Marketplace: marketing and new intermediaries assignment

CIO (Chief Information Officer) (2002) reported that in November 2001, gem – a group created In 1999 to engage e-business projects and processes throughout General Motors – was dismantled and rolled back Into Gem’s traditional business units. While skeptics may point to this as evidence of disappointing results from e-business, the article reports changes at gem are not indicative of a wholesale retreat from e-business: The intent from the beginning was to create a separate function for two to three years to drive [e-business capabilities] across GM.

The dismantling of the gem group is seen as a sign of success, with e-business now an integral part of the company’s fabric. Disintermediation The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers. GM managers also point to the role of the Internet in generating leads for dealer sales. In September 2001, the GM Burrower US web site has delivered an average of more than 2, 000 leads to dealers per day with 20 per cent of dealer leads generated through Burrower con-verging into sales.