GE Imagination Breakthroughs: The Evo Project

GE’s Imagination Breakthroughs: The Evo Project

 GE Imagination Breakthroughs: The Evo Project

I. September 2001 Jeff Immelt replaced Jack Welch as GE’s ninth CEO. The
following accrued six months later:

a. (World Trade Center) - 911

b. Stock market dropped

c. Negative economic conditions across the globe

II. CEO Jeff Immelt repositioned the business portfolio from a Process-
Oriented company under the leadership of Jack Welch to a Marketing-
Oriented company

Process-Oriented (Jack Welch) Marketing-Oriented ( Jeff Immelt)

Efficiency as driver Marketing - driver of organic growth
Strong Acquisitions base Acquisitions - secondary
Financially sound Globalization
Effective leadership training Technology advancement
program
Operational Focus Encouraged – risk taking

III. Jeff Immelt Goals for GE

• Imagination Breakthrough (IB)

• Organic Growth (entrepreneurial approach, putting growth on

steroids)

• Commercially-oriented global expansion

• New Research Centers

• R & D upgrades

• Ecomagination (emissions regulations, alternative energy)

• Develop growth leaders (realigned personal competencies)

 GE Imagination Breakthroughs: The Evo Project

IV. Imagination Breakthrough – Each business unit was challenged to develop

proposals for new growth to consist of:

• Potential to generate $50-100 million in revenue

• Potential to led the market

• Market necessity

• Advance technology

V. Evolution Locomotive – GE first IB Project

• Launched in 2003

• Twelve cylinder engine, met (emissions requirements, improved

consumption of fuel).

• The global modular locomotive – open doors for global opportunities

and other business products. GE’s success advanced the company
into taking an integrated regional approach

• Hybrid Locomotive – Flagged as potential IB project.

VI. Recommendation:

Which one of the three options given at the end of the case would you
recommend for the Hybrid Locomotive IB project? Explain

Option 1:
“The project as currently defined appeared to have very limited to short-to-
medium-term commercial viability, the business would commit to it as an IB
and continue to explore alternative ways to make it successful”.
GE Imagination Breakthroughs: The Evo Project

The Hybrid qualifies as a potential project under the organic growth process
with long term potential. The company invested three years in developing
the Hybrid. Putting the project on hold would be a financial waste for the
company. The project is considered Ecomagination because it provides fuel
efficiency, within emission regulations and runs on a solar battery. The
company should consider increasing consumer’s awareness and commercial
viability through new marketing strategies. GE should also request
government funding to assist with product development.