GE E-commerce Presentation

8/8/2019 GE E-commerce Presentation

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Vivian Zhao

eBusiness Director, GE China

September 24, 2001


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GE traces its beginnings toThomas A. Edison, who

established the Edison Electric

Light Company in 1878.

In 1892, a merger of the

Edison General Electric

Company and the Thomson-

Houston Electric Company

created the General Electric

Company.

GE History


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Dow Jones Industrial Average: GE Was There, and Still Is

Then

Companies in the Original Dow

Jones Industrial Average1896

GE was the Only Company on Both Lists When Dow Jones

Celebrated 100th Anniversary

Alcoa Intl Business MachinesAmerican Express IntelAT & T J.P. Morgan ChaseBoeing Johnson & Johnson

Caterpillar McDonaldsCitigroup MerkCoca Cola MicrosoftDuPont Minnesota Mining &Eastman Kodak ManufacturingExxon Mobil Philip MorrisGeneral Electric Procter & GambleGeneral Motor SBC CommunicationsHewlett-Packard United TechnologieHomeDepot Wal-MartHoneywell Walt Disney

American Cotton Oil

American Sugar

American Tobacco

Chicago Gas

Distilling & Cattlefeeding

General Electric

Laclede Gas

National Lead

North America

Tennessee Coal & IronU.S. Leather

U.S. Rubber

Now

Companies in Todays Dow

Jones Industrial Average


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GE Overview

Aircraft Engines

Power Systems

Appliances

Capital Services

PlasticsIndustrial Systems

Lighting

NBCMedical Systems

Transportation

11 Operating Businesses

Multi-Products and Services with $130BRevenue and $12.7B Net Income

Global Exchange Systems


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GE 1980-1997

S&P 500$1,300

DJIA$1,555

GE$3,315

GE DJIA and S&P 500

0

600

1200

1800

2400

3000

3600

'80 '85 '89 '93 '97

$

Revised 5/98

GE Stock Performance 1980-1997

GE Surpass DJIA and S&P 500

S&P 500$1,300

DJIA$1,555

GE$3,315

What a Shareholder can get from $100 Investment

1980 1997


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GE Expanding Growth Opportunity

GE Revenues

'80 '90 '95 '00

$26B

$50B

$130B

$70B

6%

7%

12-13%

New GE Playing in a Multi-Trillion Dollar Market


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GE Growth --How Do We AccelerateIt?

Markets Sourcing IntellectMarkets Sourcing IntellectGlobalizationGlobalization

OEM Third Party High TechOEM Third Party High TechServicesServices

Productivity Market Share Way of LifeProductivity Market Share Way of LifeSix SigmaSix Sigma

Driven by Operating System

e-Business

E-Business Critical to Delivering in 2001 and Beyond


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The Evolution of GE e-Business

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

Added e-Business as the 4th GE Initiative

Establish New e-Business Team at Each Business

Objective: Destroy Your Business.com

- Understand the New World

- Benchmark Competitor Online Capabilities- Proactively Attack Your Own Business

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

Grow Your Business.com

- Internet an Opportunity, Not Just a Threat

Develop World-Class e-Channel (CWC)

- Simple/Easy/Sticky

- Competitive Benchmarking

Leverage GE Brand/Capabilities

- We Have More than Clicks , We Have Bricks and Fulfillment

Make Strategic Equity Investments


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The Evolution of GE e-Business

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

Weekly e-Metric Tracking

- Buy/Make/Sell

e-Business Takeover

- e-Biz Leaders = C.O.O.

e-Mentoring for Top Execs

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

Digitization

- Huge Cost-Out Opportunity- Competitive Benchmarking

Sourcing Deflation

- e-Auctions

Customer Migration


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GE e-Business Approach

e-Sell e-Buy

Equity

Transactions Value Added Services (or

External Wizards)

Web-enable processes Intranet/ Collaboration Tools Internal Wizards

SourceBid (e-Auctions) Supplier Extranet (Direct) e-Procurement (Indirect)

E-Business Suppliers Strategic Plays

GE e-BusinessApproach

E-M

etric

s

Prioritize OpportunitiesFocus On The Objectives

e-Make


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'99 '00

E-Auctions

($40B Total Buy)

% Savings 20% ~12-15%

$200MM

$6B

Transaction Costs

(3.5 Million Transactions)

'99 '00

$50/TX

$5/TX

e-Enabled

~$6B ~$150MM

SavingsPotential

eBuy BuyBuy MakMakeeSellSell

Non e-Enabled


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GEPS Application &Database Servers

GE

Web-Site

Customers and

Supplierswith Secure

Accessto GEPSIntranet viaInternet

INTRANET

Sourcing

ProjectTracking

EXTRANET INTERNET

Yahoo.com

Application &Database Servers

GE.com

gepower.com

InternetSubscriber

How to work with Suppliers-Example of GEPS

BuyBuy MakMakee

SellSelleBuy


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Online Application

Supplier ScorecardsElectronic InvoicingOn-line Auctions

DART

Engineering Documents

eextranet

Milestone Tracking

E-Logistics E-Packing ListE-Marketplace

BuyBuy MakMakee

SellSelleBuy


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A Web Based Utility that Allows Suppliers to Prepare and

