Case ID: GS29
Solution ID: 17326

General Motors Building a Digital Loyalty Network Through Demand and Supply Chain Integration Case Solution

Case Solution

Ron Wagoner, CEO of General Motors (GM), understood that something was "damaged" within the automobile industry lengthy before a USA Today article introduced it in December 2001. Wagoner, together with top lieutenants, had released several initiatives to understand their shared vision of worth creation within GM. A number of these initiatives were targeted at integrating GM's demand and supply chains, based on the most recent technologies. Their goal ended up being to strengthen and integrate GM's demand and supply chain systems to construct what is known a digital loyalty network (DLN). Since it's title suggests, a DLN includes the 3 components GM was addressing: "digital" for technology enabled "loyalty" for any concentrate on clients as well as on growing their loyalty and lifelong value to GM and "network" for matching and using all supply and distribution chain partners for everyone individuals clients. Wagoner and the team thought their efforts could be fundamental to some sustainable, value-creating auto industry business design that will result in elevated efficiency and profitability. The audience had made excellent progress, and Wagoner made the decision to obtain along with his team to size up where they was in recognizing their overall vision. However the words "industry business design is damaged" remained with him. He wondered if the opportunities during these myriad initiatives would really repay--and whether or not they is needed repair the problem of low value creation.


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