1. GE Healthcare Systems
Going Forward
Team B13
Chris Chen
Brian Lee
Robyn Moss
Matt Stewart

2. Introduction Recommendation Risks Execution Summary 2
Agenda
• Case Overview
• Recommendation
– Product Rationale
• Assumptions, Challenges, Risks
• Execution
• Summary

3. Introduction Recommendation Risks Execution Summary 3
The Added Value of Healthymagination to GEHS
Smart
Spending
Smart
Saving
Smart spending - Making smart investments that make a
difference lead to research and development in technology
innovations, capital financing for growth companies and
grants.
Smart Saving - Lowering costs, expanding capacity and
improving performance enable healthcare providers to care
for more people with existing facilities and to extend access to
wider populations.
1) Not just new products, but a tool for Marketing
• Differentiation from competitors
2) Sustainable advantage in Customer loyalty
• Less dependence on individual products
3) Disruptive Innovation
• Introducing new standards of quality, access
and cost to the healthcare industry

4. Introduction Recommendation Risks Execution Summary 4
Healthcare Industry and GEHS Overview
Healthcare is a booming industry
– $2.5 Trillion sector in US, 16% US GDP (projected to hit 31% by 2035)
GEHS and Medical Imaging Technologies
– In 2007 GE dominates MRI and CT (40%, 50% of market share respectively)
– Ultrasound is the 3rd largest modality of Medical Imaging, a $2 Billion industry
• GEHS in close competition with Philips to gain majority market share by
2010
Healthymagination
– $6 Billion Initiative launched in 2009 by GEHS as a commitment to quality,
access, and cost issues around the global Healthcare industry
– Requires a 15% increase in one of the three categories (quality, access, cost)
Which Ultrasound products should GEHS introduce?
– HepEcho, TEEmax, UltraLipo, and Omega

5. Introduction Recommendation Risks Execution Summary 5
Recommendation: HepEcho, Omega, TEEmax
Introduce HepEcho and Omega first as they are the best candidates for healthymagination
and they are in attractive markets. Introduce TEEmax after further evidence generation.
• Annotations
•Cost reductions of > 15%
•Large hospitals and mid-size clinics
•Buyers are more than
hepatologists
•Japan has Gov’t run healthcare
•Current medical needs are not met
HepEcho
•Access to new markets > 15%
•Collaborate with NGO
•Partner w/ Indonesian Gov’t
•Multi-year warranty plan
•Lowering costs
Omega
PROFITS
+
HEALTHYMAGINATION
TEEmax

6. Introduction Recommendation Risks Execution Summary 6
Healthcare Spending to Increase
• Increasing healthcare demands of aging Japanese
population necessitate dramatic increase in healthcare
spending (current spend 7% of GDP in 2009, compared
to 16.3% of GDP in US1).
• Intense competition likely as companies look to gain
share of increased spend
HepEcho provides lower cost, high quality
imaging for a growing Japanese market
Affordable, High-Quality Product
• Versatile LOGIQ E9 imaging technology, affordably price for mass appeal
• Positioned to meet the needs of hepatologists looking for improved diagnostic results
• Lower price point will expand target market to include both large academic hospitals and mid-
sized clinics
4.1 5.9 8.9 11.2 11.6 12.8 16.1 19.7
24.1
16
20.6
27
30.1
33.1
37.5
42.3
47.2
52.3
0
10
20
30
40
50
60 National
Medical Care
Expenditure
Medical Care
Expenditure
for the
Elderly
Trillion
Yen
Estimate
Growing Healthcare Spend in Japan1
1. Mori, Dr. Takato and Nagano, Dr. Amie. “From Silver to Gold: The Implications of Japan’s ageing population”. GE and Economist Intelligence Unit.
HepEcho poised to gain market share as low-priced solution focused on diagnostic and
preventative medicine.

7. Introduction Recommendation Risks Execution Summary 7
HepEcho: Meeting the Changing Needs of the
Japanese Market
Meeting Changing Customer Needs Requires Innovation
• Rapidly aging Japanese population influencing market needs
– Focus on tools aimed at diagnosis, prevention, treating chronic illnesses
• Japan exploring opportunities for new avenues of healthcare delivery
– Emphasis on home-based care for elderly will make mobility and versatility of
tools more important1
1. Ministry of Health, Labour and Welfare of Japan. 2011 Annual Report. http://www.mhlw.go.jp/english/org/pamphlet/dl/pamphlet-about_mhlw.pdf#page=14
Highlight innovative benefits of Healthymagination platform
Work with Japanese government to identify opportunities to
innovate and educate healthcare industry of products
Develop promotions to get HepEcho in test markets
Targeted
Marketing

