GE Healthcare's Innovation and Entrepreneurship Business Model

This report provides an analysis of GE Healthcare Limited's innovation and entrepreneurship strategies, focusing on its 'healthymagination' vision and its impact on the company's business model. The analysis utilizes Afuah's business model framework to assess GE Healthcare's existing business model, identifying key drivers such as the increasing prevalence of mental diseases and unmet market demand for early detection technologies. The report proposes the introduction of a low-cost, innovative brain monitoring device (pocket-size EEG) to enhance the company's product portfolio and address the identified market needs. It further examines the competitive landscape, market potential, and the VARIM framework to evaluate the feasibility and sustainability of the proposed innovation, highlighting the importance of customer loyalty, cost structure, and competitive advantage. The report concludes by emphasizing the potential for GE Healthcare to capitalize on the growing market for brain monitoring devices through strategic innovation and effective business model adaptation.

Running head: INNOVATION AND ENTREPRENEURSHIP
Innovation and Entrepreneurship
Name of the Student
Name of the University
Author note

2INNOVATION AND ENTREPRENEURSHIP
Introduction
GE Healthcare Limited is a subsidiary of the General Electric Company and is based in
Chalfont St Giles, United Kingdom with an additional office in Marlborough,
Massachusetts and operates as a subsidiary of General Electric Company (Brown 1998).
The company has a "healthymagination" vision for the future invites the world to join
its journey as they continuously develop innovations focused on reducing costs,
increasing access and improving quality around the world. Based on this vision, the
company provides clients, patients and healthcare professionals with transformational
medical services and technologies across the globe with main areas of specialization by
this company falls under four major categories as: medical imaging, medical diagnosis,
information technologies, and life sciences see figure 1. The leaders of the market strive
for global change in the market. It has managed to make a successful shift in adopting a
sustainable healthcare in the business market (Chesbrough 2006). The existence of the
‘healthimagination vision’ of the care centre provides an opportunity to the world to
embark on a journey of innovation.
Existing Business Model Analysis
To analyze the existing business model of the GE healthcare, Afuah (2014) BM framework
focuses of five main components will be used based on the product portfolio as mentioned in
figure 1. To critically analyze this BM model, it is very important to have a clear overview of
the company’s existing business model portrait and it is drawn in figure 2. And from this
analysis, the key drivers, opportunities, industry-specific challenges, and other critical issue
are identified through the macro external environment see appendix 1.
The key drivers are the highest death number due to mental disease
(Alzheimer’s and dementia) in the UK(National Statistics 2017), and unmet
market demand through increase number of neurological patients’ needs

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early detection of the mental diseases through brain diagnosis/monitoring
devices. According the Alzheimer’s society reports 850,000 individuals are
living with dementia in UK and this is estimated to increase to one million
by 2025(Nelson 1993). Diagnosis rates in high income countries are below
half, falling to 10-20% in lower-middle income countries, where awareness
is even lower (Nonaka and Takeuchi 1995). As stated in the World Alzheimer’s
Report (2015), achieving acceptable levels of coverage and access to care
is the challenge currently being faced. Early diagnosis is the key. This
gives the GE healthcare an opportunity to enter the new market of
customers through new innovation product, with the challenge of quality,
reliability and low cost. Another critical identified is the adaptability by the
new market. This analysis propels introduction of a low-cost innovative
brain monitoring/diagnostic device new product will be incorporated into
the performance of this organization thereby generating value to this
organization. Based on this analysis, this report focuses on existing
products portfolio of GE Healthcare Diagnostic Imaging used for brain
monitoring/diagnosing purpose are includes; Computed Tomography (CT),
Magnetic Resonance (MR) and Molecular Imaging technologies. Using the
Afuah (2014) business model (BM) framework, the existing business
model is analysed.
The industry ecosystem’s components are competitors, suppliers,
customers, complementors, substitutes, and other institutions, which GE
healthcare has to cooperate, are analysed.
Market share of GE healthcare
The competitor of GE health care includes Hitachi Medical Corporation, Philips
health care, Siemens health care and Toshiba medical systems (Nonaka and Teece 2001).
Apart from this top competitor in developing brain, devices include Nihon Kohden, Agilent
Technologies, Illumina, Thermo Fisher and Quintiles.
Industry Market share
Compact ultra sound industry 43%
Healthcare solutions 40%
Information Systems Market 13%

