2013 Bundle Case Competition Cornell University - ILR School Presentation by: Nicholas Born Alex Caruso Yin Jin Sanjana Kishore Levi Lundgreen Sevana Melikian

1. GE Aviation:
2013
Bundle Case
Competition
GROUP 5
Sevana Melikian
Alex Caruso
Sanjana Kishore
Yin Jin
Levi Lundgreen
Nicholas Born
December 10th, 2013

2. PRESENTATION OVERVIEW
0 1 Aerospace Industry Landscape
0 2 The Challenge
0 3 Our Approach
0 4 Our Proposed Solution:
The Knowledge Concierge
0 5 Q&A

3. 0 1
G R O W T H
Global Aerospace & defense market
valued at $910 billion, grew at 6.8% in
2012. Defence sector shrinking, while
commercial segment continues to grow
G L O B A L I Z A T I O N
Greater focus on international markets
like Asia & Middle East as US revenues
decline
T A L E N T
Steady loss of experienced personnel
and need to attract highly skilled talent
I N N O V A T I O N
Biggest business priority being cost,
efficiency, reliability & safety
R E G U L A T O R Y
Strict governmental guidelines for
security & compliance will continue
AEROSPACE INDUSTRY LANDSCAPE
AT A G L A N C E :
Source: Air Transport Action Group (2012)

4. 0 2
THE
CHALLENGE
Who has the
knowledge within
GE Aviation?
Who needs the
knowledge?
How do we transfer
the knowledge?

5. 0 3
OUR
APPROACH
§ Catering to Millennials
• Information on demand
• Technology
• Ease of Use & Accessibility
§ Avoiding duplication of effort
• Using information already in
existence
§ Measurable & Cost Effective
§ Ensure NPI commitments are met
§ Create a method to share both explicit
and tacit knowledge

6. 0 4
OUR
PROPOSED
SOLUTION
The Kn wledge
Concierge

7. 0 5
HOW IT WORKS…
Hmm…This is not something I
learning in my training. Who
would know about how to
approach this problem?

8. 0 6
HOW IT WORKS…
I found my
solution!
Connect to the
Web Portal
Connect to the
Knowledge
Concierge
Person-to-Person Connection
(Who has the knowledge &
who needs it)
Specific Solution
on the
Web Portal

9. 0 X0 7
Identify the Critical Knowledge Through:
• Informational Interviews
• Design Practices Reviews
• Job Shadowing
HOW IT WORKS…

10. 0 8
The Traditional
Engineer – Manager or Mentor
Relationship
Junior
Engineer
Manager or
Mentor

11. 0 8
Junior
Engineer
Knowledge
Concierge
Collective Knowledge of
GE Aviation

12. 0 9
WEB P ORTAL
SINGLE SIGN-ON
LIVE CONCIERGE CONNECT CONTACT US

13. 1 0
3-D Model Video
Blue Print
The Knowledge Concierge
Web Portal Features:
• Senior Engineer Profiles
• Design Practices
• Currently hard to find, difficult to search,
difficult to read through
• Blogs/Discussion Boards

14. 1 1
T E A M S T R U C T U R E
*Headcount for pilot project in Cincinnati, OH

15. 1 2
PHASE I:
Find
Knowledge
PHASE II:
Share
Knowledge
PHASE III:
Evaluate
PHASE IV:
Begin
Expansion
• Hire staff
• Engage senior
leaders and build
credibility
• Start work on virtual
portal
• Timing: Pre-launch
(3-6 months)
• Soft launch of the KC
• Test with subset of
population
• Make changes/edits
as necessary
• Timing: At 6-month
mark
• Official launch of
Knowledge
Concierge
• Marketing and
communications
• Timing: At Year 1
mark
I M P L E N TAT I O N T I M E L I N E
• Measure ROI (reduction
in rework, reduction
training, reduction in
errors)
• Revise model as
necessary
• Regular surveys
• Make changes as
necessary
• Timing: Every 6 months
for 2 years
• Launch satellite
offices (domestic
and international)
• Establish Cincinnati
as official hub
• Timing: Years 2
through 5

16. 1 3
Knowledge
Concierge
Pilot Site:
Cincinnati, OH
G E A v i a t i o n E n g i n e e r i n g
PHASE I:
Find
Knowledge
PHASE II:
Share
Knowledge
PHASE III:
Evaluate

17. 1 4
Knowledge
Concierge Hub:
Cincinnati, OH
Mexico
UK
Poland
Turkey
India
China
G E A v i a t i o n E n g i n e e r i n g
PHASE I:
Find
Knowledge
PHASE II:
Share
Knowledge
PHASE III:
Evaluate
PHASE IV:
Begin
Expansion

18. 1 5
Leadership
• Authentic support from leadership
throughout the entire process
• Early adoption of new operating
procedures
• Relate improvement to culture
Communication
• Start as soon as possible
• Create a sense of openness around
procedures
• Define the why?
• Sincerely engage all levels in shaping
communication plan
Redefine Operating Norms
• Incorporating knowledge to G&O’s
• Reward behaviors at first
• Monitor Progress
• Empower employees
CHANGE MANAGEMENT
NECESSARY
The Change Acceleration Process

19. 1 6
NPV Analysis
Calculated IRR = 51%
>
GE’s WACC = 6.35%
FINANCIAL
ANALYSIS
Year 1 Year 2 Year 3 Year 4 Year 5
Labor Costs $(1,485,000) $(1,485,000) $(1,485,000) $(2,565,000) $(2,565,000)
Tech Costs $(60,000) $(60,000) $(60,000) $(60,000) $(60,000)
Admin & Misc. Costs $(140,000) $(140,000) $(140,000) $(140,000) $(140,000)
Benefits (Senior Employees) $(600,000) $- $600,000 $600,000 $600,000
Benefits (Junior Employees) $- $2,400,000 $3,600,000 $3,600,000 $3,600,000
Net Benefits $(2,285,000) $715,000 $2,515,000 $1,435,000 $1,435,000
NPV $(2,148,566) $(1,516,400) $574,462 $1,696,228 $2,751,014
NPV > 0 by Year 3
NPV($)

20. 1 7
The Knowledge Concierge:
Overview

21. T h e K n o w l e d g e H i e r a r c h y ( D I K W )
EFFECTIVE
KNOWLEDGE
MANAGEMENT
1 8

22. Thank You!
Q&A
Extra Special Thank You To:
Heather
Porzuczek
Larry
Caruso
Scott
Blosser
Jay
Ramachandran
Ravi
Ravikumar