Vivian Zhao eBusiness Director, GE China September 24, 2001
<ul><li>GE traces its beginnings to Thomas A. Edison, who established the Edison Electric Light Company in 1878.  </li></u...
Dow Jones Industrial Average: GE Was There, and Still Is Then Companies in the Original Dow Jones Industrial Average—1896 ...
GE Overview Aircraft Engines Power Systems Appliances Capital Services Plastics Industrial Systems Lighting NBC Medical Sy...
GE  股票业绩 - 1980-1997  S&P 500 $1,300 DJIA $1,555 GE $3,315 GE  超过  DJIA and S&P 500 $ Revised  5/98 GE Stock Performance 1...
GE Expanding Growth Opportunity GE Revenues $26B $50B $130B $70B 6% 7% 12-13% New GE Playing in a Multi-Trillion Dollar Ma...
GE Growth --How Do We Accelerate It? Markets  Sourcing  Intellect Globalization OEM  Third Party  High Tech Services Produ...
The Evolution of GE e-Business 1Q99  2Q99   3Q99  4Q99  1Q00  2Q00  3Q00 <ul><li>Added e-Business as the 4th GE Initiative...
The Evolution of GE e-Business 1Q99  2Q99  3Q99  4Q99   1Q00  2Q00   3Q00 <ul><li>Weekly e-Metric Tracking  </li></ul><ul>...
GE e-Business Approach <ul><li>Transactions </li></ul><ul><li>Value Added Services (or External Wizards) </li></ul><ul><li...
eBuy E-Auctions ($40B Total Buy) % Savings 20% ~12-15% $200MM $6B Transaction Costs (3.5 Million Transactions) $50/TX $5/T...
GEPS Application & Database Servers GE  Web-Site Customers and  Suppliers   with  Secure Access   to GEPS Intranet via Int...
Online Application Supplier Scorecards Electronic Invoicing On-line Auctions DART –  Engineering Documents Milestone Track...
A Web Based Utility that Allows Suppliers to Prepare and Submit Online Bids for Request for Proposals (RFQs)   E-Auction E...
E-Auctions Example <ul><li>Suppliers Identified / Contacted:  23  </li></ul><ul><li>Active Bidding (Participants):  15 Sup...
E-Invoice An Internet-based Invoice Inquiry and Invoice Creation and Submission Tool Replacing Paper-Based Processes Buy M...
Internet-based Tools Used to Request Transportation Instructions and View Shipment Tracking Information E-Logistics Replac...
The Scorecard is GEPS’s Primary Vehicle for Supplier Measurement by Providing a Summary of Cost Reduction, Quality, Delive...
<ul><ul><li>Document Archive & Retrieve Tool--Allows the Supplier to Retrieve and Print Drawings and Specifications Associ...
eSell Buy Make Sell $1 Billion Online Sales in 1999 and $7 Billion in 2000 <ul><li>eSell generates revenue for  GE through...
eSell Buy Make Sell <ul><li>GE Plastics--Polymerland: </li></ul><ul><li>Online sales & data portal for the plastics indust...
eSell Buy Make Sell <ul><li>GE Plastics--Polymerland </li></ul><ul><li>Customer may “make” a particular color for a certai...
<ul><li>GE Power Systems: </li></ul><ul><li>Leading online transaction site for the utilities industry </li></ul><ul><li>P...
eMake <ul><li>Eliminate Manual Activities </li></ul><ul><li>Improve and Simplify the Workflow Process </li></ul><ul><li>Pa...
eMake Buy Make Sell
Keys to Success <ul><li>Leadership and Top-down Support </li></ul><ul><li>Involve Customers Through the Effort </li></ul><...