4INNOVATION AND ENTREPRENEURSHIP
Ultrasound market 27%
Table: Market share of GE in different industries
43%
20%
16%
21%
GE
Philips healthcare
Siemens healthcare
Toshiba medical
Figure: General market share of GE and other competitors
Top five companies for brain
monitoring/diagnosis devices
Market share
Nihon Kohden 30%
Agilent Technologies 18%
Illumina 20%
Thermo Fisher 15%
Quintiles 17%
30%
18%
20%
15%
17%
Nihon Kohden
Agilent Technologies
Illumina
Thermo Fisher
Quintiles

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Figure: Brain device competitors of GE
The number of customers counts when assessing the profitability potential of a business
model. – please use not and create your own figure.
Innovatory product
Based on the BM analysis,a pocket size EEG can introduced in the current market in the
current product portfolio as shown in figure x. This new product will have the features as
listed in table 1, and is developed on the basis of figure x. This will improve the medical
health benefit by reducing the neurodiagnostic procedures through its low-price.
DeepandbroadhealthcareportfolioDiagnosticequipmentDiagnosticimagingCATScanPortableClinicalproductsPocket-sizeClinicalusage/tobeusedbymedicalprofessionalsVscanfamily(ultrasound)PortableelectroenchephlographInformationtechnologyLifescienceMedicaldiagnosticCBC

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Figure : new product portfolio with the introduction of the new innovation product
Image 1 Source: HE Reports
(Keller, 2015)
Table 1: Pocket-size EEG, products feature and benefit.
The product can be carried around easily
without effort
It helps in measuring the neural activities of
the brain
The product can help in analysing the
thoughts inside the head of a person
The price of the products are pocket friendly
It can help in strengthening the mind It is a wireless device and thus can be used
any time
In the modern day, the brain waves can be
monitored with the help of mobile phones
It helps in relaxing the mind from any type
of stress

M:
1. Return on sales
2. Correct pricing
3. Importance of complimentary assets
4. Desperate customers
Value: 1.Loyalty of the customers
2. Compensation
3 Quality of resources
4. Reputation
I: 1. Competitors holding ability to imitate
2. Resources of the centre cannot be imitated
3. Activities of the centre cannot be imitated
4. Rare quality services
: 1: Number of companies with substitutes
2. Benefits provided to the customers
3. Pocket friendly price
4. Cost structure
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b. New business model
This new innovatory product will make some changes in the existing business model of GE
healthcare as mentioned in the figure below.
Marketsegment..1.Targetpeoplethathavedisfunctionsinthebrain2.Entreingintothemarketthatdeliverssmallsieandlowcostoftheproducts3.TheusersoftheproductsneedtoremiancomfortablewiththeproductstheywearCapabilities1.Pocket-sizetechnology2.BrandingandsupportfromtheITdepartment3.Theresearchanddevelopmentofdigitalsolutionandthemanagementofinformationbasedoncloudmonitoring4.Theresourcesandtalentmanagementabilityofthecompanycanbedeterminedwiththesuccessoftheproduct.

A: 1. New products in the market
2. Revenue generated from the products
3. Flexibility of the products
4. Valuable capabilities
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The VARIM framework denotes that capabilities that goes on in a business model. It
denotes whether the business model offers benefits or challenges to the customers. The five
components of the model play a major role in identifying the manner in which a business
model can be applied it in the market. The VARIM framework helps in analysing the market
competitors and the capabilities that are held by the company (Burns and Stalker 1994). In
the case of GE health care, the company can apply the VARIM framework to analyse the
manner in which it can continue to give productivity in the health care sectors. For example,
loyalty of the customers can be determined by the return it receives from the sale of the
product and the value it holds in the market (Chesbrough 2003). GE needs to determine
whether the activities of the centre can be imitated by the competitors by developing a proper
cost structure that can help in implementing the necessary changes for secrecy in the
company.
Market Potential
The global brain monitoring devices market to grow at a CAGR of 8.72% during the period
2017-2021 (Christensen 1997).
The market potential for the product includes the manner in which the younger
generation adopts the latest technology. The easy to wear headgear can be considered as a
manner in which the young people can be targeted so that stress can be reduced. The
reduction of stress is one of the most important aspects that need to be considered by the
makers of the EEG device.
Buy
process
The process of buying the device includes analysing the potential
opportunities it provides to the market and the manner in which it can be
implemented in satisfying the customers. Customers can purchase the
products either from the official website of the GE or from any health care
supply centres that provide such products.
Customer’s
psychology
The fact that it is light in weight and can fit on a head in an easy manner can
attract the customers. The psychology is that customers does not have to fill
any type of burden on their heads after wearing the device
Market
positioning
The market positioning has to be based in an area that can provide
opportunities for the business to grow. Based on the market share, GE health
care is placed at the number one position in the market.
Price GE can provide pocket friendly price of the products so that there exists an

