GE’s Imagination Breakthroughs:The Evo Project

GE BUSINESSES

CEO Jeff Immelt is transforming GE from a process-oriented company into a marketing-oriented company

JACK WELCHPROCESS ORIENTED

Effective operations management

Timely acquisitions and clever deal making

Financially based strategies

Efficiency driven

JEFF IMMLETMARKETING ORIENTED

Market value of technological advancements

Organic growth – given top priority Technology leadership Commercial excellence Global expansion Marketing drivenLong term, research- based approach to his tasks

Jeff Immlet’s Strategic Changes

LeadershipIn-depth Marketing & Technology knowledge

CultureNorms & practice, encourage risk-taking

HR PracticeSlow down job rotationRecruit / Promote externallyAdjusted reward & evaluation process

Strategic FocusInternal-Focused Marketplace-orientedShort-Terms Budgetary Objectives Long-term Development

Change Management

"It's not the strongest of species that survive, nor the most intelligent, but the ones most responsive to change" - Charles Darwin

Change is inevitable

Effective change management is the key to success of an organization

One of main reasons for the failure to manage change properly is “employee resistance”

GE’s capability to manage change

GE’s is doing well in managing change

GE changed successfully from a operations focused organization to a marketing/innovation focused organization

One of the key success factors of GE’s capability to manage change is “effective communication”

Other reason is the ability to create an “urgency for change” and gain acceptance from the employees

Imagination Breakthrough (IB)

8% organic growth target

Marketing Led

Fully Integrated

IBs project should be approved by CEO

Project from IB in the future should generate $50-100m incremental revenue/project

What is IB?

IB Reviews- CECOR Framework

Evo Project is one of IBs . Evo as an IB started in 2003

The Evolution Series locomotives surpassed the new U.S. EPA Tier II emissions standards that took effect in 2005, reducing nitrogen oxides emissions by over 40% and improving fuel consumption as well.

GEVO engine with twelve cylinders produces the same power as the previous 16-cylinder FDL engine locomotive.

EVO PROJECT

The Evo Success

Eliminates tradeoff between fuel efficiency and emissions

3-5% fuel savings40% less emissionsEnhanced control system

1. SUCCESS OF TECHNOLOGY

The Evo Success

Clearly identify of markets needClever Pricing Strategy ~ 10% premium Value proposition (focus on lifecycle cost) Locomotives contract order used to offer

other services

SMART PROMOTION STRATEGY Let customers try for free ($1 lease/year) Sales force rigorous training

2. SUCCESS OF MARKETING STRATEGY

EVO PROJECTS

High CostTechnology Not

Viable?

Marketing Perspectives:Customers feedbackHow does fit with StrategyFuture market growth?International market feedback

Operating SystemEnsure that Processes &Procedures are in place

3. EXCELLENCE IN ORGANIZATION PRACTICE

Monthly ReviewCEO direct involvement (as an IB status process)Rigorous & Challenging discussion (no power point)

Cross Functional Collaboration:Global Research CentreTechnicalP&LMarketing

The Evo Success