Big Industry Trends The industrial world is undergoing a seismic shift in productivity and efficiency as machines become increasingly intelligent. This shift will result in the creation of an Industrial Internet that will have the same transformative effect as the consumer internet. Intelligence is brought about through innovative sensor technology, machine to machine connectivity, new approaches to automation, and most importantly software that gives insight to people in real-time. This seismic shift to what one venture capitalist has dubbed: 'software eating the world', will require more and more companies to make strategic decisions on their willingness to invest resources and take the risks to capture this increasingly valuable part of the value-chain. We see companies in the automotive industry doing this already as they are no longer satisfied to simply move people from point A to point B as a manufacturer of cars. Instead they want to capture the software value inherent in the transformation of today's vehicles into entertainment, navigation, and social systems. The big question for companies that want to win and survive in today's economy is: do you focus on existing products and business models or do you create new integrated hardware/software solutions and services that is greater than the sum of the individual parts. This talk will explore the notion of the Industrial Internet, emerging business opportunities and GE's strategic decision to focus on software and analytic-based services.

3. Bill Ruh
VICE PRESIDENT
GE Software

4. Big Industry Trends
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5. We Used to Get...
1. More Data
Takeoff
Diagnostics Data
(Averaged)
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Cruise
Diagnostics Data
(Averaged)
Landing
Diagnostics Data
(Averaged)

6. Air Speed Calibrated
Altitude
Carrier Name
Core Compartment Cooling Valve
Position
Core Speed
Date GE Received
Departure Station
Destination Station
EGT Exhaust Gas Temperature
EGT1
EGT2
EGT3
EGT4
EGT5
EGT6
EGT7
EGT8
Engine Serial Number
FMV Position
FMV Position Demand
Now We Get
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7. OT is Virtualized
Analytics Become Predictive
Machines are Self-Healing and Automated
Monitoring & Maintenance is Mobilized
Employees Increase Productivity
Entertainment is Digitized
Social Marketing Emerged
Communications Mobilized
IT Architecture Virtualized
Retail & Ad Transformed
2. Rise of the Machines
What Happened When
1B People
Became Connected?
What Happens When
50B Machines
Become Connected?
Consumer Internet Industrial Internet
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8. 3. Changing Architecture
Wave 1:
Mainframe
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Wave 2:
Client-Server
Wave 3:
Consumer Grade
Innovation
Time

9. 3. Changing Architecture
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Distributed Compute
& Analytics
Cloud for
Efficiency
& Agility
Mobile: Anytime,
Anywhere Access
Predictive
Insights from
Big Data
Transition to
Brilliant
Machines
Consistent &
Meaningful
Experience
Industrial Software
Application Requirements
End-to-End
Security

10. Intelligent Solutions
Learns from Data
Evolves with Automated Updates
Employs Unifying Theory
Delivers Insights
Uses Probabilistic Models Applied in
Unique Ways
4. Real-Time Analytics
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Prior Knowledge
Historical Data
Experiential
Learning
Analysis

11. Together Digital & Physical
are Changing the Game
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12. © General Electric Company, 2013. All Rights Reserved.
The Digital
Enterprise
Focus on Customer Outcomes with
Ability to Respond Quickly to Change
Understanding What Delivery
Model(s) Meet Customer Preferences
Spur Open Innovation &
Forward-Thinking Dialogue
Designing Solutions for Anywhere,
Anytime Access to Information
Combining Elements of Low Cost
Sensing, Analytics & New Levels of
Connectivity Permitted by the
Internet

13. Connecting Minds & Machines
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Instrumental
Industrial Machine
Industrial
Data Systems
Big Data
Analytics
Remote and
Centralized
Data Visualization
Physical and
Human Networks
Secure
Cloud-Based Network
Extraction and Storage
of Proprietary Machine
Data Stream
Machine-Based
Algorithms and
Data Analysis
Data Sharing with
the Right People
and Machines.
Intelligence Flows
Back Into Machines

14. “The Power of 1”
Predictive
Diagnostics Power
Predictive
Maintenance Healthcare
Increasing
Freight Utilization Rail
Driving Outcomes
That Matter
$27B
Industry Value by
Reducing System
Inefficiency
$63B
Industry Value by
Reducing Process
Inefficiency
$66B
Industry Value with
Efficiency Improvements
in Gas-Fired Power
Plant Fleets
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15. © General Electric Company, 2013. All Rights Reserved.
Value Of Big
Data Analytics
1 Gas Turbine Compressor Blade
Monitoring Potential:
500 Gigabytes Per Day

16. Defining Brilliance
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Turbine To Battery
Battery Storage Makes
Predictable Power a Reality,
Driving Wind Farm Output,
Improving Service Productivity
and Creating New Revenue
Streams for Customers.
Turbine To Turbine
If a Turbine Loses Wind Speed
or Wind Direction, It Simply
Asks Its Neighbor What It’s
Doing and Replicates the
Action, Improving Availability
and Power Output.
Turbine To Remote
Monitoring
GE Turbines are Monitored
and Analyzed 24x7 Using 150+
Unique Software Rules to
Detect, Prioritize, and Identify
the Best Fix for Wind Turbine
Operation Issues. It’s Like
Having a Team of Experts
Around the World Solving
Issues Real Time.
Farm To Grid
When the Grid Needs More
Voltage, Wind Farms Take
Action. Every Second, 150,000
Data Points on a Farm are
Analyzed to Integrate 400MW
Onto the Grid.
Wind Farm To Wind Farm
Farm to Farm Communication Allows
Automated Control of a Wind Farms’
Voltages to the Grid, Providing Stability
to a Broader Regional Area Through
Optimizing Multiple Farms.

17. Our Approach
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New Techniques and Advances in
Analytics, esp. Machine Learning
& Statistics
Hybrid Cloud Platform for Services
Development and Delivery
Next-Generation M2M and
Control Technology
User Experience Tool Set
Analytics Centered Applications
Strategic Partnerships for
Key Infrastructure
Strategic Investment for Innovative
and
Emerging Technologies
Partner to Pursue New Markets
Enable Customers to Create New
Solutions
Defining and Developing Industrial
Internet Services
Centers of Excellence: Data
Science, Design Experience, Cyber
Security
Stamping Lean and Agile Best
Practices on Global Development
Hubs
Creating Leadership Program
Organization Architecture Ecosystem

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What Does This
All Mean?
Disruption is Occurring
in Every Industry,
Analog to Digital
Industries

19. © General Electric Company, 2013. All Rights Reserved.
What Does This
All Mean?
The Potential Benefits of
Intelligent Systems
are Vast and the Synergistic
Effects of Widespread
Machine Instrumentation Can
be Realized Across Fleets and
Networks

20. © General Electric Company, 2013. All Rights Reserved.
What Does This
All Mean?
Software
Coupled with
New Processing
Architectures
are the Enabler
for These Digital
Industry Architectures

21. © General Electric Company, 2013. All Rights Reserved.
What Does This
All Mean?
R&D is Critical to Lead the
Change: Not Just
New Products but
New Solutions, Systems
& Industry Architectures

22. © General Electric Company, 2013. All Rights Reserved.
What Does This
All Mean?
Disruption is Occurring
in Every Industry,
Analog to Digital
Industries
The Potential Benefits of
Intelligent Systems
are Vast and the Synergistic Effects of Widespread
Machine Instrumentation Can be Realized Across Fleets
and Networks
Software
Coupled with
New Processing Architectures
are the Enabler for
These Digital

23. Thank You
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