Broad technical leadership, a product for every customer

Transcription

1 Broad technical leadership, a product for every customer Meet GE s Imaging Family By introducing more products at more price points, GE is continuing a legacy of broad technical leadership. We are now creating local technologies in emerging markets and then distributing them globally, a new way of developing products called reverse innovation. And we re making new investments even amid the recession, GE increased spending on company-funded R&D in The GE Healthcare suite of imaging products exemplifies the breadth of our portfolio across the spectrum of size, cost and functionality. ONI Extremity Scanner One of the cornerstones of GE s healthymagination vision is to develop and invest in technologies that increase quality, improve access, decrease costs and enhance the patient experience. In line with this vision, the ONI MSK Extreme 1.5T scanner is a terrific addition to GE s Magnetic Resonance Imaging family. With a smaller footprint and premium image quality, it provides advanced, cost-effective and comfortable MRI extremity imaging, which includes the knee, elbow and wrist. 10 ge 2009 annual report

2 Portable Ultrasound Vscan is a pocket-sized visualization tool that is making point-ofcare imaging a reality. For primary care clinicians, Vscan has the potential to help redefine the physical exam, providing an immediate look inside the body to help speed detection and diagnosis. Vscan gives critical care clinicians an immediate look beyond patient vital signs, offering the potential to identify critical issues like fluid around the heart a possible sign of congestive heart failure. And for cardiologists, Vscan provides a dependable visual evaluation at a glance of how well the heart is pumping, allowing more efficient patient treatment. Brivo Imaging Technologies In countries like China, over half the population lives in rural areas with limited access to quality healthcare. Millions of others living in rural communities in Southeast Asia and Africa are in similar need. MRI or CT systems require significant investment and are only available in bigger towns. That s why GE invested in the Brivo line of MRI systems, digital X-rays and CT scanners. Created through reverse innovation, these products deliver simplified, highly capable systems to meet the needs of clinics that otherwise might not have the resources to access them. ge 2009 annual report 11

3 Domain expertise at your service Making Customers More Productive Product services, which have long been a GE strength, today comprise almost one-third of our revenues and nearly three-quarters of our industrial earnings. Backed by a healthy pipeline of innovative technologies and continued investment, our future services growth will be fueled by expanded offerings; entrance into key adjacencies; and broad-scale, systems-based service solutions that improve customer productivity and efficiency. Helping our customers do business better makes good business sense for GE. Smart Grid Our smart grid technologies marry information technology and automation with current electrical infrastructure, helping support the energy needs of our 21 st century society. Acting as an energy Internet, the smart grid delivers real-time energy information and knowledge to empower smarter energy choices. It helps utilities get more out of their existing assets, yielding more productivity while improving the reliability of their systems. And it allows individual consumers to manage their energy use and save money without compromising their lifestyle. Transportation Management GE s Movement Planner technology helps railroads solve capacity issues by better managing the movement of trains. Norfolk Southern is using the system to make complex network decisions and significantly increase the velocity of the average train across the network. For U.S. railroads, a one-mile-per-hour gain in velocity can mean $200 million in savings over the course of a year. Fully implemented across an entire railway, we predict GE s Movement Planner can achieve two-to-four mile-per-hour increases in velocity. 12 ge 2009 annual report

4 Healthcare Performance Solutions Every hospital wants patients to leave healthier than when they arrived. But often, the small, seemingly non-essential things such as misplaced equipment, significant wait times or frustrating processes can affect the patient experience and increase the cost of care. GE is helping hospital systems like Ochsner and Virtua Health develop and execute strategies that align their organizations; streamline processes; upgrade technical capabilities; and optimize flow, resources and space. With innovative GE technologies and services, hospitals have the potential to increase operational efficiency, decrease patient wait times, reduce length of stay and eliminate unnecessary costs. Airline Operational Efficiency GE Aviation is constantly striving to help customers improve their cost of ownership. We have worked with KLM Airlines to identify and prioritize projects across their fleet that will lead to significant savings. The GE team is helping KLM implement these savings projects in several areas, including overhaul shop activity, repair development, material solutions, productivity improvements and environmental solutions. ge 2009 annual report 13

5 Today s emerging markets are tomorrow s opportunities Company to Country Amid uneven economic growth, GE is finding opportunities in regions rich with commodities and people. In the case of our Oil & Gas business, meeting rising demand and maintaining energy security means opening up new production frontiers with reliable technology that minimizes risk, drives production efficiency and helps address environmental sustainability. Over the next three years, GE Oil & Gas will invest more than $500 million on R&D, much of it on products for emerging markets. Kazakhstan United Arab Emirates Brazil China Australia Nigeria Expanding Oil & Gas Globally GE Oil & Gas is a global leader in the supply of technology-based equipment and services for the entire oil and gas industry, including drilling and production, liquefied natural gas, pipeline, industrial power generation, refining and petrochemical. We also provide pipeline integrity solutions, such as inspection and data management. GE s company-to-country approach is helping us expand operations from Angola to Australia and from Malaysia to Mexico. 14 ge 2009 annual report

6 Helping China Take Flight With 13% traffic growth and a rising middle class that is largely underserved, China represents one of the world s fastest-growing aviation markets. In 2009, a new engine built by GE and its French partner was selected as the sole Western engine for China s new C919 single-aisle, 150-seat passenger jet. Made by CFM International, a 50/50 joint venture between GE and SAFRAN Group, the Leap-X engine could power more than 2,000 C919s over the next 20 years. Separately, GE Aviation is working with another company, AVIC, to form a Chinabased joint venture that will build and sell integrated avionics systems for global commercial aircraft. Avionics Engine Testing ge 2009 annual report 15