8. Introduction Recommendation Risks Execution Summary 8
Omega: Fulfilling needs in Emerging markets
Omega addresses the issue of midwives lacking proper
equipment to detect and understand pregnancy risks
• Price-sensitive target market (Indonesia)
 For midwives in Indonesia, price is the most important factor
 At around $3,000, Omega is affordable and economically justifiable
• Omega addresses scarcity of OB/GYNs in Indonesia, especially
in rural areas
 Compared with hospitals & OB/GYNs, midwives are considerably more
accessible and affordable
Increases
Access
Increases
Quality
New
Market

9. Introduction Recommendation Risks Execution Summary 9
Omega: Solutions for Barriers to Value Creation
and Delivery
Barriers to Value Creation and Delivery
 How will Omega be distributed, especially in rural areas?
 Who will train midwives and spread product awareness?
Proposed Solutions:
1) Collaborate with local NGOs (i.e. ICM, GMC)
 Product distribution through established supply channels
 Midwife education and training
 Spreading of product awareness
2) Partner with the Indonesian Government
 Government subsidies increase affordability
 Government endorsement adds credibility and increases awareness
3) Provide a multi-year warranty
 Alleviates midwives’ concerns regarding economic feasibility
 Instills confidence in product quality & reliability
4) Lower the price
 Increases Omega’s demand and unit sales
 Improves Omega’s economic feasibility

10. Introduction Recommendation Risks Execution Summary 10
New Markets + New Strategy = Risk
Low
Low
High
High
ProbabilityofOccurrence
Impact of Risk
Omega
HepEcho
Barriers to Entry
Competition
Buyer Power
Distribution
Barriers to Entry
Competition
Distribution
Buyer Power

11. Introduction Recommendation Risks Execution Summary 11
Execution: Focus on NPI’s 3 Steps to Success
Test Market
M1
M2
M3
Supply Chain Coordination
Cost & Schedule
HEPECHO: Established supply chains, GE HealthCare Hino Factory
OMEGA: Less established & highly fragmented, Indo 15000+
islands will need to utilize Korean manufacturing facilities
HEPECHO
• Shinjuju, Tokyo
• Pop 312, 418
• Most Hospitals per
1000 population
HEPECHO: $36M
OMEGA: $6M
OMEGA
• Jakarta’s rural areas
• Developed infrastructure
• 35% of births are
unassisted
Hit Scale
18 months
Beta Phase
6-18 months
Est Chains
3-6 months

12. Questions

13. 13
Appendix
• SWOT Analysis
• Healthymagination
Details
• Medical Imaging
Analysis
• Japanese Healthcare
Market
• Indonesia Midwifery
• TeeMax
• UltraLipo

14. 14
Healthymagination: Success thus far
• 43 Innovations have been validated to
improve cost, quality and access by 15%
• 234 million lives affected
• Over 60+ countries
COST
• Decrease treatment time
Quality
• New technologies
Access
• Medical equipment to developing markets

15. 15
Medical Imaging Analysis: Ultrasound Imaging
• $25.3 Global Billion market & growing
• Competition
– GE 30%
– Philips 27%
– Other 43%
OPPORTUNITY
Japan + Rest of Asia = 28% Global Market
Asia = 60% of worlds population
2004 2005 2006 2007 2012 CAGR%
1332.0 1423.2 1520 1625.2 2273 6.9
Ultrasound Projections

16. 16
Indonesia: It is Getting Better
WhoWhere
Infant Mortality

17. 17
Japan’s Healthcare Industry
Unique Social Healthcare Benefits1
• Lowest healthcare costs yet healthiest population
• Pay insurance premiums in relation to their income, insurance companies
don’t compete for services
Facts2
• Life Expectancy – 83 yrs,
• Health care spending – 8% GDP
• Doctors per 1000 -- 21
http://www.equityhealthj.com/content/8/1/5
1-http://prescriptions.blogs.nytimes.com/2009/08/25/health-care-abroad-japan/
2 http://www.who.int/countries/usa/en/

18. 18
TEEmax and the Healthymagination Initiative
We propose to delay the introduction of TEEmax until more evidence of value
creation can be established
• TEEmax is a product that current research tells us is much harder to reach the 15%
improvement
• The scope of this product is limited and it’s impact on global health issues is far
less relevant
• Currently Philips has a similar product on the market, Live 3D TEE, which will be
hard to overtake in market share without a strong marketing push, that association
with Healthymagination would provide
TEEmax is an attractive investment
• The product fulfills a direct need currently catered to by only one supplier, Philips
• The product is an add on to existing machines for which we already have buyers
and distribution established
• E4D Technology is multifunctional to apply to different objectives
• Market segments for cardiac ultrasound is growing as instances of heart disease
increase around the world

