This case describes how General Electric has developed its China Technology Center over the past decade. The case also elaborates on the changing role of the China Technology Center in General Electric's global research and development strategy. In 2000, General Electric set up its China Technology Center in Shanghai after bringing its technologies and products to China. In the first few years, the focus of the China Technology Center was to build local engineering teams, learn about customer needs, determine successful marketing strategies, and to develop relationships with local suppliers in order to reduce costs. Over time, the China Technology Center developed its "In China for China" strategy by adjusting its own products and designs to adapt to the local market, while still developing innovative technologies and products to address China's toughest challenges - such as those encountered in the healthcare industry. This strategy was very successful; some innovations from the China Technology Center were used in other emerging markets as well as in U.S. and European markets - a process that is known as reverse innovation.

This case has been taught successfully in a second-year MBA elective, "Management of Service Operations," in a module on service system design. The material works well to unfold with Frances Frei's service model framework. Ari Straus, a former customer of Monticello Motor Club (MMC), brought that customer perspective with him to take on the roles of CEO and president. MMC was a high-end service business with an exclusive clientele. As much as the asphalt track, racecars, and clubhouse facilities attracted members and guests, the staff's professionalism and personal touch kept them coming back and kept them recommending the club to their acquaintances.