Wednesday, September 25, 2013
HBR Innovation: Post #3Disruption
How GE is Disrupting Itself by Jeffery Immelt, Vijay Govingdarajan, and Chris Trimble (originally published in 2009). In 2009, GE said they would spend $3 billion on 100 new healthcare devices, including an ultrasound machine—for only $15 K—created for emerging foreign nations and then would sell them in the US. This idea is called reverse engineering. Innovation like this is necessary for GE so that other countries, like China, don’t beat them to the punch and the market. Such reverse engineering requires decentralization and local market focus, in direct contrast to many large US companies. Many new products are being developed for emerging economies—growing at 2-3 times the developed world. One key to success was local growth teams (LTG).