process improvement. Next important thing to learn was that “do not engineer in an unstable environment” and the importance of priority given to steps like standardization and streamlining before we change the structure of process or organization. The significance of the cooperation of top management and also the employees was critical thing notice and how this things were made possible. We get to know how each and every department is involved in process improvement even if the improvements are to be done only in manufacturing point of view. The integration of People, Strategy and Operations was something interesting and a very common thing but difficult to execute. One more interesting thing about this case was that there was no new technology involved or weren’t any people laid off after bringing the changes in

Huge numbers of the vast specialty units of GE separate their yield with brilliant while they all the while keep up low per unit cost operation. It embraced three inclusive development activities: globalization, administrations and Six Sigma Quality. The power of globalization is reflected from the way that GE incomes have grown 6% every year in the U.S. what 's more, 17% comprehensively. GE drastically embraced Six Sigma Quality in its items, which fundamentally changed general measures of working effectiveness. GE needs its each item and administration intended for six sigma. Six Sigma for GE is installing quality considering, procedure

As one of the world best network services and network products provider, since the day established the company was on a very different road of how IT companies should be from the traditional model. It can be said that Google 's model was so success in today 's IT industry. It not only successfully solved the problem about disconnect of the research and development, also in the management cost and R&D efficiency achieves the optimal. Innovation, and business philosophy helps Google to become world famous company. In other hand Google was considered as one of world’s most secretive company as well. The business model and culture of Google was so unique which not every company can achieve that.

Under his leadership, Google dramatically scaled its infrastructure and diversified its product offerings while maintaining a strong culture of innovation.” ("Management Team", 2011).

GE wants all its units make the use of internet including Power, Appliances, Medical and transformation that help the GE in saving and reduced the cost.