7 Our partners make us stronger and we return the favor Teaming for Growth Whether partnering with customers, industry, countries or local governments, GE helped keep businesses running, leveraged technology and defrayed development costs, entered new markets and helped spur employment in The GE Healthcare and Intel alliance represents a giant step forward in changing how healthcare is delivered. Together we will improve lives through innovative technology that enables people to live independently and manage their conditions from home. Louis J. Burns, Vice President Digital Health Group AVIC and GE will work together to build on the most advanced open architecture avionics in the world for the commercial aviation industry. Together we will create a competitive company with a global strategy to benefit China and the United States. Lin Zuoming, President Aviation Industry Corporation of China 16 ge 2009 annual report

8 We welcomed the opportunity to partner with GE on a new advanced technology and training center that brings jobs and economic diversity to Michigan. Together, we are investing now to create tomorrow s leading positions in information technology, clean energy and transportation. By having a partner like GE Capital in our business, we can focus on our core business developing great motorcycles and GE can manage the financial relationship between Triumph and the dealer network. Tue Mantoni, Chief Executive Officer Triumph Motorcycles Governor Jennifer M. Granholm State of Michigan ge 2009 annual report 17

9 Taking on big challenges takes serious imagination Market Solutions to Human Challenges Solving big challenges like clean energy and affordable healthcare is helping advance GE s growth while also improving quality of life. Ecomagination will reach its five-year anniversary in 2010, and our early leadership in green technology has positioned us as a world leader. Healthymagination, our recently launched commitment, provides an opportunity to help deliver better health to more people. 1. Continue to increase revenues from ecomagination products 2. Double investment in R&D 17 products 80+ products grow at 2x ge revenue increase r&d to $10b reduce greenhouse gas emissions and improve energy efficiency of GE 4. reduce water use and improve water reuse 5. Keep the public informed 50 % reduction in ge s energy intensity 25 % reduction in water consumption inspire a competitive green economy Clean Energy GE is an innovator in clean energy. At its heart, ecomagination is about producing innovative technologies that save customers money and create jobs. In 2009, revenues from ecomagination products were around $18 billion. And we re not stopping there we ve established new goals (illustrated above for ) to ensure that we stay on the leading edge of creating market solutions to tough societal problems. 18 ge 2009 annual report

10 1. Improve quality 2. Reduce cost 3. Increase access Improve quality of care for patients by partnering with physicians and other stakeholders to focus on innovations that refine healthcare procedures and accelerate standards of care. Significantly reduce the cost of many procedures and processes with GE technologies and services. Increase people s access to services, technologies and health education, touching the lives of at least 100 million people in new ways, every year. Better Health for More People Introduced in 2009, our healthymagination commitment leverages GE technologies and innovations to bring high-quality, lower-cost care to more people throughout the world. We re investing $6 billion in solutions that the new healthcare economy will demand, such as healthcare information technologies to reduce variation and cost; precision diagnostics to guide therapy decisions and assess efficacy; more portable, miniature devices to broaden use across more geographies; remote, home monitoring to reduce costs and improve patient care; and tools to help our hospital customers improve efficiency. Our goal is to help people around the world lead healthier, more productive lives. ge 2009 annual report 19

11 Financing for the products we know with people we know Big Help to Big and Small Businesses In virtually every major industry, GE Capital provides loans, leases, financing programs, equipment leasing and other services to support businesses and jobs around the world. More than 1.2 million small and medium-sized businesses in the United States rely on GE Capital for their financing needs. In 2009 alone, GE Capital provided more than $150 billion in global lending, with a significant portion going to small and medium-sized American businesses. Creating Green Collar Jobs Renewable energy investments made by GE Capital s Energy Financial Services unit are creating green collar jobs and helping America increase power generation from renewable sources, support innovation, attract foreign investment and help the environment. One example is our investment in the Shepherds Flat wind farm being built in Oregon by Caithness Energy, LLC. At 845 megawatts, the $2 billion facility will be the largest wind farm in the United States. Caithness Energy estimates that the project will annually provide $16 million of direct economic benefits to Oregon and employ up to 435 workers during construction and operation. 20 ge 2009 annual report

12 Watching the Bottom Line For years, GE Capital has helped Tourneau, the world s largest watch retailer, meet financing needs by providing a revolving credit line and servicing private-label credit cards. Needing help of a different kind, Tourneau once again turned to GE Capital, this time as part of Access GE a unique program that works with customers on their most pressing business issues. Using our resources and expertise, GE executives collaborated with Tourneau teams to make fast and lasting operational improvements that will help boost productivity in their business. Recipe for Growth Hudson Bread started as a small artisan bakery in New York City in With GE Capital expansion financing, Hudson Bread has now become a major supplier to the area s best hotels and restaurants. Every day, GE Capital provides financing to thousands of companies like Hudson Bread, supporting jobs and local economies and helping small businesses prospects rise. ge 2009 annual report 21

13 The best teachers never stop learning Energizing Leaders Maintaining GE s reputation for exceptional leadership is key to our renewal and it means constantly evaluating and improving how we develop talent. We learn from both success and adversity, and we seek lessons in leadership from both the outside and the inside. In 2009, GE partnered with diverse institutions from around the world, including the U.S. Military Academy, to share ideas and perspectives about developing next-generation leaders who will thrive in the future. Like GE, I believe future leaders must be good listeners who use external inputs as a catalyst. Open-minded learners make great leaders. Colonel Thomas A. Kolditz, PhD Professor and Head, Department of Behavioral Sciences and Leadership U.S. Military Academy 22 ge 2009 annual report