Transforming to Global Business ServicesSep, 2011

General Electric

Global Business Services

Anirvan Sen

GE Background…

1 /SSON SingaporeSeptember, 2011/

General Electric - Portfolio

Energy Infrastructure

• Energy products & services• Oil & Gas• Water purification

Technology Infrastructure

• Jet engines and services• Rail & Marine propulsion• Healthcare• Security / Sensing/ Factory Automation

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NBC Universal

• Television networks • Film• Parks & resorts• Production & distribution

GE Capital

• Real Estate financing• Business leasing / loans• Fleet services• Healthcare financial services• Equipment Financing• Consumer loans

Consumer & Industrial

• Light bulbs• Electrical appliances • Electrical distribution

U.S.$72B

GE Around the World

Europe$37B

Asia Pacific$21B

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Canada & The Americas$13B

Middle East, Africa & Others$14B

2009 revenues total 157 billion with over 300,000 employees.1 Includes U.S. exports to external customers2 Includes $~5B from “Other Global” areas

GE-GBS Emerging Market Story…

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MEA example … exponential growth

Kuwait

Pak

Saudi Arabia

Lebanon

Iraq

U.A.E.

QatarJordan

Bahrain

AlgeriaLibya

Tunisia

DRCRwanda

Kenya

Ethiopia

Sudan

Eritrea

Nigeria

Chad

Niger

Guinea

MaliMauritania

C.A.R.

Egypt

Liberia

IvoryCoast

Senegal

B.Faso

Cameroon

2011

Kuwait

Pak

Saudi Arabia

Lebanon

Iraq

U.A.E.

QatarJordan

Bahrain

AlgeriaLibya

Tunisia

DRCRwanda

Kenya

Ethiopia

Sudan

Eritrea

Nigeria

Chad

Niger

Guinea

MaliMauritania

C.A.R.

Egypt

Liberia

IvoryCoast

Senegal

B.Faso

Cameroon

2004

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Zimba-bwe

ZambiaAngola

Rwanda

Tanzania

Served remotely in ‘10

Physical Presence

Planned for ‘11

… from 12 EEs & 7 countries in ‘04 to 240 EEs & 35 countries in ‘11

Zimba-bwe

ZambiaAngola

Rwanda

Tanzania

Presence

Model comparisons

• In house teams

• People run processes

• High micro management

• Tailor made business biased processes

• Challenges with fraction FTE support

Conventional Ops

• Shared teams across organization

• People agnostic, strong process culture

• Management by metrics / remote management

• Processes standardized across businesses

• Scale available for partial FTE increase

Shared Services

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• organi process standardization

• IT systems limited scalability/flexibility

• Manual touches

• Dependent on relationship capital

• Industry standards used

• Global platforms leveraged

• Digitized

• Repeated exceptions converted into processes

GE-GBS Strategy…

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GBS Strategy – Financial Services

SBSTrans.

Accounting, GL

Accnt Payables

Acct Rec.

Payroll

All Other

Product Adaptation: Small & new sites� Establish GE footprint & controls

� Rigorous on-boarding process

Aggregation: Mature centers� Regional COEs for key processes

� Business specific COEs

Arbitrage: Mature / Value add centers� Achieve global economies of scale

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STAT

TAX / VATMonthly Taxes

Annual Taxes

Fin. Reports

Stat. Books

Stat Returns

Seamless integration with Stat & Tax…

� Achieve global economies of scale

� Transfer work to LCC

� Automate / standardize Processes

Attract, Develop & Retain GE talent� Big 4 skill set… GE mindset

� Center Leader to Controller assessment

Accelerate systems consolidation� New Navision/Oracle Financials

� P&E and e-T&L addressing functional needs

� Standard applications vs. “one offs”

GBS MEA: Product Strategy Summary

Accounts Payable

Travel & Living

Reporting and GL

Payroll

Stat & Tax

Legal Entity Management

HR Processes

55 GBS MEA IT Platforms

Traditional Model

Accounts Payable

Travel & Living

Payroll

Stat & Tax

Legal Entity Management

HR Processes

Valu

e t

o C

usto

mer

92 SBS IT Applications

Outsource Enhance Expertise

Simplify IT

GPB Model

Valu

e t

o C

usto

mer

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Fixed Asset Facility Management

