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Open Innovation:
A Global Hybrid Model




AMA/PDMA Regional Conference
Energizing Innovation
November 17, 2011
David R. Linger
                               1
“I find out what the world needs,
  then I proceed to invent it.”
– Thomas Edison



                                    2
Does the market demand Innovation?

Cleaner, quieter, faster, affordable
Fuel consumption
Emissions
Noise
Cost of ownership
Reliability
                                                 3
                                       GE Aviation
50 years … of turbine engine improvements
  25         Flight Safety                            Thrust to Weight
                                           8
             (accidents per MFH)
  20
                                           6
  15                            90%
                            Improvement    4
                                                                              350%
  10

                                           2
                                                                            Increase
   5

   0                                       0
    1940     1960       1980       2000        1940    1960          1980     2000



  0.9
            Fuel Efficiency               130
                                                       Engine Noise
                    (SFC)                                     (cum db’s)
  0.8                                     120


  0.7
                                45%       110
                                                                             35 db
                            Improvement                                     Decrease
  0.6                                     100


  0.5                                     90


  0.4                                     80
     1940    1960       1980       2000     1940       1960          1980     2000
Technology investment … highest
R&D commitment in history
Total R&D
($ in billions)

                         $1.55                  Landing
                  $1.5           Boeing 787     gear/CCS*        Airbus A380               GP7200**


     $1.2


                                 Boeing 787         GEnx         Boeing 747-8
                                                                 GEnx




                                 ARJ21           CF34-10         GE/Honda***                    HF120
        ’06        ’08    ’10
                                                                        *Common Core Computing System
                                                        **GP7200 developed by GE/P&W Engine Alliance
                                              ***HF120 developed jointly by 50/50 JV between GE & Honda
Non-Brayton Cycle Propulsion
                       (Electric, etc.)




                                               Hybrid Turbo-Electric
                                                    Propulsion
Brayton Cycle Propulsion
 (Turbo Gas Generators)           Key Technologies to Bridge The Gaps
                                High Pressure (OPR) Cores
                                Advanced Propulsors (Open Rotor, etc.)
                                Electrical Systems (Fuel Cells, Batteries,
                                Superconductivity, Electric Motors, etc.)
                                Distributed Propulsion Concepts

          1950 - 2010 2010 - 2030 2030 - 2050

                           Timeframe
Innovation Funnel…
              OPEN                                                   INTERNAL

               Ideation                                               Ideation
               Network                                                Network

 University               Small Firms                      Session               Global
 Programs                   SBIR                              T                  GRC

               National
                                                                       M&A
              Agencies/
                Labs

         INNOVATION                                                 INNOVATION

        External GE Web Page                                 Enterprise Web Based Tool
          Online Community
                                   Data Collection

                    Idea & Technology Portfolio Management
                •    Metrics, Scorecards, Prioritization Criteria
                •    Visualization and Strategy Connectivity
                •    Data Analysis and Reporting
                •    Document Storage and Linkage

                                        GROWTH
Internal Innovation…
• Merger and Acquisition…
• Session T: GE’s annual internal rack and stack of
technologies and projects to fund:
  • The process includes brain-storming workshops
  • Alignment with technology roadmap owners
  • Cross business and GE Research Lab input




                                                               8
                                               Quick Start Guide
                                                      June 2010
Innovation Funnel…
              OPEN                                                   INTERNAL

               Ideation                                               Ideation
               Network                                                Network

 University               Small Firms                      Session               Global
 Programs                   SBIR                              T                  GRC

               National
                                                                       M&A
              Agencies/
                Labs

         INNOVATION                                                 INNOVATION

        External GE Web Page                                 Enterprise Web Based Tool
          Online Community
                                   Data Collection

                    Idea & Technology Portfolio Management
                •    Metrics, Scorecards, Prioritization Criteria
                •    Visualization and Strategy Connectivity
                •    Data Analysis and Reporting
                •    Document Storage and Linkage

