GE E-commerce Presentation
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Transcript of 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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eSell BuyBuy MakeMake SellSell
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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eSell BuyBuy MakeMake SellSell
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
eSell BuyBuy MakeMake SellSell
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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