pictured at right: maria cioce and marco cipriani, avio ... · pictured at right: maria cioce and...

PICTURED AT RIGHT: Maria Cioce and Marco Cipriani, Avio Aero, a GE Aviation business

12 GE 2013 ANNUAL REPORT

ProgressWhat is progress? What defi nes progress? For GE, it means improving the way the world works. We do this by leading in infrastructure; by combining industrial capabilities with analytical smarts to launch products that optimize effi ciencies; and by simplifying processes, enabling us to more quickly respond to market shifts and to collaborate more closely. We defi ne progress as the ability to better compete, innovate and perform. At GE, we are successful—not because we are perfect—but because we make progress. This is a commitment we make to our customers, employees, shareholders and the world.

“We want to be a company that is always getting better. A company that understands where it fi ts in the markets and in society and appreciates its responsibility to both.” —Jeffrey R. Immelt

GE 2013 ANNUAL REPORT 13

PICTURED: Engine Alliance engine, a joint venture between GE and Pratt & Whitney

$43B R&D Over the Last Decade

6 Global Research Centers

35,800 Patents Filed Since 2000

45,000 Engineers

50,000 Sales + Service People

100+ Factories in

Growth Markets

50+ Service Shops in Growth Markets

10,700Customers

Using Access GE


GE builds, moves, powers and cures the world. We are the global leader in infrastructure, developing and changing markets. For example, GE Aviation’s portfolio of engine technologies is helping improve air travel for customers in the Middle East. At the 2013 Dubai Air Show, GE and its partners, CFM International (GE and Safran) and the Engine Alliance (GE and Pratt & Whitney), won more than $40 billion (list price) in commitments for advanced, fuel-effi cient jet engines. We lead in infrastructure because our products are essential to our customers’ operations — and to the economic vitality of every country and region in which we operate.

Scale of an Infrastructure Leader


POWERING ALGERIA’S JOB GROWTH To meet a growing demand for energy, Algeria is turning to GE

technology and solutions. SPE, an affi liate of Sonelgaz, the national

power company for this North African country of over 38 million

people, signed contracts in 2013 to deploy GE gas turbine technology

at nine power plants. The project will add nearly 9 gigawatts of

electricity to help Algeria satisfy power needs that have been

growing by 14% per year. In addition, GE and Sonelgaz are partnering

on a multi-year joint venture to build a facility to produce power

generation equipment locally, eventually producing more than

2 gigawatts of power generation equipment per year and creating,

in due course, nearly 1,000 direct and indirect jobs.

MOVE

ON TRACK FOR GROWTH IN KAZAKHSTAN GE is a strategic partner for Kazakhstan,

where rail transportation is crucial to the

country’s economic development. Working

with the state-owned railroad company,

Kazakhstan Temir Zholy (KTZ), we helped

it build an assembly plant in Astana,

Kazakhstan, that is now delivering state-of-

the-art Evolution Series locomotives while

also creating local job opportunities. Under

a long-term service agreement, we are

also maintaining 695 GE locomotives and

training GE and KTZ employees to ensure

that local personnel have the technical

expertise to keep the rail system on the

right track.

POWER


BUILD

LEADING FROM THE MIDDLEMiddle-market companies are engines of

economic opportunity, and GE Capital is

dedicated to helping them grow. Our annual

Middle-Market Summits, co-sponsored

with The Ohio State University, have enabled

thousands of midsize customers to interact

with top executives and academics to explore

new ways to build their businesses. And

through Access GE and other programs, we’re

connecting these customers with valuable

industrial technology. In 2013, we helped Aavid

Thermalloy, a leader in thermal technologies

and a portfolio company of Audax Group, a

GE Capital customer, create new products

by licensing our patented Dual Cool Jet (DCJ)

technology. Developed by GE scientists at our

Global Research Center, DCJ gives Aavid the

ability to help its customers keep their electronic

products cool and to reduce their size.

TEAMING UP TO TACKLE BRAIN INJURIES Every 20 seconds, someone in the United States suffers a brain injury.

The Head Health Initiative is a partnership between GE and the NFL to develop

better technologies for the diagnosis and treatment of these injuries. Guided

by top neurosurgeons and other experts, the initiative includes a four-year,

$40 million R&D program to develop imaging technologies that can improve

diagnosis and help doctors provide more targeted therapies. The NFL, GE and

Under Armour also launched two open innovation challenges that will provide

up to $20 million for research and technology to better understand, diagnose

and protect against mild traumatic brain injury.

