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

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”…

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.

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

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…

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…

David Linger - Open Innovation

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