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Ge Evo V11

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Ge Evo V11

  1. 1. GE’s Imagination Breakthroughs: The Evo Project
  2. 2. GE BUSINESSES
  3. 3. CEO Jeff Immelt is transforming GE from a process-oriented company into a marketing-oriented company <ul><li>JACK WELCH </li></ul><ul><li>PROCESS ORIENTED </li></ul><ul><li>Effective operations management </li></ul><ul><li>Timely acquisitions and clever deal making </li></ul><ul><li>Financially based strategies </li></ul><ul><li>Efficiency driven </li></ul><ul><li>JEFF IMMLET </li></ul><ul><li>MARKETING ORIENTED </li></ul><ul><li>Market value of technological advancements </li></ul><ul><li>Organic growth – given top priority </li></ul><ul><li>Technology leadership </li></ul><ul><li>Commercial excellence </li></ul><ul><li>Global expansion </li></ul><ul><li>Marketing driven </li></ul><ul><li>Long term, research- based approach to his tasks </li></ul>
  4. 4. Jeff Immlet’s Strategic Changes <ul><li>Leadership </li></ul><ul><ul><li>In-depth Marketing & Technology knowledge </li></ul></ul><ul><li>Culture </li></ul><ul><ul><li>Norms & practice, encourage risk-taking </li></ul></ul><ul><li>HR Practice </li></ul><ul><ul><li>Slow down job rotation </li></ul></ul><ul><ul><li>Recruit / Promote externally </li></ul></ul><ul><ul><li>Adjusted reward & evaluation process </li></ul></ul><ul><li>Strategic Focus </li></ul><ul><ul><li>Internal-Focused  Marketplace-oriented </li></ul></ul><ul><ul><li>Short-Terms Budgetary Objectives  </li></ul></ul><ul><ul><li>Long-term Development </li></ul></ul>
  5. 5. Change Management <ul><li>&quot;It's not the strongest of species that survive, nor the most intelligent, but the ones most responsive to change&quot; - Charles Darwin </li></ul><ul><li>Change is inevitable </li></ul><ul><li>Effective change management is the key to success of an organization </li></ul><ul><li>One of main reasons for the failure to manage change properly is “employee resistance” </li></ul>
  6. 6. GE’s capability to manage change <ul><li>GE’s is doing well in managing change </li></ul><ul><li>GE changed successfully from a operations focused organization to a marketing/innovation focused organization </li></ul><ul><li>One of the key success factors of GE’s capability to manage change is “effective communication” </li></ul><ul><li>Other reason is the ability to create an “urgency for change” and gain acceptance from the employees </li></ul>
  7. 8. Imagination Breakthrough (IB) <ul><li>8% organic growth target </li></ul><ul><li>Marketing Led </li></ul><ul><li>Fully Integrated </li></ul><ul><li>IBs project should be approved by CEO </li></ul><ul><li>Project from IB in the future should generate $50-100m incremental revenue/project </li></ul>What is IB?
  8. 10. IB Reviews- CECOR Framework
  9. 12. <ul><li>Evo Project is one of IBs . Evo as an IB started in 2003 </li></ul><ul><li>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. </li></ul><ul><li>GEVO engine with twelve cylinders produces the same power as the previous 16-cylinder FDL engine locomotive. </li></ul>EVO PROJECT
  10. 13. The Evo Success <ul><li>Eliminates tradeoff between fuel efficiency and emissions </li></ul><ul><li>3-5% fuel savings </li></ul><ul><li>40% less emissions </li></ul><ul><li>Enhanced control system </li></ul>1. SUCCESS OF TECHNOLOGY
  11. 14. The Evo Success <ul><li>Clearly identify of markets need </li></ul><ul><li>Clever Pricing Strategy ~ 10% premium </li></ul><ul><li>Value proposition (focus on lifecycle cost) </li></ul><ul><li>Locomotives contract order used to offer other services </li></ul><ul><li>SMART PROMOTION STRATEGY </li></ul><ul><li>Let customers try for free ($1 lease/year) </li></ul><ul><li>Sales force rigorous training </li></ul>2. SUCCESS OF MARKETING STRATEGY
  12. 15. <ul><li>Marketing Perspectives: </li></ul><ul><li>Customers feedback </li></ul><ul><li>How does fit with Strategy </li></ul><ul><li>Future market growth? </li></ul><ul><li>International market feedback </li></ul>Operating System Ensure that Processes & Procedures are in place 3. EXCELLENCE IN ORGANIZATION PRACTICE <ul><li>Monthly Review </li></ul><ul><li>CEO direct involvement (as an IB status process) </li></ul><ul><li>Rigorous & Challenging discussion (no power point) </li></ul>Cross Functional Collaboration: Global Research Centre Technical P&L Marketing The Evo Success EVO PROJECTS High Cost Technology Not Viable?

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