GE’s Imagination Breakthrough: The Evo Project
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Imagination Breakthroughs : The Evo Project Imagination at Work
description
GENERAL ELECTRIC (GE) IMAGINATION BREAKTHROUGH: THE EVO PROJECT PRESENTATION1. Where would you place GE on an organisation life-cycle chart as Immelt became CEO? 2. In broad term, what were Immelt’s goals?3. How did GE’s organisational structure have to make as a result of its shift in strategic focus?4. What risk is GE running as a result of this change in emphasis?5. What should Transportation recommend and why?
Transcript of GE’s Imagination Breakthrough: The Evo Project
Imagination Breakthroughs : The Evo Project
Imagination at Work
OverviewGE’s Organisational Life-CycleWhat were Immelt’s Goals?GE’s Organisation Structure ChangeThe Strategies and Trade-OffsThe Risks as a Result of the ChangesTransportation Recommendations
General Electric Co (GE:NYQ)
Source: Financial Times Online, Market Analysis Tool
Formalisation RevitalisationElaboration
GE’s Organisational Life-cycle (OLC)
2002
1981
2000 2007
(Revitalisation)
Imagination Breakthrough
1994(Elaboratio
n) Acquisitions
Jeffery Immelt
Jack Welch
What were Immelt’s Goals?Organic Growth
Imagination BreakthroughEncouraging InnovationRisk Taking (Entrepreneurial Approach)
Ecomagination: Cleaner technologiesReduction in emissions (Regulations)Alternative energy (Hybrid Dual-Fuel: Diesel + Electric)
Development of Infrastructure:Emerging markets (i.e. China, India, Africa, Russia)Increasing Marketers and EngineersModernisation (i.e. Modularisation of components)
Deliver Shareholder Value
GE’s Organisation Structure ChangeTransportation Marketing:
Commercial & Engineering put into Marketing Roles
Globalisation of Production Plants (i.e. Kazakhstan)A further 3 groups introduced for:
Growth Initiatives/ New Business Product Marketing Marketing Strategy (7 Country Regions)
Immelt Setup a Commercial Council:Made up of 20 commercial leadersDrive & Monitor changes
The Strategies and Trade-OffsStrategy Trade-Offs
Innovation (R&D) Long-term costs & investment, More resources required,Uncertainty
Organic Growth Distraction from normal practises,Investment leakage,Risk taking
Focus on Technology & Marketing
Recruiting more staff & re-training,Extra investment
Modernisations New capital investment,Costs for training & facilities
Ecomagination Reinvestment in infrastructure,Non commitment to original locomotives
The Risks as a Result of the ChangesPressure of delivering increased EPS to share holders
23% growth (1981 to 2000 )7% growth (2001 to 2009)
Product Management & Sales team under pressureSEC filing of “Inappropriate Accounting” – (Aug 2009)
Increased costs for IB projects$100 million USD
Divestment of assets to cover losses:Sale of Home Appliances (nytimes, May 2008)NBC Universal to Comcast (timesonline.co.uk, Nov
2009)
Transportation RecommendationsCommitment to “Ecomagination” project:
Hydrogen Fuel Cells Solar Power & Batteries Reducing GHG Emissions (G8 & G20 Summit ‘09) Additional investment in R&D
Lobby the government to provide incentives for using the technology
Marketing needs to deliver more educationLicensing the technology to other businesses
End of Presentation