The  in GE takes on a whole new meaning. e
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GE E commerce

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GE E commerce

  1. 1. Vivian Zhao eBusiness Director, GE China September 24, 2001
  2. 2. <ul><li>GE traces its beginnings to Thomas A. Edison, who established the Edison Electric Light Company in 1878. </li></ul><ul><li>In 1892, a merger of the Edison General Electric Company and the Thomson-Houston Electric Company created the General Electric Company. </li></ul>GE History
  3. 3. Dow Jones Industrial Average: GE Was There, and Still Is Then Companies in the Original Dow Jones Industrial Average—1896 GE was the Only Company on Both Lists When Dow Jones Celebrated 100th Anniversary Alcoa Int’l Business Machines American Express Intel AT & T J.P. Morgan Chase Boeing Johnson & Johnson Caterpillar McDonald’s Citigroup Merk Coca Cola Microsoft DuPont Minnesota Mining & Eastman Kodak Manufacturing Exxon Mobil Philip Morris General Electric Procter & Gamble General Motor SBC Communications Hewlett-Packard United Technologie HomeDepot Wal-Mart Honeywell Walt Disney American Cotton Oil American Sugar American Tobacco Chicago Gas Distilling & Cattlefeeding General Electric Laclede Gas National Lead North America Tennessee Coal & Iron U.S. Leather U.S. Rubber Now Companies in Today’s Dow Jones Industrial Average
  4. 4. GE Overview Aircraft Engines Power Systems Appliances Capital Services Plastics Industrial Systems Lighting NBC Medical Systems Transportation 11 Operating Businesses Multi-Products and Services with $130B Revenue and $12.7B Net Income Global Exchange Systems
  5. 5. GE 股票业绩 - 1980-1997 S&P 500 $1,300 DJIA $1,555 GE $3,315 GE 超过 DJIA and S&P 500 $ 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
  6. 6. GE Expanding Growth Opportunity GE Revenues $26B $50B $130B $70B 6% 7% 12-13% New GE Playing in a Multi-Trillion Dollar Market
  7. 7. GE Growth --How Do We Accelerate It? Markets Sourcing Intellect Globalization OEM Third Party High Tech Services Productivity Market Share Way of Life Six Sigma Driven by Operating System e-Business E-Business Critical to Delivering in 2001 and Beyond
  8. 8. The Evolution of GE e-Business 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 <ul><li>Added e-Business as the 4th GE Initiative </li></ul><ul><li>Establish New e-Business Team at Each Business </li></ul><ul><li>Objective: “Destroy Your Business.com” </li></ul><ul><li>- Understand the New World </li></ul><ul><ul><ul><li>- Benchmark Competitor Online Capabilities </li></ul></ul></ul><ul><li>- Proactively Attack Your Own Business </li></ul>1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 <ul><li>“ Grow Your Business.com” </li></ul><ul><li>- Internet an Opportunity, Not Just a Threat </li></ul><ul><li>Develop World-Class e-Channel (CWC) </li></ul><ul><li>- Simple/Easy/Sticky </li></ul><ul><li>- Competitive Benchmarking </li></ul><ul><li>Leverage GE Brand/Capabilities </li></ul><ul><li>- We Have More than “Clicks” , We Have “Bricks” and Fulfillment </li></ul><ul><li>Make Strategic Equity Investments </li></ul>
  9. 9. The Evolution of GE e-Business 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 <ul><li>Weekly e-Metric Tracking </li></ul><ul><li>- Buy/Make/Sell </li></ul><ul><li>e-Business “Takeover” </li></ul><ul><li> - e-Biz Leaders = C.O.O. </li></ul><ul><li>e-Mentoring for Top Execs </li></ul>1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 <ul><li>Digitization </li></ul><ul><li>- Huge Cost-Out Opportunity </li></ul><ul><li>- Competitive Benchmarking </li></ul><ul><li>Sourcing Deflation </li></ul><ul><li>- e-Auctions </li></ul><ul><li>Customer Migration </li></ul>