                                        GROWTH
Our global research team
“A twist on an old theme…”
                                            • 3,000 research
                  Global Research Center      employees
                           Niskayuna, NY
                                            • More than 1,000 PhDs
                                            • $5.7 billion technology
         John F. Welch Technology Center      spend
                         Bangalore, India
                                            • Leverage the best
                China Technology Center     minds at a “local level…
                        Shanghai, China
                                            Globally”
                                            • Each GRC center
                                            increases the footprint
               Global Research – Europe     by collaborating with
                       Munich, Germany      local Universities,
                                            Governments, and
                                            Businesses…
Our global research team
“A twist on an old theme…”




     • Recruit the best local minds and best practices…
     • Recruiting should go “smoothly”…
Innovation Funnel…
              OPEN                                                   INTERNAL

               Ideation                                               Ideation
               Network                                                Network

 University               Small Firms                      Session               Global
 Programs                   SBIR                              T                  GRC

               National
                                                                       M&A
              Agencies/
                Labs

         INNOVATION                                                 INNOVATION

        External GE Web Page                                 Enterprise Web Based Tool
          Online Community
                                   Data Collection

                    Idea & Technology Portfolio Management
                •    Metrics, Scorecards, Prioritization Criteria
                •    Visualization and Strategy Connectivity
                •    Data Analysis and Reporting
                •    Document Storage and Linkage

                                        GROWTH
Internal Ideation Network…
• Enterprise web based tool
• Challenge question sent to
internal GE employees
• Ideas are submitted into the tool
via text and attachments- “napkin
drawings”
• Blog style interaction drives idea
merger, improvement, and infuses
history…
• Employees “vote-up” ideas they
believe are the winning solution.
Innovation Funnel…
              OPEN                                                   INTERNAL

               Ideation                                               Ideation
               Network                                                Network

 University               Small Firms                      Session               Global
 Programs                   SBIR                              T                  GRC

               National
                                                                       M&A
              Agencies/
                Labs

         INNOVATION                                                 INNOVATION

        External GE Web Page                                 Enterprise Web Based Tool
          Online Community
                                   Data Collection

                    Idea & Technology Portfolio Management
                •    Metrics, Scorecards, Prioritization Criteria
                •    Visualization and Strategy Connectivity
                •    Data Analysis and Reporting
                •    Document Storage and Linkage

                                        GROWTH
Open Innovation- Conventional…
• External Collaboration:
   • Utilize Joint Technology Development Agreements with:
      • Existing Partners
      • Universities- both foreign and domestic (supported by
      GRC)
      • National labs- both foreign and domestic
      • National Agencies- both foreign and domestic
      • Small Businesses- Leverage Government SBIR
      Programs
• Win-Win in terms of innovation and cost sharing...
   • In many cases- funding input from partners & government
Technology Demonstrators Programs
Strong history leading to commercial benefits today and beyond
                                                         00’s

                                                                       ADVENT
                                        90’s                   HEETE


                                                        AATE
                         80’s
                                               Tech56             LEAP-X
     70’s
                               UDF


                         E3


         QCSEE
                                               GEn
                                                  x
                                     GE90

                       CFM56
                 CF6
Innovation Funnel…
              OPEN                                                   INTERNAL

               Ideation                                               Ideation
               Network                                                Network

 University               Small Firms                      Session               Global
 Programs                   SBIR                              T                  GRC

               National
                                                                       M&A
              Agencies/
                Labs

         INNOVATION                                                 INNOVATION

        External GE Web Page                                 Enterprise Web Based Tool
          Online Community
                                   Data Collection

                    Idea & Technology Portfolio Management
                •    Metrics, Scorecards, Prioritization Criteria
                •    Visualization and Strategy Connectivity
                •    Data Analysis and Reporting
                •    Document Storage and Linkage

                                        GROWTH
Open Innovation- External Ideation…
• Social media approach:
   • Open the internal ideation tool for external input:
      • Use for voice of the customer or partner input…
      • Capture input from small firms, universities, & labs:
   Organizations and individuals not in your current network…
Innovation Funnel…
              OPEN                                                   INTERNAL

