In the middle of blockade by the Truckers union lead by Hugo Moyano, the founder of Mercado Libre, Marcos Galperin, recommended an article that exposes the disadvantages that the industrial economy faces in the new digital context.
From his Twitter account, he attached a Wall Street Journal article Entitled “The Dimming of GE (General Electric Co.) Bold Dreams,” he wrote: “Great article illustrating the problems big industrial companies face in adapting to an increasingly digital world.”
The text, written by Ted Mann and Thomas Gryta, describes the difficulties that the CEO of the company Jeff Immelt had in getting the American giant, known for its line of household appliances, to create software.
Great article illustrating the problems big industrial companies face in adapting to an increasingly digital world.
&- Marcos Galperin (@marcos_galperin)
According to the article, Immelt’s vision was going in the right direction. He wanted General Electric to be able to develop applications, combine them with its products, and collect information from users. And thus insert itself into the world of big data, to connect the know how traditional with the new trends of the digital economy.
But his team did not have the necessary knowledge. The article details how, for example, a set of designers showed the CEO what one of the data collection applications would look like. But the app didn’t exist, the company had no programmers, and the presentation was an imaginative video of how such an app could work. However, everyone was happy.
The company began cutting budgets for some of its traditional branches to develop the company’s new vein. Programmers were hired, but the number of technical problems in developing the product Immelt was asking for were innumerable.
They even bumped into the wall in search of young talent: “A series of television commercials featured a young computer programmer, Owen, who was telling bewildered groups of friends and family that he had taken a job coding software in General. Electric “, indicates the article. GE was telling its investors that recruiting youth was a success, but was not actually attracting them to take them away from Facebook or Apple.
The company invested heavily to be able to insert itself into the digital world. Finally, Immelt left office. Just now, GE’s digital division is managing not to lose money.