The Economist’s 2015 Innovation Forum welcomed Honeywell Chairman and CEO Dave Cote on March 26 to discuss how Honeywell gets better every year through continued innovation, flexibility and integration across internal processes. The event brings together Fortune 500 CEOs, policymakers and entrepreneurs who are continuously disrupting the status-quo and who are charged with driving innovation and new product development across industries and sectors.
Cote and Innovation Forum 2015 host Mathew Bishop discussed the evolution of the Honeywell Operating System (HOS) from a system driving productivity, safety and quality in factories to the company’s latest endeavor, HOS Gold, a total business operating system that aligns all of the major Honeywell internal processes to grow sales and become more productive implemented through 74 discrete business enterprises.
“What we’re doing is focusing on two things,” said Cote. “One is how do you start pulling together all of these best practices – whether its factory, or what we call Velocity Product Development®, Functional Transformation, how you do the Honeywell User Experience. And, instead of just driving them through the company, you start trying to do it through a Gold enterprise. The second thing that I want to accomplish with it is that I want to marry big company cost effectiveness and technical and functional excellence with small company speed and responsiveness.”
Cote also discussed the increasing importance of software to Honeywell’s portfolio for simulation, product enablement and software as a service.
“This year we will very likely be the first large western company to be Capability Maturity Model Integration (CMMI) level 5 across the world. Now, CMMI is something that I’d say most U.S. companies haven’t even heard of.” He continued, “There’s a bunch of software development that is learnable, is reusable, and that you can make significantly more robust and reliable from the beginning, and that’s what CMMI does.”
Watch the full interview here: