Applying Next Quarter Analytical Tools To Globally Diverse Company, yields huge savings potential.

1. GE & NQ Strategic Partnership
Drives Best in Class Performance
Yielding $18M to $2B Cost Savings
Prepared
for
by
Charles Caldwell
Thomas Boyle
NextQuarter LLC
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2. Agenda
1) Define Business Problem to Solve
2) Opportunity - New Source of Profits
3) Value Creation = Incremental Improvements
4) Model Knowledge Worker Productivity
5) Identify Weaknesses / Source of Risk
6) Finding Value in Detailed Business Model
7) Quantify Hidden Costs (information-based)
8) Visualize / Prioritize - Greatest Potential Gain
9) Audit/Plan - Strategy, Roadmap & Execution
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 2

3. What To Do When Profits Get Squeezed . . .
Revenue Profits Expenditures
Solution: Increase Knowledge Worker Effectiveness
- Reduce Business Practice Cycle Times
- Automate, Normalize & Design for Reuse/Renewal
- Leverage Strategic “Pay-As-You-Go” Capabilities
- Prioritize Effort - Realize Greatest Gains (ROI)
Source of New Profits = Simplification, Optimization & Focus on Results
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 2

4. Opportunity - Increase Industrial KW Effectiveness 15%
Business Model Analytics Industrial (M)
Industrial Annual Report Data
$18M Revenue (000,000) $17,725
Revenue (%) 0.1059
NBCU Operating Expenses (000,000) $15,982
$16M Infrastructure Operating Expenses (%) 0.1155
Net Income (000,000) $1,743
$50M Net Income (%) 0.0600
Commercial NQ Analytics
Healthcare Finance
$42M Salaries & Wages (000,000) $4,381
$69M
Employees 70,000
Producers 1,966
$101M Users 7,124
Consumers 60,909
Knowledge Workers 9,091
GE Money
KW Labor Cost $293
Potential Cost Savings $121
Estimated GE Potential Productivity Gains
Estimated Gain (15% of Potential) $18
Value Creation (% Net Income) 1%
Optimizing Knowledge Worker Effectiveness 15% Yields $18M in New Profits
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 4

5. Quick Hits Yield Huge Incremental Improvements . . .
Infrastructure How do you increase profits when:
Producers = 3.1% 3,306
KW = 23.5% Users = 20.4% 1,651 » Ability to increase revenues is decreasing
Consumers = 76.5% 81,042
» Rising costs are breaking budgets
Commercial Finance
Producers = 4.4% 1,085 » Effort to create value keeps declining
KW = 80.3% Users = 75.9% 18,985
Consumers = 19.7% 4,930
Challenge:
GE Money
Producers = 3.6% 2,527 » Thinking differently about problem
KW = 69.3% Users = 65.7% 45,950
Consumers = 30.7% 21,523
» Expand insight to change perspective
Healthcare » Empowering KW with the new capabilities
Producers = 17.4% 8,161
KW = 64.0% Users = 46.6% 21,892
Consumers = 36.0% 6,947
Solution:
NBC Universal
Producers = 18.9% 2,935 Assess Information-based Costs
KW = 48.2% Users = 29.3% 4,543
Consumers = 51.8% 8,023 Use KW Metrics to Guide Transformation
Focus on Enhancing KW Effectiveness
Industrial
Producers = 2.8% 1,966
KW = 13.0% Users = 10.2% 7,124
Consumers = 87.0% 60,909 IT Dependency is Impacted by # KW
Competitive Advantage - “Leap Frog” Competition in Tough Environment
New Tools for Increased KW Productivity in Up/Down Economy
Just Cutting Knowledge Worker Jobs Does Not Increase KW Effectiveness
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 5

6. Focus on Modeling Knowledge Worker Productivity
Producer
Individual, workgroup, or organization
that earns more than 50% of their income
producing content/digital media assets
such as text, images/graphics, audio,
or streaming media/video.
User
Individual, workgroup, or organization
that earns less than 50% of their income
producing content/digital media, but
uses media to drive sales, markets,
business and/or process improvements,
and/or value enhancements for
customers and shareholders.
Consumer
Individual, workgroup, or organization
that earns nothing from their use or
production of media but uses media to
influence buying and selling, and/or
sources of supply to fulfill self-service
satisfactions.
Source of New Profits = Making Knowledge Workers More Effective
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 6

