UGB372 Marketing in a Digital World Assignment Sample

Subject Code : UGB372
University : University of Sunderland Gradesaviours is not sponsored or endorsed by this college or university.
Subject Name : Management

Introduction

GE made the announcement in November 2021 that the company would invest billions of dollars in a digital strategy to ensure its continued existence in a market that was undergoing rapid change. For a number of years, General Electric (GE) has made significant investments in digital transformation. To comprehend GE's difficulties in the business climate, the organisation's 2019, 2020, and 2021 Corporate 10-K reports were reviewed. The reports featured a few difficulties that GE is looking for from providers, contenders, and the general business climate (Steiber et al. 2021). However, despite their efforts, the business has struggled to implement its digital strategy. In this report, we will select one factor from our research that contributed to the failure of GE's digital transformation strategy and/or implementation and offer a strategy that has the potential to bring about success.

One reason why GE’s Digital Transformation plan failed

There have been several reasons why GE's digital transformation plan has failed such as its focus on short-term financial goals, siloed approach to digital transformation, lacking investment in innovative research and so on (Erol, Mendi and Doğan, 2020). GE lacked the talent and expertise it needed internally to carry out its digital transformation strategy well.

A lack of effective change management may have contributed to the failure of GE's digital transformation plan (Farhoomand et al. 2021). Digital transformation necessitates significant adjustments to organisational culture, processes, and technology that can be challenging to manage. In the case of GE, the company has not engaged stakeholders in the transformation process, providing employees with sufficient training and support, or effectively communicated the need for change (Budagov and Sukhova, 2020). Technology, procedures, and organisational culture all undergo significant transformation as a result of digital transformation. GE has neglected to successfully deal with these changes, prompting protection from change, low reception of new advanced frameworks, and absence of representative commitment.

Plan for the Reason for Failure that Might bring Success

The goal is to increase employee participation in GE's digital transformation initiatives and effectively manage change. The change management strategy is based on Kotter's 8-Step Model of Change, which provides a framework for managing organisational change. Establishing a feeling of urgency, forming a leading coalition, and conveying the change vision are all phases in this methodology (Erol, Mendi and Doğan, 2020). By incorporating this model into the change management plan for GE's digital transformation, the company could have raised awareness of the urgency of the need for digital innovation and enlisted the help of a wider group of stakeholders in the transition. This might have in overcoming resistance to change and gaining support for the digital transformation initiative.

Activity	Description	Estimates time	Estimated cost	Estimated resources
Create a comprehensive strategy for managing change	Create a comprehensive plan that includes plans for training, communication strategies, and a clear vision of the digital transformation initiatives (Steiber et al. 2021). The arrangement should be created in counsel with internal and external partners to guarantee their feedback and purchase.	3 months	$500,000 incorporates consultant charges, training expenses, and communication materials	A group of change management specialists, internal stakeholders, and outside consultants
Increase employee engagement	Involve employees in the planning and implementation of digital transformation initiatives to increase employee engagement (Budagov and Sukhova, 2020). Conduct employee surveys, focus groups, and feedback sessions to identify and address employee concerns in the change management plan (Davenport and Westerman, 2018). Provide chances for training and development to help them improve their digital abilities.	Ongoing	Training and development expenditures, communication materials, and incentives total $1 million	Internal stakeholders, specialists in training and development, and communication experts
Encourage an innovative culture	By creating an atmosphere that encourages risk-taking and experimentation, you can foster an innovative culture (Zhao and Wu, 2022). To encourage the creation of new digital solutions, encourage cross-functional collaboration and the sharing of information.	Ongoing	Incentives, tools for collaboration, and communication materials make up $500,000	Internal stakeholders, innovators, and tools for collaboration
Adjust the strategy and keep an eye on the progress	Regularly check on progress and make any necessary adjustments to the change management plan (Farhoomand et al. 2021). Utilise KPIs to gauge the progress of digital transformation initiatives, for example, adoption rates, employee satisfaction, and business outcomes.	Ongoing	The costs of developing and monitoring KPIs total $250,000.	Data analytics specialists, internal stakeholders

Success metrics

The plan's effectiveness will be assessed by three critical metrics such as adoption rates, employee satisfaction, and business outcomes.

