This case opens Module 2, where we move from platform disruption to a discussion on digital capabilities.
Define: Digital transform
The process of leveraging digital technologies to create new—or modify existing—business processes, culture, and customer experiences to meet changing business and market requirements, and reimagining or reinvesting business in the digital age.
- Cited from Dr. Ning Su, Ivey
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An Established Firm’s Attempt to Gain a Foothold in the Platform Economy
By 2017, General Electric (GE) was widely portrayed as a model incumbent. It was seen as an established industrial firm that was proactively pursuing digital transformation rather than waiting to be disrupted. Through its Industrial Internet of Things (IIoT) initiatives and platform ambitions, GE sought to reposition itself as a digital leader in a data-driven, platform-based economy.
By 2018, however, the momentum had clearly slowed. Financial pressures intensified, leadership priorities shifted, and GE’s digital transformation narrative began to unravel.
In this session, we examine what GE was trying to do, where its digital transformation fell short, and why established firms often struggle to translate digital ambition into sustained organizational capability. This case opens Module 2, where we move from platform disruption to a deeper discussion of digital capabilities, focusing on what they are, how they develop, and why they are so difficult to build.
Case: Digital Transformation at GE: What Went Wrong? (9B19M110)Download Digital Transformation at GE: What Went Wrong? (9B19M110)
Now that you have read the case, consider the following case questions and bring your answers to class.
| Case Preparation Questions: 1. What was Immelt’s vision? What was he trying to achieve? 2. Which of the go-to-market strategies described on page 5 would you recommend? 3. What went wrong with the GE transformation? What advice can we derive from this case for other companies attempting to digitally transform? |