GE
ecomagination results
- increase investment in green technology R&D - increase revenue raised from products - improve GE energy profile - increase communication with public
GE results
- ranked #17 most innovated company - created 100 new green products - revenue grew 260% to $18 bill by 09
stakeholders
-customers have so much to gain -stockholders theory - need financial success to prove it works
economic
2008 recession, collapse of real estate market, credit shortage
legal
2010 affordable care act, consumer protections limited power of insurance companies
Political
9/11 hijackings, border security reform
founder
Thomas Edison
technology
advances in information technology, medical research
technology used for healthmagination
applicable to other products
healthymagination challenges
changing mindsets is a big factor - innovation means you make price and then make product (nontraditional)
GE's plan for reverse innovation
create a series of healthcare products for emerging markets
reverse innovation
developing products specifically for emerging markets such as China and India, then introducing these innovations into developed markets like the US
leveraging and core competencies
each division has their own R&D department - create synergistic benefits and core competencies throughout divisions
post 9/11
economic slowdown, aviation and energy hit hard, growth rate of GE was halved
sociocultural
environmental concerns, growing demand for healthcare
ceo's roles as strategic leader
figurehead - representing innovation spokesperson - tells stories
environmental
global warming, water shortages
validation progress for healthymagination
goal is to improve health of the people - expand employee health efforts
GE product scope
highly related diversified company - don't get value if you sell something off - does not have to be a market leader to add value
develop valuable resources
incorporate knowledge and innovation in the products so the resources are intangible - makes them more valuable
healthymagination internal fit
learning curve advantages - use in any division
leadership pyramid
level 1 - get hired level 2 - contributing - get invited to meetings, get information first hand
healthymagination
leverage the company's technical knowledge, global position, and financial strength to transform the healthcare industry - not enough synergy now
within multidivisional structure
matrix structure
VRIO analysis
most ? can be turned to check marks, this is the best vrio analysis
access improvement
part of value gap - increase value of product for consumers, compared to cost, enhances value
ex. of reverse innovation
portable ultrasound in China
why reverse innovate
preempt competitors - you can go into developing market and gain brand loyalty before other competitors - if there is potential to reach emerging market there is no need to go to the top
2008 recession
relied on GE capital for > 50% of profits AAA credit rating downgrade
new model for health care innovation
start with pricing - create huge advantage with two way innovation - addressing the needs of the unmet market - products may also be served to the top tier in the process
healthymagination external fit
the ability to target emerging markets but overlap with developed, this creates opportunities of a large population size
CEO response
transitioned from commodities to services, cut dividends, cut workforce, corporate restructuring
ecomagination
utilize core strengths in industrial engineering to develop more energy-efficient products and services