Assessing General Motors’ innovation strategy over three decades using the “Three Box Solution”

Abstract

Purpose Professor Vijay Govindarajan’s “Three Box Solution” framework provides a useful way of looking at a transformative business innovation initiative started at General Motors almost three decades ago and now being further developed by its current CEO Mary Barra. Design/methodology/approach Drawing on 18 years of experience at GM the author offers insights into how the company used the “Three Box” aproach: 10;•9;Box 1: Strengthen the core. 10;•9;Box 2: Let go of the practices that drive the core business but hinder the new one. 10;•9;Box 3: Invented a new business model. 10; Findings GM management found creative ways to enable the current business to thrive while exploring the potential market for a visionary business model. Practical implications %2010%3BThe%20paper%20provides%20new%20insight%20into%20how%20General%20Motors%20has%20changed%20and%20how%20it%20is%20continuing%20to%20adapt%20%20emerging%20future%20markets.. Originality/value Based on actual experience of participating in strategy development this paper should help decision makers address their current actions and future strategies simultaneously.

Driving Innovation and Competitiveness Through Digital Ecosystems: A Case-Based Exploration

“…Navigation services provide real-time route guidance and traffic updates, ensuring efficient travel. Moreover, emergency response services play a critical role in enhancing safety by automatically alerting emergency personnel in the event of accidents or incidents (Barabba, 2019). The ecosystem's benefits extend further through vehicle diagnostics.…”

“…It accelerates the adoption of electric and autonomous vehicles by providing critical infrastructure and support for these emerging technologies. The ecosystem fosters innovation, facilitating the integration of electric charging networks and autonomous driving features, ultimately shaping the future of mobility (Barabba, 2019).…”

How General Motors progressively evolved its business model over three decades

“…The novelist Milan Kundera astutely observed that “Business has only two functions – marketing and innovation.” This punctuates the unrelenting pressure felt by businesses to keep reinventing themselves, as part of an ongoing program of analyzing whether new market opportunities are worth seizing. A case study by Barabba (2019) breaks down the innovation strategy journey of General Motors (GM) over the past 30 years by using the approach of Vijay Govindarajan's book entitled “The Three Box Solution”. This approach structures ways in which management can nurture current revenue streams while new and innovative business model ideas are concurrently formulated and developed.…”