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Gm Company Analysis

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Take Home Case #1

Team 7

Hall Colin 6903014
Cai Wangting 7452384
Randall James 6437876
Gabriel Dumulon 7517564
RongningHu 7546890

Question 1:

I) General Motors faced the major issue of having an enormous company that was splintered apart. They need these divisions to be brought together. The goal for General Motors was to have an information system that brought all the divisions together under one system. However this was not achieved by EDS. By 1995, just before the split off, GM had over 7000 information systems. These systems although more efficient than the previous methods GM had been using was not as effective, and not what GM had been looking for.
II). Lack of Communication between divisions. With GM’s vast network of departments, and being a global company, communication is a key to success. The company needed for separate departments such as, accounting, supply chain management and sales to be able to communicate with one another fast and efficiently. EDS was not able to address this issue after the acquisition.
III) Mainframe issues were preventing GM from being as effective as it could be. EDS was able to fix many of these issues after the acquisition. This help GM reduce cost and gain some competitive advantage.
IV) Organizational issues within the company. This was such a grave concern of the company the management had decided that they would need to partner with another company to maintain their competitive edge. Once EDS was acquired by GM, the company was able to regain much control over its systems. These systems however were not perfectly adapted and ultimately resulted in GM needing to split off from EDS and redo much of the IT systems within the company.
V) GM was already heavily invested into information technology and needed managing the systems. With the acquisition of EDS they got much of the help the

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