  10. 10. GE e-Business Approach <ul><li>Transactions </li></ul><ul><li>Value Added Services (or External Wizards) </li></ul><ul><li>Web-enable processes </li></ul><ul><li>Intranet/ Collaboration Tools </li></ul><ul><li>Internal Wizards </li></ul><ul><li>SourceBid (e-Auctions) </li></ul><ul><li>Supplier Extranet (Direct) </li></ul><ul><li>e-Procurement (Indirect) </li></ul><ul><li>E-Business Suppliers </li></ul><ul><li>Strategic Plays </li></ul>E-Metrics Prioritize Opportunities…Focus On The Objectives e-Make e-Sell e-Buy Equity GE e-Business Approach
  11. 11. eBuy E-Auctions ($40B Total Buy) % Savings 20% ~12-15% $200MM $6B Transaction Costs (3.5 Million Transactions) $50/TX $5/TX e-Enabled ~$6B ~$150MM Savings Potential Buy Make Sell Non e-Enabled
  12. 12. GEPS Application & Database Servers GE Web-Site Customers and Suppliers with Secure Access to GEPS Intranet via Internet INTRANET Sourcing Project Tracking EXTRANET INTERNET Yahoo.com Application & Database Servers GE.com gepower.com Internet Subscriber How to work with Suppliers-Example of GEPS Buy Make Sell eBuy
  13. 13. Online Application Supplier Scorecards Electronic Invoicing On-line Auctions DART – Engineering Documents Milestone Tracking E-Logistics E-Packing List E-Marketplace Buy Make Sell eBuy Enabling the Sourcing Process e extranet
  14. 14. 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 Process Buy Make Sell eBuy <ul><li>Price Negotiation Cycle Time Reduced Significantly </li></ul><ul><li>Simplifies Supplier Approval Process by Quickly Eliminating Non-competitive Suppliers </li></ul><ul><li>Reduced PO Placement Cycle Time </li></ul><ul><li>Standardize and Streamline the RFQ Process... Simplifies Proposal Evaluation - Price, Quality, & Delivery </li></ul>
  15. 15. E-Auctions Example <ul><li>Suppliers Identified / Contacted: 23 </li></ul><ul><li>Active Bidding (Participants): 15 Suppliers </li></ul><ul><li># of Parts: 20 </li></ul><ul><li>Total Bids: 265 </li></ul><ul><li>Duration: 33 Hours </li></ul><ul><li>Savings Greater Than 80% (>$1.2 million) </li></ul>Fastener Auction (12/99) Buy Make Sell eBuy
  16. 16. E-Invoice An Internet-based Invoice Inquiry and Invoice Creation and Submission Tool Replacing Paper-Based Processes Buy Make Sell eBuy <ul><li>Self Service Inquiry Allows Suppliers to View Invoice Information and Payment Status On-line </li></ul><ul><li>Web Invoices Will Have to Match the PO up Front, Removing 50% of the Matching Problems That Hold up Payment </li></ul><ul><li>Invoice Will Not Have to Wait for Mailing Time to Arrive at Accounts Payable </li></ul><ul><li>No Manual Data Entry at Accounts Payable … Less Possibility of Error </li></ul>
  17. 17. Internet-based Tools Used to Request Transportation Instructions and View Shipment Tracking Information E-Logistics Replacing Paper-Based Processes Buy Make Sell eBuy <ul><li>Advanced Data Input Capabilities Allows Rapid Input of Requests Via Web </li></ul><ul><li>Freight Tracking On-line Regardless of Carrier Being Utilized </li></ul><ul><li>Reduces Errors > Data Feeds Directly Into Database </li></ul><ul><li>GEPS Personnel Able to View Shipment Status Reports On-line Thereby Reducing GEPS Requests for Information </li></ul><ul><li>Ensures Timely Delivery of Goods to GEPS Internal/external Customers </li></ul>www. gepsrouting .com
