1

AMA/PDMA Regional ConferenceEnergizing Innovation

November 17, 2011David R. Linger

Open Innovation: A Global Hybrid Model

“I find out what the world needs, then I proceed to invent it.”

2

– Thomas Edison

Cleaner, quieter, faster, affordable

Fuel consumption

Emissions

Noise

Cost of ownership

Reliability

3GE Aviation

Does the market demand Innovation?

50 years … of turbine engine improvements

Thrust to Weight

130

120

110

100

90

80

1940 1960 1980 2000

Engine Noise(cum db’s)

8

6

4

2

01940 1960 1980 2000

0.9

0.8

0.7

0.6

0.5

0.4

1940 1960 1980 2000

Fuel Efficiency(SFC)

Flight Safety(accidents per MFH)

20

15

10

5

0

1940 1960 1980 2000

25

90%Improvement 350%

Increase

35 dbDecrease

45%Improvement

Technology investment … highest R&D commitment in history

’06 ’08 ’10

Total R&D ($ in billions)

$1.2

$1.5$1.55

*Common Core Computing System**GP7200 developed by GE/P&W Engine Alliance

***HF120 developed jointly by 50/50 JV between GE & Honda

Airbus A380 GP7200**Boeing 787Landing gear/CCS*

GE/Honda*** HF120

Boeing 747-8 GEnx

Boeing 787 GEnx

ARJ21 CF34-10

1950 - 2010 2010 - 2030 2030 - 2050

Vision for 2030 – 2050 Propulsion SystemsRevolutionary Ideas Required To Support Future Aviation

Brayton Cycle Propulsion(Turbo Gas Generators)

Non-Brayton Cycle Propulsion(Electric, etc.)

Key Technologies to Bridge The GapsHigh Pressure (OPR) CoresAdvanced Propulsors (Open Rotor, etc.)Electrical Systems (Fuel Cells, Batteries, Superconductivity, Electric Motors, etc.)Distributed Propulsion Concepts

Hybrid Turbo-Electric Propulsion

Timeframe

Data Collection

Innovation Funnel…

GROWTH

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

Small FirmsSBIR

UniversityPrograms

Session T

GlobalGRC

IdeationNetwork

IdeationNetwork

NationalAgencies/

Labs

M&A

OPEN

INNOVATION

INTERNAL

INNOVATION

External Collaboration GE Internal Collaboration

External GE Web Page Enterprise Web Based Tool

Online Community

Quick Start Guide8

June 2010

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

Data Collection

Innovation Funnel…

GROWTH

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

Small FirmsSBIR

UniversityPrograms

Session T

GlobalGRC

IdeationNetwork

IdeationNetwork

NationalAgencies/

Labs

M&A

OPEN

INNOVATION

INTERNAL

INNOVATION

External Collaboration GE Internal Collaboration

External GE Web Page Enterprise Web Based Tool

Online Community

Our global research team“A twist on an old theme…”

Global Research CenterNiskayuna, NY

China Technology CenterShanghai, China

John F. Welch Technology CenterBangalore, India

Global Research – EuropeMunich, Germany

• 3,000 research employees

• More than 1,000 PhDs

• $5.7 billion technology spend

• Leverage the best minds at a “local level… Globally”

• Each GRC center increases the footprint by collaborating with local Universities, Governments, and Businesses…

• Recruit the best local minds and best practices…

• Recruiting should go “smoothly”…

Our global research team“A twist on an old theme…”

Data Collection

Innovation Funnel…

GROWTH

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

Small FirmsSBIR

UniversityPrograms

Session T

GlobalGRC

IdeationNetwork

IdeationNetwork

NationalAgencies/

Labs

M&A

OPEN

INNOVATION

INTERNAL

INNOVATION

External Collaboration GE Internal Collaboration

External GE Web Page Enterprise Web Based Tool

Online Community

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.

Data Collection

Innovation Funnel…

GROWTH

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

Small FirmsSBIR

UniversityPrograms

Session T

GlobalGRC

IdeationNetwork

IdeationNetwork

NationalAgencies/

Labs

M&A

OPEN

INNOVATION

INTERNAL

INNOVATION

External Collaboration GE Internal Collaboration

External GE Web Page Enterprise Web Based Tool

Online Community

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 ProgramsStrong history leading to commercial benefits today and beyond

UDF

ADVENTHEETE

AATE

CF6CFM56

LEAP-X

QCSEE

GE90

GEnx

E3

80’s

00’s

70’s

90’s

Tech56

Data Collection

Innovation Funnel…

GROWTH

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

Small FirmsSBIR

UniversityPrograms

Session T

GlobalGRC

IdeationNetwork

IdeationNetwork

NationalAgencies/

Labs

M&A

OPEN

INNOVATION

INTERNAL

INNOVATION

External Collaboration GE Internal Collaboration

External GE Web Page Enterprise Web Based Tool

Online Community

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…

Data Collection

Innovation Funnel…

GROWTH

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

Small FirmsSBIR

UniversityPrograms

Session T

GlobalGRC

IdeationNetwork

IdeationNetwork

NationalAgencies/

Labs

M&A

OPEN

INNOVATION

INTERNAL

INNOVATION

External Collaboration GE Internal Collaboration

External GE Web Page Enterprise Web Based Tool

Online Community

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…