DETROIT — General Motors plans to restructure its information technology business into two divisions — digital business software and global IT — to help achieve a goal of generating $20 to $25 billion in software services revenue annually by the end of the decade.
GM named Fred Killeen, 61, vice president of global information technology and chief information officer, leading a team that will focus on how software enables the core business. It named Stacy Lynett, 48, vice president of digital business software to focus on the software business itself. She will be charged with developing technology strategy and software products to deliver services to customers.
"The new structure and dual operating model will enable GM to fully leverage its strong foundation in IT capability, talent and resources, as well as reduce complexity and improve speed," GM CEO Mary Barra said in a statement Wednesday. "Stacy and Fred bring unique backgrounds and experiences to help us seize the opportunities software plays in our business as we move from automaker to platform innovator."
GM is banking on recurring purchases and subscriptions to help double its annual revenue to about $280 billion by 2030 while expanding profit margins to as much as 14 percent. GM says the increase would be largely driven by software and technology designed to keep customers coming back.
Within a decade, GM expects as much as $25 billion in annual revenue from software and subscription services. GM says its research shows that customers subscribe to 25 products and services and will spend $135 per month on them.
Killeen will lead GM's global IT team and report to Barra. He was previously chief information security officer and chief technology officer for GM's IT division, overseeing GM's global information security and IT risk management programs.
Lynett will lead a new team responsible for customer-facing technology strategy and software product development, reporting to Edward Kummer, the chief digital officer GM hired last month.
She will also join the leadership team of Steve Carlisle, president of GM North America, to support global software and dealer systems, GM said in its statement.
Lynett was previously executive director and chief information officer of global product development and quality for GM's IT business, and chief information officer for the automaker's global corporate functions.
She was featured on Automotive News' list of 100 Leading Women in the North American Auto Industry last year.
Both Lynett and Killeen previously reported to Randy Mott, who announced his retirement this month as GM's executive vice president and chief information officer.