GE 2014 Annual Report Download - page 11

growth at higher margins; it makes the totality
of GE more competitive than the parts.
No other company has the ability to transfer
intellect and technology as GE can through the
Store. We take alternators from our aircraft
engines, designed to pass rigorous FAA certifi -
cation, and use them to improve the motors for
pumping oil from the ground. We use imaging
technology from healthcare equipment to
inspect oil pipelines. And we bring the compos-
ite materials from our aircraft engines to our
MRI equipment, to reduce weight and enhance
image quality.
All of our businesses can shop at the GE
Store, and it lets us continue to win in several
crucial areas:
GE wins with technology. Our Global Research
Centers let us develop common technology
that we can push across the Company’s busi-
nesses. For instance, we are currently making
substantial investments in advanced manufac-
turing. We are developing a common approach
to materials and additive manufacturing. We
expect to signifi cantly increase the number of
our parts manufactured through additive pro-
cesses by 2020 with advancements in all of our
businesses. The GE Store will allow GE to achieve
generational leadership in manufacturing.
GE wins in growth markets. GE has close to
$50 billion of orders in growth markets, up
9% in 2014. And, with $21 billion of exports,
we lead economic development around
the world. The source of our strength is our
Global Growth Organization. Winning globally
requires scale to build new positions in growth
markets with the speed to solve local needs.
GE has built a $6 billion position in Africa
over the last decade, virtually from scratch.
We have built factories, training centers and
partnerships required for long-term growth.
At the same time, in markets like India, we can
deliver customized healthcare offerings in
rural settings. We take the healthcare products
we develop in India to other value markets in
China and Latin America.
GE wins with services. Our service orders were
nearly $50 billion in 2014, up 10%. We ended
the year with about $189 billion in long-term
service agreements. Our installed base is
valuable for our customers with a replace-
ment value of nearly $2 trillion. GE’s integrated
strength is in our Service Council. Here, our
top service leaders can utilize inspection
technology from Healthcare and apply it to
condition-based monitoring in Power; or use
repair technology from Aviation to improve
productivity in Transportation; or use data and
analytics to reduce customer downtime.
CULTURE OF SIMPLIFICATION
Integrated Culture Change
Running GE differently…fewer things better…
most decisions distributed…small headquarters &
functions…respect domain
Combining FastWorks with Lean, Six Sigma…
democratized; broad competitive intensity;
mistakes & pivots a part of good management
Seamless market alignment globally;
more horizontal solutions for customers…
only value winning
Smartest & most effi cient company
in the world…new talent base bringing
new skill set
LETTER TO SHAREOWNERS
GE 2014 ANNUAL REPORT 9