7. General Electric Corporation
Commercial
Business Model Analytics Infrastructure GE Money Healthcare NBC Universal Industrial Total
Finance
Annual Report Data
Revenue (000,000) $57,925 $34,288 $16,997 $25,019 $15,416 $17,725 $167,370
Revenue (%) 0.3461 0.2049 0.1016 0.1495 0.0921 0.1059 0.8020
Goods $20,997 $12,429 $6,161 $9,069 $5,588 $6,425 $60,670
Services $37,741 $22,340 $11,074 $16,301 $10,044 $11,549 $109,049
Operating Expenses (000,000) $47,115 $28,249 $20,739 $13,941 $12,309 $15,982 $138,335
Operating Expenses (%) 0.3406 0.2042 0.1499 0.1008 0.0890 0.1155 0.7955
Net Income (000,000) $10,810 $6,039 $3,056 $4,280 $3,107 $1,743 $29,035
Net Income (%) 0.3723 0.2080 0.1053 0.1474 0.1070 0.0600 0.8330
NQ Analytics
Salaries & Wages (000,000) $9,429 $5,927 $14,530 $10,032 $2,538 $4,381 $46,837
Salaries & Wages (% Op. Exp.) 0.2001 0.2098 0.7006 0.7196 0.2062 0.2741 0.3386
Employees 106,000 25,000 70,000 47,000 15,500 70,000 333,500
Producers 3,306 1,085 2,527 8,161 2,935 1,966 19,980
Users 21,651 18,985 45,950 21,892 4,543 7,124 120,145
Consumers 81,042 4,930 21,523 16,947 8,023 60,909 193,375
Knowledge Workers 24,958 20,070 48,477 30,053 7,477 9,091 140,125
KW Labor Cost $735 $622 $1,491 $1,005 $241 $263 $4,357
Potential Cost Savings $336 $282 $1,491 $461 $110 $121 $1,984
Estimated Gain (15% of Potential) $50 $42 $101 $69 $16 $18 $298
Value Creation (% Net Income) 0% 1% 3% 2% 1% 1% 1%

8. Where Are Information-based Expenditures Highest?
30%
Custom
Development Focus on Area
25% of Greatest
Complexity
20%
Publishing
& Printing
15% Legal &
Design &
Engineering Accounting
10% Broadcast Information
& Telecom Services
& Data
Advertising Processing
& Marketing Hardware Software
Human Logistics
5%
Resources
Services Consulting
& Services
0% hidden_sum.1.0.ai
Advertising & Broadcast Applications Design & Desktop Actuarial Business-to- Legal Courier Administrative Newspaper Applications
Public Relations Graphics Services Business Services Services General & Magazine
Wired Carriers Enterprise Specialty Services Development
Audio & Video Systems Technical Servers Executive News Accounting Freight & Periodical, Tools
Production Satellite Services Placement Syndicates Services Postal Environmental Book &
Facilities Telephone Services Consulting Other Systems &
Entertainment Cellular & Services Testing Labs & PBX Libraries Transportation Management
& Recreation Help Supply & Archives Services Consulting Catalogs
Monitoring Translation & Storage Services Services eCommerce
Market & Analysis Interpretation Online Business & Networking
Research Personnel Information Scientific & Forms
& Analysis Billing & Instruments Management Services Technical Database
Reporting & Products Consulting Software
Payroll Transaction
Physical & Services Processing Process & Implementation
Engineering Logistics & Customization
R&D Data Consulting
Capture Upgrades &
Life Sciences & Imaging Maintenance Manintenance
R&D & Repair
Data Entry Software User
Social Support & Training
Sciences Other Services Training
R&D
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 8

9. How Will NQ Improve GE Knowledge Worker Effectiveness?
The World is Shifting 1995 - 2004 2005 - 2010 2011 - 2020
(legacy) (shift) (SaaS)
Scale Creates Disadvantages
Records
Messaging
» Impedes Responsiveness Cisco
Apple
Life Cycles
SPAM
AT&T Viruses Theft
HP Localization
CA IBM Planning
Marketing Pricing
» Increases Info-based Costs SAP SAS Vendavo Collateral Versioning eMail
Archiving
Dell Vignette Search ERP Costing Policies XBRL
EMC
» Projects are Much Larger Oracle ADP
Lifecycle
Management Advertising
Presentations
Teradata Content
Business
Management
Symantec Billing Intelligence
Business
» Difficult to Change Course Sun Microsystems Processes
Interwoven Digital Rights Storage Lawsuits
Microsoft BEA
DAM Supply
TIBCO Business Discovery Chain
Sybase Management
NQ is Managing Shift Transformation Controls
tra
nsh
ift1
.ai
Quantify information-based costs buried in overhead
Assess knowledge worker activities by specialist
Use activity-based metrics to prioritize/assess gains Potential Absolute Actual
Cost Costs Cost
Leverage SaaS (pay-as-you-go) to meet needs Savings Savings
Normalize business metrics connect-the-dots (XBRL)
Strategic Partnership Focuses on Generating Incremental Results
60 days > Plan . . . 90 days > Contracts . . . 120 days > $1M . . . 150 days > $3M . . .
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 9

