New-look GE touts Polish innovation
While this strategy is not completely novel in the corporate world - with a large handful of technology and service-oriented companies setting up shop here - for GE it represents a more concerted effort to reinvent the company's image into that of a technology firm and mine Europe in general for innovation.
Early last week, Lesław Kuzaj, regional executive for Poland, the Czech Republic, Slovakia and Lithuania, and Istvan Szini, the national executive for Hungary, were in Warsaw for a brainstorming session, discussing how they can better tap into the qualities of the Central and Eastern European Region. Naturally, Poland was high on their priority list.
"We are comparing notes," said Kuzaj, noting that there are similar trends in each country of the region, but that the trends begin and end at different times. "Many things that happen in Budapest, later on happen in Warsaw."
One thing, however, that has occurred simultaneously is the EU. Here, both Kuzaj and Szini see benefits and challenges in the guise of EU funds, which will largely finance infrastructure.
And at the heart of it, Kuzaj points out, GE is an "infrastructure company."
That is, it provides infrastructure for most industries. After its recent restructuring, the company boasts a litany of divisions: GE Transportation, GE Healthcare, GE Energy, GE Consumer and Industrial and GE Advanced Materials, among others, each with operations in Poland.
"We firmly believe that this is going to be a growth region," Kuzaj says, "with a lot of EU funds flowing into the region. We would like to see how we can benefit from them and what are the key challenges we need to attack."
And to do so, GE units across Europe will work hand in hand. "We are discussing projects and how we can approach various things and maybe we'll do things together," he says, referring to his colleague Szini. "And that is basically it," he continues, explaining the nature of last week's meeting.
Moreover, he says GE executives in the region have another task, but one more internal in nature. "We want our corporation to be aware of the importance of this region," he says. "Because this seems to be the only place in Europe that is growing so rapidly. So we would like to attract the attention of our corporation."
And in terms of how that is progressing, he reveals, "It's not bad."
Part of the success this general region is having, in the eyes of GE executives, is reflected by a new research and design facility to be opened next month in Munich. It will be the corporate giant's fourth such facility after ones in the USA, China and India.
"Now the question is how this R&D facility will tap into the local resources. How can we utilize the Polish and Hungarian institutions? So in other words, we look at the region for how it can add to our strategy of innovation," he says.
In that vein, besides pursuing new business, the company will seek Polish brain, rather than the brawn many heavy industry companies used the country for in the past, by scouting out universities and corporations. This would nurture what Kuzaj said in an earlier interview with the Business Journal is the entrepreneurial spirit of the company - and hopefully add to the over 600 patents the company is responsible for each year.
The Munich-based zł.208.9 million ($52 million) facility will cover 10,000 square meters and employ 150 scientists and research staff by next year. It will target development in four key areas: alternative energy systems, which includes clean energy; sensor technology, such as miniature devices; advanced medical imaging; and automotive technology.
"The point is that Europe hasn't been covered in this aspect yet," Kuzaj notes. "Europe has a lot of [innovation potential] and we need to agree among ourselves about how we can be a better part of it."
One of the ways the company can be seen pursuing European minds is via its corporate programs to nurture education. Indeed, it recently announced its annual scholarship winners via its GE Foundation.
But as the company is firm and open on its organic growth strategy in the country, Kuzaj would not comment on whether or not it would seek acquisitions as it has been doing elswhere. Recently, the parent company of General Electric International completed the big-ticket purchase of troubled Vivendi Universal's U.S. media assets, adding to the multifaceted firm a film studio, cable TV channels and theme parks.
As for Poland, Kuzaj kept mum, but noted there was nothing in the offing in the near future. However, outside the realm of the movie business, aviation and general technology, GE in Poland is making sufficient headway in the financial services - a sector of the economy in which a number of foreign enterprises are clamoring to increase their foothold.
Last week also saw the company streamlining its banking operations. General Electric's shareholders agreed to merge GE Housing Bank with GE Capital Bank to create GE Money Bank. The new entity is expected to hold the 12th spot in the market in terms of value of funds. Just as the company has been restructuring its complex corporate structure across the globe, it sought this merger of like entities in an effort toward simplifying operations, Mariusz Karpiński, GE Capital Bank's president, told a newspaper last week. He added that the new company would stick to what it's good at, consumer finance, and not attempt to become a universal banking institution.
