O.R. drives innovation, value at General Motors

THE AUTOMOTIVE INDUSTRY IS FACING unprecedent challenges. Increasing globalization imposes increased complexity and risk. New disruptive business models continually challenge the status quo. Greater consumer demand for connected technologies and smarter service experiences requires automakers to constantly innovate while remaining efficient and profitable. Considering the complexity of the challenges in the auto business and the speed at which change is occurring in every arena – technology, business, materials and resources, governmental policies and regulations – it is critical to employ a data-driven, science-based approach to understand problems and implement viable solutions. At General Motors (GM), operations research provides that framework, particularly for complex issues and systems that involve multiple objectives, many alternatives, trade-offs between competing effects, large amounts of data and situations involving uncertainty or risk. Today, no area of GM is untouched by analytical methods.