Reverse Innovation

GE’s R&D in Asia

Juliana SheiGeneral ManagerGE Global Research - Japan

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Agenda

• GE Company

• GE and innovation

• Evolution of industrial innovation

• Reverse innovation examples

• Summary

GE Company

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GE … a heritage of innovation• Founded in 1892

• ~300,000 employees worldwide

• ~$150 billion in annual revenues

• Only company in Dow Jones index originally listed in 1896

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• Power & Water

• Energy Services

• Oil & Gas

Energy

$37.5B $37.9B

• Aviation Financial

• Commercial Finance

• Energy Financial

• GE Money

• Treasury

GE Capital

$47.0B

• Aviation

• Healthcare

• Transportation

Technology Infrastructure

$25.5B

• Appliances & Lighting

• Intelligent Platforms

Home & Business Solutions

~$150B Revenue$12.6B earnings

$14.7B cash flow

GE Today – 2010 Revenue

GE and Innovation

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GE - consistent business model since 1892

“I find out what the world needs,then I proceed to invent it.”

- Thomas Edison

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Two pillars of GE’s global strategy

+ Leverage GE’s unique breadth+ Drive technology and innovation+ Benefits customers, investors, employees, public

“Clean technology” “Affordable healthcare”

“Green is green” “Health is wealth”

+

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India Technology Centre, Bangalore

China Technology Centre, Shanghai

European Research Centre, Munich

Brazil Technology Centre, Rio de Janeiro

Market focused R&D

Global Research, Niskayuna, NY

Evolution of industrial innovation

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• Globalization has profoundly changed the way

people live and work.

• Cross-border innovation is increasing due to more

complicated production processes.

• R&D organizations becomes more international and

integrated with cross-discipline projects, virtual R&D

and R&D outsourcing on the rise.

New Trend of Industry R&D

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Transition of R&D Focuses

Phase 1 Phase 2

DM products simplified,

made in EM for EM

Phase 3

Local Design, made in EM for EM

Phase 4

Local Design, made in EMfor the world

Glocalization Reverse Innovation

DM products sold in EM

Reverse innovation examples

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India Technology CentreBangalore, India

• Established in 1999

• 16 research labs

• 4000 technologists

• 425 research employees

• Over 1000 patents filed

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China Technology Center Shanghai, China

• Established in 2002

• 60 research labs

• 1,150 technologists

• 230 research employees

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GE Healthcare Japan Tokyo, Japan

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Success factors for reverse innovation

1. Shift power to where the growth is

2. Build new offerings from the ground up

3. Build LGTs from the ground up, like new companies

4. Customize objectives, targets, and metrics

5. Have the LGT report to someone high in the organization

Summary

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new organization, decision-making

culture

1. Marketing & VOC inEmerging Market

2. Develop technology& business model

3. Meet needs of the Emerging Market

4. Adapt for Developed Markets

New DriversReverse innovation

imagination at work