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Our perspective


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How GE is participating in the 4th Industrial Revolution Boosting Productivity with Industrial internet

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Our perspective

  1. 1. Imagination at work Boosting Productivity with Industrial Internet The Digital Industrial Company Shefali Patel GE Digital Our Perspective: How GE is participating in the 4th Industrial Revolution
  2. 2. 1. Digital Industrial Emergence • Strategic Choices and when they matter most • Productivity Paradigm • Rise of the Platform and Apps- A different way of commerce • What is Industrial Internet of Things 2. GE’s Approach • Reorienting the company • Predix Platform & Apps- Current State & Future Investments • Use cases 3. Partnerships • Never a better time to partner • Opportunity to leapfrog to next gen tech Outline
  3. 3. Industrial Markets are at an Inflection Point
  4. 4. • Renewables & storage steadily cheaper, pressuring fossil fuels • Electrification of transportation – poised to rise • Private car ownership – poised to decline • Supply-driven cost pressure on oil & gas • Decline of retail foot traffic • Rise of direct-to-consumer CPG + ecommerce • IoT + AI and redeployment of human capital • Rise of localization and protectionism
  5. 5. New Industrial Infrastructure, Not Just a Technology Cost of: • Sensors • Storage • Compute • Cloud services • Sensors per Asset • Assets with Sensors • Data False Positives, False Negatives View of Operations, Demand Sensing, & Supply Chain Machine Learning & Advanced Analytics 500 sensors on a locomotive Thousands of locomotive instrumented $1MM of computing power in 1996 …is available for ~$500 today From asset optimization to system optimization
  6. 6. Industry Evolution 6 New infrastructure drives productivity growth. 1750-1830: Steam, Rail 1880-1920: Electricity, Telephone 1960-2000: Computer, Internet 2010-…: IoT, Big Data, AI New market entrants capitalize on the new capabilities and emerge as leaders. The most agile incumbents invest in order to survive and thrive. Machines + Data + Insights = Productivity
  7. 7. With every new beginning, there are creative forces of change… “Industrial companies are in the information business. If you went to bed as an industrial company yesterday, you woke up as a software company” Jeff Immelt, Chairman and CEO, GE Know Thyself, Know the Customer, Never Stop Innovating”. Beth Comstock, Vice Chair, GE Learning culture with institutional practices Leadership. Risk. Commitment Market Orientation. Technology Innovation.
  8. 8. To continue to grow, maintain an essential discomfort in the world Point in Time Matters: Global Market Dislocation + New Government + Technology Maturation & Converg Industrial Disruption Outside the Core at Speed & Scale Transformation of The Core Strategic Choice and Change • 1.5B Investment to Build Software • Outpost COE away from HQ • Comfort in good enough Business Design & Culture Change Our journey started in 2009…… Digital
  9. 9. Physical Virtual Machine Human Mind Hardware Software Sensors Data & Insights OT IT Material Science & Physics Data Science & AI Product Platform +Apps Domain Experts Digital Natives Millennials Century Old Industry Icon Silicon Valley Start-Up Value Chain Ecosystem To create and inhabit a new world at the intersection of dualities Digital Industrial Transformation By Evolving our Culture Being Open to Ideas from Inside & Outside. Adopting Horizontal
  10. 10. 20BN Hotel Service 50BN Taxi Service 18BN Consumer App Economy Owns no vehicles Owns no real-estate Creates a few apps UBER Apple Landscape is changing Software has impacted every industry Consumers benefitting. It is now Industrial’s turn for interconnectedness
  11. 11. Source: Harbor Research, IDC, TCG Analysis Consumer ~$170B Enterprise [IT] ~$206B Industrial [OT] ~$225B Applications Platform $82B $131B $125B $88B $75B $100B The Rise of The Platform to facilitate interconnectedness Common Thread: Purveyors of the Platform & Services
