General Motors has undertaken a large transformation of its information technology strategy:
- It consolidated 23 legacy data centers worldwide into two modern data centers in Michigan, handling most of GM's computing needs through a private "cloud-like" architecture.
- It integrated production, customer, and other data that was previously held by various third parties into one central enterprise data warehouse managing over 1 petabyte of data.
- This transformation aims to fully leverage GM's information systems to complement its wider organizational and strategic objectives through functional integration across its value chain activities.
General Motors has undertaken a large transformation of its information technology strategy:
- It consolidated 23 legacy data centers worldwide into two modern data centers in Michigan, handling most of GM's computing needs through a private "cloud-like" architecture.
- It integrated production, customer, and other data that was previously held by various third parties into one central enterprise data warehouse managing over 1 petabyte of data.
- This transformation aims to fully leverage GM's information systems to complement its wider organizational and strategic objectives through functional integration across its value chain activities.
General Motors has undertaken a large transformation of its information technology strategy:
- It consolidated 23 legacy data centers worldwide into two modern data centers in Michigan, handling most of GM's computing needs through a private "cloud-like" architecture.
- It integrated production, customer, and other data that was previously held by various third parties into one central enterprise data warehouse managing over 1 petabyte of data.
- This transformation aims to fully leverage GM's information systems to complement its wider organizational and strategic objectives through functional integration across its value chain activities.
General motors transform its information technology strategy:
Plenty of companies crow about their IT “transformations,” but none of
them can be compared in size and scope to the one General Motors. GM’s IT organization has collapsed 23 large, legacy data centers operated by suppliers worldwide into two modern, more cost-efficient ones in Michigan. Those two in-house data centers, leveraging a private “cloud-like” architecture, handle most of GM’s enormous worldwide computing needs. Moreover, most of the production, customer, and other data that was scattered across GM operations worldwide and held by various third-party contractors has been integrated into one central enterprise data warehouse. That EDW, which now holds about 1 petabyte of structured and unstructured data, is managed by a dedicated team of more than 400 people. However, GM utilizes its information systems resources to fully complement wider organizational strategic objectives by assessing the extent to which functional integration of value chain activities are successfully realized. Information systems are an essential ingredient of any firm that aspires to be successful in today’s globalized, digital economy. The fundamental aim of IS’s is to bring together the sociotechnical elements of organizations whereby “optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production.” Questions:
1. The benefits of GM’s insourcing strategy are that they are
upgrading their IT system so it can do things as such. In addition, instead of outsourcing work to 3rdworld countries like India they will hire people to work in house as part of their upgraded business strategy. It looks better for GM, they are insourcing within instead of working with other companies, as these are processes they can perform on their own. 2. As mentioned in the case, what makes General Motors think they are better than other companies that only specialize in that one Feld of IT. It is a big transition and I wonder if it is something that will really benefit them, it is a whole added system that needs to be overseen. A transition as such can cause several problems for the company. 3. Information technology has made possible what has been called “mass customization” the efficient and reliable production of goods and services according to the highly personalized needs of individual customers. It can be used to manage safety through Accountability with IT transparency and accountability. Information Technology (IT) plays a central role at General Motors as we combine modern designs with powerful technology to usher in a new era of mobility. By utilizing supercomputing technology, advanced simulations and design tools, we’re creating vehicles that do more than drive, they enhance customers’ digital lives. Also, information system has a major role in it, and I think that IT will be core to the company’s success in the future. The IT operations arguably can influence every part of GM's business. While not the driving force behind monumental decisions such as exiting unprofitable vehicle segments and markets, including the sale of GM's European operations, IT is helping Barra and other senior leaders to make quicker, more well-informed decisions than executives ever could before. Now, more than 80 percent of GM's IT employees develop tools and find ways to be more efficient, rather than just "run the business," as vendors had been doing previously so it’s really so beneficial.