Innovative Organisations Case Study Example | Topics and Well Written Essays - 2000 words

Innovative Organisations - Case Study Example In this paper, the author presents the characteristics of innovations of General Electric (GE). The presentation includes history of GE, innovation characteristics of GE, the most innovative service of GE and the perspective of how the author can contribute to the innovations of GE. Thomas Edison established the Edison General Electric Company in 1890. The series of innovations in GE started from the founder himself who invented one of the greatest products of this age - the electric lamp. In 1892, the Edison General Electric Company merged with their competition Thomson-Houston Company amidst common interests to for the "General Electric Company". The GE Global research still honours the heritage, legacy & dignity of Edison in their R&D activities (http://www.ge.com/company/history/edison.html). In the modern business world, GE has a wide range of products in the fields of lighting, electrical distribution, renewable energy, aviation, healthcare, business & consumer finance, Oil & Gas, water treatment & processing, railroads, media & entertainment and security (http://www.ge.com/products_services/index.html). In the area of process innovations, GE is one of the first companies of the world to implement Six Sigma successfully. Goldstein, Mark (2001. pp37, 39) a Six Sigma consultant comments that the foundations of this best practice that was implemented in GE Appliances in 1995 (and later on rolled out to the rest of GE Company by year 2000 as per the target set by Jack Welch) is yet to be seen in any other organization. GE proved that best practices cannot be adopted for the name sake rather the fundamental commitment to them by virtue of the foundations of innovative culture makes the difference. GE thrilled the entire world by demonstrating the level of value addition that they could achieve to their top line and bottom line - that means increased revenues at reduced costs. It is the sound fundamentals of innovative business processes of GE that has ensured them to be in profit even in these tough times. At the end of financial year 2008, GE has built an overall market cap of $105 bill ion with Price/Earnings ratio at 5.60, Price/Sales ratio at 0.58, Price/Book ratio at 1.0 and Price/Cash Flow ratio of 3.6. The return on equity achievement was 16.60, return on assets was 2.20 and Return on investment as 4.0. Except Price per book that is evaluated in most recent quarter, all other figures published are trailing twelve months (http://money.cnn.com/quote/snapshot/snapshot.htmlsymb=GE). The net income of GE in 2005, 2006, 2007 & 2008 is $16.72 Billion, $20.742 Billion, $22.20 Billion and $17.41 Billion respectively (http://money.cnn.com/quote/financials/financials.htmlsymb=GE&sid=2148&report=2& period=1). The company presented impressive financial performance in the markets amidst global financial turmoil. The strength of GE has been built as a result of their remarkable contribution to the mankind that has changed the lives of people and the global economies as whole. GE has a major financial services business that is going to pose trouble to the overall organization given the turbulent times in the current scenario and the questions