10. Where Should GE - Industrial Focus Transformation Effort?
Potential Cost Savings Assume Making 15% (minimum)
GE - Industrial
Estimated First Year Gains
Support
Administration 24 13 37 & Training
$1.0M
Research Administrative
Authoring 26 39 65 & Learning $3.6M
$2.4M
Communications 13 27 40
Creative Development 3 10 13
File Management 12 10 22
Meetings
$3.0M
Meetings 20 18 38 Authoring
$3.9M
Research & Learning 16 19 35
Support & Training 7 5 12 File
ge_indust1.ai Management
Communications
0 $10 $20 $30 $40 $50 $60 $70 $80 Million $1.8M
$1.9M
Creative
Potential Optimized Practice Potential Cost Savings Development
(total cost $121M) (total savings $141M) $0.4M
Focus on Quick Hits that Yield the Greatest Potential Gains = $18 M
NextQuarter delivers insight, know-how, tools and talent to solve big problems!
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 10

11. What Differentiates NQ Efforts - Quantifiable Results!
NQ Sustainability Practice
Reward collective achievement as individuals
engage and become empowered to do 5 Validate
their work more effectively. + Report
4 Strategy +
Benchmark Quarterly to
Validate Cost/Performance
Roadmap - Use Analytics developed to
3 Compare
measure Hidden Costs
- Utilize findings to manage
Enhance Governance &
+ Analyze relationships with:
2 Hidden
Compliance Strategy and - Solution Providers
Deployment Roadmap: - Auditors/SOX Teams
1 Business Costs Compare Cost/Performance - Use Comparative Analysis to - Outside Legal Counsel
Model Identify your Hidden Costs
to others with/in similar:
- Industries
assess strength/weaknesses
- Identify areas to improve
- Systems Integrators
- Service Providers:
and Capabilities to leverage - Insurance/Banks
associated with: - Markets
- Calculate potential ROI based - Leverage findings to improve
Model Business Structure - Advertising, Marketing & PR - Products
reporting:
- Services on achieving:
& Relationships: - Broadcast & Telcom
- Cost Reductions - Investor Relations
- Headquarters - Custom Development - Revenue
- Productivity Gains - 8K, 10K + Proxy
- Leadership & Culture - Design & Engineering - Employees
- New Revenue - Use findings to enhance
- Policies, Controls & Procedures - Hardware - Capabilities
- Value Enhancements core competencies and
- Demographics/Geography - Human Resources - Locations
- Use ROI to set Strategy automate controls and
- Countries & Localization - Information & Data Processing - Countries
- Update Roadmap based on best practices (workflow)
- Strategy & Resources - Legal & Accounting - Partners
- Suppliers achieving cost/performance
- Stakeholder Interests/Needs - Logistics
five_step.ai Copyright © 2009 NextQuarter LLC.
- Customer Requirements - Specialty Services - Customers
- Product & Services - Publishing & Printing
- Value Chain/Segmentation - Software
- Cost & Productivity
- Assets & Archives
- Systems & Applications
- Effectiveness & Reporting
NQ Leverages Proprietary Econometric Data Models, Tools & Analytics
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 11

12. NextQuarter Guarantees 400% Returns on Efforts!
Program:
Benchmark Performance:
Productivity – Establish Current Knowledge Worker Effectiveness
Capabilities – Leverage Imagination Breakthrough Technologies
Projects – Improve Investment/Asset Returns (ROI/ROA)
Report Performance:
Situation – Validate Real-Time Current States & Conditions
Initiatives – Drive Improved Stakeholder Value Creation
Outlook – Achieve Best in Class Performance & Cost Savings
Engage NextQuarter & Start Generating New Source of Profits!
Sign Mutual Confidentiality Agreement
Approve Engagement Agreement - Scope of Work, Schedule & Cost
Begin Benchmarking w/ GE Proprietary Analytics
Review / Prioritize Quick Hits - NQ Stewards & Validates Results
NextQuarter LLC - P.O. Box 1009 Portsmouth, NH 03802 603-294-4171 www.nextquarter.com
Copyright 2009 © NextQuarter LLC. All rights reserved. Page 12