Technology Transfer at General Electric Inc

1-Detail study of a company or a business ( from the list discussed in the class) and
critically discuss their past and present and future global position/market and changes.

Technology transfer

Technology transfer is movement of technical knowledge within or between organizations and

countries. Technology transfer is the commercialization of knowledge, skills, technologies, and
abilities whereby technology present in laboratories is made commercially viable. Transferred
knowledge can take various forms like technical documents, design, people and services, various
types of training, codified in blueprints, embodied in goods, and physical goods.

Company Introduction

General Electric (GE) is engaged in diversified range of products and services including
financial and technology based products and services. Its products range includes industrial
products, consumer and business financing, medical imaging, security technology, water
processing, power generation, aircraft engine. It has operations in more than 100 countries. GE
operates through its five business segments namely home and business solutions, NBC universal,
technology infrastructure, and GE capital. Capital segment offers financial services including
personal loans, credit cards, home loans, financial programs, fleet management, and leasing.
Technology infrastructure business segment includes technology development for developing
countries, transportation and health care, aviation, jet engines, turbo shaft engines, and
commercial aircraft.

GE is leading organization in the world that owns most diversified product portfolio and it has
balanced revenue streams. It means that GE has well qualified team to manage its diversified
business segments. It broadens its product and customer base to balance out economic
fluctuations caused by economic recession or market failures. GE has ensured its strong presence
in growing world markets including India, China, Latin America, Russia, Australia, Canada,
Africa, and Middle East. GE has strong potential in such markets that are heavily investing in
infrastructural developments. GE accelerates localization by leveraging talent to minimize costs.

Technology Transfer at GE

GE makes joint venture with Chinese state owned corporation named as Aviation Industry to
transfer its technology in developing avionics operating system. Joint venture contains 50-50 for
both firms whereas business will be situated at Shanghai. It seems that GE will cease or transfer
more than its business and workforce from Florida, Britain and Michigan. GE would enable
Aviation industry to compete with Boeing and Airbus in passenger aircraft industry. Joint
venture will market and sell avionics globally. Aviation Corporation is bound not to share any
information with military business. There is condition that if information is leaked to military
then joint venture would be shut down. US government officials are concerned with the issue
that country information and resources are going abroad in the form of technology transfer
arising out of joint venture between GE and Aviation Corporation China. It would also
undermine the competitiveness of Airbus and Boeing.

2-Identification of the challenge/solution

Challenges

 GE is facing severe response from US workforce, government, and media due to

transformation of technology and resources to abroad that goes against the country’s
interests. Company should impart its social responsibility by adding jobs in US market
and relocating existing staff in Chinese market.
 GE is operating in more than 100 countries and still continues to broaden geographical
expansion in developing world that is creating economic and political challenges.
International operations of GE are under strong threat due to recession, inflation, and
local economic environment. Company needs effective and continuous changing risk
management framework by channelizing its global enterprise risk management system.
 Company is experiencing IT security threats due to increasing cyber crimes that include
risk to integrity, availability, and confidentiality of data. Company needs to keep backup
maintenance, protective systems, comprehensive monitoring, employee training, and
other threat encountering tools.

3-Identification of suitable forum to prepare implementation

GE is making developing markets as platform to nurture its technological infrastructure
including Malaysia and China. Operational cost in developing countries is much lower than US
and European countries. Reverse innovation is term that implies that to conduct new product
development in developing world and then introduce it in developed market that reduces
marketing and development cost of product. GE can use reverse innovation for its technologies
like technology development in China or Malaysia and then marketing the product in USA. GE
reverse innovation strategy would act as double sword in terms of market penetration and
product feasibility in developed economies.

On the other side, Glocalization is adoption of local trends like cultural norms while
implementing global strategy. GE can use glocalization strategy to promote its technology
transformation and expansion.
4-Implementation
GE needs to develop further versions of avionics operating system in China and may market it in
US and developed markets with the concept of reverse innovation. However, by glocalization
GE would produce avionics operating system in China and would distribute in world market with
the adoption of local market needs and trends.

GE needs to manage conflicts of glocalization and reverse innovation. GE needs to balance out
both strategies in its overall strategic direction. By glocalization, GE can manufacture its product
at one profit center and distributing it in world market with the adoption of local trends in
product. Glocalization concept depicts shifting of resources from developed markets to
developing world.

References

Immelt, J.R., Govindarajan, V. & Trimble, C., 2009. How GE Is Disrupting Itself. Harvard
Business Review, 1 October. pp.10-12.

http://online.wsj.com/article/SB10001424052970204226204576601211373125234.html

http://www.genewscenter.com/Press-Releases/GE-in-Technology-Transfer-Agreement-with-
TNB-REMACO-3d23.aspx

http://waccglobal.org/en/20062-communicating-with-angels-being-digital-being-human/585--
What-is-technology-transfer.html