Research Guidance

GE Global ResearchNovember 11, 2005

Design for Breakthrough Research In an Academic Settings

GCEP

GCEP Breakthrough Research WorkshopNov. 11, , 2005

GE & Global Research Introduction

GCEP Breakthrough Research WorkshopNov. 11, , 2005

GE Introduction

112-Year-Old, High-Tech, Growth Company

$154 Billion in 2004 Revenues

Only Company Listed in Dow Jones Index Today That Was in Original List in 1896

315,000+ Employees Worldwide

1892

2004

Six business groups

Oil & GasWaterEnergy Financial ServicesAviation Financial Services

Infrastructure

Silicones/QuartzSecuritySensingFanucInspection Techology

Clinical SystemsServicesBio Sciences

Energy

Aviation

Rail

Industrial

Consumer/Industrial

Plastics

Equipment Leasing

Healthcare

Diagnostic Imaging

Info Technologies

Commercial Financial Services

Leasing

Corporate Financial ServicesHealthcare Financial Services

NBC/Universal Consumer Finance

Personal Finance

Insurance

Real Estate

Network

Entertainment

Sports/Olympics

Business Finance

EuropeAsiaAmericasAustralia/New Zealand

Six business groups

GCEP Breakthrough Research WorkshopNov. 11, , 2005

GE Global Research

Began in Schenectady, New York in 1900

Founded with the focus to improve businesses through technology

One of the world’s most diverse industrial labs

Cornerstone of GE’s commitment to technology

c. 1900

2004

GCEP Breakthrough Research WorkshopNov. 11, , 2005

Global Presence

Global Research Center–Niskayuna, NY

John F. Welch Technology Centre–Bangalore, India

China Technology Center–Shanghai, China

Global Research – Europe–Munich, Germany

GCEP Breakthrough Research WorkshopNov. 11, , 2005

With a History of Innovation1909 Ductile Tungsten

1913 Medical X-Ray

1932 Langmuir Nobel Prize in Chemistry

1942 First US Jet Engine

1952 LEXANTM Polycarbonate

1955 Man-Made Diamonds

1973 Giaever Nobel Prize in Physics

1983 Magnetic Resonance Imaging

1995 GE90®, The World’s Most Powerful Jet Engine

1999 Digital X-Ray

2003 H Turbine

Research Guidance

GCEP Breakthrough Research WorkshopNov. 11, , 2005

We are taking a new approach to solving some of our customers’ toughest environmental problems.

We call it .

GCEP Breakthrough Research WorkshopNov. 11, , 2005

Existing GE products make ecomagination a reality…

Renewable resources

Our 3.6 MW turbine can power ~1,200 average U.S. homes.

EvolutionThe cleanest electric-diesel locomotive

GEnx engine A new generation of engine technology with profound environmental benefitsCleaner coal

GE’s “one-stop shopping”for IGCC power generation H System Turbine

Capable of achieving 60% efficiency efficiency.

Water TechnologiesHelping customers conserve more than 3 billion gallons of water

Lighting & Appliances

Energy Star Partner of the Year, 2004

NuclearNew technology for emission free power generation

GCEP Breakthrough Research WorkshopNov. 11, , 2005

Solid oxide fuel cells

Imagine powering 500 homes without releasing green house gases

Hybrid locomotive

Imagine a 40 ton Toyota Priuson rails

Solar technologiesImagine powering your home with photovoltaic roofing tiles that convert the sun’s rays into affordable electricity

Hydrogen technologies

Imagine a cost effective, scalable means of producing this clean burning fuel

Solid state lightingImagine a home with no light bulbs, illuminated by organic light emitting diodesfor a fraction of the cost

With new products right around the corner…

GE Proprietary

13

GE Businesses and GEGR …One Team

• Annual Strategic Business ReviewsGrowth play book…growth priorities, role of technology, strategic collaborations

• Annual Operating Plan ReviewsNext year’s priorities, budgets

• Session “T”(echnology)Working meetings of GRC with Business Technology and Marketing Sr. Leaders to review GR new ideas and identify major new opportunities

GE Proprietary

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• Quarterly Review with Each Business CEO, Technology Leaders, Marketing Leaders

Full Day of review of business projects, project decisions, market trends & technology discussions

• Quarterly Engineering Leader MeetingsFoster synergies, share best practices, roll-out new cross business initiatives

• Business Program Office at GEGRManage the linkage between Businesses and GEGR

• Exchange of People Between Businesses and LabNurture embedded innovation advocates…leaders

GE Businesses and GEGR …One Team

Integrated Business – GR Operating Rhythm

GE Proprietary

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Organized for R&D effectiveness•Global Technology Organizations

>Clear missions for each GTO>Distinct Centers of Excellence across the globe>Minimize overlaps in infrastructure, skills

•Advanced Technology Programs-IR&D Funding

>“Virtual Labs” focused on long term, high impact technology developments

>Seamlessly drawing on brightest global brains from across GEGR organizations

>Strong Program Managers reporting to VP

•Business Program Offices- customer funding>Business Program Mgrs – voice of customer at

GEGR>Ensure right R&D portfolio and effective project

execution>Leverage synergy across GEGR and GE businesses

SVP Global Research

Global TechOrganizations

BusinessProgram Offices

Ceramics & Metallurgy

Energy & Propulsion

Electronics & Energy Conv’n

GE Energy

GE Aircraft Engines

GE Oil & Gas

VP Adv TechPrograms

Sustainable Energy

Nanotech

Biotech

$ $People

Next wave of inventions happen at Intersection of technical disciplines

GE Proprietary

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Managing the Portfolio for Success

StageIdea Discovery Feasibility Pre-NPI New ProductsG

EGR

Effo

rt

From idea to productDiscovery to Feasibility: Technical concept

demonstrated; Scientific principles understood

Feasibility to Pre-New Product Introduction (NPI): Performance/cost potential demonstrated; Initial application concepts identified

Pre-NPI to NPI: Major technical risks retired; Market opportunity validated

Key Success ElementsExplore options …place big bets …cut losses

—Look hard at alternate tech. solutions in Discovery—Peer merit reviews of technology viability,

competitiveness re alternatives, risk, time horizon —Businesses / GEGR in synch on Feasibility priorities

Manage risk—Complete enabling materials and component

development before launching system programs—Subscale demos to prove out critical components

Key… optimize idea–to- product yield

GE Proprietary

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Assessing Performance

GE CEO Perspective on GEGR

Is GEGR filling the pipeline of new growth opportunities for the Businesses?

Is GEGR providing technology to support key, next generation products?

Is GEGR providing timely “911” response services for the businesses where needed?

GE Proprietary

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GE GR Director Measurements

Driving growth•Deliver on key growth programs •Growth in Business funding•Balancing big swings with meeting commitments•Champion an external focus to understand changing

markets and customer needs

Leading technical organizations, with passion•Be the employer of choice•Drive functional depth in technical teams•Find and retain the best talent; know the best people in

the field•Nurture engagement and innovation•Ensure compliance, always

Assessing Performance-cont’d

Its all about making customer impact