The percentage of employees who successfully adopted digital solutions within the stipulated time frame will be used to measure adoption rates. The ADKAR Model, a well-known framework for change management, serves as the foundation for this metric. The ADKAR Model stresses the significance of raising awareness, fostering desire, expanding knowledge, fostering ability, and reinforcing change to guarantee its successful adoption (Min and Kim, 2020). The percentage of employees who are content with the training and development opportunities provided and who feel engaged in the digital transformation initiatives will be used to measure employee satisfaction (Saldanha, 2019). This metric is based on Herzberg's Two-Factor Theory, which states that motivators (like recognition and opportunities for growth) and hygiene factors (like salary and working conditions) have an impact on job satisfaction and motivation. Business results will be estimated in light of key performance indicators (KPIs) that reflect the effect of digital transformation initiatives of GE on key business results, like expanded proficiency, diminished costs, and further developed consumer loyalty (Zhao and Wu, 2022). The Balanced Scorecard, a strategic management tool that assists organisations in aligning their activities with their vision and strategy, serves as the foundation for this metric.

The plan uses these metrics to ensure that the adoption of new digital solutions, as well as their effect on employees and business outcomes, are taken into account when assessing the success of GE's digital transformation initiatives holistically (Min and Kim, 2020). Because they are based on established business models and frameworks for change management, these metrics are sure to be effective and based on evidence.

Lessons Learned from GE's Digital Transformation Failure

The failure of GE's Digital Transformation provides numerous useful lessons for businesses considering a similar endeavour. One important takeaway is the significance of having a digital transformation strategy and vision that are well-integrated with the overall business strategy (Steiber, 2020). GE's Digital Transformation initiatives were misaligned with the company's broader objectives because they lacked a clear vision and strategy.

Another important takeaway is the need of prioritising employee engagement and change management throughout the Digital Transformation process. GE's Digital Transformation projects were largely focused on technology and placed little attention on engaging workers and efficiently managing change. This resulted in employee resistance and a lack of acceptance of digital solutions, ultimately leading to the initiative's collapse.

In my opinion, a lack of leadership and governance was the primary cause of GE's digital transformation failure. The organisation didn't have a reasonable pioneer driving the digital transformation initiative, which prompted an absence of responsibility and possession. In addition, the organisation lacked a solid governance structure to oversee the initiative and guarantee that it remained in line with the company's larger objectives (Saldanha, 2019). In the end, this lack of governance and leadership resulted in a lack of direction and concentration, as well as an inability to successfully manage change and engage employees throughout the Digital Transformation journey. As a result, the initiative didn't work out as planned, and the company had a hard time keeping up with its rivals in the digital landscape that was changing so quickly.

As a result, GE's incident demonstrated that every digital initiative must have a "Quantifiable Rollout Plan" and a focus on the business. Every business should have a clear understanding of the reasons for the need for digital transformation, the business capabilities that are required from a framework for the transformation, and how the transformation would be carried out (Li, 2020). Finally, digital transformation projects must begin modestly. With user acquisition as well, it's important to start small (Davenport and Westerman, 2018). A new initiative needs to find a value proposition that appeals to small players that are fragmented and bound to grow over time instead of forming large partnerships with well-established businesses.

The failure of GE's Digital Transformation demonstrates the significance of having a distinct strategy and vision, prioritising employee engagement and change management, and having solid leadership and governance in place to oversee the project. Businesses considering digital transformation initiatives may find these lessons to help ensure their success in achieving their objectives and remaining competitive in the digital age.

Conclusion

In conclusion, GE's digital transformation journey encountered significant difficulties as a result of many factors, including resistance to change, a lack of clear leadership, inadequate communication, inadequate investment in resources and infrastructure, and a market environment that was rapidly changing. GE must implement a comprehensive change management strategy in order to complete digital transformation and overcome these obstacles. GE can successfully transition into a digital business and maintain market competition by implementing this strategy. In conclusion, in addition to technological investments, successful digital transformation requires efficient change management, culture, and leadership.

