GE 2013 Annual Report Download - page 8

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70%
PREMIER
INFRASTRUCTURE
COMPANY
30%
VALUABLE
SPECIALTY
FINANCE
GE PORTFOLIO GOALS ENTERPRISE
ADVANTAGES
Technical
leadership
& scale
Growth market
capabilities:
breadth & depth
Services driving
customer outcomes
through analytics
Culture of
simplifi cation:
low cost + speed
2014. We have a solid franchise in the
private label credit card business, but
it is a step removed from GE Capital’s
strength of lending to industrial
middle-market companies. By 2015, we
expect fi nancial services should be
30% of our earnings.
GE Capital is a valuable middle-market
franchise that builds on GE strengths
and our domain expertise. We have
strong leadership franchises in areas
like equipment and inventory fi nance,
and a portion of our assets are around
GE’s installed base. This gives us
unique capability in aviation, energy
and healthcare. We link our Capital
customers to GE through a program
called “Access GE,” through which we
share our best practices to help them
run their businesses better. GE Capital
has never been stronger or safer,
and we are making substantial invest-
ments to meet the standards expected
from a Federal Reserve regulated
fi nancial institution.
GE’s portfolio sets our potential.
We have completed substantial work
over the past decade. We have
repositioned GE Capital as a smaller
and safer specialty fi nance leader
with less leverage and more liquidity.
We have redeployed capital from
businesses outside the GE core — like
insurance and media — to platforms
that can leverage our strengths like
Oil & Gas and Life Sciences. We expect
this portfolio to deliver valuable growth
and trade at a premium in the future.
Leading in Productivity
We are consistently innovating inside
GE. In an “effi ciency-starved” world,
our innovations are focused on
productivity. We are investing in three
initiatives that can deliver big gains in
productivity for our customers and GE.
We will lead as the industrial and
analytical worlds collide. We believe
that every industrial company will
become a software company; that
ultimately deep domain knowledge
is tougher to come by than writing
code. In this sense, GE seeks to link
the “iron and the data.” Our assets
have sensors that produce a custom-
ized stream of performance data.
We can harness this data to optimize
performance. We know that smart
machines, guided by domain-based
analytics, in a distributed setting,
will drive new levels of productivity.
We call this the Industrial Internet.
Our customers want our assets to
operate with no unplanned down-
time and optimal performance. Small
improvements in asset performance
could impact $20 billion of benefi ts
for our customers. We are delivering
software and analytical solutions
that can take data from our installed
base and turn it into productive
outcomes for our customers. We call
our data solutions “Predictivity,” and
so far, we have launched 24 offerings
generating $800 million of incremental
revenue. We expect Predictivity reve-
nues to exceed $1 billion in 2014.
Our systems can analyze the perfor-
mance of individual engines in the
Aviation installed base; this allows us
to differentiate repairs, saving money
and time for our customers. Through
GE’s Healthcare Asset Management,
radiologists can keep “images in the
cloud.” This improves clinician produc-
tivity, expands networks of care and
LETTER TO SHAREOWNERS
6 GE 2013 ANNUAL REPORT