Research paper

Aukeshov Zhandos
Management 3A

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 Info about GE
• GE traces its beginnings to Thomas A.
Edison, who established Edison Electric
Light Company in 1878. In 1892, a merger
of Edison General Electric Company and
Thomson-Houston Electric Company
created General Electric Company.

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 • The company describes itself as composed of a
number of primary business units or
"businesses." Each "business" is itself a vast
enterprise, many of which would, even as a
standalone company, rank in the Fortune 500.
The list of GE businesses varies over time as
the result of acquisitions, divestitures and
reorganizations.

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 • GE's divisions include:
• Appliances - Finance – Business
• Finance – Consumer - Aviation
• Consumer Electronics - Energy
• Electrical Distribution - Oil & Gas
• Rail - Healthcare
• Security - Lighting
• Media & Entertainment - Water

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 The main important innovations of GE
• 1879 Light Bulb
• 1927 Home Television Reception
• 1941 America’s first Jet Engine
• 1960 Discoverer XIII
• 1976 Breakthrough CT
• 1992 Mars observer
• 1998 F414 Jet Engine
• 2000 Innova Digital X-ray
• 2003 3.6 MW Wind Turbine
• 2003 H Turbine
• 2004 Light speed VCT

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 DIGITAL X-RAY
EQUIPMENT

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 GE Healthcare's broad range of products and services
enable healthcare providers to better diagnose and
treat cancer, heart disease, neurological diseases and
other conditions earlier. Headquartered in the United
Kingdom, GE Healthcare is a $17 billion unit of
General Electric Company. Worldwide, GE Healthcare
employs more than 46,000 people committed to
serving healthcare professionals and their patients in
more than 100 countries.

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 Information about innovated product
- The GE Innova® 4100, a new all-digital imaging system that can enable
minimally invasive techniques in lieu of major surgery to diagnose and
treat patients. It is the world's first large-format digital flat panel X-ray
system for angiographic imaging and features GE's patented
Revolution™ digital flat panel detector, creating extremely detailed, real-
time images to guide physicians during cardiovascular and peripheral
vascular procedures. In simple words x-ray signals are converted into
digital image to display of computer while in past it was captured on the
paper. The new technology allows saving image in computer and sharing
it electronically. The patient doesn’t need to hold the film with him. He
can hold the film in electronic version in his flash card. By this the film
won’t be damaged and it is easier to see clearly in computer display. The
Innova® 2000 also provides efficiency because it doesn’t use water,
phosphor and and other needed substances by old equipments. Also it
saves the doctors time. The image appears immediately appears on the
screen of equipment while in old equipments you need to wait for the
manifestation of the film.

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 Benefits of digital technology to all x-ray
systems:
- less x-ray dose can often be used to achieve the same high
quality picture as with film
- digital x-ray images can be enhanced and manipulated with
computers
- digital images can be sent via network to other workstations
and computer monitors so that many people can share the
information and assist in the diagnosis
- digital images can be archived onto compact optical disk or
digital tape drives saving tremendously on storage space and
manpower needed for a traditional x-ray film library
- digital images can be retrieved from an archive at any point in
the future for reference.

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 History of innovation
• 1896: The General Electric Company’s Elihu Thomson builds
electrical equipment for the production of X-rays and demonstrates the
use of stereoscopic “roentgen” pictures for diagnosing bone fractures
and locating foreign objects in the body. A year earlier Wilhelm
Conrad Roentgen introduced his discovery of X-rays to the world.
• · 1913: GE develops the hot cathode, high vacuum X-ray tube. By
replacing the cold aluminum cathode with the hot tungsten filament in
a high vacuum, the company provides tubes with better control and
greater output than had ever been achieved. The development greatly
facilitates the use of X-rays for medical diagnosis and treatment.
· 1920: GE develops an oil-immersed X-ray tube and transformer
assembly, weighing only 20 pounds and suitable for dental and portable
X-ray use.

