{"id":224,"date":"2018-01-29T14:30:58","date_gmt":"2018-01-29T19:30:58","guid":{"rendered":"http:\/\/blog.richmond.edu\/mgmt340-03\/?p=224"},"modified":"2018-01-29T14:30:58","modified_gmt":"2018-01-29T19:30:58","slug":"general-electrics-transformation-from-process-analysis","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/mgmt340-03\/2018\/01\/29\/general-electrics-transformation-from-process-analysis\/","title":{"rendered":"General Electrics Transformation from Process Analysis"},"content":{"rendered":"

This section is focused on how to analyze processes within a company. Every company wants to be as productive and efficient as possible. One way to do this is to evaluate ones own company and the processes each company has and find places to improve the income of the firm, whether that be through cutting costs or increasing revenue. \u00a0A company can cut costs is through improving or reengineering their processes.<\/span><\/p>\n

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Six Sigma<\/b><\/p>\n

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According to there website, Six Sigma is designed to \u201cimprove business processes by utilizing statistical analysis rather than guesswork\u201d (Six Sigma). Six Sigma combines six key aspects in order to help improve a company’s business processes: define, measure, analyze, improve and control. Many companies use these management methods to improve their business processes by following the defined steps and training provided by Six Sigma. One of these companies is General Electric.<\/span><\/p>\n

 <\/p>\n

General Electric<\/b><\/p>\n

 <\/p>\n

Jeffrey Immelt was the CEO of General Electric from 2001-2017. During his time, one of his main accomplishments was how he moved GE from a \u201cclassic conglomerate to a global technology-driven company\u201d and navigating the company through a volatile time period that included a recession (Harvard Business Review). The first step to this transformation was to evaluate which businesses had been growing more slowly than others, which they found to be the non-technical and non-industrial businesses. After evaluating these areas Jeffery decided to divest these businesses. He defined the problem that their business scope was too broad, and measured the growth of the industries they were in. After doing this, he analyzed if it would be profitable to pivot there company into another direction and this lead to an improvement in GE. <\/span><\/p>\n

One of the main findings that Jeffery had was that the company did not seem to have one voice. All of its separate business units did not connect well to each other and no supervisor could connect them. This lead to the businesses being very scattered and cost inefficient since there would be a large amount of repetition and inefficiencies among the businesses. By divesting in certain companies, it freed up capital for GE to make improvements to its business efficiency. They were able to put $4 billion into developing an analytics software and machine-learning capabilities which enabled them to drastically improve their manufacturing efficiency. <\/span><\/p>\n

In the early 2000\u2019s GE was mainly an domestic based company. However, they went through an analysis to determine how they can grow the revenues of the company. Due to the growth of the developing world and other international countries, GE found that it would be extremely profitable to expand its global presence. In 2011 they launched a group to expand their international presence: \u201cThe Global Growth Organization\u201d. Since the launch of this program, GE now operates in over 180 countries and in 2017 the revenue generated from countries outside the U.S. accounted for nearly 60% of all of GE\u2019s revenue.<\/span><\/p>\n

Another change GE made was a pivot from \u201cindustrial to digital industrial\u201d. They saw a shift in the markets and an increased demand for software embedded in machines. GE did research into this field and created GE digital and launched themselves into this field. GE digital now accounts for a large amount of the companies revenue each year.<\/span><\/p>\n

These are only a few of the many transformations that GE has gone through since Jeffrey Immelt took over as CEO. Jeffery used the strategies from Six Sigma, along with others he had created, to constantly evaluate their business processes. This enabled GE to stay ahead of the game and invest more in areas which had been profitable while divesting in areas that were low growth and seemed to be costing the company money. This is just one key example as to why it is necessary to always analyze the processes of a company.<\/span><\/p>\n

 <\/p>\n

Sources:<\/p>\n

1)https:\/\/www.6sigma.us<\/p>\n

2)https:\/\/hbr.org\/2017\/09\/inside-ges-transformation<\/p>\n","protected":false},"excerpt":{"rendered":"

This section is focused on how to analyze processes within a company. Every company wants to be as productive and<\/p>\n","protected":false},"author":3722,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[71161],"tags":[],"class_list":["post-224","post","type-post","status-publish","format-standard","hentry","category-analyzing-processes"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/users\/3722"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/comments?post=224"}],"version-history":[{"count":0,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/224\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/media?parent=224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/categories?post=224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/tags?post=224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}