JENNIFER WALDO

CHROGE Digital

GE’s Digital Industrial Transformation

3

1882 CENTRAL POWER STATION

1927 GE BRINGS TELEVISIONINTO THE HOME1910 THE FIRST

HOTPOINT RANGE

1896 X-RAY MACHINE1879

CARBONFILAMENT INCANDESCENT LAMP

1895 WORLD’S LARGESTELECTRIC -LOCOMOTIVES

Our legacy

GE Today($ in billions)

GE globally: ~300K employees, $123.7B in revenue, 165 countries

employees 26K

revenue$3.6B

POWERRENEWABLE

ENERGY OIL & GAS AVIATION HEALTHCARE TRANSPORTATION

GE CAPITAL VERTICALS

Employees 110k 12k 34k 45k 54k 10k -

2016 revenue $41.9 $9.0 $12.9 $26.3 $18.3 $4.7 $10.2

2016 op profit $5.3 $0.6 $1.4 $6.1 $3.2 $1.1 $1.9

GE’s Vision for the Industrial Internet

GE for GE GE for Customers GE for World

Simplicity

Speed & AccelerationHorizontal Capability

Shared Ownership

Part Digital, Part Industrial

Becoming Digital Industrial

2012

Software CoEestablished

2015

GE Digital created

2016

CDOs hired in each GE business

2014

IT Transformation begins: insourcing

vs outsourcing

Company-wide focus on selling

“outcomes”

2017

Digital 2.0 launched

IT à DT

Digital commercial support functions moved into GED

2013

Partnered with GE Businessfocused on

services productivity

Digital Organization Framework

CIO

GE Digital Power Renewables Oil & Gas Aviation Healthcare Transportation Energy Connect

Mutual accountability … metrics & incentives aligned to GE Digital

Enterprise-wide horizontal products Digital Technology infrastructure & services

Chief “Automation” Officer• Process innovator and educator for

business.• Deployment of horizontal solutions• Partners with CDO on customer

engagement.

Externally sold horizontal products

GE Business CEO

Chief Digital Officer• Externally sold vertical products &

portfolio• Productive disruptor and culture shaper• Commercial sales team in the business

CDOCEO & CDO

CIO

Talent Implications

Skill Mix

SWHW

Hardware Software

Hardware + Software =Digital Industrial

Availability

Internet of Things (IoT) Developers

by 2020

Competition

Talent AcquisitionIncreased sophistication

CompensationNew schemes & models

StructureFlatter with fewer layers

LearningDistributed & democratized

DevelopmentEmpowerment, individualized

4.5M

300,000

Making the Leap

Industrial CompanyTalent focus: managing current workforce with balanced practices

Business priorities key driver

Company makes the rules

Fairness defined by company

Risk mitigation necessary

Attrition to be avoided

Strong track record, proven ways benchmarked by others

Digital CompanyTalent focus: buying, building and retaining the right talent

Becoming the Digital leader key driver

Market makes the rules

Fairness defined by market

Risk inherent and addressed

Attrition necessary and expected

No track record, requires iterative model

Transformational Change

Industrial DigitalGE BeliefsFastworksPD

Digital Industrial

DigitalIndustrial

New cultureand talent practices

Industrial DigitalIncremental Change

Thank You