CURE

PICTURED: GE’s Rod Bollins, Greg Gratson and Peter deBock and Aavid’s Norm Soucy and Julie Hitchcock

Photo: AP

PICTURED: GE launched the fi rst “brilliant” wind turbine in 2013. Using the Industrial Internet to analyze data, it can talk to service technicians and even to other wind turbines.

Productivity drives wealth creation for the world. Just a 1% change in energy consumption and capital expenditures can create billions of dollars of savings across industries. At GE, we win with innovations that are focused on productivity. We’re creating efficiencies for our customers and for our Company with the power of the Industrial Internet, with advanced manufacturing techniques, and by taking a leadership position in the age of natural gas.

Leading in Productivity


CUSTOMER POWER OF

1%

1% Reduction in Fuel =

Aviation Savings $30BPower Savings $66B

1% Reduction in System Inefficiencies =

Rail Savings $27B Healthcare Savings $63B

1% Reduction in Capital Expenditures =

Oil & Gas Savings $90B

Savings reflected over a 15-year period


ANALYTICS

REENERGIZING ENERGY SOURCESDubai Aluminium (DUBAL) was the fi rst

GE customer to adopt our Advanced Gas

Path (AGP) technology for its installed 9E

gas turbines, powering one of the world’s

largest aluminum smelters. AGP, part of

our Power LifeMax™ portfolio of hardware

and software blended solutions, was

engineered based on our analysis of over

100 million hours of gas turbine operat-

ing data. It can deliver industry-leading

upgrade performance, reduce fuel con-

sumption and extend the life of turbine

assets. The result for DUBAL was 3.4%

higher output and a 1.5% increase in fuel

effi ciency, which helped expand produc-

tion and reduce costs.


ANALYTICS

INDUSTRIAL INTERNET POWERING LOCOMOTIVE PERFORMANCE GE’s RailConnect 360 Monitoring and Diagnostics (M&D) solution

helps rail freight operators transport essential goods more

reliably and cost-effectively. It’s one of the fi rst applications

of the Predix software platform developed by our Software

Center in San Ramon, California, designed to connect hard assets

like trains to the Industrial Internet. By analyzing performance

data, the RailConnect 360 M&D system enables proactive repairs

and more informed routing decisions for customers like Vale,

a global mining company headquartered in Brazil. The system

has helped maximize Vale’s locomotive productivity, reducing

shop cycle time and increasing line availability.

REINVENTING IMAGING FOR BETTER PATIENT CARENew healthcare challenges — such as demands

for greater access to care, reduced reimburse-

ments, and regulatory changes — require new

thinking. GE Healthcare is collaborating with

UPMC, an $11 billion global health enterprise

with 22 hospitals and 3,500 physicians serving

nearly 2.3 million plan members, to use innova-

tive science, technology and medicine

to invent new models of accountable, cost-

effi cient, patient-centered care. Teams from

UPMC and GE, working together at UPMC’s

Technology Development Center in Pittsburgh,

will reimagine imaging workfl ow using

cloud-enabled technology to improve the way

providers archive, access and interpret MRIs,

CT scans and other imaging modalities.

ANALYTICS

Photo courtesy of UPMC GE 2013 ANNUAL REPORT 21

PIC

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BETTER ENGINEERS BORN FROM INNOVATIVE MANUFACTURINGGE’s investments in our Rutland,

Vermont, Aviation plant have created

manufacturing capabilities as advanced

as our engines. The Rutland team part-

nered with GE’s Global Research Center

on specialized tools to shape advanced

materials, such as titanium aluminide.

Advanced manufacturing is improving

our fi nancial performance: A $75 million

investment in Rutland’s expansion

led to more than $300 million in engine

production savings.

ADVANCED MANUFACTURING


AGE OF GAS

CLEANER POWER FOR CHINAAs China faces the need to diversify its energy sources, GE is helping the country

turn to natural gas for power generation. In the Huadian Industrial Park in Beijing,

we recently installed two Jenbacher natural gas engines to power China Huadian

Engineering Co. The engines reduce the company’s reliance on coal for power

generation while increasing reliability through distributed power. Natural gas use

for power generation in China is projected to increase threefold by 2025.

