The American conglomerate General Electric saw a huge potential in the new market for environmental goods and services and changed the firm’s business focus toward “green” solutions. In addition, they evaluated their own production, and realised that they could change their own company into a greener one by reducing the amount of CO2 emissions.

General Electric started to look at the issues their customers would be facing in the coming years and realised that green technology would be important in meeting the challenges of the future. In 2006, General Electric unveiled a new strategy that would drive the company’s future growth and development on the back of green technologies.

General Electric spent 18 months speaking to leaders from various industries which they supplied. General Electric invited them to take part in a two-day session where the business leaders were asked to imagine life in 2015 and the products and services they would need.

The results from the sessions indicated that the business leaders foresaw rising fuel costs, insecurity in energy supplies, and growing consumer expectations for green technologies. These issues were all seen to hold a large market potential for General Electric.

General Electric created a new strategy aimed at addressing the key concerns indicated by the business leaders at the session. Ecomagination was presented in January 2006 with 4 key points:

1. Double investments in clean R&D
2. Increase revenues based on green products
3. Reduce greenhouse gas emission and improve energy efficiency of General Electric’s operations
4. Keep the public informed about the new strategy

A range of new products and services were developed for the airline industry, lighting, power utility and home appliances where the main focus is to reduce emissions and energy consumption, whilst reducing costs.

Since its launch, Ecomagination has lead to a $17 billion business in new and re-formulated products. Today, General Electric has 70 certified products, four times the size of its 2005 portfolio.

Source: ReD Associates

For more details on this case, contact FORA at FORA@newnatureofinnovation.org.