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Using Information Technology to create
   Strategic Customer Relationships


   GE Energy &
   GE Healthcare
GROUP MEMBERS
Md. Mahedi Mahfuj    BIT 0207
Mostafizur Rahman    BIT 0211
Md. Habibur Rahman   BIT 0216




                                8/2/2012   2
Overview

•   About GE & their products
•   Past Scenario
•   Present Scenario
•   Use of IT
•   Comparative Analysis
•   Case Study Questionnaires




                                8/2/2012   3
Case
               Introduction
Internet offers for
                      large- scale storage
                             and
                        data analysis.

IT provides
              -Continual monitoring of products
              -Access at customers’ sites
              -Cheap connectivity
              -Building strategic customer relationships
                                                           8/2/2012   4
Case
               Introduction
GE -General Electric company

   GE is an American Multinational Conglomerate Corporation.
   Premier model for downstream service expansion.

Motto- Imagination at work

Headquarter - Fairfield, Connecticut, United States.

Chairman & CEO -Jeffrey Immelt

CIO -Gary Reiner
                                                        8/2/2012   5
Case
               Introduction
GE Divisions-
             GE Capital,
             GE Energy,
             GE Technology Infrastructure,
             GE Home & Business Solution.

GE Market Activities-
                       Generation, transmission and distribution
of electricity (e.g. nuclear, gas and solar), lighting, industrial
automation, medical imaging equipment, motor & railway
locomotives etc.

                                                        8/2/2012   6
Before using IT
• Lack of network connectivity.

• Poor customer relationship.

• Equipment failure created customer dissatisfaction.

• Customers had to pay hefty regulatory compliance fines.



                                                        8/2/2012   7
After using IT
GE Energy:

  Invested heavily in IT for remote monitoring and diagnostics.

  Deploy a technician ahead of a failure as opposed to on a
  planned schedule.

   Charge $500 to $600 per hour for technical support
(while most manufacturers can not charge >$100 per hour
 for the same technician).

                                                         8/2/2012   8
After using IT
GE Energy:

 Additional tasks
                    -Customers' spare parts inventory.
                    -Complete access to data and knowledge
                     about the status of the equipment.

 Monitoring everything in ‘real time’.

 Huge customer dependency.

                                                       8/2/2012   9
After using IT
GE Healthcare:

Typical customer-
               Medical radiology clinic for a MRI machine

  GE has tended to lease their machines




                                                   8/2/2012   10
After using IT
GE Recognition & Ranking:
•   No 6 largest firm(Fortune)
•   No 14 most profitable firm(Fortune)
•   No 7 company for leaders (Fortune)
•   No 5 best global brand (Interbrand)
•   No 82 green company (Newsweek)
•   No15 most admired company (Fortune)
•   No 19 most innovative company (Fast Company).


                                                    8/2/2012   11
Case Study
Questions(1)




               8/2/2012   12
Answer
large- scale storage and data analysis.

Continual monitoring of products.

Access at customers’ sites.

Cheap connectivity.




                                          8/2/2012   13
Answer
       Using IT for remote monitoring and diagnostic



Deploy a Technician    Take on              Increase the
ahead of a failure     additional tasks     Profitability



 Managing a customer ‘s      Providing complete access to
 spare parts inventory       data & knowledge about the
                             status of equipments

                                                   8/2/2012   14
Answer
Using IT for network monitoring, diagnostic and data analysis of
the customer’s service data( Demographic data).

To estimate the number of “images” that will be required over
the life of the contract




                                                      8/2/2012   15
Answer
 Using IT to analyze the Demographic.

 To estimate the amount that they will charge their
 customer.


Full Payment = Leasing fee + Using fee ( number of images)




                                                      8/2/2012   16
Answer
Benefits for customers:

  Save time and costs.
  Customers are provided with info, instruction about the
  products.
  High-quality maintenance services




                                                     8/2/2012   17
Case Study
                   Questions(2)

• What strategic uses of IT discussed in this chapter and
  summarized in Figure 2.3 and Figure 2.5 do you see
  implemented in this case?




                                                        8/2/2012   18
Answer
Strategic Uses of IT:

• Differentiate( consistent the high-quality power)

• Innovate( improve quality, network efficiency)

• Promote Growth( manage regional, global business
                 expansion)



                                                      8/2/2012   19
Answer
• Invest in advance IT applications that build barriers to entry
  against competitors.



• Invest in IS people, support personnel, hardware, software
  ( upgrade, update) and networks.




                                                        8/2/2012   20
Case Study
                  Questions(3)

• How could other companies benefit from the use of IT to
  build strategic customer relationships? Provide or propose
  an example of such uses.




                                                     8/2/2012   21
Answer
Example:
[ www.hp.com ] Hewlett Packard



• Checking serial number for registration and checking
  warranty duration online .

• Finding the spare accessories.

• Device drivers are easy to find online.

                                                    8/2/2012   22
Answer
• Leasing & Financing:
  Help customers transition from existing equipment to
  the latest technology.

• Reduce risk for customers.




                                                  8/2/2012   23
Motive
Gary Reiner:
 "We are not waiting for end-of-the-month or end-of
 the-quarter or even end-of-the-week results
 anymore before we act. We now respond
 continuously.”

 “To monitor everything in real time."




                                              8/2/2012   24
CONCLUSION
• Using IT of remote monitoring and diagnostic for those
  products sold to customers.

• Using IT in analyzing the Demographics for charging the
  full payment to customers.

• Save time and costs.

• Many companies in the world are following this way.


