GE 2010 Annual Report Download - page 7

GE 2010 ANNUAL REPORT 5
LETTER TO SHAREOWNERS
WE LEAD IN BIG GROWTH THEMES
We have positioned the company to capitalize on some of the
biggest external themes of the day, like emerging-market growth,
affordable healthcare and clean energy. Internally, we treat
“growth as a process” by focusing on innovation, customer needs,
services and best-practice integration. We are executing six
growth imperatives:
1 Launch great new products. GE’s technical leadership is
a function of increased investment, great people and a model for
innovation. Our innovation is focused on solving big customer
problems, partnerships that extend our capability and designing
products across all price points. We are committed to sustaining
technical investment ahead of the competition.
Our Healthcare business is indicative of the work going on
across the company. We will launch 100 Healthcare innovations
this year. These include important leadership products in
molecular imaging and low-dose CT. We will open new segments
with our hand-held ultrasound and extremity MR products.
We have focused on affordable innovation, launching high-margin
products at lower price points, with dramatic growth potential
in the emerging markets. We have completed a Home Health
venture with Intel, featuring new proprietary products. And we
are entering new markets like pathology, with automation
and diagnostic tools. Long-term growth in Healthcare, like other
Infrastructure markets, is driven by a deep pipeline of
high-margin innovations.
GE GROWTH IMPERATIVES
LAUNCH
Great
New Products
1
GROW
Services and
Software
2
LEAD
in Growth
Markets
3
EXPAND
from
the Core
4
CREATE
Value
in Specialty
Finance
5
SOLVE
Problems for
Customers
and Society
6
2 Grow services and software. Services represent 70% of our
Infrastructure earnings. We have a $130 billion services backlog
at high margins. In 2011, our services revenue should grow
between 5% and 10%. Through our contractual service agreements,
we reduce our customers’ cost of ownership by providing new
technology and productivity to their installed base.
We have an opportunity to expand our service business.
About 90% of our service revenue is focused on the GE installed
base. Meanwhile, our customers demand broader solutions. We
plan to expand our presence in software into new areas
in workflow, analytics and systems integration. We believe there
is a $100 billion opportunity in software and services in
infrastructure markets we know well.
Today, GE has $4 billion of revenue in infrastructure software
in segments like healthcare information technology, Smart Grid,
rail movement planners, engine monitoring and factory productivity.
By investing in these platforms we can grow rapidly and move
closer to our customers.
3 Lead in growth markets. GE has $30 billion of Industrial
revenue in key global growth markets, where revenue has
expanded by more than 10% annually over the last decade.
As commodity prices increase, the needs of our customers
in what we segment as “resource-rich” regions grow as well.
We continue to make long-term investments to drive growth across
the Middle East, Africa, Canada, Australia, Russia and Latin
America. In what we segment as “rising Asia,” markets like China
and India, there are over one billion people joining the middle
class. We plan to have an increasing number of products localized
in China and India in the next few years. This will give us the
right technology to satisfy our customers’ needs.