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opportunity for every people to avail the products. This is one area in which
GE can exceed its competitors
Features The product is light in weight and is wireless, which means it can be used
anywhere and at anytime (Dawson and Andriopoulos 2014)
2014 2015 2016 2017 2018 2019 2020
0
200000
400000
600000
800000
1000000
1200000
Sales Forecast
Sales Forecast
Figure: Sales forecast of EEG device
Customer analysis
Lifestyle of
the customers
The lifestyle of the customer’s needs to be assessed by the managers of
GE so that they can manufacture the product in a productive manner. The
manner in which this can be done includes conducting a proper survey of
the customers and the responses they provide in the samples (Goffin and
Mitchell 2010)
Product
development
The product development needs to be such that it reaches the customers
and provide the proper solution so that the reason for the development of
the product can be utilised. The product need to serve its purpose and
ensure that the customers remain satisfied with the type of product
Behaviour of
the customers
Behaviour of the customers is important as it determines the personality
of the customers. The customers need to be aware of the type of products
that they are being given and based on it; the determinants of the quality
of the products are conducted. Thus, the customers can provide a positive
behaviour for the development and utilisation of the product.
Geographic
location
Geographic location of the people can help GE to promote its device. The
EEG device can be readily available to the people that belong in a close

10INNOVATION AND ENTREPRENEURSHIP
proximity of the organisation (Bessant and Tidd 2013). Thus, the
managers of the company can distribute the product without having to
incur much transportation cost.
Such a technology has been manufactured in the developed market and the countries
in which the products are developed usually have population that prefer less workload and
easy accessibility. Market pull refers to the introduction of product ideas that are
manufactured after responding to the market forces. The demand from the customers about
new and improved product determines the market pull of a product. In this case, the EEG
product of GE health care can undergo a market pull and is radical in the known market of
the business environment (Jones, Conway and Steward 2001). This is because the demands of
the customers suffering from excess stress are the fact that they want a headgear device that
can be easily portable to anywhere they go. Therefore, the innovation map that can be
analysed includes a four-step model that includes a definition of the process, discover the
potential opportunities of the model, develop designs that can be effective for the
collaboration of the model and demonstrate the model in public.
Figure: Market pull

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Figure: Radical market
Porter’s five forces model can be used to identify the differences that exist in the
market. The cost and differentiation factors of the products offered by EEG can be used to
analyse the competitive advantage it may receive in the market. GE can differentiate itself
from the competitors by analysing the cost at which the company sells the products. It can be
used as a diagnostic tool so that GE can differentiate the products it has in the market. Thus,
GE can improve on the quality of the EEG machines that it manufactures (Kaplan and Norton
2004).
Figure: Product life cycle
The product life cycle
determines the manner in which
products of a company can respond
and survive in the market. The graph highlights the phrases that a product undergoes in the
market and the manner in which the consistency can be maintained in the market. In the case
of GE health care, the pocket size EEG can be a huge success in the market and research have

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provided significance that the product is at a maturity stage in the market (Leonard 1998).
The manner in which GE has managed to develop its products highlights the growth of the
company. At the maturity stage, this particular product has been a favourite among the people
that have used it and gained clinical success.
Based on the analysis of the device, it can be said that the device has been an open
innovation in the field of medical research. The health care centres had not thought of such
innovation prior to the steps taken by GE health care. Thus, it can be said that the product
falls under the category of capabilities building.
Currently the market is in a buy-out stage as the product is new and people enjoying
innovation at work can use it to understand the potential it provides in the market (Porter
1998).
Figure: Corporate Entrepreneurship framework
From the analysis of the framework, it can be seen that certain factors contribute in
establishing the required product in the market. The initial factor includes the environmental