ASP is new vehicle for GM's future Pt II

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
There's no question the ASP market is hot: market research group AMR Research predicts the ASP market will reach $4.7bn by 2004, with a compound annual growth rate of 153 percent. GartnerGroup predicts the worldwide ASP market will surpass $25.3bn by 2004. The industry has caught the attention of leading technology giants such as IBM and Dell Computer, software giant Oracle has inked partnerships with several ASPs, including Center 7 and Agilera. Wall Street embraced the ASP buzzword in the spring of 2000, when technology icon Marc Andreessen embarked on a major marketing blitz for his newly formed ASP, LoudCloud. It's unclear whether GM hopes to compete directly against LoudCloud, Oracle or any other ASP. Despite the automaker's lofty ambitions, experts question whether GM can successfully enter the swift-moving ASP sector. "GM has a habit of looking at things in a very grandiose manner," said Dennis Virag, president of the Ann Arbor, Michigan-based Automotive Consulting Group. "The idea that GM is an Old Economy company with...Internet-based process management is definitely something GM needs in the investor community. It's obvious they really want to recreate the company in a New Economy vein. But can they make it work? It would be an incredibly tough challenge." Besides, GM has a history of embarrassing stumbles when trying to execute sweeping technological campaigns. Roger Smith, chief executive of GM from 1981 to 1990, earmarked $40 billion for automation in new plants -- to disastrous results. Smith spent billions on robots to paint cars and install windshields, hoping to reduce GM’s unionised work force and slash costs. The robots accidentally painted themselves and dropped windshields onto the front seats, and many of the robots still stand unused. Instead of reducing its work force, Smith's project resulted in the need for even more workers to babysit 'bots and fix them when they broke. But Szygenda is undaunted. Formerly chief information officer for Bell Atlantic, Szygenda came to GM in 1996 to "transform GM into a digital company". Since his debut in Detroit, he has hired more than 200 senior managers in the largest executive recruitment effort in the company's history. He has also approved roughly $1.6bn in Internet-based applications, shaving costs by $1bn. Many of the efficiencies came from a dramatic reduction in the number of discreet information systems used at GM. An information system is a set of protocols used by a department or division to accomplish a certain task, such as quality control in manufacturing or payroll processing in accounting. When Szygenda started, the company had more than 7,000 different systems, it's now down to 4,000. Szygenda (pronounced zhe-gen-da) has won accolades from Wall Street and the media, in what was meant as a compliment, e-commerce magazine eCompany Now dubbed him a "loud outsider with no patience for bureaucracy". "We've really cleaned house," Szygenda said of his five years at GM. It remains to be seen whether GM can help clean other corporate houses as well. Take me back to Pt I/ Old Economy detour. Take me to ZDNet Enterprise Have your say instantly, and see what others have said. Click on the TalkBack button and go to the ZDNet News forum. Let the editors know what you think in the Mailroom. And read what others have said.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

3 minutes ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

46 minutes ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 hour ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 hour ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

2 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

2 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

3 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

3 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

3 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

6 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

7 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

7 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

9 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

10 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

11 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule
apexwm

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

19 hours ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility
txtrainguy

Replying to an old topic that I'm currently facing with my CEO (who is on a Mac). Our servers are primarily Windows Servers, office is about...

1 day ago by txtrainguy on Windows Server 2008 drops the ball for Mac compatibility
k0tcs3

Sure, that makes perfect sense. Pay wrong-doers money and thank them for breaching your security and pointing out your flaws, that would surely...

1 day ago by k0tcs3 on US indicts Romanian over NASA climate change hack
Random_Error

I think he's referring specifically to Android apps, as Apple do regulate their App Store, but Google seem to let any old crap onto the Android store!

1 day ago by Random_Error on RIM: BlackBerry will keep 'garbage' apps out of store
Paul Fezziwig

Keep the crap apps out?! How will they compete with Android and Apple's claim to fame of having so many life changing apps? I wonder if the media...

1 day ago by Paul Fezziwig via Facebook on RIM: BlackBerry will keep 'garbage' apps out of store