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…