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saving billions? / fwd: GE Scales Back Amid Struggle To Connect Suppliers

From: Eric D. Pierce <PierceED_at_csus.edu>
Date: Fri, 11 May 2001 09:48:20 -0700
Message-ID: <F001.0030124D.20010511093701@fatcity.com>

fyi
(follow up to the thread about Oracle's claims to save billions by converting business practices with internet technology)

---original message follows---

Date sent: Thu, 10 May 2001 02:03:28 -0400 (EDT)

> TODAY'S NEWS
>
> * GE Scales Back Amid Struggle To Connect Suppliers

...

> * OPINION: Rob Preston: There's No Shame In Realization That E-Biz Is Tough

...

> ***************************************************
> GE Scales Back Amid Struggle To Connect Suppliers
>
> General Electric Co., a harbinger of the e-business future for many companies, is
>scaling back its expectations of the Internet. In the process, GE is calling into
>question whether it's even possible to build a fully Net-enabled supply chain.
>
> The $130 billion conglomerate, which boldly predicted last June that it would use
>Internet technology to cut $10 billion in costs by mid-2002, conceded last week that
>it will only record $1.6 billion in savings this year.
>
> One big reason for the revised estimates: GE is having trouble connecting customers
>and suppliers to Web-trading systems. While executives wouldn't say how many
>suppliers it works with on the Web to perform critical functions, such as
>order-taking and logistics management, experts placed the
figure at roughly 25 percent, or 7,500, of GE's 30,000 suppliers. Another 7,500 or so connect to GE using electronic data interchange (EDI) networks that predate the Internet. That leaves 15,000 that rely mainly on manual processes to conduct business with GE.
>
> GE executives wouldn't reset the timetable for 100 percent supplier Web-enablement,
>but a step toward that goal will be reached in November, by which point GE will use
>the Web to pay all suppliers electronically, officials said. --Chuck Moozakis
>
> Read on:
> http://update.internetweek.com/cgi-bin4/flo?y=eDfk0BdpN70V30Nma0Au
>
> ***************************************************

...

> ***************************************************
> OPINION: Rob Preston: There's No Shame In Realization That E-Biz Is Tough
>
> No one said e-business transformation would be easy. At least Jack Welch never did.
>
> When Welch, General Electric's no-nonsense chairman, first marshaled his top
>executives two years ago to drive most every company process and partner interaction
>onto the Internet, the understanding--as with all Welch directives--was for swift and
>unswerving compliance. But he knew that the
Internet wouldn't transform the 120-year-old company overnight, even if the execs he had whipped into a frenzy proceeded to tout every incremental e-business milestone.
>
> The company has come to realize that Internet-enabling its sprawling value chain of
>strategic suppliers and business customers--the place where real e-transformation
>takes place--will take longer than the internal stuff.
>
> But there's no shame in this realization. E-business is a constantly moving target.
>The best companies learn from their mistakes and miscalculations--and they move on.
>--Rob Preston
>
> Get the whole story:
> http://update.internetweek.com/cgi-bin4/flo?y=eDfk0BdpN70V30Nmh0A2
>
> ***************************************************

...

> Did someone forward this to you? Get your own issue...
> http://update.internetweek.com/cgi-bin4/flo?y=eDfk0BdpN70V30LsY0Aq

...

-- 
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-- 
Author: Eric D. Pierce
  INET: PierceED_at_csus.edu

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Received on Fri May 11 2001 - 11:48:20 CDT

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