lean startup at ge
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Imagination at work
LEAN STARTUP AT GEMark LittleChief Technology Officer, GENovember 2015
geglobalresearch.com
GE businesses
50,000+ Technologi
sts
Spending = $5+B/year
Aviation$20B
Power & Water$28B
Energy Management
$7B
Oil & Gas$15B
Transportation
$6B
Healthcare
$18B
Appliances & Lighting
$8B
© 2015 General Electric Company - All rights reserved
2
GE Global ResearchTHE TECHNOLOGY DEVELOPMENT ARM FOR GE
• First U.S. industrial lab• Market-focused R&D• One of the world’s
most diversified industrial research organizations• Leading a team of
50,000 world-class engineers 3
© 2015 General Electric Company - All rights reserved
HQNew York India
ChinaGerman
y
California
Michigan
Brazil
IsraelOklahoma
Global Researchnetwork …always on
Global Research EuropeMunich, Germany2X Size + Customer Innovation Center
Advanced Manufacturing and Software Technology CenterDetroit, MI
Welch Technology CenterBangalore, India
Global Research Headquarters Niskayuna, NY
Software CoESan Ramon, CA
1900 1999 2004
2011
2009
O&G Tech CenterOklahoma City, OK
Israel Technology CenterTirat Carmel, Israel
2012
2013
Brazil Technology Center, Customer focused R&DRio de Janeiro, Brazil
2010
© 2015 General Electric Company - All rights reserved
China Technology Center Shanghai, China+ 3 Customer Innovation Centers
2000
Saudi Arabia
2015Saudi Innovation CenterDhahran, Saudi Arabia
FastWorksFast speed launch of successful products
FastWorks is a set of tools, principles and behaviors that will …Get us closer to customersIncrease our speed to marketIncrease chance of successMake it easier to get things
done
© 2015 General Electric Company - All rights reserved
FastWorks enables simplification
• Requirement confusion• Thinly spread teams• Activity focus
7
Complex Simple• Customer validation• Dedicated teams• Learning focus
© 2015 General Electric Company - All rights reserved
FastWorks NPI … the beginning
8
Series X2011
2017Focus on perfection in product specifications Maximum viable product2012: Met Eric Ries
• Lean start up … minimum viable product, leap of faith assumptions and pivot• Highly skeptical leadership teamFastWorks results
2012 2013 2017 20182014 2015 2016
App 1 2 3 4 5 6
Highly energized leadership team
MVP I• Move fast• Use available
tech• 6 unit
deployment
Oil & GasMultiphase Flowmeter … an evolution
“Working with GE on the MPFM has been one of the finest experiences in my career. Up until now no other partner has been so transparent. A class R&D team with great technology and great people that get things done.”
Manny GonzalezR&D Alliance Manager
Chevron
MVP III• Near 3 Phase• Doppler/Microwave• 400 unit deployment
MVP II• Make it work• 2 Phase+• 50 unit deployment
© 2015 General Electric Company - All rights reserved
Power & WaterHeavy Duty Gas Turbine
2012 2019
Develop next generation heavy duty GT with high efficiency and low $/KW
Results2012 2013 20172014 2015 2016
Product 1
Product2
Original plan
Product 4
Product3
Faster and lower risk approach to drive GE competitivenessStep 1: Pivoted existing GTs to achieve +10% output using minor engineering change Commitments from 2 customersStep 2: Position GE in Hi efficiency space NOW +22% output with additional engineering changes
2.5 years of savings
Quick pivotsLong NPI Cycle of 7 years to develop new architecture Gas Turbine
4 new GTs established in next 4 years 10
© 2015 General Electric Company - All rights reserved
India Healthcare
11
Results• Selling in weeks … 4
orders in-hand• Fast cycle … new
product version in < 6 months
Super value interventional product C-Arm
Developed list of 31 leaps of faith assumptions
11 MVPs
MVP approachBuild lab mockup in three weeks … engaged customersCustomer value drivers -
Faster spin More detailed image
More power
Initiated as a FastWorks project
© 2015 General Electric Company - All rights reserved
Industrial solutionsMolded cased circuit breaker
Validate assumptions fast and at low cost• NPI acceleration lab• Faster, better designs through modeling• Simpler, manufacturable designs
Previous New
20 parts 6 parts
6064
30
CompetitorB FastWorks
CompetitorA
Breaker NPI cycles (months)60
Pre-Fastworks
7 MVPs and over 20 customer sessions
Modeling
Simpler design
12
© 2015 General Electric Company - All rights reserved
Advanced X Ray Detector
2014 2019Develop new cheaper & more versatile X Ray Detector
Results2014 2015 20192016 2017 2018
App 1
App2
Original plan
Application 1: Re-engineered existing product solves significant customer problems Customers save $1MM/day; ready to order on a dummy prototype
Application 2: Cheap and rugged, not versatile Pursue new material but pivot to correct market needs 2 years of savings
Quick pivotsLong NPI Cycle of 5 years to develop new material for detectorFocus on significant customer problem
Early revenue, faster learning
© 2015 General Electric Company - All rights reserved
Horizontal productSilicon Carbide Power Semiconductor
Silicon Carbide Wafer
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Silicon Carbide
Internal Startup
GE Store FastWorksBrand R&D Function
Novel solution for supply chain... ConsortiumFocus on early adopter market… Solar
Integrated product critical for tech insertion
First MW product imminent Revolutionize power electronics
© 2014 General Electric Company - All rights reserved15
Scaling “lean startup” across GE
© 2015 General Electric Company - All rights reserved
NPI teams racing to adopt FastWorks
Trained business leaders and their teams
Trained ~150 coaches 100s of FastWorks
project Growth Boards
Secure funding, not more money Programs justified and ready to
execute Cross-functional alignment Resources … dedicated, pace
hiring Culture … accepting risk ... less
churn
FastWorks … 5 thoughts to go faster
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