Case | HBS Case Collection | November 2011 (Revised August 2012)
Healthymagination at GE Healthcare Systems
Vineet Kumar and V. Kasturi Rangan
Jeff Immelt, the CEO of GE, introduced a new innovation strategy named "healthymagination" in 2009. With cost, quality, and access as its three pillars, healthymagination ensures a strong focus for new product introduction efforts all around GE. But will this focus enable GE to achieve and maintain market leadership across a healthcare market that is being buffeted by strong currents, including cost pressures, changes in chronic disease patterns, and rationalization of buyer behavior? Moreover, healthcare spending is also increasing in emerging economies, which could provide a strong growth engine for the future. Tom Gentile, the CEO of GE Healthcare Systems (GEHS), a key player in the Medical Imaging market, wonders how the innovation strategy might respond to these changes. GE has historically been a technology leader, selling the most advanced equipment to a variety of medical establishments. Will a complete shift to healthymagination allow GE to demonstrate strong organic growth through innovation, as Immelt had charged executives at GE?
Keywords: Innovation and Invention; Product Marketing; Marketing Strategy; Medical Devices and Supplies Industry; Health Industry;
Ge Healthcare Case Analysis
996 WordsFeb 15th, 20164 Pages
2/17/16 – GE Health Case Analysis
The Omega Ultrasound System would be the best choice to green light for the Healthymagination initiative. After assessing all the potential products, we determined that the lack of concrete metrics, difficulty or uncertainty in measuring outcomes, or clinical relevance to the Healthymagination goal rendered the TEEMax, UltraLipo, and HepEcho unfit for launch. We’ve outlined justification for this decision in (Figure 1.), but we believe the Omega system provides the greatest opportunity for meeting Healthymagination standards with the best chance of obtaining definitive evidence to support the certification.
The midwives in Indonesia…show more content…
The three focal criteria for Healthymagination is on 15% improvements in cost, access, or quality. After looking at the other options, we found it would be either A. Uncertain we could achieve that level of improvement in any of those three areas or B. that we wouldn’t be able to definitively correlate the improvement to the device. The Omega system posed the possibility of improvement in all three of these areas.
Cost: This would be the most difficult to measure, and since GE would have no control in setting price for service, it is unclear if there would even be an impact in this. That being said, however, if the Omega device grants the ability of midwives to perform diagnostics that would otherwise require a hospital, we can say the cost savings of using a midwife vs. going to a hospital were related to the use of the Omega system.
Quality: As we mentioned before, Indonesia ranks poorly on infant mortality with a need for better options and equipment for midwives to change that. Thus, if we were to launch the Omega system in Indonesia, and follow up data suggests a decrease in child mortality, it could support the notion that the Omega system was responsible for the increase in quality of