GE 2009 Annual Report Download - page 7

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Investing in profitable growth.
We have consistently enhanced our capability to drive organic growth. We have positioned
GE to capitalize on the available “tailwind” in a world with uneven growth.
WE HAVE BROAD TECHNICAL LEADERSHIP. Our competitive advantage in
technology is based on robust investment, an innovative team and our
ability to create a low-cost position. In 2010, we will spend about 5% of
our industrial revenue on R&D. We have filed 20,000 patents this decade.
We have nearly 40,000 engineers and scientists around the world.
We have developed more than 150 core technologies that create
leadership across our company. We share technologies and innovation
across multiple platforms to create technological scale. We benchmark
each of these against our competition and lead in many.
Our focus is on introducing more new products at more price points.
We are driving management practices to capture new opportunities,
called “reverse innovation.” Essentially, this takes a low-cost, emerging-
market business model and translates it to the developed world. To this
end, we have developed a full line of high-margin, low-cost healthcare
devices, designed in China and India, and now marketed successfully
in the developed world.
We are extending our technology through partnerships. Intel and GE are partnering
to offer new innovation in home healthcare. We partnered with the Aviation Industry
Corporation of China (AVIC) to form a joint venture in avionics. GE, in partnership with
Eli Lilly and Company, is working to develop an approach to molecular pathology that
could aid custom treatment decisions for many forms of cancers. GE and Google have
partnered to bring smart grid technology into the home. Partnering allows us to introduce
more products faster.
WE ARE EXPANDING OUR SERVICE BUSINESSES. Today, we have $35 billion in product service
revenue, with a $129 billion backlog. Services represent one-third of our revenue and
nearly three-quarters of our industrial earnings. Our product service earnings grew even
in the recession. High-margin services will continue to grow naturally because of our
expanding backlog and installed base.
More Valuable Portfolio
Insurance
Capital Finance
Infrastructure
Reduce Risk & Investment Reposition, Simplify & Invest Growth & Value Creation
(ongoing NBC Universal investment)
Plastics, Media and
Consumer & Industrial
$16.6
EARLY DECADE
(In $ billions, segment profit)
++
TODAY
Capital Finance
Infrastructure
Media and
Consumer & Industrial
FUTURE
Consumer
Infrastructure
Capital Finance
+++
Our focus is on introducing more new
products at more price points. We
are driving management practices to
capture new opportunities, called
“reverse innovation.” Essentially, this
takes a low-cost, emerging-market
business model and translates it to the
developed world. To this end, we have
developed a full line of high-margin,
low-cost healthcare devices, designed
in China and India, and now marketed
successfully in the developed world.
GE 2009 ANNUAL REPORT 5