GE 2009 Annual Report Download - page 8

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Our competitive advantage in services is a deep understanding of our customers’
productivity based on how they use our products. For instance, a 3% reduction in fuel
consumption across GE and our partners’ aircraft-engine installed base would save our
airline customers $2 billion annually.
The next “untapped” market in services is to improve customers’ operations by
automating their workflow through software and asset management. We are developing
leadership in new markets like smart grid, electronic medical records, movement planning
for locomotives, advanced aviation information systems and productivity solutions.
WE LEAD IN GROWTH MARKETS. Today we have a $38 billion business in growth markets,
which include resource- and people-rich regions, like the Middle East, Latin America,
China and India. This represents about 40% of our industrial revenue. These markets are
investing trillions of dollars in infrastructure and favor a multi-business company that can
bring solutions. This allows us to form a “company-to-country” approach
in countries where government and business work together to solve
infrastructure needs.
We are accelerating localization of capability in order to lower costs
and leverage talent. In 2010, we will open six service shops in emerging
markets, build our fifth global research center, in Brazil, and add thousands
of sales and service reps in these regions.
Investors should view GE as a great way to participate in emerging-
market growth. Our share in emerging markets is comparable to
the United States; our margins and service penetration are similar to the
developed world. And we are committed to a cost position that can
compete globally, sometimes by positioning with local players.
Pre-crisis, we had targeted an organic revenue growth goal of
2 to 3 times GDP. In 2010, I expect our organic growth to be slightly
positive. Over the near term, our position in services, emerging markets,
technology and global solutions should propel GE to organic revenue
growth in excess of the GDP.
Creating market solutions to tough societal problems.
We have continued to drive two infrastructure growth initiatives,
ecomagination and healthymagination. In so doing, we have made great
progress on the stubborn problems of energy efficiency and affordable healthcare.
GE always takes a “systems approach” to problem solving, applying innovative solutions
to customer and societal needs.
We’ve been an innovator in clean energy. In 2005, we launched ecomagination,
which is all about producing innovative technologies that save customers money
and create jobs. It has worked at GE. Our revenue from ecomagination products has
grown from $5 billion to $18 billion in 2009. We have set new goals for growth and
for environmental impact.
Technology is the key to a clean energy future. Last year, we made substantial
investments to commercialize smart grid solutions, sodium and lithium battery technology,
offshore wind, smart appliances and multi-fuel gas turbines. We remain committed
to introducing a new generation of nuclear reactors and clean coal technology. These
innovations will facilitate energy security and job creation.
Similarly, we believe there is a huge opportunity in affordable healthcare.
Healthymagination was conceived to grow our Healthcare business by providing better
healthcare to more people at lower cost, mainly by helping doctors.
We are investing $6 billion to introduce new technologies that address healthcare
cost, quality and access. They range from a handheld ultrasound, which could one day
become as indispensable in remote areas as a physician’s stethoscope, to high-tech
imaging modalities — like magnetic resonance — at revolutionary price points.
We have continued to drive
two infrastructure growth
initiatives, ecomagination and
healthymagination. In so doing,
we have made great progress
on the stubborn problems of
energy efficiency and affordable
healthcare. GE always takes a
“systems approach” to problem
solving, applying innovative
solutions to customer and
societal needs.
6 GE 2009 ANNUAL REPORT