using brand to drive growth & innovation...15 ge healthcare - medassets 2/4/12 target clinical...

Using Brand to Drive Growth & Innovation Mark A. Phillips Chief Marketing Officer GE Healthcare Systems July 18, 2012

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Healthymagination Video

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“I find out what the world needs, then I proceed to invent it.” - Thomas Edison

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A tradition of innovation 1909 Ductile tungsten 1913 Medical X-ray 1927 First television broadcast reception 1932 Langmuir Nobel Prize in chemistry 1938 Invisible/glareless glass 1942 First US jet engine 1953 LEXANTM polycarbonate 1955 Man-made diamonds 1962 Semi-conductor laser 1973 Giaever Nobel Prize in physics 1984 Magnetic resonance imaging 1994 GE90® composite fan blade 1999 Digital X-ray 2004 Lightspeed VCT 2009 Wide Bore 1.5T MR System 2010 Energy SmartR LED

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Global Research HQ Niskayuna, NY

John F. Welch Technology Center Bangalore, India

China Technology Center Shanghai, China

Global Research - Europe Munich, Germany

Brazil Technology Center coming soon

AMSTC Ann Arbor, MI

3,000 scientists & technologists strong in 5 global research facilities

$600MM in R&D

GE Healthcare

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GE Healthcare

$17 billion global business unit of GE

53,000 employees worldwide

$1 billion+/year investment in R&D

Leadership franchises in: •  Diagnostic & Clinical Equipment •  Information Technology & Services •  Molecular Medicine

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Medical Diagnostics Healthcare Systems

Life Sciences Performance Solutions

Healthcare IT

Surgery

Broad solutions for healthcare

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Healthcare Systems

Clinical Systems Imaging Guidance

Advancing every phase of patient care, from diagnostic imaging to routine testing to life-critical care.

Computed Tomography Magnetic Resonance Imaging X-ray Molecular Imaging Ultrasound

Maternal Infant Care Respiratory & Sleep Life Support Solutions Home Health

Surgery Interventional

Broad and deep portfolio addressing customer and patient needs

Market Environment

GE Healthcare Q2 Business Overview

Page 11

Market environment

2015 vs. 2005

30% Growth in >65yrs population

48% EM pop. urbanized (+12%)

2.5B In global middle class (+72%)

66% Global deaths due to chronic disease (+10%)

Demographics driving demand growth

Hea

lth s

pend

CAG

R (2

011-

15)

GDP/capita CAGR (2011-15)

1B pop. $5.2T spend 39 countries HC investment slows; shift in demand profile

5B pop. $1.2T spend 178 countries Investing in HC infrastructure build out

Multi-speed world

Bi-modal demand…need to play in premium and value

n Market favoring local content u Domestic player expanding outside of local market

Mkts. highly regulated; limited protectionism but high competition

% ‘11 Segment

12 This is GE Healthcare 2011

Need for a fundamental change…

1 in 8 people 65 & older has Alzheimer’s3

1 person dies from CVD every 33 seconds2

Heart Disease 1 in 3 people will

get cancer1

Cancer Brain Disorders

Aging population � People with multiple diseases Treatment costs � Productivity loss

1Cancer Research UK 2American Heart Association 3Alzheimer’s Association

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Reduce the cost

Increase access

Improve quality

Technology for Healthier Lives

Healthymagination GE’s business strategy to address global healthcare needs

GE Healthcare Q2 Business Overview

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Launching 71 NPIs in 2012

NPI pipeline delivers $2.1B sales

($ in billions)

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# NPIs +42%

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Orders

$2.0 $2.3

+14%

2011 Launches 2012 Launches CT … Optima 660, VEO

MR … 3.0T, 1.5T WB w/ GEM, Extremity

DGS … Mobile, FlashPad, CESM

U/S … LOGIQ e, Vivid E9, Voluson S6/S8

CT … Optima 540, HD Freedom

MI … Eagle, Optima 640

DGS … Agila, Capella, Optima

U/S … LOGIQ S8, Voluson E6/E8

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11 12

Sales

$1.6 $2.1

+26%

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Target Clinical & Economic Value

