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Global value chain in GM presupposed initially the proper and updated use of software, hardware and networking standards (Laudon & Laudon, 2009). The need to standardize a global computing platform was necessary for GM in making relationships from country to country possible and reliable. The enormous size of the company and inability to connect all constituent parts of the automobile production was one of the main reasons for failure in competition with main rivals. That is why GM had great losses in 2007 (Laudon & Laudon). Moreover, the company did not catch the tendency of the time to innovate the information systems. It is concerned with the subsidiaries of GM worldwide and the relationships with the parent company headquartered in the US.
The relationship between GMs business model and information systems is straightforward due to the wide use of IT within the contemporary companies. Here the invention of Internet also contributed into the development and growth of worlds major company. GM needs to control and elaborate its subsidiaries by means of networking and information systems, in particular. The irrational expenditures for the information systems pointed out waste costs for IT. Since Ralph Szygenda was appointed as CEO of the company he kept a strict eye on the financial resources spent for information systems and reduced the number of different information systems from 7000 to 2500 (Laudon & Laudon, 2009).
Information systems were helpful for the GMs global business model due to the effective provision of knowledge and collaboration management. Cooperation with such giants in software industry as IBM, HP, Oracle intended the company to implement information technologies throughout the world body of GM, in order to have feedbacks from every within 35 different countries. GM now has the infrastructure to keep its 160 global plants running smoothly, so that to maintain correctly designed software and processes at every plant, in particular (Laudon & Laudon, 2009, p. 581). Also the company promoted four command centers on three continents, the US, Latin America, Europe, in order to stay in touch with any factory and to have the production process faster than previously (Laudon & Laudon, 2009). This became possible after the years of IT implementation and high and concerned rates of financial support for the IT budget. Now the company has greatly evaluated and developed connection with all parts of its production process worldwide. Also it is necessary to point out that the policy having provided by Szygenda saved for the company $1 billion per annum (Laudon & Laudon, 2009).
The perpetual upgrades of information systems will be successful for the companys representation in the world arena due to the ability of the company to keep up with the times. Moreover, the trends of the company concerning its good work in upgrading IT technologies and concerns about the significance of information systems within the employees in comparison with closest rivals such as Toyota will then make possible for the company not to lag behind in the information milieu. It is so because of the time of post-industrial society with its relation to the information importance as the main and valuable product of today. On the other hand, GM should not forget about such spheres of the managerial approach as Customer Related Management, security services, and collaboration and knowledge management. In this respect, there are high oppo0rtunities for GM to keep a high brand within rivals in future.
References
Laudon, K. C., and Laudon J. P. (2009) Management Information Systems: Managing the Digital Firm. Ed. 11 New Jersey: Pearson Prentice-Hall, Upper Saddle River.
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