The hottest Ge from reverse to independent innovat

Ge: innovation from "reverse" to "independent"

after the inspection tour in India, mark, the global senior vice president of Ge R & D center and head of R & D center, came to the headquarters of China R & D center in Zhangjiang, Shanghai without stopping. When the R & D center was to be settled in Zhangjiang in 2003, it was still a barren farmland with chicken feathers everywhere. In nearly a decade, a foundation has been formed here. When adopting such methods, we need to pay attention to the impact of the inertia of moving objects on experiments. A solid R & D center has become a test field for GE to implement reverse innovation in China

mark comes to China twice a year. He makes no secret of his praise for the Chinese R & D center. GE's growth in the Chinese market is very rapid. Last year, more than $5billion of revenue came from the Chinese market. Our chairman Immelt once mentioned that for GE, innovation first, the China innovation center can gather excellent talents for us to help us understand the needs of customers and local markets, Develop innovation and promote it to areas outside the Chinese market

the reverse innovation proposed by GE chairman Immelt is used for reference by more and more business models in emerging markets. This theory comes from GE's in-depth observation of the Chinese and Indian markets

it just runs counter to the global localization model adopted by manufacturers in developed countries with a net income of 826million euros. The so-called global localization is to develop excellent products in the country, and then make some changes according to the situation of local markets to promote them to the market. Immelt mentioned in his article

this is similar to the development track of Ge China R & D center. At the beginning of planning in 2000, the R & D center did not highlight its decisive innovative role today, but did auxiliary work for business departments. At that time, it was more important for technology transfer and technology outsourcing, as well as support for production and procurement in China. Said Chen Xiangli, President of China R & D center

but in the past three to five years, this situation has reversed. Chen Xiangli explained it as the accumulation of the Chinese market, GE's understanding of the Chinese market has become increasingly profound, including the R & D team, product managers and supply chain are ready for innovation. With the gradual rise of local innovation demand, China's R & D center has jumped to the core department

the most typical example of reverse innovation comes from the case of ultrasonic instruments developed for the Chinese market, which is an unintentional coincidence

in the 1990s, the ultrasonic equipment provided by GE for China was developed in the American and Japanese markets. This kind of equipment is expensive. In 2002, the price of each equipment was more than 100000 US dollars, so the sales volume in the Chinese market is poor. In 2002, the Chinese local team developed a low-cost and portable device, which reduced the price to $30000 to $40000 at one stroke. In 2007, the team launched another model with a much lower price in China, reducing the price to 15000 US dollars. Since then, the sales of ultrasonic instruments have soared, and have been favored by rural hospitals and community hospitals. To GE's surprise, this product, although its performance is lower than that of traditional ultrasonic instruments, has also grown rapidly in the market of developed countries, mostly due to its size and portability

this is the beginning of the reverse innovation of China's R & D center focusing on automation technology, robots, smart homes and innovative enterprises, and it also better expounds this theory. GE's development of new innovative products can not only take the lead in seizing emerging markets over local competitors, but more importantly, the innovation in these markets can be transmitted to the markets of the United States, Europe and other countries.

what China's R & D center is doing also includes superconducting magnets for magnetic resonance. If they are invested in the market within two to three years, the cost can be reduced by about half. The electrochemical technology being developed can be used for seawater desalination and industrial wastewater treatment, and the cost of desalination will be reduced by half after it is put into use; As China is a big coal country, China's R & D center has developed clean coal technology. Using coal gasification can improve the energy utilization rate of coal and reduce the burden on the environment

Chen Xiangli, President of China R & D center, believes that the market has promoted GE's innovation in China. The Chinese market has a great demand for new products and technologies. Our main business is in B2B fields such as infrastructure and medical equipment, and the market demand is indispensable. In contrast, the Indian market, although the R & D center is earlier than China, India's caution in the field of infrastructure has slowed its growth

ge's main businesses in China focus on medical treatment, renewable energy, wind energy and water treatment, which have caught up with the great development of community hospitals and grass-roots hospitals, and the government's increasing emphasis on sustainable development

China's R & D center has created an effective innovation strategy. Ge headquarters allocates a sum of special R & D funds in China every year. The senior management of Ge can decide the investment of this fund independently. GE's R & D is market driven, and the decision is placed in China. Skipping the cumbersome headquarters process, products can also get rapid feedback. Therefore, the development cycle of products to trial production is also shortened by more than half

the masterpiece of China R & D center is a non-destructive flaw detector serving the railway department. This device is used to detect whether there are cracks in the railway track. In China, the R & D center spent nine months developing a portable non-destructive flaw detector, with a total weight of one kilogram. The original plan was for the Chinese market, but after the launch of the product, it was highly praised in the European and American markets

the investment of R & D funds requires Ge to have an investor's precise vision. This fund was US $15million for the first time in 2008, US $30million for two consecutive years in 2009 and 2010, and increased to US $40million this year. The China R & D center makes a three-year growth roadmap every year, analyzes which products and special technologies should be launched in the next three years, and plans the product R & D path. Previously, such planning was carried out by the headquarters. Since China had the independent right of research and development, the project decision-making was also carried out by the Chinese branch

ge currently has R & D centers in the United States, Germany, India and China. When selecting microcomputer controlled pressure testing machines at the beginning of its establishment, it can refer to the above standards for considering equipment quality to determine different R & D centers. China R & D center has strong R & D capabilities in new materials, film and ceramic related technologies, power electronics technology, chemical and electrochemical technology, rapid prototyping and precision processing, and coal gasification technology. At the beginning of the establishment of the R & D center, there were fiveorsix projects that hoped to become a world-class center in about five years. Now it has basically reached the original plan. Chen Xiangli regards the R & D center as the innovation engine of Ge. Almost all businesses in the Chinese market come from the innovation of the R & D center. In 2000, Ge sold less than $800million in China, compared with more than $5billion last year. The annual business growth is two to three times that of GDP. Ten years ago, all products sold to China were imported products. Now, nearly 30% of products come from domestic independent research and development, including aircraft engines, gas turbines and other large equipment. Ge China hopes that this ratio can reach 50% in two to three years

in order to enhance the interaction with customers, the R & D center chose Chengdu, Xi'an and Shenyang to set up innovation centers this year, which is different from the traditional operation mode of the R & D center. It hopes to make a breakthrough in the innovation mode and cooperate with customers to find more innovation possibilities. In Ge, 10% of the revenue of the business department will be invested in the R & D center, accounting for 60% of the investment in the R & D center. These maintenance make the interaction between the R & D and business department more close. Ge is the largest integrated business company, and we have many cross-border technologies to provide services to customers. For example, aircraft engines can be combined with energy emission reduction technologies to provide wind, solar energy, clean coal and energy-saving lighting products for low-carbon communities, and so on. We have leading technology and hope to cooperate with other companies. Chen Xiangli said that in the past, GE's innovation was based on itself, but innovation cannot be done alone. Working with the strong can give better play to its advantages

successful cases of reverse innovation from emerging markets such as China have prompted Ge to look for opportunities in more countries. Mark said that GM will establish R & D centers in Brazil and actively seek business opportunities in Russia. The BRICs countries will become an increasingly important market for GE