Submit Online Bids for Request for Proposals (RFQs)

E-Auction

E-Enables the Traditional Sourcing ProcessE-Enables the Traditional Sourcing Process

BuyBuy MakMakee

SellSelleBuy

Price Negotiation Cycle Time Reduced

Significantly

Simplifies Supplier Approval Process by

Quickly Eliminating Non-competitive

Suppliers

Reduced PO Placement Cycle Time

Standardize and Streamline the RFQ

Process... Simplifies Proposal

Evaluation - Price, Quality, & Delivery


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E-Invoice

An Internet-based Invoice Inquiry and Invoice Creation andSubmission Tool

Replacing Paper-Based ProcessesReplacing Paper-Based Processes

BuyBuy MakMakee

SellSelleBuy

Self Service Inquiry Allows Suppliers to

View Invoice Information and Payment

Status On-line

Web Invoices Will Have to Match the POup Front, Removing 50% of the Matching

Problems That Hold up Payment

Invoice Will Not Have to Wait for Mailing

Time to Arrive at Accounts Payable

No Manual Data Entry at Accounts

Payable Less Possibility of Error


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Internet-based Tools Used to Request TransportationInstructions and View Shipment Tracking Information

E-Logistics

Replacing Paper-Based ProcessesReplacing Paper-Based Processes

BuyBuy MakMakee

SellSelleBuy

Advanced Data Input Capabilities Allows RapidInput of Requests Via Web

Freight Tracking On-line Regardless of Carrier

Being Utilized

Reduces Errors > Data Feeds Directly IntoDatabase

GEPS Personnel Able to View Shipment StatusReports On-line Thereby Reducing GEPSRequests for Information

Ensures Timely Delivery of Goods to GEPSInternal/external Customerswww.gepsrouting.com


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The Scorecard is GEPSs Primary Vehicle for Supplier Measurement byProviding a Summary of Cost Reduction, Quality, Delivery, and

Supplier Integration.

Supplier XYZ

Company ABC

Buyer ABC Phone #: 555-555-5555SQE ABC Phone #: 555-555-5555

Scorecards

Our Tool For Evaluating Our Suppliers PerformanceOur Tool For Evaluating Our Suppliers Performance

BuyBuy MakMakee

SellSelleBuy

Real-time access to GEPS supplierevaluation

Provides supplier the ability to

understand evaluation criteria, currentevaluation status, and areas forimprovement

Sets benchmark for new suppliers

Allows supplier to focus on strategiccost reduction methods - not justprice


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Document Archive & Retrieve Tool--Allows the Supplier to Retrieve andPrint Drawings and Specifications Associated with Open Purchase Orders

DARTBuyBuy MakMakee

SellSelleBuy

Internet Access to GEPS Drawings

Reduced Cycle Time to Attain

Drawings and Complete a Project

Reduced Costs - Delivery, Printing,

Etc.

Increased Specification Accuracy

Drawings Immediately Available On Open Purchase OrdersDrawings Immediately Available On Open Purchase Orders


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eSell BuyBuy MakeMake SellSell

$1 Billion Online Sales in 1999 and $7 Billion in 2000

eSell generates revenue for GE through:

Online transactions

Adding value to what currently offers customers

Forcing GE to change its behavior and become more

competitive, based on customer use of the Internet

The Internet becomes a critical source of real-time customer /

GE interaction and relationship management

The Internet allow GE to build on its image of provider-friendly,

stable partner, 24x7.


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GE Plastics--Polymerland:

Online sales & data portal

for the plastics industry

Strong design, research

and order status capabilities

Current order rate of $15M

per week


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GE Plastics--Polymerland

Customer may make a

particular color for a certain

material

Online order the color

sample sheet

Delivery within 48 hours

which used to be in several

weeks


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GE Power Systems:

Leading online transaction site

for the utilities industry

Product & service

comparisons

Warranty, repair & installation

Wizard used to guide

customer to find out the

potential problemgepower.com



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eMake

Eliminate Manual Activities

Improve and Simplify the Workflow Process

Paperless Work Environment

Unnecessary Touch Point Reduction or Elimination

Better, Faster Information

Reduce Support Resources

Digitize EVERYTHING

BuyBuy MakeMake SellSell

40-50% Savings on Make Costs at $1.5 Billion in 2000


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eMake BuyBuy MakeMake SellSell


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Keys to Success

Leadership and Top-down Support

Involve Customers Through the Effort

Get Business User Buy-in and Participation

Six Sigma as the Enabler

Dont Wait Until Everything is Perfect. Just Begin

Boundaryless Learning Environment

Follow up with Customers After Launch


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The in GE takes on aThe in GE takes on a

whole new meaning.whole new meaning.

ee

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