Imagination at work

LEAN STARTUP AT GEMark LittleChief Technology Officer, GENovember 2015

geglobalresearch.com

GE businesses

50,000+ Technologi

sts

Spending = $5+B/year

Aviation$20B

Power & Water$28B

Energy Management

$7B

Oil & Gas$15B

Transportation

$6B

Healthcare

$18B

Appliances & Lighting

$8B

© 2015 General Electric Company - All rights reserved

2

GE Global ResearchTHE TECHNOLOGY DEVELOPMENT ARM FOR GE

• First U.S. industrial lab• Market-focused R&D• One of the world’s

most diversified industrial research organizations• Leading a team of

50,000 world-class engineers 3

© 2015 General Electric Company - All rights reserved

HQNew York India

ChinaGerman

y

California

Michigan

Brazil

IsraelOklahoma

Global Researchnetwork …always on

Global Research EuropeMunich, Germany2X Size + Customer Innovation Center

Advanced Manufacturing and Software Technology CenterDetroit, MI

Welch Technology CenterBangalore, India

Global Research Headquarters Niskayuna, NY

Software CoESan Ramon, CA

1900 1999 2004

2011

2009

O&G Tech CenterOklahoma City, OK

Israel Technology CenterTirat Carmel, Israel

2012

2013

Brazil Technology Center, Customer focused R&DRio de Janeiro, Brazil

2010

© 2015 General Electric Company - All rights reserved

China Technology Center Shanghai, China+ 3 Customer Innovation Centers

2000

Saudi Arabia

2015Saudi Innovation CenterDhahran, Saudi Arabia

FastWorksFast speed launch of successful products

FastWorks is a set of tools, principles and behaviors that will …Get us closer to customersIncrease our speed to marketIncrease chance of successMake it easier to get things

done

© 2015 General Electric Company - All rights reserved

FastWorks enables simplification

• Requirement confusion• Thinly spread teams• Activity focus

7

Complex Simple• Customer validation• Dedicated teams• Learning focus

© 2015 General Electric Company - All rights reserved

FastWorks NPI … the beginning

8

Series X2011

2017Focus on perfection in product specifications Maximum viable product2012: Met Eric Ries

• Lean start up … minimum viable product, leap of faith assumptions and pivot• Highly skeptical leadership teamFastWorks results

2012 2013 2017 20182014 2015 2016

App 1 2 3 4 5 6

Highly energized leadership team

MVP I• Move fast• Use available

tech• 6 unit

deployment

Oil & GasMultiphase Flowmeter … an evolution

“Working with GE on the MPFM has been one of the finest experiences in my career. Up until now no other partner has been so transparent. A class R&D team with great technology and great people that get things done.”

Manny GonzalezR&D Alliance Manager

Chevron

MVP III• Near 3 Phase• Doppler/Microwave• 400 unit deployment

MVP II• Make it work• 2 Phase+• 50 unit deployment

© 2015 General Electric Company - All rights reserved

Power & WaterHeavy Duty Gas Turbine

2012 2019

Develop next generation heavy duty GT with high efficiency and low $/KW

Results2012 2013 20172014 2015 2016

Product 1

Product2

Original plan

Product 4

Product3

Faster and lower risk approach to drive GE competitivenessStep 1: Pivoted existing GTs to achieve +10% output using minor engineering change Commitments from 2 customersStep 2: Position GE in Hi efficiency space NOW +22% output with additional engineering changes

2.5 years of savings

Quick pivotsLong NPI Cycle of 7 years to develop new architecture Gas Turbine

4 new GTs established in next 4 years 10

© 2015 General Electric Company - All rights reserved

India Healthcare

11

Results• Selling in weeks … 4

orders in-hand• Fast cycle … new

product version in < 6 months

Super value interventional product C-Arm

Developed list of 31 leaps of faith assumptions

11 MVPs

MVP approachBuild lab mockup in three weeks … engaged customersCustomer value drivers -

Faster spin More detailed image

More power

Initiated as a FastWorks project

© 2015 General Electric Company - All rights reserved

Industrial solutionsMolded cased circuit breaker

Validate assumptions fast and at low cost• NPI acceleration lab• Faster, better designs through modeling• Simpler, manufacturable designs

Previous New

20 parts 6 parts

6064

30

CompetitorB FastWorks

CompetitorA

Breaker NPI cycles (months)60

Pre-Fastworks

7 MVPs and over 20 customer sessions

Modeling

Simpler design

12

© 2015 General Electric Company - All rights reserved

Advanced X Ray Detector

2014 2019Develop new cheaper & more versatile X Ray Detector

Results2014 2015 20192016 2017 2018

App 1

App2

Original plan

Application 1: Re-engineered existing product solves significant customer problems Customers save $1MM/day; ready to order on a dummy prototype

Application 2: Cheap and rugged, not versatile Pursue new material but pivot to correct market needs 2 years of savings

Quick pivotsLong NPI Cycle of 5 years to develop new material for detectorFocus on significant customer problem

Early revenue, faster learning

© 2015 General Electric Company - All rights reserved

Horizontal productSilicon Carbide Power Semiconductor

Silicon Carbide Wafer

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Silicon Carbide

Internal Startup

GE Store FastWorksBrand R&D Function

Novel solution for supply chain... ConsortiumFocus on early adopter market… Solar

Integrated product critical for tech insertion

First MW product imminent Revolutionize power electronics

© 2014 General Electric Company - All rights reserved15

Scaling “lean startup” across GE

© 2015 General Electric Company - All rights reserved

NPI teams racing to adopt FastWorks

Trained business leaders and their teams

Trained ~150 coaches 100s of FastWorks

project Growth Boards

Secure funding, not more money Programs justified and ready to

execute Cross-functional alignment Resources … dedicated, pace

hiring Culture … accepting risk ... less

churn

FastWorks … 5 thoughts to go faster