  18. 18. The Scorecard is GEPS’s Primary Vehicle for Supplier Measurement by Providing a Summary of Cost Reduction, Quality, Delivery, and Supplier Integration. Supplier XYZ Company ABC Buyer ABC Phone #: 555-555-5555 SQE ABC Phone #: 555-555-5555 Scorecards Our Tool For Evaluating Our Suppliers Performance Buy Make Sell eBuy <ul><li>Real-time access to GEPS supplier evaluation </li></ul><ul><li>Provides supplier the ability to understand evaluation criteria, current evaluation status, and areas for improvement </li></ul><ul><li>Sets benchmark for new suppliers </li></ul><ul><li>Allows supplier to focus on strategic cost reduction methods - not just price </li></ul>
  19. 19. <ul><ul><li>Document Archive & Retrieve Tool--Allows the Supplier to Retrieve and Print Drawings and Specifications Associated with Open Purchase Orders </li></ul></ul>DART Buy Make Sell eBuy <ul><li>Internet Access to GEPS Drawings </li></ul><ul><li>Reduced Cycle Time to Attain Drawings and Complete a Project </li></ul><ul><li>Reduced Costs - Delivery, Printing, Etc. </li></ul><ul><li>Increased Specification Accuracy </li></ul>Drawings Immediately Available On Open Purchase Orders
  20. 20. eSell Buy Make Sell $1 Billion Online Sales in 1999 and $7 Billion in 2000 <ul><li>eSell generates revenue for GE through: </li></ul><ul><ul><li>Online transactions </li></ul></ul><ul><ul><li>Adding value to what currently offers customers </li></ul></ul><ul><ul><li>Forcing GE to change its behavior and become more competitive, based on customer use of the Internet </li></ul></ul><ul><li>The Internet becomes a critical source of real-time customer / GE interaction and relationship management </li></ul><ul><li>The Internet allow GE to build on its image of “provider-friendly, stable partner, 24x7.” </li></ul>
  21. 21. eSell Buy Make Sell <ul><li>GE Plastics--Polymerland: </li></ul><ul><li>Online sales & data portal for the plastics industry </li></ul><ul><li>Strong design, research and order status capabilities </li></ul><ul><li>Current order rate of $15M per week </li></ul>
  22. 22. eSell Buy Make Sell <ul><li>GE Plastics--Polymerland </li></ul><ul><li>Customer may “make” a particular color for a certain material </li></ul><ul><li>Online order the color sample sheet </li></ul><ul><li>Delivery within 48 hours which used to be in several weeks </li></ul>
  23. 23. <ul><li>GE Power Systems: </li></ul><ul><li>Leading online transaction site for the utilities industry </li></ul><ul><li>Product & service comparisons </li></ul><ul><li>Warranty, repair & installation </li></ul><ul><li>Wizard used to guide customer to find out the potential problem </li></ul>gepower.com eSell Buy Make Sell
  24. 24. eMake <ul><li>Eliminate Manual Activities </li></ul><ul><li>Improve and Simplify the Workflow Process </li></ul><ul><li>Paperless Work Environment </li></ul><ul><li>Unnecessary Touch Point Reduction or Elimination </li></ul><ul><li>Better, Faster Information </li></ul><ul><li>Reduce Support Resources </li></ul><ul><li>Digitize EVERYTHING </li></ul>Buy Make Sell 40-50% Savings on Make Costs at $1.5 Billion in 2000
  25. 25. eMake Buy Make Sell
  26. 26. Keys to Success <ul><li>Leadership and Top-down Support </li></ul><ul><li>Involve Customers Through the Effort </li></ul><ul><li>Get Business User Buy-in and Participation </li></ul><ul><li>Six Sigma as the Enabler </li></ul><ul><li>Don’t Wait Until Everything is Perfect. Just Begin </li></ul><ul><li>Boundaryless Learning Environment </li></ul><ul><li>Follow up with Customers After Launch </li></ul>
  27. 27. The in GE takes on a whole new meaning. e

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