General Motors and OnStar:

The Business Case for Automobile Internet- Based Services

 

            General Motors is now installing the OnStar system into most of their vehicles produced and offering three different plans that offer a variety of options.  The OnStar system offers such option as in vehicle internet service with up to the minute stock quotes and e-mail.  Drivers can receive directions if lost or just looking for a faster or shorter route.  The biggest issue with OnStar is that GM wants to secure the safety of its customers and that’s what really drives the system.  With a sophisticated Global Positioning System, drivers’ exact location can be determined in emergency situations and allows stolen vehicle to be located.  The OnStar system is so advanced that in a catastrophic accident and the victim is unable to call for help, no matter, the system has already sent out the single the moment the airbags were deployed and help is on the way, since with the GPS, your location has already been identified.  Remote door unlocks help the driver to never have to worry about locking his/her keys in the car again.  All these options will let the drive relax a little more and enjoy the ride instead of worrying about the thousands of things that could go wrong on a road trip.

 

  1. How important to car buyers is built-in Internet, GPS, and cellular services?  Why?

Internet access in a car could be a huge distraction for the driver, but could be ideal for business workers that car pool and are on their daily commute to work and caught in traffic jam.  The passenger could use the access to notify bosses of their tardiness, check last minute figures for the morning presentation.  GPS and cellular services are a great idea for vehicle giving drivers that freedom to just drive and not really worry about where you’re going and then not worry about how you’re going to get back.  And no longer do you have to worry our great highway department and their detours.  The detours aren’t always the greatest routes or very well mark, but no matter, you no have the ability to make your own detour and know where you’ll end up

.

  1. Is GM’s OnStar a strategy competitive differentiator or a technological diversion from GM’s core business focus?  Why?

Although GM’s OnStar system is a great idea and is helping to gain some of its lost customers, there is still a group of consumers that aren’t concerned with safety and overall utility, but rather consumed with design, speed and performance.  The OnStar system is helping to gain market prospective, GM still has a lot of headway to make before returning to its once prestigious marks and market shares once held.

 

  1. What should GM do to regain market share?  Why?

GM needs to move from their standardized product and start producing vehicles that are more attractive, stylish, and better basic safety features.  OnStar is the start of leading GM back to the top, but the styles and models have to catch up with the rest of the changing times.

 

General Motors

Works cited: O’Brien, James. Introduction to Information Systems Essentials for the Internetworked Enterprise