IT Coordination

Indirect Sourcing

Complexity

Fixed Asset

Customs Operation

Inventory Accounting

Facility Management

IT Coordination

Indirect Sourcing

Complexity

Valu

e t

o C

usto

mer

Outsource Return

Build Expertise on ValueBuild Expertise on Value--Add to BusinessAdd to Business

Valu

e t

o C

usto

mer

Migrating to Hub-Spoke…

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Implementation roadmap

Morocco

Tunisia

Lebanon

Saudi Arabia

Yemen

Oman

UAE

Kuwait

Qatar

Bahrain

Iraq

Syria

Jordan GENPACT India

AFRICA

ME• Kenya CoE (in-house) :

• supporting Sub-Sahara Africa

• Algeria CoE (in-house):

• supporting North Africa

• Genpact (Outsource):

• Jaipur & Gurgaon, India

• supporting UAE, Qatar, Bahrain, Saudi

MEA Hub & Spoke model - ExampleCoEs at a

glance

Site selection Criteria

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Ethiopia

Algeria Egypt

Kenya

Tanzania

South Africa

Angola

Nigeria

Ghana

Morocco

Libya

Zambia

BeninDR Congo

Chad

Senegal

E Guinea

Ivory Coast

Kenya CoE ’10-11

Algeria CoE ‘09

Algeria CoE ‘10

Kenya CoE ‘09Genpact ‘09Hubs

Genpact ’11-12

• Ge Presence in the country

• Inflation rate

• Corporate Tax

• Technological Infrastructure

• Political stability & Security

• Government Incentives

• Geographical Connectivity (flight connections)

• Business/Supplier environment (corruption index)

• Financial Institutes (tax, judiciary)

• Employment law & Visa

• Language Skills (international English, other languages)

• Availability of skilled force

Process selection matrix (Finance Related

processes)

Tra

ns

ac

tio

na

l Outsource/Hub• AP Invoice processing • C& B/ GME/T&L/Non T&L processing & audit • Supplier reconciliation • Vendor creation • Preparation of payment proposal• IBS processing • Monitoring Funds in Bank• Accounts Receivables • Preparation & Review of Accounts Reconciliations• Journal Entries Posting (Accrual Amortization)• Trial Balance Submission• GE shares & Payroll processing• Query resolution for vendors/employees• Monthly reporting to GBS

In Country

•Petty Cash•Check Handling•Receipt of Invoice•Scanning of invoices/Claims

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Low

Consolidation Feasibility

High

• Monthly reporting to GBS

• Review of Account Reconciliations• Payment approval • PO Final approval • Final Approval of Journal entries•Controllership•LE Management•Stat/Tax mgmt and filing•Issue Resolutions / GE Biz Relationship•ProjectsJ

ud

gm

en

tal

(Need for physical proximity, extent of user department interaction)

• Review of Journal entries• Management Reporting• 1st leadership review of Acc Recs, TB Submission and other critical processes

GBS MEA IT Direction - ExampleMEA Applications Landscape

c

14

AP FA GL AR Payroll T&L Stat

8 8

5

Total Platforms in GBS : 55

87

5

20+ Centers

cc

� Quick Implementation

� Suited for small sites (less complexity)

� HQ Supported Implementation

� Multiple functionality availability

� MS Excel like look and feel

Navision

Oracle

Pla

tform

So

lutio

ns

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1.Reduce # of IT systems / platforms

2.Need a system allowing regionalization

3.Address urgent needs in growth countries

4.Provide platform for new centers (15+ in ’09-’11)

MEA IT Imperatives

Oracle

� Global Industry Standard (high talent

availability)

� Preferred platform for Integration and

Regionalization

� GE Expertise

� Multiple functionality availability

� Ease of interface with other applications

Pla

tform

So

lutio

ns

Questions and Questions and

14 /SSON SingaporeSeptember, 2011/

AnswersAnswers