               Ideation                                               Ideation
               Network                                                Network

 University               Small Firms                      Session               Global
 Programs                   SBIR                              T                  GRC

               National
                                                                       M&A
              Agencies/
                Labs

         INNOVATION                                                 INNOVATION

        External GE Web Page                                 Enterprise Web Based Tool
          Online Community
                                   Data Collection

                    Idea & Technology Portfolio Management
                •    Metrics, Scorecards, Prioritization Criteria
                •    Visualization and Strategy Connectivity
                •    Data Analysis and Reporting
                •    Document Storage and Linkage

                                        GROWTH
System Portfolio Management…
• Global internal & external data collection:
   • System wide matrix approach
   • Data storage and sharing
• Application of metrics, analysis, and data visualization
• User friendly dashboards and reporting




Not trivial, a subject all onto itself…
David Linger - Open Innovation

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David Linger - Open Innovation

  • 1. Open Innovation: A Global Hybrid Model AMA/PDMA Regional Conference Energizing Innovation November 17, 2011 David R. Linger 1
  • 2. “I find out what the world needs, then I proceed to invent it.” – Thomas Edison 2
  • 3. Does the market demand Innovation? Cleaner, quieter, faster, affordable Fuel consumption Emissions Noise Cost of ownership Reliability 3 GE Aviation
  • 4. 50 years … of turbine engine improvements 25 Flight Safety Thrust to Weight 8 (accidents per MFH) 20 6 15 90% Improvement 4 350% 10 2 Increase 5 0 0 1940 1960 1980 2000 1940 1960 1980 2000 0.9 Fuel Efficiency 130 Engine Noise (SFC) (cum db’s) 0.8 120 0.7 45% 110 35 db Improvement Decrease 0.6 100 0.5 90 0.4 80 1940 1960 1980 2000 1940 1960 1980 2000
  • 5. Technology investment … highest R&D commitment in history Total R&D ($ in billions) $1.55 Landing $1.5 Boeing 787 gear/CCS* Airbus A380 GP7200** $1.2 Boeing 787 GEnx Boeing 747-8 GEnx ARJ21 CF34-10 GE/Honda*** HF120 ’06 ’08 ’10 *Common Core Computing System **GP7200 developed by GE/P&W Engine Alliance ***HF120 developed jointly by 50/50 JV between GE & Honda
  • 6. Non-Brayton Cycle Propulsion (Electric, etc.) Hybrid Turbo-Electric Propulsion Brayton Cycle Propulsion (Turbo Gas Generators) Key Technologies to Bridge The Gaps High Pressure (OPR) Cores Advanced Propulsors (Open Rotor, etc.) Electrical Systems (Fuel Cells, Batteries, Superconductivity, Electric Motors, etc.) Distributed Propulsion Concepts 1950 - 2010 2010 - 2030 2030 - 2050 Timeframe
  • 7. Innovation Funnel… OPEN INTERNAL Ideation Ideation Network Network University Small Firms Session Global Programs SBIR T GRC National M&A Agencies/ Labs INNOVATION INNOVATION External GE Web Page Enterprise Web Based Tool Online Community Data Collection Idea & Technology Portfolio Management • Metrics, Scorecards, Prioritization Criteria • Visualization and Strategy Connectivity • Data Analysis and Reporting • Document Storage and Linkage GROWTH
  • 8. Internal Innovation… • Merger and Acquisition… • Session T: GE’s annual internal rack and stack of technologies and projects to fund: • The process includes brain-storming workshops • Alignment with technology roadmap owners • Cross business and GE Research Lab input 8 Quick Start Guide June 2010
  • 9. Innovation Funnel… OPEN INTERNAL Ideation Ideation Network Network University Small Firms Session Global Programs SBIR T GRC National M&A Agencies/ Labs INNOVATION INNOVATION External GE Web Page Enterprise Web Based Tool Online Community Data Collection Idea & Technology Portfolio Management • Metrics, Scorecards, Prioritization Criteria • Visualization and Strategy Connectivity • Data Analysis and Reporting • Document Storage and Linkage GROWTH