PICTURED: Wang Jin, China Huadian Engineering Co.


Simplifi cation Goals & Drivers

30pts Increase in Shared Services

15%Consolidate Supply Chain

30%+Reduction in NPI Cycle(New Product Introductions)

80% Fewer ERPs(Enterprise Resource Planning systems)

30%Fewer P&Ls(Profi t & Loss centers)

45% Smaller HQ

10%+Lower Indirect Spend

50%+Field Approvals

50%Reduction in Deal Cycle

PICTURED: Ionel Barbut and Alessandro Lonoce, Avio Aero, a GE Aviation business

The Look of a Simpler CompanyAt GE, we think simpler is better. Simplification means quicker execution and closer collaboration with customers. It’s a focus on efficiency, speed and market impact. With fewer layers and more field empowerment, we’re putting accountability where it matters. We’re bringing new ideas to market at a faster pace. And we are increasing customer intensity throughout the Company, so that all of us—from commercial teams to enabling functions—are aligned with market success.


4xImproved Customer Response TimeAviation: FastWorks-related overhaul projects

Oil & Gas: FastWorks-related Measurement & Control projects


DYNAMIC TOOLS FOR FAST GROWTHWhat happens when we combine a Silicon

Valley startup mindset with Lean Six Sigma?

The answer is FastWorks—a set of tools and

processes to develop new products quickly,

achieve better outcomes for our customers,

and drive quality and competitive advantage.

FastWorks was behind our co-creation with

Chevron and Los Alamos National Laboratory

of a new solution for fl ow metering in multi-

phase oil wells. In less than a year, we went

from a problem statement to prototypes, and

we now have an alliance with Chevron to

commercialize the resulting product. Known

as the GE Safi re™ fl ow meter, it will extend the

benefi ts of better reservoir management to

the entire oil and gas industry.

FASTWORKS


GLOBAL SERVICES UNLEASHING OPPORTUNITIES FOR SAUDI WOMENIn support of Saudi initiatives to reduce unemployment and increase the

Kingdom’s own labor force, GE is joining with Saudi Aramco and Tata

Consultancy Services to open Saudi Arabia’s fi rst all-female business-process

services and training center in Riyadh. Saudi women employed at the center

will initially help Saudi Aramco and GE manage their supply chains, but the

facility will expand to support other clients. The ultimate goal is to recruit and

train up to 3,000 women, including 1,000 to manage GE business.

CUSTOMER DAY

INCREASING CUSTOMER INTENSITYPutting customers fi rst is key to our strategy, and our sales team

works tirelessly to deliver for our customers every day. As part

of simplifi cation, we are rallying the rest of our employees around

the sales team to help our customers win. GE’s 2013 Customer

Day kicked off this effort; everyone took the time to get to know

and better understand our customers and their issues. Customers

joined employees at more than 40 GE locations to share their

views on what’s working and where we can improve. New ideas

emerged and our teams made specifi c commitments to support

our sales team. Around the world, employees were energized by a

deeper customer focus.


PEOPLEHIRED IN 2013

INVESTEDIN LEARNING PER YEAR

SENIOR LEADERRETENTION ACROSS GE

MORE LEADERSOUTSIDE THE U.S. IN THE LAST FIVE YEARS

41,000

$1B

97%

15%

A Competitive TeamOur culture is about providing everyone who works at GE with opportunities to exercise their responsibility, integrity and creativity while growing themselves, their careers and our business.

GE’s global leadership institute in Crotonville, New York. The Crotonville cam-pus hosts thousands of GE employees and customers each year. Thousands more attend Crotonville leadership courses around the world.


GE teams, like our Distributed Power team

working on a new diesel engine, are using the

FastWorks process to improve speed and

competitiveness.

Around the world and in the U.S., our manufacturing teams tackle big projects, like the subsea blowout preventers built by our Deepwater Assembly teams in Houston, Texas.

The GE Healthcare Ultrasound team has created a leadership position in a fast-paced, global business, with innovative products to help solve health issues around the world.

The Capital Planning team ensures GE Capital is safe and secure, overseeing regulatory and economic capital efforts, running stress tests and managing recovery, and resolution efforts.


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