2. ABOUT GE
● Thomas Edison Founded General
Electric in 1892.
● GE manufactured products and
provided services across various
industries
● GE looked ways to Go downstream
pursuing a comprehensive services
business model
● After diversification GE took most of the
profits from its financial services
3. What is IIoT( Industrial Internet of Things)?
https://youtu.be/KzXfFDJWgmQ
https://youtu.be/8NGzrtK7eV0
4. PROBLEM
STATEMENT
Do you know what helps you make your point clear?
Lists like this one:
● They’re simple
● You can organize your ideas clearly
● You’ll never forget to buy milk!
And the most important thing: the audience won’t
miss the point of your presentation
5. How would you assess GE’s Industrial Internet Initiative
5
GE coined the term
Industrial Internet in late
2012
Industrial Internet could
be a $225 billion market
by 2020
Widespread use of
interconnected
● Machines
● Analytics
● People
MACHINE
Connect the machines
with sensors, controls
and software application
ADVANCED ANALYTICS
Combine physical based
analytics, predictive
algorithms and
automation
PEOPLE AT WORK
Connecting people at
work or on the move
anytime to support
intelligent design
6. How would you assess GE’s Industrial Internet Initiative
6
Industrial Internet could
be a $225 billion market
by 2020
7. S
W
O
T
● Embedded software
● Market Experience
● Multiple Subsidiaries
● Expenditure on core
platform rather than
application
● Lack of Software skills
● IOT to create $14.4 trillion
economic value
● Joint Ventures
● Cannibalization of
existing products
● Commoditization of
assets
8. How would you assess GE’s Industrial Internet Initiative
8
Industrial Internet could
be a $225 billion market
by 2020
9. How would you assess GE’s Industrial Internet Initiative
9
Industrial Internet could
be a $225 billion market
by 2020
https://www.ge.com/about-us/history#/
10. Challenge
To keep pace with fast moving
technologies
Sub Challenges:
● Changing paradigm of software development
● Catering each sector which had different state of maturity
and different legacy software issues
● Each business had varying degree of softwares embedded
into the products which increased complexities
Next step to accelerate the effort
11. Leverage its huge
presence
Hire the right set of
talent
Strategic partnership and
JV or acquisitions
Handling Data privacy
regulations
Partnership with IBM or
Google
Next Step
12. 01 02
Competitors
03 04
● Partnered with the EU to enable
factory machines to move seamlessly
● Launched the Omnetric Group
● Philips competes with GE in the
Healthcare segment
● High brand recognition and
awareness
● Launched several appliances that
connected to the Internet
● Watson’s health-carer use by
independent software vendors,
content providers, and talent
providers
● Launched new series of Power
Systems solutions for health care,
retail, and general industry
● Google was entering into internet
connected hardware business
● Products could be controlled over
the web
● This infrastructure will allow to move
beyond the human-based web into
the Internet of Things.
GE need to keep their core platform adaptable and agile due to changing environment. Also, The biggest advantage for the GE, was their presence in various sectors and high customer base. This presence allowed them to understand how the different sectors work and what kind of functionality is needed in the software to approach the customers. They have an availability of the large data set. Another advantage for them was their presence in the market for the long period of time. This allowed them to understand the importance of the changes in the business, so they could focus on the adaptability of the software over the period
Leverage its huge presence to increase the awareness which will help them monetize their offerings in a more efficient way.
They need to hire talent and develop competencies in handling data privacy related regulations as they vary in different countries
Phase out approach to implement the offering internally, they need not force the initiative to any unit rather use training and KPIs to show effectiveness of the Initiative
Strategic partnerships and JV or acquisitions to acquire expertise in this software business. IBM with its $1Billion acquisition of Watson was already threatening GE and so was Google which had huge expertise in data analytics
Consolidation by entering into partnerships with IBM or Google. GE can provide valuable data which they don’t have access to, and the tech giants can provide the core competencies in analytics.
IBM: As the world’s largest IT company, It was an industry leader in Industrial Internet applications until GE entered the market in 2013. IBM released Watson, which was Originally designed as an advanced (Q&A) system, Watson’s technology was later applied to health-care businesses through collaborations.
Google announced an agreement to acquire Nest Labs. Nest Labs was a home hardware technology start-up that designed Internet-connected products such as thermostats and smoke detectors
Siemens: the largest engineering company in Europe, partnered with the European Union on the “Internet of Things at Work” project, which enabled factory machines to move seamlessly between productions without commands from their central systems. Later, Siemens and Accenture jointly launched the Omnetric Group aimed to help utilities connect their distribution systems, grid operations, and meters in order to create smart grids.