  • 10. Our global research team “A twist on an old theme…” • 3,000 research Global Research Center employees Niskayuna, NY • More than 1,000 PhDs • $5.7 billion technology John F. Welch Technology Center spend Bangalore, India • Leverage the best China Technology Center minds at a “local level… Shanghai, China Globally” • Each GRC center increases the footprint Global Research – Europe by collaborating with Munich, Germany local Universities, Governments, and Businesses…
  • 11. Our global research team “A twist on an old theme…” • Recruit the best local minds and best practices… • Recruiting should go “smoothly”…
  • 12. Innovation Funnel… OPEN INTERNAL Ideation Ideation Network Network University Small Firms Session Global Programs SBIR T GRC National M&A Agencies/ Labs INNOVATION INNOVATION External GE Web Page Enterprise Web Based Tool Online Community Data Collection Idea & Technology Portfolio Management • Metrics, Scorecards, Prioritization Criteria • Visualization and Strategy Connectivity • Data Analysis and Reporting • Document Storage and Linkage GROWTH
  • 13. Internal Ideation Network… • Enterprise web based tool • Challenge question sent to internal GE employees • Ideas are submitted into the tool via text and attachments- “napkin drawings” • Blog style interaction drives idea merger, improvement, and infuses history… • Employees “vote-up” ideas they believe are the winning solution.
  • 14. Innovation Funnel… OPEN INTERNAL Ideation Ideation Network Network University Small Firms Session Global Programs SBIR T GRC National M&A Agencies/ Labs INNOVATION INNOVATION External GE Web Page Enterprise Web Based Tool Online Community Data Collection Idea & Technology Portfolio Management • Metrics, Scorecards, Prioritization Criteria • Visualization and Strategy Connectivity • Data Analysis and Reporting • Document Storage and Linkage GROWTH
  • 15. Open Innovation- Conventional… • External Collaboration: • Utilize Joint Technology Development Agreements with: • Existing Partners • Universities- both foreign and domestic (supported by GRC) • National labs- both foreign and domestic • National Agencies- both foreign and domestic • Small Businesses- Leverage Government SBIR Programs • Win-Win in terms of innovation and cost sharing... • In many cases- funding input from partners & government
  • 16. Technology Demonstrators Programs Strong history leading to commercial benefits today and beyond 00’s ADVENT 90’s HEETE AATE 80’s Tech56 LEAP-X 70’s UDF E3 QCSEE GEn x GE90 CFM56 CF6
  • 17. Innovation Funnel… OPEN INTERNAL Ideation Ideation Network Network University Small Firms Session Global Programs SBIR T GRC National M&A Agencies/ Labs INNOVATION INNOVATION External GE Web Page Enterprise Web Based Tool Online Community Data Collection Idea & Technology Portfolio Management • Metrics, Scorecards, Prioritization Criteria • Visualization and Strategy Connectivity • Data Analysis and Reporting • Document Storage and Linkage GROWTH
  • 18. Open Innovation- External Ideation… • Social media approach: • Open the internal ideation tool for external input: • Use for voice of the customer or partner input… • Capture input from small firms, universities, & labs: Organizations and individuals not in your current network…
  • 19. Innovation Funnel… OPEN INTERNAL Ideation Ideation Network Network University Small Firms Session Global Programs SBIR T GRC National M&A Agencies/ Labs INNOVATION INNOVATION External GE Web Page Enterprise Web Based Tool Online Community Data Collection Idea & Technology Portfolio Management • Metrics, Scorecards, Prioritization Criteria • Visualization and Strategy Connectivity • Data Analysis and Reporting • Document Storage and Linkage GROWTH
  • 20. System Portfolio Management… • Global internal & external data collection: • System wide matrix approach • Data storage and sharing • Application of metrics, analysis, and data visualization • User friendly dashboards and reporting Not trivial, a subject all onto itself…