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The GE/McKinsey Matrix can align with digital transformation initiatives in business management by helping to prioritize these initiatives. The matrix evaluates business units or products based on industry attractiveness and business unit strength. In the context of digital transformation, industry attractiveness could be interpreted as the potential benefits or competitive advantage gained from digital transformation in a particular industry or business unit. Business unit strength could be interpreted as the ability of a business unit to successfully implement and leverage digital transformation initiatives. By plotting digital transformation initiatives on the matrix, businesses can identify which initiatives to prioritize based on their potential impact and the business unit's ability to execute them.
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The GE/McKinsey Matrix is particularly useful in the management of business units or product portfolios. This nine-cell matrix evaluates business units or products based on two key dimensions: industry attractiveness and business unit strength. The matrix divides these into three categories: high, medium, and low, creating a grid where each business unit or product can be placed.
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