Precise method prioritizes customer focus

•  15% healthymagination target

Increase Investments in Evidence

Accelerate customer adoption rates

•  From 7-to-4 year max share penetration

Increased addressable market segments

•  Sustained double digit profit growth

Focus R&D Investments

Global

Key to successful innovation

Operationalizing healthymagination Innovation Strategies

Performed 50+ Economic Peer Reviewed Journals/Year

Maternal Infant Care Giraffe Shuttle

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Customer & Market-focused R&D

Growth Playbook (Strategic Plan)

WWTP (Worldwide

Technology Plan)

Evidence Gen / Econ Quant

• Higher Tech Risk • X-Portfolio Bets GRC

• Collaborating with Customers to Uncover / Extract Clinical Value

ATD • Mid-level Tech Risks • Fast Prototyping & Prove-

out

Research

• Application & Commercialization of Proven Technology

NPIs

Business Processes

Technology Resources & Processes Address Broad Spectrum of Opportunity & Risk

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Product portfolio management

•  Single data source for Op Mechs, S2, GPB

•  Financial inputs: Revenue, CM, Spend

•  Strategic inputs: Value prop, Market/Tech Risks

Capture 106 parameters

Select/Analyze > 250 NPI projects

Execute •  Reporting & monitoring for data driven decisions

•  Historical baselines for post mortem analysis

•  Increased fiscal and timeline transparency

•  Standardize evaluation

•  Prioritize investments: Risk adjusted expected value

•  Enable “What-if?” scenario planning

Expand use of existing product portfolio management tool

Our Healthymagination Technologies

Reducing Cost

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Vscan* – Pocket-sized ultrasound

A leader in pocket-sized ultrasound

Description •  Pocket-sized, hand held ultrasound

Benefits

•  Variety of clinical applications

•  Immediate visualization

•  Up to 1 hour continuous scanning capability

•  Simplified presets for Abdominal, Cardiac and OB

GE Difference •  Currently the only device this size with these features at this price point

* Trademark of the General Electric Company

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Vscan in Indonesia

Improving Quality

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CT

GE leading in radiation dose reduction

GE reduced radiation dose by >95% (mSV)

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ASiR Veo MRI

4 <1 0.05 0

CT 1999

Chest X-Ray

1 mSV = •  4 months background radiation •  10 trans Atlantic flights •  Smoking 5 packs of cigarettes

GE leads in development of CT reconstruction software to lower dose

Traditional Reconstruction

ASiR Reconstruction

Veo Reconstruction

Discovery CT 750 HD

•  Auto exp. 2D&3D

•  Artifact reduction

•  Dose reporting

•  Snapshot cardiac

•  Dose check

•  Pediatric protocols

•  Gated cardiac

•  Volume shuttle

•  ASiR

•  Veo

•  X-Ray filtration

•  X-Ray source coll.

•  Low noise data acq.

•  High res detector pitch

•  Tracking collimator

•  Dynamic beam size

•  Detector eff. 98%

•  Multiple kV selections

HW Solutions

SW Solutions

Increasing Access

MAC i *- Affordable, Accessible ECG

Economical & reliable ECG to enable access without sacrificing quality

Description

•  Economical 1 channel resting ECG device

•  Targeted at rural emerging markets

Benefits

•  Easy to learn, easy to use, one touch operation

•  Proven & validated ECG analysis with interpretation

•  Ultra portable, weighs less than 1.2kg

•  Battery life to record up to 200 ECGs

GE Difference

•  Same high quality ECG analysis as high end devices

* Mac i is not cleared by the U.S. FDA and not available for sale in the United States nor all commercial markets.

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DISRUPTIVE INNOVATION

MARKETING DNA

MARKETING

RIGOR DRIVEN INNOVATION

Harvard case study of HCS NPI process

2009

2010

2011

Our Journey

Operationalizing with value creation

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Q&A Q&A

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Our purpose… a reminder

Technology for Healthier Lives