Management Information Systems - Assignment 4

Management Information Systems - Assignment 4 - Real World...

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Real World Case 4 GE Energy and GE Healthcare: Using Information Technology to Create Strategic Customer Relationships Q1. What are the business benefits of using information technology to build strategic customer relationships for GE Energy and GE Healthcare? What are the business benefits for their customers? GE Energy was able to strategically invest in IT to provide expert maintenance services to their customers. The remote monitoring technologies have allowed GE to be proactive and they are able to deploy an engineer before a failure may occur. This effective network – enabled remote servicing has dramatically increased the profitability of GE’s maintenance services; allowing them to charge $500 to $600 per hour, as opposed to the standard $90 to $100 per hour. GE Energy has been able to create a high customer dependency and customers can rely on minimal failures while using their products. GE has been able to tie its pricing to the business benefits it provides to its clients. They have moved away from simply selling a product, and more toward providing a service to the end user. This benefits both the GE and their customers; GE has captured their market by selling a product and providing expert service and customers have developed a dependency for these services. GE’s investment in network monitoring, diagnostic and data analysis of its products at its customer sites have afforded them the ability to predict the nature of the market. Similar to GE Energy, GE Healthcare has been able to accurately determine the needs within the medical radiology field and have created a model that is profitable for them and beneficial to their clients. GE has cut out the client’s guess work in the acquisition of a MRI machine and have created a
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This note was uploaded on 07/16/2011 for the course IS 620 taught by Professor Dr.a during the Winter '11 term at Nova Southeastern University.

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Management Information Systems - Assignment 4 - Real World...

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