GE 2008 Annual Report Download - page 9

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DRIVE INNOVATION. We will invest $10 billion in technology and content in 2009, the same
level as 2008. Since 2000, we have invested approximately $50 billion in product
technology. We’ll launch economical “value products” in 2009 such as the 2.6-megawatt
wind turbine, which has high efficiency, more capacity, and lower cost.
We’ll continue to build our innovation pipeline. We launched a venture in digital
pathology, which we think will be a $2 billion market over time. We launched hulu,
™
a joint venture between NBC Universal and News Corp., which is an innovative digital
content platform competing with YouTube.
™ We have invested $150 million in battery
technology that will power our hybrid locomotives. We will continue to fund innovation
through the downturn.
BUILD RELATIONSHIPS. GE has many ventures and partnerships that help us grow and
diversify risk on a global basis. Our multi-business structure makes us a particularly
desirable partner for governments and other large investors. A great example is
our spectacular success with the Beijing 2008 Olympic Games. This event produced
$2 billion of revenues across multiple GE platforms, while building our relationships
in China.
In 2008, we announced a multifaceted partnership with Mubadala, the commercial
investing arm of Abu Dhabi, which includes a commercial finance joint venture,
projects in renewable energy, and a training center in Abu Dhabi. Mubadala will also
become a “Top 10” GE investor.
LEVERAGE STRENGTHS. We have core processes centered on organic growth, operating
excellence, and leadership development. The aim of these processes is to spread
best practices across the Company.
We compare our progress on common metrics in industrial organic revenue growth,
margins, return on total capital, and productivity as measured by revenue per employee.
The chart on this page shows how we compare with a composite of world-class peers.
We continue to perform.
In addition, we continue to invest $1 billion annually in our people and leadership
development. We value our team. We remain committed to developing broad and
“battle-tested” global leaders.
Opportunity to Reset
Let’s face it: our Company’s reputation was tarnished because we weren’t the “safe and
reliable” growth company that is our aspiration. I accept responsibility for this. But, I think
this environment presents an opportunity of a lifetime. We get a chance to reset the
core of GE and focus on what we do best. We can reset expectations for our performance.
And we can participate in the changes required in the broader economy.
Peers include: Whirlpool, Disney, News Corp., United Technologies,
Honeywell, Siemens, Philips, ABB, Rolls Royce, Alstom
2008 INDUSTRIAL
ORGANIC REVENUE
GROWTH
GE
Peers
4
8
(In %)
2008 MARGINS
GE
Peers
14.6 15.6
(In %)
2008 REVENUE
PER EMPLOYEE
GE
Peers
294
566
(In $ thousands)
2008 RETURN ON
TOTAL CAPITAL
GE
Peers
12.1
14.8
(In %)
ge 2008 annual report 7