  12. 12. Connected Machines at the Core of Digital Industrial By 2020 Winners will master data and insights ... At speed & scale 152M Cars connect to the internet…6 fold increase 10B Internet connected light bulbs +1B Growth in the installed Base of Smart Meters 108B Terabytes a day generated by GE machines
  13. 13. Established Companies Vying for success in the IIoT Market Market By 2020: ~$300B 50 B Devices Connected
  14. 14. What is Industrial Internet Catching the Wave to create a new industrial reality Intelligent Machines Advanced Analytics People at Work+ +
  15. 15. GE FOR GE PRODUCTIVITY Digital thread Predix + data Digital twin GE FOR WORLD PLATFORM Predix Secure Cloud for industry GE FOR CUSTOMERS APPLICATIONS GE’s software business “Inside-out” strategy Outcomes for customers Supplier Customer GE: the digital industrial company 16 $15B software business by 2020 Organizing for the Opportunity Three Waves of Deployment GE Factories, GE Customers, World
  16. 16. Data Drives Productivity Growth Assets PeopleProcesses  Reliability  Availability  Operational Cost  Operational Risk  Quality  Throughput  Waste / Rework  Lead Time  Decisions  Engagement  Cycle Time  Turnover Three Waves GE Factories, GE Customers, World
  17. 17. Digital Application in Oil & Gas Intelligent Pipeline Digital Industry Solutions
  18. 18. Cloud Technology Infrastructure Predix connects industrial assets to the cloud and to each other Cloud Foundry Assets Analytics Data Access Authorization Operations Data Infrastructure The Predix Cloud Operations Optimization UI / Mobile Applications Connectivity Services Solutions End-to-End Security Edge Analytics EngineIndustrial Assets Business Optimization Asset Performance Management (APM) Edge Analytics Predix Machine Enterprise Systems
  19. 19. Predix Applications Portfolio Future Investments Brilliant Factory Developing algorithms to deliver customer outcomes that drive productivity Advanced Analytics & Data Science + Machine Learning & Artificial Intelligence + Digital Twin & Cloud Edge Computing Research Domains Underlying Tech Investments Three Waves GE Factories, GE Customers, World We are Platform People
  20. 20. Our First Killer App Asset Performance Management (APM) Foundational application for industrial asset productivity Get Connected MACHINE & EQUIPMENT HEALTH Securely Connect Equipment High Probability of Detection Data-Rich Actionable Insights Get Insights RELIABILITY MANAGEMENT Confidence Around Best Outcomes Identify Emerging Problems Collaboration Get Optimized MAINTENANCE OPTIMIZATION Balance Performance & Reliability Optimize Maintenance Maintenance Strategy  No unplanned downtime   operating costs & risk  Longer asset life  Value-based pricing … win/win for GE & customers Three Waves GE Factories, GE Customers, World We are Asset Geeks. We are Analytics Geeks
  21. 21. Cultivating New Entrepreneurship BSquare ThetaRay Nurego Intel InfoSys Toshiba SoftBank Vodafone AT&T FogHorn Cisco TCS Pivotal ANSYS Azuqua Genpact Plataine SparkBeyond FPT China Telecom Pitney Bowes Predix Industrial Internet Consortium IGATE Accenture Creating a marketplace for apps. Bringing together developers and users Opening Predix Infrastructure for Lower Cost App Development (by 3rd Party Developers) OPEN INNOVATION ECOSYSTEM Three Waves GE Factories, GE Customers, World Pollux
  22. 22. Some use cases and customer value First Global APM LNG Application 8000 Parameters Being Monitored. Plan to scale impact from 442 Assets to 2300 (all trains) 50 to 600 assets across 11 plants to provide actionable warnings of impending equipment failure Connect 650 Wells to Predix APM Store, Connect and Visualize well data to glean Insights Transforming operational maintenance spend with advanced data analytics
  23. 23. Never a Better Time to Collaborate Industrial Internet and Public Private Partnerships Policy reform for connectivity data access & broadband infrastructure Private Sector Partnerships Entrepreneurial Tech Talent Success Factors & Comparative Advantage Productivity Growth