19. 19
UltraLipo: Opportunity Outside NPI and
Healthymagination
Potential New Product for Non-Healthymagination
platform
• Non-traditional use for ultrasound, cosmetic application with
few clinical benefits
Does not meet the Strategic Filter for NPI
• “Solve a clinically relevant problem, with a demonstrable
improvement in imaging quality that the clinician would
recognize, where there are a wide range of applications for the
product”

20. 20
SWOT analysis for 4 proposed products
HepEcho SWOT
Strengths: Fulfills a direct need that currently is insufficiently met, Japanese healthcare system is government run so ability to find large bulk buyers and institutionalized
systems is high, based on core technology that GE is already a leader in
Weaknesses: costly project and a high retail sales point, eliminates smaller independent firms from buying so shrinks your buyer pool, a lot of hospitals each serving small
size populations, so only a few locations will want to buy based on proximity to other locations who don’t have one, this is a specialized tool geared at hepatologists
only
Opportunities: Current ultrasound options are insufficient for proper liver cancer detection, 85% mortality rate for detected liver cancer world wide, Japan alone accounts for
5.3% of deaths from liver cancer, over $400 million market for hepatologists who use ultrasounds already,
Threats: Introducing a new product takes education and time to accept into general practice, competitor expected to release a similar imaging system as direct competition,
TEEmax SWOT
Strengths: Product is an addition to an existing product currently owned by many hospitals and firms, there is a clear need and a current market for such a machine,
Weaknesses: Limited scope of use of product (surgeons performing replacement of mitral valve procedures), Costly project requiring 20Million to start.
Opportunities: cardiac ultrasound is growing to a billion dollar segment, pioneering E4D technology can cross over to new product developments
Threats: Philips is already in the game with the Live 3D TEE, clinical team is unsure if TEEmax can reach healthymaginations growth goal of 15%,
UltraLipo SWOT
Strengths: Outside of typical healthcare segment, entering a new market, non invasive, based on existing companies it is profitable and highly desired, not treated in a
medical setting but a spa like setting, the alternative to UltraLipo is invasive medical surgery which is high risk and much more expensive. Typically an out of pocket
procedure, relatively simple technology
Weaknesses: Does not stay within the realm of Healthcare, does not promote the GE mission of providing better healthcare to more people, lack of a clinically relevant
benefit,
Opportunities: Industry is just beginning globally and has yet to be approved by the US government (still early movers in US), Target market is weight loss patients which is a
large market globally, Brazil is the highest numbers of liposuction procedures, estimated global market of over 1 billion, noninvasive lipo-surgeries are expected to
grow by 17.9% in the next half decade,
Threats: Existing Israeli company already created the market for ultrasound use in this capacity, No manufacturers have yet to receive FDA approval in the US
Omega SWOT
Strengths: Capitalizing on a market, Indonesia, that needs better service and equipment for pre-natal care, low cost requirements of 6 million, easy to use and affordable
$3000,
Weaknesses: most OBGYN’s are located in central cities, not in rural areas, so a lot of the patients that need the extra medical attention aren’t going to have access regardless
of product, Midwives don’t have as high enough incomes to afford an ultra sound machine, Product has a “novelty” value,
Opportunities: Outlet through Midwives is accessible, new emerging market with an incredibly large population, first mover advantages,
Threats: Distribution may be much harder trying to reach individual midwives than large hospitals and firms, access a single woman can have to the machine is limited if it is
targeted towards midwives rather than institutions,

21. 21
Market Figures (HepEcho & Omega)
• HepEcho:
 Potential Worldwide Market : 700,000 annual diagnoses for liver cancer
 Japan: 32,000 deaths annually attributable to liver cancer
o Current Market estimated at $400 million
o 8,794 hospitals in 2008
o 8.5% of GDP spent on healthcare in 2008; less than 9.6% of GDP on average across OECD countries in 2009
• Omega:
 Indonesia: 230 Million people
o Estimated 4,140,000 births per year (18 per 1,000 people)
o Estimated 59,800 midwives (26 per 100,000 people)
o Conservative Estimate of Sales (1 of 4 midwives purchase) – 14,950 units sold
o Aggressive Estimate of Sales (2 of 4 midwives purchase) – 29,900 units sold
o 59.3 birth defects per 1000 people; est. 245,502 birth defects per year (March of Dimes study)
o Estimated midwife price per birth – $45 (2008)
o Initial Investment: $6 Million dollars
o Projected unit price: 3,000*

22. 22
Sources
• http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIzv9oPDe_.4
• Fujimura, Naoko. “Japan’s Elderly Population Rises to Record, Government Says”. Bloomberg News.
September 17, 2007.