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 · GE revolutionized the global X-ray market by
introducing the first digital X-ray in 1999. GE invested
over US$500 million in developing its proprietary flat
panel digital X-ray technology and the company has
been granted more than 100 US patents.

- GE Medical spent 13 years and more than $150

million developing the technology in the GE Innova
2000.
- More than 100 U.S. patents have been granted.
- This new technology was tested at Mayo Clinic,
Rochester, Minn. and Jacques Cartier Institute, France.

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 Source of innovation
The source of invention of digital X-ray product
was company’s own scientists working in the one
of the laboratories of GE Healthcare. The GE
Healthcare is division engaged in medicine
industry and it has many scientists working in
laboratories. So by this information we can state
that the source of innovation comes from
company’s internal value chain.

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 Type of innovation
The type of innovation is incremental because the old X-
ray equipments are still used and GE just modified the
innovation which was invented in the early 20th century.
The innovation is radical in economic sense but radical in
technological sense. It is incremental in economical sense
because the old x-ray equipments are still used in
hospitals. But it is radical in technological sense due to its
connection with new technology as computer. Because to
connect the x-ray to computer display in other words to
show the x-ray in display required lots of investments and
efforts, new technological knowledge. The invention of
digital x-ray was very complex and also very complicated.

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 Innovation strategy of GE
GE pursued in this innovation offensive strategy because it was first
to introduce digital X-Ray equipments. Actually GE always wants to
be first in every development of innovation in different product
category. Sometimes the company uses the defensive strategy and
modifies the innovation that developed in past. But in the case of
digital x-ray company was first to introduce the product. GE has
strong R&D and budget. It invests a lot in R&D for making innovation
and benefiting first before others. The reasons of why GE frequently
make innovations are:
- It has production and complementary assets, strong R&D
laboratories, qualified labor
- GE has the size to exploit economies of scale and more diversified.
- GE has huge budget, access to capital

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 Profit Protection
GE Company protects its profits both by making difficult to
imitate and by getting patents. GE strongly pay attention to
the protection of its profits and when innovation occurs
company immediately get patent for its invention. It means
company strongly protects innovations legally. Up to this
time GE has more than 70000 patents for its innovations
and just 100 patents were get for digital x-ray
developments. Because company made many innovated
equipments using digital x-ray innovation. Sometimes
company make alliance with some companies to make
innovation together. For example it launches battery
category with “A123” company.

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 Competitive Analysis
- The company has chosen the
manufacturer side for the making
profit. It invented the product and now
it manufactures and sells new digital
x-ray equipments itself worldwide.

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 Environment
GE had good environment and still has good conditions for
making innovations. Company’s R&D laboratories are located in
India, Germany, China and USA. In this countries infrastructure
is well developed and have good favorable regulations,
knowledge, skilled labor. GE especially work closely with
universities. Because universities sometimes become good
source of innovations. GE make tests in universities and work
with research centers of universities in USA. The environment of
GE is very suitable. It has alliance with many companies like
Chrysler, it supplies with new jet engines Boeing and Airbus and
so on. The related industries also influence the company
because it makes innovations almost in all category of products.

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 Co-opetitors
The co-opetitors may become alliance
companies with which it works together. Also
the customers that purchase from them can
benefit from innovation. Some companies from
related industries using GE innovations in other
fields. For example Samsung used digital x-ray
detector in manufacturing new televisions.

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 Major competitors of GE
Healthcare are
Siemens Medical Solutions,
Agfa, Philips, and Toshiba.

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 Innovation characteristics
• The innovation was Heavy on Up-front
knowledge based know how costs low
High High
network customer
externaliti lock in
es

Positive feedback Huge demand

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 Conclusion
The company’s digital x-ray detectors now is
used and exists in the market. It started to
increase in turnover. Customers from many
countries buying this product and it has huge
demand. It has positive feedback because the
more hospitals and organizations are using the
more popular it is becoming. The demand for this
product is very huge. But company not standing
on one place it is still developing every time new
models.

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