February 14 17 Napa, California Global Partner Summit 2017: Competing to Win Global Partner Summit 2017: Competing to Win 1
Why Germany? Stephan Reimelt President and CEO Germany and Austria
Why Germany? What is the potential? What are the challenges? How can we be successful together?
Why Germany? We have 1200 types of bread, a huge variation of sausages and beer and we are hosting the Oktoberfest. A very unique culture
Why Germany? The World Germany Slow-growth world + deflation Stable growth and solid economy Government dysfunction + geopolitical risk Strong German Government functions Big is bad Mittelstand is the backbone of the economy Productivity rules eat or be eaten SME s are agile and long term investors Disruptive innovation attacks every industry Domain expertise counts Growing big in Germany
Why Germany? Sound economy Strong brand and successful products World s 4th largest economy and largest economy in the European Union The Mittelstand (SME) the heart of the economy (99,3% of all companies are SME s) Chemical: BASF #1 worldwide Automotive: Volkswagen #1 BMW, Daimler in top 10 Transport & Logistics: DHL - #1 worldwide, DB - #5 Machinability Trumpf - #1 Many hidden champions Global player Digital agenda for the German manufacturing base Global export champion: Current account surplus: Germany: $310B China: $260B Japan: $170B Germany is highly interlinked with the global economy Every second euro is generated through an international business transaction One of the most attractive markets in the world German as one of the world`s most important manufacturing base German business is ready for digitization The Federal Government is driving digital change Huge digital capabilities 500B by 2025
Why Germany? Top 4 export destinations 1. USA ($121B) 2. France ($119B) 3. UK ($100B) 4. China ($96.7B) Top 5 exports 1. Automotive ($249B) 2. Machines, engines, pumps ($226.1B) 3. Electronic equipment($131.1b) 4. Pharmaceuticals ($76.1B) 5. Medical, technical equipment ($61.5B) Worldchampion in exports - #1 influencer for technical equipment
What Is the Potential? Accelerating digitization could add billions of euros to economic growth in less than a decade - McKinsey Germany operates only at 10 percent of its digital potential (while the US uses 18 percent of it) Every manufacturing sector is affected by digital (from automotive to the chemical and pharmaceutical industries) In five years, more than 80% of companies will have digitized their value chain By 2020, European industrial companies will invest over 140B annually in Industrial Internet applications Germany is a net importer of digital services from the US New political and economical focus on remunicipalisation in the local utilities (Stadtwerke) Stadtwerke will use a local platform for energy, supply, disposal and healthcare Water Infrastructure Energy Transport Healthcare Disposal Together we can help Germany with the digital transformation
What Are the Challenges? Make it in Germany and be successful in a fragmented place Alongside the major, world-famous companies, there is also a whole range of small and medium-sized companies in Germany which provide a large number of jobs and are extremely productive German companies take a long-term approach to business Business is based on stable client relations The companies are in close ties to the region in which they are located Priority is to secure the company s long-term existence and place great value on lasting relationships with customers, suppliers and other businesses SME s dominate narrow niches globally and embrace globalization without losing their roots German companies have high-level expertise & insight in their business Since this is a very fragmented market, we need to have a different approach for Germany
How Can We Be Successful Together? Partner with local expertise ü We are local with over 11.000 employees and over 50 sites Build long term relationships ü We can look back over 130 years of GE s history in Germany Understand the German business Large installed base ü We have an extensive, well established network ü We installed over 2.500 decentralized power plants in the German industry We build credibility, trust and long term relationships based on local domain expertise
How Can We Be Successful Together? Hannover Fair 2017 April 24 28 2017 Why should GE attend at the Hannover fair? World s leading trade show for industrial technology ~200,000 visitors (68% decision makers), 6,500 exhibitors, 2,500 media representatives Key business decision makers and numerous political delegations (EU Commissioner for Energy etc.) present Minds + Machines 2017 GE s premier Industrial Internet event is coming to Berlin in 2017 Energy Awards 2017 Together with the Handelsblatt Energy Academy, GE awards the leaders and innovators of the German Energiewende GE supports the local alliance program by sharing the huge amount of local domain expertise Positioning GE as the leading Digital Industrial company in Germany
Let s do it together.
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