  24. 24. 25 The Digital Industrial Company Thank You
  25. 25. Microgrids Grid Modernization Agriculture Improved infrastructure through Industrial Internet Applications Opportunity to Leapfrog Water-Energy-Food Nexus Solar Costs Down by ~65% IIoT can enable efficient remote operation of microgrids One way Centralized System To Bi-Directional Grid Platform IIoT can balance Decentralized Production & Optimization of Fuel Resources More control over Natural factors Better asset utilization for higher crop yields
  26. 26. 28 Industry Challenges Retiring Workforce Big Data Meters, PMU, … Mission Critical Communication Cyber-Security Environment Public Safety Storm Restoration GHG New Electrical Equipment (FACTS, HVDC, …) Sustainability Renewable Deployment & CO2 free energy New Generation Mix System Scalability From energy cluster to large Interconnected Grids System Dynamics Operating near to True real Time Limits IT Architecture & Services Control Room Business Model Change New regulation
  27. 27. Nuclear Anomaly Moisture Carryover (MCO) has negative effects to worker health and plant operating costs. Effectively mitigating the problem is a current priority utilities and reactor vendors around the world. Theta Ray Power MicroServices - Predix Marketplace Valve Monitoring Woodward has incorporated decades of experience controlling engines and turbines into its suite of software products and tools that assist in more predictive maintenance decisions and analytics. Thetaray
  28. 28. 3 1
  29. 29. 23% 10% TECH INDUSTRIAL Tech Dominates Value $280B (+50%) 42% (+8X) RETAIL MEDIA Consumers Winning 4% 1.4% ‘91-’10 ’11-’15 Industrial Productivity % S&P VALUE INVESTMENT BUT DECLINING • Industrials have not benefitted from internet investments • Industrial Internet changes the game … “Power of 1%” in a $225 billion market • Value of operational insight > connectivity IT IS INDUSTRIAL’S TURN
  30. 30. ’80s ’90s ’00s Today Big Iron Repair Technology Contractual Services Digital Industrial + Partners + Field engineers + Advanced repairs + Part upgrades + Risk sharing + Monitoring & diagnostics + Analytics-enabled uptime + Software-enhanced output/performance + Remote inspections Backlog $226B Customer Outcomes Technology Application Our services have evolved
  31. 31. GE Digital Becoming a Digital Industrial Company 36 GE’s Digital Transformation Story
  32. 32. While transformation is complex, focusing on 5 key areas will drive future success Source: World Economic Forum Operating Model and Capabilities Data and Connected Infrastructure Partner Ecosystem Culture Change Incentives & Pricing 1 2 3 4 5 New Business Model – Transformation Maturity
  33. 33. GE Digital Becoming a Digital Industrial Company 38 Tools for Transformation
  34. 34. GE as an example for Industrial Internet at work
  35. 35. GE Digital Becoming a Digital Industrial Company 40 What is a Digital Industrial?
  36. 36. GE Digital At its core, a digital industrial company uses data and analytics to create "digital twins" of its key processes and physical assets, which serves as the digital foundation. This foundation enables the company to run a "digital thread" through the design, build, and service functions – creating a virtuous loop of continuous improvements. Digital industrial companies use data and analytics to grow their top line via new data-driven offerings and outcome-based business models. . Becoming a Digital Industrial Company 41 Digital Twin Digital Thread Operational Agility & Business Model Innovation Business model innovation runs through operations.
  37. 37. APM covers > 75 % of total failures in Power Plant 42 Number of Failure Modes Coverage Unplanned Downtime Coverage 65% of the average unplanned hours per unit have moderate to high analytic coverage Overall Coverage APM covers > 65 % of most important failures resulting in greatest downtime 0% 50% MediumHigh Low Plant GT ST Gen System Condensing HRSG
  38. 38. Industrial Imperative: Redefine the Game Industrial productivity Meets the Digital Twin 4% 1991 – 2010 1% 2011 – 2015 + Physics Analytics