That hardly seems, however, to be the case with GE itself, which, though it has been simplifying its operations, still houses a long and varied list of businesses - most of which Kuzaj sees as beneficial to Poland.
Early last week, Lesław Kuzaj, regional executive for Poland, the Czech Republic, Slovakia and Lithuania, and Istvan Szini, the national executive for Hungary, were in Warsaw for a brainstorming session, discussing how they can better tap into the qualities of the Central and Eastern European Region. Naturally, Poland was high on their priority list.
"We are comparing notes," said Kuzaj, noting that there are similar trends in each country of the region, but that the trends begin and end at different times. "Many things that happen in Budapest, later on happen in Warsaw."
One thing, however, that has occurred simultaneously is the EU. Here, both Kuzaj and Szini see benefits and challenges in the guise of EU funds, which will largely finance infrastructure.
And at the heart of it, Kuzaj points out, GE is an "infrastructure company."
That is, it provides infrastructure for most industries. After its recent restructuring, the company boasts a litany of divisions: GE Transportation, GE Healthcare, GE Energy, GE Consumer and Industrial and GE Advanced Materials, among others, each with operations in Poland.
"We firmly believe that this is going to be a growth region," Kuzaj says, "with a lot of EU funds flowing into the region. We would like to see how we can benefit from them and what are the key challenges we need to attack."
And to do so, GE units across Europe will work hand in hand. "We are discussing projects and how we can approach various things and maybe we'll do things together," he says, referring to his colleague Szini. "And that is basically it," he continues, explaining the nature of last week's meeting.
Moreover, he says GE executives in the region have another task, but one more internal in nature. "We want our corporation to be aware of the importance of this region," he says. "Because this seems to be the only place in Europe that is growing so rapidly. So we would like to attract the attention of our corporation."
And in terms of how that is progressing, he reveals, "It's not bad."
Part of the success this general region is having, in the eyes of GE executives, is reflected by a new research and design facility to be opened next month in Munich. It will be the corporate giant's fourth such facility after ones in the USA, China and India.
"Now the question is how this R&D facility will tap into the local resources. How can we utilize the Polish and Hungarian institutions? So in other words, we look at the region for how it can add to our strategy of innovation," he says.
In that vein, besides pursuing new business, the company will seek Polish brain, rather than the brawn many heavy industry companies used the country for in the past, by scouting out universities and corporations. This would nurture what Kuzaj said in an earlier interview with the Business Journal is the entrepreneurial spirit of the company - and hopefully add to the over 600 patents the company is responsible for each year.
The Munich-based zł.208.9 million ($52 million) facility will cover 10,000 square meters and employ 150 scientists and research staff by next year. It will target development in four key areas: alternative energy systems, which includes clean energy; sensor technology, such as miniature devices; advanced medical imaging; and automotive technology.
"The point is that Europe hasn't been covered in this aspect yet," Kuzaj notes. "Europe has a lot of [innovation potential] and we need to agree among ourselves about how we can be a better part of it."
One of the ways the company can be seen pursuing European minds is via its corporate programs to nurture education. Indeed, it recently announced its annual scholarship winners via its GE Foundation.
But as the company is firm and open on its organic growth strategy in the country, Kuzaj would not comment on whether or not it would seek acquisitions as it has been doing elswhere. Recently, the parent company of General Electric International completed the big-ticket purchase of troubled Vivendi Universal's U.S. media assets, adding to the multifaceted firm a film studio, cable TV channels and theme parks.
As for Poland, Kuzaj kept mum, but noted there was nothing in the offing in the near future. However, outside the realm of the movie business, aviation and general technology, GE in Poland is making sufficient headway in the financial services - a sector of the economy in which a number of foreign enterprises are clamoring to increase their foothold.
Last week also saw the company streamlining its banking operations. General Electric's shareholders agreed to merge GE Housing Bank with GE Capital Bank to create GE Money Bank. The new entity is expected to hold the 12th spot in the market in terms of value of funds. Just as the company has been restructuring its complex corporate structure across the globe, it sought this merger of like entities in an effort toward simplifying operations, Mariusz Karpiński, GE Capital Bank's president, told a newspaper last week. He added that the new company would stick to what it's good at, consumer finance, and not attempt to become a universal banking institution.
That hardly seems, however, to be the case with GE itself, which, though it has been simplifying its operations, still houses a long and varied list of businesses - most of which Kuzaj sees as beneficial to Poland.
