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Lean Startup at GE

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Mark Little, GE

As GE’s Chief Technology Officer and Leader of GE’s nine Global Research Centers, Mark Little embraced the Lean Startup methodology to improve business outcomes. Mark will describe specific examples where he helped the organization use Lean Startup to help drive speed and innovation with cross functional teams across GE.

Published in: Business
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Lean Startup at GE

  1. 1. Imagination at work LEAN STARTUP AT GE Mark Little Chief Technology Officer, GE November 2015 geglobalresearch.com
  2. 2. GE businesses 50,000+ Technologist s 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
  3. 3. GE Global Research THE 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
  4. 4. HQ New York India China Germany California Michigan Brazil Israel Oklahoma 4 Global Research network … always on Global Research Europe Munich, Germany 2X Size + Customer Innovation Center Advanced Manufacturing and Software Technology Center Detroit, MI Welch Technology Center Bangalore, India Global Research Headquarters Niskayuna, NY Software CoE San Ramon, CA 1900 1999 2004 2011 2009 O&G Tech Center Oklahoma City, OK Israel Technology Center Tirat Carmel, Israel 2012 2013 Brazil Technology Center, Customer focused R&D Rio de Janeiro, Brazil 2010 © 2015 General Electric Company - All rights reserved China Technology Center Shanghai, China + 3 Customer Innovation Centers 2000 Saudi Arabia 2015 Saudi Innovation Center Dhahran, Saudi Arabia
  5. 5. FastWorks Fast speed launch of successful products
  6. 6. FastWorks is a set of tools, principles and behaviors that will … Get us closer to customers Increase our speed to market Increase chance of success Make it easier to get things done
  7. 7. © 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
  8. 8. © 2015 General Electric Company - All rights reserved FastWorks NPI … the beginning 8 Series X 2011 2017 Focus on perfection in product specifications Maximum viable product 2012: Met Eric Ries • Lean start up … minimum viable product, leap of faith assumptions and pivot • Highly skeptical leadership team FastWorks results 2012 2013 2017 20182014 2015 2016 App 1 2 3 4 5 6 Highly energized leadership team
  9. 9. MVP I • Move fast • Use available tech • 6 unit deployment Oil & Gas Multiphase 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 Gonzalez R&D Alliance Manager Chevron MVP III • Near 3 Phase • Doppler/Microwave • 400 unit deployment MVP II • Make it work • 2 Phase+ • 50 unit deployment
  10. 10. © 2015 General Electric Company - All rights reserved Power & Water Heavy Duty Gas Turbine 2012 2019 Develop next generation heavy duty GT with high efficiency and low $/KW Results 2012 2013 20172014 2015 2016 Product 1 Product 2 Original plan Product 4 Product 3 Faster and lower risk approach to drive GE competitiveness Step 1: Pivoted existing GTs to achieve +10% output using minor engineering change Commitments from 2 customers Step 2: Position GE in Hi efficiency space NOW +22% output with additional engineering changes 2.5 years of savings Quick pivots Long NPI Cycle of 7 years to develop new architecture Gas Turbine 4 new GTs established in next 4 years 10
  11. 11. © 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 approach Build lab mockup in three weeks … engaged customers Customer value drivers - Faster spin More detailed image More power Initiated as a FastWorks project
  12. 12. © 2015 General Electric Company - All rights reserved Industrial solutions Molded 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 Competitor B FastWorks Competitor A Breaker NPI cycles (months) 60 Pre-Fastworks 7 MVPs and over 20 customer sessions Modeling Simpler design 12
  13. 13. © 2015 General Electric Company - All rights reserved Advanced X Ray Detector 2014 2019 Develop new cheaper & more versatile X Ray Detector Results 2014 2015 20192016 2017 2018 App 1 App 2 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 pivots Long NPI Cycle of 5 years to develop new material for detector Focus on significant customer problem Early revenue, faster learning
  14. 14. © 2015 General Electric Company - All rights reserved Horizontal product Silicon Carbide Power Semiconductor Silicon Carbide Wafer 14 Silicon Carbide Internal Startup GE Store FastWorks Brand R&D Function Novel solution for supply chain... Consortium Focus on early adopter market… Solar Integrated product critical for tech insertion First MW product imminent Revolutionize power electronics
  15. 15. © 2014 General Electric Company - All rights reserved 15 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
  16. 16.  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

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