Case Study: Business Process Reengineering General Motors Corporation

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Case study: Business Process Reengineering

General Motors Corporation 

“General Motors is one of three leading automotive manufacturing companies in the United States. Based in Michigan in 1903 by Henry ford and grew to reach revenue of $150 billion and more than 370,000 employees by 1996. In the 1970's, the automobile market for the major auto makers - General Motors (GM), Ford, and Chrysler- was crunched by competition from foreign manufactures such as Toyota and Honda. In 1999, Ford acquired the Swedish Volvo model in an attempt to compete in the foreign market and expand to other regions.”

General Motors needs to use the business process reengineering for the information systems infrastructure to cut redundancies and requiring information process and the link among Ford centre in world wide.

“General Motors implemented a 3-year plan to consolidate their multiple desktop systems into one. This new process involved replacing the numerous brands of desktop systems, network operating systems and application development tools into a more manageable number of vendors and technology platforms. It also included upgrading program for the implementation of a common business communication strategy across the world.”

Reengineering the information system infrastructure of GM has increased transparency to the customers. Not only GM’s staff can update the company’s information exactly in the same time and improve the communication among colleagues, but the customers or suppliers can contact the company by real time event they are not in their countries also.

After this plan was applied to the Ford centers across the world, it can save 10% - 25% on support costs, 3% - 5% on hardware, 40% - 60% on software licensing fees, and increased efficiency by overcoming incompatibility issues by using just one platform across the entire company.

This case study can be concluded that the business process reengineering can make more profit and reduce the payrolls in...
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