a major shift for a company who “electrified” the US market and economy for so many years.GE is an innovation leader and one that is committed to creating a better world. Even its prolific founder Edison once noted, “I never perfected an invention that I did not think about in terms of the service it might give others”, a powerful idea that now transcends the heart of GE’s corporate philosophy and global competitive strategy. In 2006 GE spent more than $3.6 billion on research and development at four strategically located innovation centers around the world: its global innovation headquarters in Niskayuna, NY and three other centers located in India, Germany and China.
I recently met Nabil Habayeb, GE President and CEO Middle East and Africa, at Rochester Institute of Technology where he provided a presentation on “The Role of Technology in Emerging Markets”. Hearing Mr. Habayeb speak to students, faculty and researchers about how GE is developing and deploying technology to “solve world problems” was enlightening and full of promise, particularly in a week that has been charaterized by drought, rising oil prices and continued political instability in many regions of the world.
Mr. Habayeb spoke about the need for a balanced approach to solving world challenges in energy, healthcare, water desalinization, and use of more sustainable materials. Mr.
Habayeb noted that there is a need to be “working toward equilibrium” and that GE, through its Ecomagination focus, is growing a global company that believes financial and environmental performance goes hand in hand. GE’s Ecomagination strategy is delivering ecologically sound products and services for water, transportation, lighting, residential and commercial buildings, energy generation and finance. Mr. Habayeb noted that GE’s balanced approach focuses on people, process and product. He stated that GE invests in its people through education and training, invests in better and more efficient processes and the net result he adds, is better products.Through Ecomagination, GE is providing the growing world a portfolio of affordable, reliable and environmentally responsible technologies that reduce emissions, save money and conserve natural resources. Mr. Habayeb referenced GE’s growing Ecomagination portfolio as a critical element of their financial and market future as it is “technology that differentiates you from your competitors”,…in an increasingly cost competitive world. Perhaps it is this focus on competitive differentiation (through people, process and product innovation) that has led GE to be the only company listed in the Dow Jones Industrial Index today that was also listed in the original index in 1896.
Mr. Habayeb also spoke about emerging growth markets for Ecomagination products and services in the Middle East and Africa. He noted that GE’s Ecomagination focus is, in part, delivering products that provide the services people need in these regions, be them clean energy production, clean water, advanced materials, new healthcare options or supporting infrastructure that offers the people of the region the promise of a better future, both socially and economically. Mr. Habayeb mentioned that more than $1 trillion in new investment will be spent to upgrade, expand and develop the energy sector of the Middle East by 2030. With more than 50% of the world’s oil reserves in the Middle East and Africa, GE’s infrastructure development and Ecomagination initiatives stand to offer the region a complement of technology opportunities for developing its energy sector more sustainably. Additionally, GE’s diversification and leadershipo in numerous market sectors (e.g., consumer electronics, power, water, healthcare, transportation, infrastructure, entertainment and tourism) positions the firm as the “go-to” development partner for the Middle East and Africa region.
For example, Mr. Habayeb referenced that in the emirate of Dubai, one of the seven emirates that comprise the United Arab Emirates (UAE), there
is a growing desire to utilize best available technologies that offer social response solutions to the regions’ energy, healthcare, education and living needs. He says many Middle Eastern nations are carefully watching Dubai’s development (and subsequently GE’s role as a partner) as they look to it as a potential model for their own growth.At the heart of the GE equation for addressing social response services in this new century is its people. GE employees volunteer in excess of one million hours per year in their communities. GE’s corporate responsibility and business actions are based on a set of values that relate people to excellence and high standards. For example, GE seeks out employees that are passionate/curious, resourceful/accountable, team oriented/committed, and open/energized. These values shape the foundation of integrity and are the credo by which employees of GE work and live by.
It is clear that their values for integrity and excellence filter from its leadership throughout the organization. Mr. Habayeb referenced GE Chairman and CEO Jeff Immelt who says, “In order to be a great company, you need to be a good company.”
And GE is a great company. By serving emerging markets in the Middle East and Africa, GE is positioned for strong growth as they seek to deploy state-of-the-art technology to improve the social and economic aspects of life while building infrastructure in those regions. We look forward to watching how GE continues to differentiate itself from its competitors using the social response product development strategy outlined in Bruce Piasecki’s book World Inc.
With a simple formula for sustainable growth that reads Better People + Better Process = Better Products, a focus on emerging markets and servicing global needs, a commitment to people and process, and a strong leadership (like Mr. Habayeb) that is rooted in innovation and integrity, we look forward to seeing GE on the Dow Jones Industrial Average for another century.
Let us know your thoughts on GE’s Ecomagination and Emerging Markets strategies.
Mark C. Coleman
Senior Associate & World Inc. Case Leader, AHC Group, Inc.
Mark@ahcgroup.com
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