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General Electric Medical Systems

General Electric Medical Systems. GE Medical Systems: Case Objectives. To explore the role of services in a manufacturing context To analyze the effectiveness of GE Medical Systems TiP strategies To understand the pros and cons of bundling and unbundling services and manufactured products

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General Electric Medical Systems

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  1. General Electric Medical Systems

  2. GE Medical Systems: Case Objectives • To explore the role of services in a manufacturing context • To analyze the effectiveness of GE Medical Systems TiP strategies • To understand the pros and cons of bundling and unbundling services and manufactured products • To appreciate the challenges and issues in going from a free to fee-based pricing system • To understand the tradeoffs in moving a service organization from a cost center to having profit and loss responsibility

  3. Customer Roles in Service Delivery Productive Resources Contributors to Quality and Satisfaction Competitors

  4. Characteristics of an Effective Service Guarantee Source: Christopher W.L. Hart, “The Power of Unconditional Guarantees,” Harvard Business Review, July-August, 1988, pp. 54-62.

  5. Learnings from GE Readings and GEMS Case • Strategic shift at GE to go deeper into services (this is true for many large manufacturers) • Implementation of this shift is clearly seen in GE Medical Systems • Services in this type of context can encompass: • “break and fix” services including remote system • diagnostics • value-added services like asset management and equipment utilization • customer training and education • consulting on data integration, usage, strategy • Importance of understanding what the customer really wants, and customizing offerings to fit • Importance of managing customer expectations and defining value from their perspective (e.g. free vs. fee)

  6. Learnings from GE Readings and GEMS Case (Cont’d) • A “well-trained customer is a happy customer” • Customer education is an ongoing process, occurring throughout the life cycle of the product and the customer • Customer needs for education go far beyond technical product application knowledge • Technology enables numerous cost-effective delivery alternatives

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