Taking Surgery Beyond The Limits Of The Human Hand

1. Imagination At Work GE or ISRG ? Taking Surgery Beyond The Limits Of The Human Hand Ben Creed Shaka Dickerson Amanda Reece Shijia Sheng Elaine Williams Melissa Work

2. CRITERIA • Financial Conditions • Financial Metrics • Value Creation Model • Revenue Flow Chart • Internal/Cultural • Career Development • Benefit Package • External Environment • SWOT Analysis • PEST Analysis

3. DECISIONTREE GE or ISRG? GE < ISRG GE > ISRG Finance GE = ISRG GE > ISRG GE < ISRG Culture GE = ISRG GE > ISRG GE < ISRG Environment ISRG GE

4. Financial Metrics the What and the Why…

5. Financial Metrics Net Profit Margin – shows how much out of every sales dollar a company keeps after everything else has been paid for – employees, vendors, lenders, etc. A measure of profitability Current Ratio – tells lenders and investors a company’s ability to meet its financial obligations A measure of liquidity

6. General Electric

7. Intuitive Surgical

8. Current Ratio Compared to Industry and Top Competitors General Electric Intuitive Surgical

9. Financial Metrics Return on Invested Capital (ROIC) – shows how well a management team generates operating profits vs. the amount of money they use to generate those profits A measure of profitability Revenue Growth – A relative measure of how fast a company’s business is expanding. Tracking revenue over time can help identify increases and decreases in a company’s sales.

10. Return on Invested Capital Compared to Industry and Top Competitors Intuitive Surgical General Electric

11. General Electric Earnings Compared to Conglomerates Industry - 5 years to date

12. Intuitive Surgical Earnings Compared to Health Care Industry - 5 years to date

13. General Electric

14. Intuitive Surgical

15. Financial Metrics Heat Map

16. Value Creation Model Partners Consumers Philanthropy Shareowners CUSTOMER CLIENT Organic Growth People Focused Build Solve CORE VALUE Lead Imagine Products / Service Leadership Program Build Lead EMPLOYEE PROCESS Diversification Reputation Technical Innovation Technologies Benefit Package R & D

17. Revenue Flow Chart Customers Partners Philanthropy Cash Earnings Return Marketing Donations Product/Service R&D Budget Assets Shareowners Infrastructure Dividends Reconstructing Taxes Funding Payroll Benefits Training Government Employees Revenue Flow Related Main Stakeholders

18. SWOT S W • Diversified Business • Innovative Technologies • Brand Value • Environmental Awareness • Strong R&D • Leadership Program O T

19. SWOT S W • Senior Management • Unsuccessful Asian Markets • Low Stock Price • 4th Largest Producer of Pollution O T

20. SWOT S W • Governmental Support • Takeover & Merger • Corporate Social Responsibility • Global Market • Growth in Aviation Industry O T

21. SWOT S W • Rules & Regulations • Extra Competition & Price Wars • Challenges in Economic Recession Period O T

22. PEST POLITICAL ECONOMIC • Tax systems and regulations • Different business environment • Deflation & inflation • Exchange rates SOCIAL TECH • Varied rate of technology advancement • Culture challenges influencing corporate culture

23. Value Creation Model Surgeons Consumers Hospitals Shareowners CUSTOMER / CLIENT Organic Growth People Focused Non-Invasiveness Efficacy Products / Maintenance / Training Lead Impact Innovate Compensation Challenge EMPLOYEE PROCESS Growth Reputation Technical Innovation Research Grants Benefit Package Partnerships

24. Revenue Flow Chart Health Insurance Providers Patients Surgeons / Hospitals Researchers Cash Earnings Return Training Product/Service Grants Marketing Assets Budget Shareholders Stock Prices R&D Payroll Benefits Revenue Flow Employees Related Main Stakeholders

25. SWOT S W • First-Mover Advantage • High Entry Barriers • Brand Strength • Near-Monopoly in Technologies • High Switching Costs O T

26. SWOT S W • Big-ticket Purchases • High Cost • Rely Heavily on R&D • Lack of Diversification O T

27. SWOT S W • Global Growth • Domestic Growth • Procedure Growth O T

28. SWOT S W • Legal Liability • Rules & Regulations • Imitators • Development of Alternative Solutions • Price of Raw Materials O T

29. PEST POLITICAL ECONOMIC • Health care bill • International health care laws • Exchange rates • Hospital affordability SOCIAL TECH • People are getting older and sicker • Competition for experienced hires • Social acceptance of robotic surgery • Patents • Advancement in robotics

30. Summary • Benefits for Employees • Health Ahead Program • Income Protection • Retirement Insurance • Leadership Development Training • Corporate Social Responsibility • Philanthropy into Global Initiatives • Public Policy Influence • Investment Into Alternative Energy • Employee Volunteerism • Culture • Building People • Leadership Development • Work Environment • Improved Diversity • Benefits for Employees • Comprehensive Family Health Care Benefits • Income Protection • Retirement Programs • Incentive Programs • On-site Services • Corporate Social Responsibility • Supports Local Fundraising Efforts • Volunteerism • Invest in Effective Charitable Programs • Culture • Fast Paced • Results-Driven • Hard Work (long hours) • Making a difference

31. On The Flipside • Attractive salary and stock options • Relatively small company = more individual impact • See tangible customer results from your work • Excitement of being a part of something on the rise • Top-notch professional training and development • Good start for younger employees • Good company reputation • Various industries to work in • Global reach • More secure career route