{"id":28517,"date":"2018-11-13T18:15:27","date_gmt":"2018-11-13T23:15:27","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/xxx\/"},"modified":"2018-11-13T19:29:49","modified_gmt":"2018-11-14T00:29:49","slug":"ges-additive-capability-is-it-a-future-of-ge-or-just-another-potential-business-for-divesture","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ges-additive-capability-is-it-a-future-of-ge-or-just-another-potential-business-for-divesture\/","title":{"rendered":"GE\u2019s additive capability; Is it a future of GE or just another potential business for divesture?"},"content":{"rendered":"

Additive manufacturing is the technology that could disrupt traditional manufacturing process and product development. It uses the 3D software to create objects layer by layer and often referred as 3D printing, too. It’s application depends on the company and the industry. For this article, I will focus on GE’s additive technology application, its impact as well as challenges and recommendations to the company.<\/p>\n

GE’s path to create additive capability:<\/strong><\/span><\/p>\n

In 2016, GE acquired majority stakes in\u00a0Concept Laser at $599 million and Arcam AB at $1.4 billion, part of a push to expand the Boston-based company\u2019s additive manufacturing capabilities.1\u00a0<\/sup>GE has also invested approximately $1.5 billion in manufacturing and additive technologies at GE\u2019s Global Research Center (GRC) in Niskayuna, New York, in addition to building a global additive network of centers focused on advancing the science.2\u00a0<\/sup>So why the additive is important to GE? There are two main reasons.<\/p>\n

1) To grow GE’s internal businesses through additive<\/span><\/p>\n

GE has diversified portfolio of businesses such as Healthcare, Power, Aviation. Since the company is focused on industrial manufacturing businesses, GE wants to enhance the business by levaraging additive so that they can create parts\/products more efficiently and effectively.<\/p>\n

2) To capitalize on the growing external market<\/span><\/p>\n

GE sees a $76 billion opportunity for additive manufacturing.3<\/sup>\u00a0<\/strong>Given the size of the potential market, GE is trying to capitalize the opportunity to grow the business. GE Additive business is currently selling the products to Healthcare, Aerospace, and Automotive industries outside of GE. The company has an ambitious goal that GE plans to sell 10,000 3D printing machines over 10 years and expand additive into a $10 billion business for itself.4<\/sup>\u00a0<\/sup><\/p>\n

Benefits of additive to GE:<\/strong><\/span><\/p>\n

So how GE could utilize additive to internal customers and external customers? GE’s management is hoping that the additive capabilities could take the manufacturing process and product development to the next level. The followings are the main areas where additive could be beneficial for GE.<\/p>\n