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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
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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
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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
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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
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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
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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.
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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
TURE
D: B
ruce
Van
Gui
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, GE
Avi
atio
n
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
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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.
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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.
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4xImproved Customer Response TimeAviation: FastWorks-related overhaul projects
Oil & Gas: FastWorks-related Measurement & Control projects
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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
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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.
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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.
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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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