GE PPT
IMAGINATION BREAKTHROUGHS
: THE EVO PROJECT
GE BUSINESSES
JACK WELCH
PROCESS ORIENTED
Effective operations management Timely acquisitions and clever deal making Financially based strategies Efficiency driven
JEFF IMMELT
MARKETING ORIENTED
Market value of technological advancements Organic growth – given top priority
Technology leadership
Commercial excellence
Global expansion
Marketing driven
Long term, research- based approach to his tasks
Immelt is transforming GE from a process and acquisition oriented company into a marketing and organic growth focused business
Immelt and his Vision
• Focus on Organic Growth and Long Term
Trends
• Invest in “Ecomagination”
– environmentally friendly technology and trends
– Good for GE, Good for the World
• Continue to Deliver Shareholder Value
• Invest in the future - “We need to be business growers, not business traders”
Imagination Breakthrough (IB)
• Proposals for New Growth Businesses
• Intended to force GE to take risk and achieve an 8% organic growth target
• Marketing Led and Fully Integrated Solutions
• IB’s were approved and monitored by Immelt
• “We have to put growth on steroids”
• “I want game changers. Take a big swing.”
Executing on IB’s – The CECOR Framework
CECOR’s fit in GE’s Operating Process
The Case Study
GE Transportation
GE Transportation’s Suite of Solutions
GE Transportation - The First IB
The Evo Project
EPA Locomotive Emissions Regulations
The Evo Project
• IB started in 2003
• Known as the “Evolution
Series” Locomotives
• Designed to surpass new U.S.
EPA Tier II emissions standards set to take effect in 2005
• EVO Engine Designed with 12
Cylinders as Opposed to 16 while delivering the same HP
• Major breakthrough that reduced emissions by 40% and improved fuel economy
The Evo Results
• Sold at a 10% premium over AC4400 Model
• Premium justified through total cost of ownership reductions over the lifetime of the locomotive
• By launch date in 2005
: THE EVO PROJECT
GE BUSINESSES
JACK WELCH
PROCESS ORIENTED
Effective operations management Timely acquisitions and clever deal making Financially based strategies Efficiency driven
JEFF IMMELT
MARKETING ORIENTED
Market value of technological advancements Organic growth – given top priority
Technology leadership
Commercial excellence
Global expansion
Marketing driven
Long term, research- based approach to his tasks
Immelt is transforming GE from a process and acquisition oriented company into a marketing and organic growth focused business
Immelt and his Vision
• Focus on Organic Growth and Long Term
Trends
• Invest in “Ecomagination”
– environmentally friendly technology and trends
– Good for GE, Good for the World
• Continue to Deliver Shareholder Value
• Invest in the future - “We need to be business growers, not business traders”
Imagination Breakthrough (IB)
• Proposals for New Growth Businesses
• Intended to force GE to take risk and achieve an 8% organic growth target
• Marketing Led and Fully Integrated Solutions
• IB’s were approved and monitored by Immelt
• “We have to put growth on steroids”
• “I want game changers. Take a big swing.”
Executing on IB’s – The CECOR Framework
CECOR’s fit in GE’s Operating Process
The Case Study
GE Transportation
GE Transportation’s Suite of Solutions
GE Transportation - The First IB
The Evo Project
EPA Locomotive Emissions Regulations
The Evo Project
• IB started in 2003
• Known as the “Evolution
Series” Locomotives
• Designed to surpass new U.S.
EPA Tier II emissions standards set to take effect in 2005
• EVO Engine Designed with 12
Cylinders as Opposed to 16 while delivering the same HP
• Major breakthrough that reduced emissions by 40% and improved fuel economy
The Evo Results
• Sold at a 10% premium over AC4400 Model
• Premium justified through total cost of ownership reductions over the lifetime of the locomotive
• By launch date in 2005
Bibliography: • The Evo Project Case Study • GE Annual Report • Moody’s Report: GE Strongly Positioned for Global Economic Uncertainty • Air Resources Board: Semi-Annual Public Meeting to Discuss Future • Locomotive Emission Control Measures