3. Global Research Center founded in 1900
“Innovation in great technology is the heart of a great industrial company”
GE reverse innovation: innovation in developing countries instead of
developed high concurent
Historical approach to innovations
4. Innovations today
Spending $5B/year on innovation
Global Research Center employs 50k engineers
Placing R&D centers in different counties and cultures to grab the best
people
Inviting Eric Ries and lean startup principles (in 2012) and introducing
FastWorks
5. Lean startup principles applied to global company
1. Get closer to customer
2. Increase chance of success
3. Increase speed to market
4. Make it easier to get things done
Rejecting process complexity (spread teams focused on activity) in favour of
simplicity (dedicated teams focused on learning)
FastWorks idea
6. FastWorks idea
Salespeople give design requirements and customers would be involved
throughout.
“With FastWorks we learned that SPEED - our competitive approach”
7. Training leaders and teams
Team of 150 trained coaches
Launched 100s of FastWorks projects
Launched growth boards that allocate resources
FastWorks implementation
8. FastWorks Implementation aspects
Switch expected tons of money for periods of years to secure funding for
short periods
Justifying programs to make people feel confident about their jobs
Dedicated team, not scattered all around the place
Changing culture: from understanding that “everything should be perfect
from top to bottom” to “change in an inevitable thing in the business”
9. FastWorks challenges
a) SUPPLIER RELATIONSHIP - suppliers should be engaged sooner in the
product development, were grateful to be asked to be involved, and have
provided more flexibility.
b) FINANCE - required rethinking as teams speed up, it is hard to put dollar
value to the learning. Traditional financial systems are risk mitigation tools,
and there is typically no weighting on speed.
c) LEADERSHIP ROLES AND RESPONSIBILITIES - they inverted pyramid and
research and development team moved leadership even faster then CEO.
d) EDUCATION FOR MIDDLE AND TOP EXECUTIVES, for Lean and FastWorks
approach
10. Case: Series X diesel engine
product release in 6 years
After talking to Eric - series of MVPs,
first – in 2 years
11. Case: Multiphase Flowmeter
Need: super precise meters
adapted existing technology
Internal startup that grew to a
$100M business
12. Case: 500 MW Gas Turbine (2012)
7 years and $500M for first plant (to be built
in 2019)
short development cycle
tricked existing turbines with little
engineering to performs 10% better
Then added more engineering and achieved
+22%
Released 4 MVPs, first in 2015, final in 2017
Put GE in “high-efficiency power” space early
13. Case: C-Arm (healthcare stuff)
First lab mockup in 3 weeks
Got customer feedback
Sold 4 pieces during first weeks
11 MVPs
Released new product in < 6 months
14. Case: Industrial circuit breaker
Reduced typical to this industry 60
month development cycle to 30
month
7 MPVs
20 customer sessions
15. Case: Silicon Carbide Power Semiconductor
Totally new internal startup
that will effect all GE
businesses
$250M of investment
16. Conclusions
Slides has been made in scope of course “Innovation Management” | MSIE4 | LvBS | 2016
You can ping our team via prokopenko.serhii@gmailcom
Sources:
Video (12:43): Mark Little, GE’s Chief Technology Officer and Leader of GE’s nine Global
Research Centers Lean Startup at GE, LSC15
https://www.youtube.com/watch?v=TgAk7xP2a1M&index=2&list=PL1M9pu1POlekMxS-
EKorIuuO_JynFHQRm
Video (58:27): Johanna Wellington, GE–Fuel Cells: Running a Lean Startup Inside a Big
Corporation, LSC15
https://www.youtube.com/watch?v=FS07NcNdBn8&list=PL1M9pu1POlekMxS-
EKorIuuO_JynFHQRm&index=31
And a lot more
Hinweis der Redaktion
About GE
Founded in 1892
Thomas Edison was one of the founders
Fortune 500: number 4
Employees: > 300k
Revenu: > $100B
Innovations today
Spending $5B/year on innovation
Global Research Center employs 50k engineers
Placing R&D centers in different counties and cultures to grab the best people
Inviting Eric Ries and lean startup principles (in 2012) and introducing FastWorks
FastWorks implementation
Training leaders and teams
Team of 150 trained coaches
Launched 100s of FastWorks projects
Launched growth boards that allocate resources
Implementations aspects
Switch expected tons of money for periods of years to secure funding for short periods
Justifying programs to make people feel confident about their jobs
Align different functions properly
Dedicated team, not scattered all around the place
Changing culture: from understanding that “everything should be perfect from top to bottom” to “change in an inevitable thing in the business”
Case: Series X diesel engine
Initially planned to release a product in 6 years
After talking to Eric decided to release a series of MVPs, first of which – in 2 years
Case: Multiphase Flowmeter
Customers wanted some super precise meters, GE didn’t have that technologies
But the took that they had and adapted it a little bit
Internal startup that grew from nothing to a business of about $100M
Case: 500 MW Gas Turbine (2012)
Initially needed 7 years and $500M for first plant (to be built in 2019)
Eric convinced the team to shorten development cycle
They tricked existing turbines with little engineering to performs 10% better
Then added more engineering and achieved +22%
Released 4 MVPs, first in 2015, final in 2017
Put GE in “high-efficiency power” space early
Case: C-Arm (healthcare stuff)
First lab mockup in 3 weeks
Got customer feedback
Sold 4 pieces during first weeks
11 MVPs
Released new product in < 6 months
Case: Industrial circuit breaker
Reduced typical to this industry 60 month development cycle to 30 month
7 MPVs
20 customer sessions
Case: Silicon Carbide Power Semiconductor
Totally new internal startup that will effect all GE businesses
$250M of investment