GE 2012 Annual Report Download - page 9

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Achieving these results has required
substantial investment in capabil-
ity and people. Between 2010 and
2014, we are making 30 investments
in manufacturing, research, services,
customer innovation and training in
growth markets. We have developed
and repositioned our leaders to capi-
talize on growth-market opportunities.
We have 10,000 commercial resources
focused on the needs of our customers
in growth markets. We have achieved
local relevance with global scale.
We use the entire GE enterprise to
improve the value of our investments
in technology and globalization.
For technology, we have a “Global
Research Center Network” that builds
strategic capability, spreads technol-
ogy around the world and innovates
for local markets. We have a “Global
Growth Organization,” led by a GE Vice
Chairman, that allows GE to better
compete by using our talent.
Fourth, we have built deep customer
relationships based on an outcomes-
oriented model. Our growth is aligned
with customer outcomes, and our
products improve their productivity.
We have grown our service revenue
from $21 billion to $43 billion over
the past decade. Services represent
about 75% of our industrial earnings.
With $157 billion of service backlog,
we have the momentum to grow in
the future.
We believe in a solutions-oriented
selling model, one that can deliver out-
comes for customers. In Healthcare,
we are aligned around the major
accounts so that we can help them
transform ahead of U.S. healthcare
reform. In Oil & Gas, we deliver com-
prehensive technical solutions for our
customers. In Aviation, we create value
through the performance of our new
technologies. We only win when our
customers win.
Fifth and finally, we have positioned
GE to lead in the big productivity
drivers of this era. This is important
for growing our margins while keep-
ing our customers competitive. The
levers of productivity are constantly
changing. For more than a century,
GE has been a leader in productivity
and innovation.
We will lead in the shale
gas revolution. The volume of
and access to shale gas and other
unconventional resources in the U.S.
(and other regions) will change the
competitive balance in energy for a
generation. This gives the U.S. one of
the lowest costs of electricity in the
world and the chance to be an energy
exporter. Big industries—
like rail—could convert from diesel to
gas. The option of becoming energy-
independent is now possible for North
America. Through our Oil & Gas busi-
ness we can provide important content
in extraction, development, and envi-
ronmental protection of shale gas. We
are the world leader in gas-powered
generation and transportation.
We are extending GE’s lead
in advanced manufacturing.
Manufacturing is a major source of
competitive advantage. After decades
of outsourcing capability, we now see
companies rebuilding their manu-
facturing strength. Companies used
to make investment decisions purely
on labor cost. However, there are
new materials that can revolutionize
performance, and precision technolo-
gies and high-power computing are
transforming how we manufacture.
GE will “insource” more manufacturing
content. We are investing in process-
ing technologies such as additive
manufacturing. In the future, we aspire
to reduce the cycle times for complex
systems and lower cost.
GE 2012 ANNUAL REPORT 7