Industry Essay

6653 Words Oct 17th, 2012 27 Pages
A Multimethod Approach for Creating New Business Models: The General Motors OnStar Project
Vince Barabba
General Motors Corporation, Corporate Strategy and Knowledge Development, 400 Renaissance Center, P.O. Box 400, Detroit, Michigan 48265

Chet Huber • Fred Cooke
General Motors Corporation, OnStar Headquarters, 1400 Stephenson Highway, Troy, Michigan 48083

Nick Pudar
General Motors Corporation, Corporate Strategy and Knowledge Development, 400 Renaissance Center, P.O. Box 400, Detroit, Michigan 48265

Jim Smith
General Motors Corporation, OnStar Headquarters, 1400 Stephenson Highway, Troy, Michigan 48083

Mark Paich
Decisio, 320 West Cheyenne Road, Colorado Springs, Colorado 80906 vince.barabba@gm.com •
…show more content…
Telematics is the provision of communications services to cars, including crash notification, navigation, Internet access, and traffic information. We used a multimethod modeling approach to design the OnStar business model and to analyze the fundamental strategic decisions GM faced in 1997. We explain the modeling process and some

specifics of the model that we used to analyze the strategic choices, and we present the financial, organizational, and social impacts the project created. OnStar is GM’s two-way vehicle communication system that provides a variety of services that enhance safety, security, entertainment, and productivity (Figure 1). The vehicle communicates with either an automated system, called the virtual advisor, or with a human advisor through a cell-phone connection. Two-way
0092-2102/02/3201/0020$05.00 1526-551X electronic ISSN

Interfaces, 2002 INFORMS Vol. 32, No. 1, January–February 2002, pp. 20–34

BARABBA ET AL. The General Motors OnStar Project

Figure 1: OnStar provides safety and security, Internet, and communications services.

communication enables safety and security services, such as crash notification, in which the call center is notified if the vehicle crashes or the airbag is deployed. A built-in global positioning system (GPS) precisely locates the vehicle and, if necessary, the call center dispatches emergency services to the accident scene. Two-way communication facilitates a variety of other services

Related Documents