Achieving Productive Outcomes Through the Disruption

Transcription

1 GE Power Achieving Productive Outcomes Through the Disruption Wolfgang Mueller, E-Class Gas Turbine Executive Manager, Power Services CTOTF SPRING MEETING ST. AUGUSTINE, FLORIDA APRIL 3-7, 2016 Imagination at work

2 Real world disruption 2

3 GE Power 2016, General Electric Company. GE Proprietary Information - The information contained in this document is General Electric Company (GE) proprietary information. It is the property of GE and shall not be used, disclosed to others or reproduced without the express written consent of GE, including, but without limitation, in the creation, manufacture, development, or derivation of any repairs, modifications, spare parts, or configuration changes or to obtain government or regulatory approval to do so, if consent is given for reproduction in whole or in part, this notice and the notice set forth on each page of this document shall appear in any such reproduction in whole or in part. The information contained in this document may also be controlled by the US export control laws. Unauthorized export or re-export is prohibited. All relative statements are with respect to GE technology unless otherwise noted. 3

4 Knowing what we don t know 1 Quoted Henry Hub spot price as of 3/23/2016 4

5 Knowing what we don t know $1.78/ MMBtu 1 Current price of natural gas 1 Quoted Henry Hub spot price as of 3/23/2016 5

6 Knowing what we don t know $1.78/ MMBtu 1 Current price of natural gas 3B No access to reliable power 1 Quoted Henry Hub spot price as of 3/23/2016 6

7 Knowing what we don t know $1.78/ MMBtu 1 Current price of natural gas 3B No access to reliable power 50% Power demand increase over next 20 years 1 Quoted Henry Hub spot price as of 3/23/2016 7

8 Knowing what we don t know $1.78/ MMBtu 1 Current price of natural gas $90B Digitization investment in next 5 years 3B No access to reliable power 50% Power demand increase over next 20 years 1 Quoted Henry Hub spot price as of 3/23/2016 8

9 Knowing what we don t know $1.78/ MMBtu 1 Current price of natural gas $90B Digitization investment in next 5 years 195 Countries with membership in Country of Parties on climate change 3B No access to reliable power 50% Power demand increase over next 20 years 1 Quoted Henry Hub spot price as of 3/23/2016 9

10 Knowing what we don t know $1.78/ MMBtu 1 Current price of natural gas $90B Digitization investment in next 5 years 195 Countries with membership in Country of Parties on climate change 3B No access to reliable power 50% Power demand increase over next 20 years 50% Of millennials make up the workforce 1 Quoted Henry Hub spot price as of 3/23/

11 Turning disruption to your advantage HOW CAN WE LEARN TO ADAPT MORE EFFECTIVELY? Becoming comfortable with ambiguity Being the ones to see around corners for what s coming next Making uncertainty work for us 11

12 A roadmap of collaboration DIGITAL TRANSFORMATION LEARNING AND KNOWLEDGE SHARING FLEXIBILITY STRATEGIC PARTNERSHIPS 12

13 Digital the possibilities are hard to imagine 20B Hotel service The world s largest accommodation provider owns no real-estate 18B Consumer app economy The world s largest consumer hardware company creates few apps 50B Taxi service The world s largest taxi company that owns no vehicles $90B Investment in next 5 years $1.3 trillion Power generation opportunities Software and Big Data transforming our lives Instantaneous information sharing Mobile culture access anytime, anywhere Enabling quicker, more informed decisions The digital transformation of power generation is equally significant 13

14 What does digital mean for your business 120MM hours of operating data at GE Over 10 years we anticipate saving customers more than $1B maintenance and operating costs Reduce production and operating costs Drive top line revenue growth More reliable plant/fleet operation PSEG real world example 14

15 An enterprise approach gives you full control BUSINESS OPTIMIZATION OPERATIONS OPTIMIZATION ASSET PERFORMANCE Better, faster decisions Deeper insights Real-time actions OUTCOMES GREATER PROFITABILITY GREATER PRODUCTIVITY GREATER RELIABILITY Accessibilit y CYBER SECURITY Scalabilit y PREDIX* PLATFORM ADVANCED CONTROLS Ecosystem Custom apps *Trademark of General Electric Company. 15

16 Outcomes Flexibility as a business model Dry Low NOx combustion Reduce emissions Increase fuel flexibility, turndown Extend maintenance intervals AEV Low Part Load Reduce emissions Lower fuel consumption Increase flexibility and reliability OUTPUT FOR LOWER EMISSIONS RELIABILIT Y FOR BETTER EFFICIENC Y LOWER COSTS FOR LONGER ASSET LIFE Technology solutions that deliver multiple outcomes 16

17 Integrating flexibility into solutions 6B to 6F.01 Flange-to-Flange INNOVATIVE, MODULAR SOLUTIONS H-Class World s most efficient gas turbine 7E Next generation solutions 17

18 New flexibility models SERVICE AGREEMENTS Integrate new technologies over time Align with your financial models REPAIRS/MAINTENANCE Refurbished partshigh quality, lower cost Zero-cycle repairs DIGITAL SOLUTIONS Nimbly adjust your operating profile Side-step barriers 18

19 Making flexibility OUR business model 26,000 + People in ,800+ Customers worldwide 50+ Repair shops in 25 GE S POWER SERVICES BUSINESS, countries A COMBINATION OF countriestwo OF THE BEST SERVICES TEAMS IN THE POWER INDUSTRY 120+ Million hours of operating data 7 Regional teams 9 Product lines 28,000 + Installed base 10,000 + Fleet assets In NA 19

20 Making flexibility OUR business model cont d B-Class Gas Turbines E-Class Gas Turbines F-Class Gas Turbines Multi-year Agreements H-Class Gas Turbines Other OEM Gas Turbines Aeroderivative Gas Turbines Digital Solutions Generators Boilers & HRSGs Steam Turbines Global Parts & Repairs 20

21 Influencing in a changing workforce 50% Millennials In today s workforce 4 years Average job tenure 95% Respondents said culture MORE important than compensation The world of work has changed dramatically 21

22 New opportunities for knowledge sharing THOUGHT LEADERS SOCIAL NETWORKS/GROUPS COLLABORATION TOOLS (INTRANET) MOBILE SHARING NETWORK OF COLLEAGUES/PEERS KNOWLEDGE-BASE TOOLS 22

23 What we DO know OUR SHARED RESPONSIBILITY Partnering to innovate with sustainable power generation solutions OUR COLLECTIVE OPPORTUNITIES Collaborating to achieve productive outcomes 23

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