                                                        8/2/2012   25
Any

      Question   ?
                     8/2/2012   26
Thank
        You
              8/2/2012   27
Figure 2.3




             8/2/2012   28
8/2/2012   29
8/2/2012   30
8/2/2012   31
8/2/2012   32

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GE

  • 1. Using Information Technology to create Strategic Customer Relationships GE Energy & GE Healthcare
  • 2. GROUP MEMBERS Md. Mahedi Mahfuj BIT 0207 Mostafizur Rahman BIT 0211 Md. Habibur Rahman BIT 0216 8/2/2012 2
  • 3. Overview • About GE & their products • Past Scenario • Present Scenario • Use of IT • Comparative Analysis • Case Study Questionnaires 8/2/2012 3
  • 4. Case Introduction Internet offers for large- scale storage and data analysis. IT provides -Continual monitoring of products -Access at customers’ sites -Cheap connectivity -Building strategic customer relationships 8/2/2012 4
  • 5. Case Introduction GE -General Electric company GE is an American Multinational Conglomerate Corporation. Premier model for downstream service expansion. Motto- Imagination at work Headquarter - Fairfield, Connecticut, United States. Chairman & CEO -Jeffrey Immelt CIO -Gary Reiner 8/2/2012 5
  • 6. Case Introduction GE Divisions- GE Capital, GE Energy, GE Technology Infrastructure, GE Home & Business Solution. GE Market Activities- Generation, transmission and distribution of electricity (e.g. nuclear, gas and solar), lighting, industrial automation, medical imaging equipment, motor & railway locomotives etc. 8/2/2012 6
  • 7. Before using IT • Lack of network connectivity. • Poor customer relationship. • Equipment failure created customer dissatisfaction. • Customers had to pay hefty regulatory compliance fines. 8/2/2012 7
  • 8. After using IT GE Energy: Invested heavily in IT for remote monitoring and diagnostics. Deploy a technician ahead of a failure as opposed to on a planned schedule. Charge $500 to $600 per hour for technical support (while most manufacturers can not charge >$100 per hour for the same technician). 8/2/2012 8
  • 9. After using IT GE Energy: Additional tasks -Customers' spare parts inventory. -Complete access to data and knowledge about the status of the equipment. Monitoring everything in ‘real time’. Huge customer dependency. 8/2/2012 9
  • 10. After using IT GE Healthcare: Typical customer- Medical radiology clinic for a MRI machine GE has tended to lease their machines 8/2/2012 10
  • 11. After using IT GE Recognition & Ranking: • No 6 largest firm(Fortune) • No 14 most profitable firm(Fortune) • No 7 company for leaders (Fortune) • No 5 best global brand (Interbrand) • No 82 green company (Newsweek) • No15 most admired company (Fortune) • No 19 most innovative company (Fast Company). 8/2/2012 11
  • 12. Case Study Questions(1) 8/2/2012 12
  • 13. Answer large- scale storage and data analysis. Continual monitoring of products. Access at customers’ sites. Cheap connectivity. 8/2/2012 13
  • 14. Answer Using IT for remote monitoring and diagnostic Deploy a Technician Take on Increase the ahead of a failure additional tasks Profitability Managing a customer ‘s Providing complete access to spare parts inventory data & knowledge about the status of equipments 8/2/2012 14
  • 15. Answer Using IT for network monitoring, diagnostic and data analysis of the customer’s service data( Demographic data). To estimate the number of “images” that will be required over the life of the contract 8/2/2012 15
  • 16. Answer Using IT to analyze the Demographic. To estimate the amount that they will charge their customer. Full Payment = Leasing fee + Using fee ( number of images) 8/2/2012 16
  • 17. Answer Benefits for customers: Save time and costs. Customers are provided with info, instruction about the products. High-quality maintenance services 8/2/2012 17
  • 18. Case Study Questions(2) • What strategic uses of IT discussed in this chapter and summarized in Figure 2.3 and Figure 2.5 do you see implemented in this case? 8/2/2012 18
  • 19. Answer Strategic Uses of IT: • Differentiate( consistent the high-quality power) • Innovate( improve quality, network efficiency) • Promote Growth( manage regional, global business expansion) 8/2/2012 19
  • 20. Answer • Invest in advance IT applications that build barriers to entry against competitors. • Invest in IS people, support personnel, hardware, software ( upgrade, update) and networks. 8/2/2012 20
  • 21. Case Study Questions(3) • How could other companies benefit from the use of IT to build strategic customer relationships? Provide or propose an example of such uses. 8/2/2012 21
  • 22. Answer Example: [ www.hp.com ] Hewlett Packard • Checking serial number for registration and checking warranty duration online . • Finding the spare accessories. • Device drivers are easy to find online. 8/2/2012 22
  • 23. Answer • Leasing & Financing: Help customers transition from existing equipment to the latest technology. • Reduce risk for customers. 8/2/2012 23
  • 24. Motive Gary Reiner: "We are not waiting for end-of-the-month or end-of the-quarter or even end-of-the-week results anymore before we act. We now respond continuously.” “To monitor everything in real time." 8/2/2012 24
  • 25. CONCLUSION • Using IT of remote monitoring and diagnostic for those products sold to customers. • Using IT in analyzing the Demographics for charging the full payment to customers. • Save time and costs. • Many companies in the world are following this way. 8/2/2012 25
  • 26. Any Question ? 8/2/2012 26
  • 27. Thank You 8/2/2012 27
  • 28. Figure 2.3 8/2/2012 28
  • 29. 8/2/2012 29
  • 30. 8/2/2012 30
  • 31. 8/2/2012 31
  • 32. 8/2/2012 32