References

Budagov, A. S., & Sukhova, N. A. (2020). Problems of effective business digital transformation management. In European Proceedings of Social and Behavioural Sciences EpSBS (pp. 428-437). Retrieved from: https://elibrary.ru/item.asp?id=44182360 [Retrieved on 28.4.2023]

Davenport, T. H., & Westerman, G. (2018). Why so many high-profile digital transformations fail. Harvard Business Review , 9 (4), 15. Retrieved from: https://www.nutanix.com/content/dam/nutanix-cxo/pdf/Why%20So%20Many%20High-Profile%20Digital%20Transformations%20Fail.pdf [Retrieved on 28.4.2023]

Erol, T., Mendi, A. F., & Doğan, D. (2020, October). Digital transformation revolution with digital twin technology. In 2020 4th international symposium on multidisciplinary studies and innovative technologies (ISMSIT) (pp. 1-7). IEEE. Retrieved from: https://ieeexplore.ieee.org/abstract/document/9254288/ [Retrieved on 28.4.2023]

Farhoomand, A., Markus, M. L., Gable, G., & Khan, S. (2021). Managing (e) business transformation: a global perspective . Bloomsbury Publishing. Retrieved from: https://books.google.com/books?hl=en&lr=&id=oiFHEAAAQBAJ&oi=fnd&pg=PP1&dq=+GE%E2%80%99s+Digital+Transformation+failure&ots=mJLtFM4yhS&sig=UIwqUqI1rpFJQ_Rr2GlBMRU_Ggw [Retrieved on 28.4.2023]

Li, F. (2020). Leading digital transformation: three emerging approaches for managing the transition. International Journal of Operations & Production Management , 40 (6), 809-817. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/IJOPM-04-2020-0202/full/html [Retrieved on 28.4.2023]

Min, S. A., & Kim, B. Y. (2020). Platform leadership and strategy of small and medium enterprises on digital transformation. International Journal of Management (IJM) , 11 (12). Retrieved from: https://www.researchgate.net/profile/Bo-Young-Kim-7/publication/353159050_PLATFORM_LEADERSHIP_AND_STRATEGY_OF_SMALL_AND_MEDIUM_ENTERPRISES_ON_DIGITAL_TRANSFORMATION/links/61de18ca3a192d2c8af48b2e/PLATFORM-LEADERSHIP-AND-STRATEGY-OF-SMALL-AND-MEDIUM-ENTERPRISES-ON-DIGITAL-TRANSFORMATION.pdf [Retrieved on 28.4.2023]

Saldanha, T. (2019). Why digital transformations fail: The surprising disciplines of how to take off and stay ahead . Berrett-Koehler Publishers. Retrieved from: https://books.google.com/books?hl=en&lr=&id=LEyMDwAAQBAJ&oi=fnd&pg=PT10&dq=+GE%E2%80%99s+Digital+Transformation+failure&ots=G23zA6-8nr&sig=JbJnDkd55-C2dAOejRZFB3thbTM [Retrieved on 28.4.2023]

Steiber, A. (2022). GE Appliances’ Interpretation of RenDanHeYi. In Leadership for a Digital World: The Transformation of GE Appliances (pp. 89-95). Cham: Springer International Publishing. Retrieved from: https://link.springer.com/chapter/10.1007/978-3-030-95754-4_11 [Retrieved on 28.4.2023]

Steiber, A., Alänge, S., Ghosh, S., & Goncalves, D. (2021). Digital transformation of industrial firms: an innovation diffusion perspective. European Journal of Innovation Management , 24 (3), 799-819. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/EJIM-01-2020-0018/full/html [Retrieved on 28.4.2023]

Zhao, J., & Wu, D. (2022). The risk assessment on the security of industrial internet infrastructure under intelligent convergence with the case of GE's intellectual transformation. Mathematical Biosciences and Engineering , 19 (3), 2896-2912. Retrieved from: https://www.aimspress.com/aimspress-data/mbe/2022/3/PDF/mbe-19-03-133.pdf [Retrieved on 28.4.2023]

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