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Big Data, Physics, and the 
Industrial Internet 
How Modeling  Analytics are Making the World Work Better. 
Matt Denesuk 
Chief Data Science Officer 
GE Software 
October 2014 
Imagination at work. 
Contact: matthew.denesuk@ge.com 
© General Electric Company, 2014. All Rights Reserved.
What’s this all about? 
Industries that are all about 
data  IT see outsized 
productivity  performance 
gains 
• Telecom, financial srvcs,… 
2 
Making industrials all about data 
 IT will transform how the world 
works 
• Power, water, aviation, rail, mining, oil 
 gas, manufacturing, … 
And Big Data + Physics is the enabler
What happened when 1B people 
became connected? 
Entertainment 
digitized 
[ ] 
© General Electric Company, 2014. All Rights Reserved. 
Social 
marketing 
emerged 
Communications 
mobilized 
IT architecture 
virtualized 
Retail  ad 
transformed 
Consumer 
Internet 
[ ] 
[ ] 
[ ] 
[ ]
Now what happens when 50B Machines 
become connected? 
Industrial 
Internet 
Brilliant 
Power 
Logistics 
Optimization 
Brilliant 
Factory 
Factory 
Optimization 
Smart 
Grid 
Hospital 
Optimization 
Real-time 
Network 
Planning 
Intelligent 
Medical 
Devices 
Connected 
Machines 
Brilliant 
Hospital 
Brilliant 
Rail Yard 
Shipment 
Visibility 
Employees increase OT is virtualized Analytics become predictive productivity 
Machines are self healing  automated Monitoring and maintenance is mobilized [ [ © General Electric Company, 2014. All Rights Reserved.
Cornerstone of IoT Transformation is 
Software-Defined Machines (SDM’s) 
CONSUMER 
COMMERCIAL  INDUSTRIAL 
• Easily connect machines to Internet 
• Embed apps and analytics into machines and cloud, making them intelligent and self-aware 
• Change and update capabilities of machines and devices without changing hardware 
• Deliver intelligence to users providing continuously better outcomes 
• Extend Industrial Internet platform via API and ecosystem
Example: Wind Farm in Analytics Age 
(40 TB/yr/ 
500 wm 
farm)
The Value to Customers is Huge 
Efficiency and cost savings, new customer services, risk 
avoidance – 1% improvements cuts $276B in waste across 
industries 
Industry Segment Type of savings 
$30B 
7 GESoftware.com | @GESoftware | 
#IndustrialInternet 
Aviation 
Power 
Healthcare 
Rail 
Oil and Gas 
Estimated value 
over 15 years 
$66B 
$63B 
$27B 
$90B 
Commercial 
Gas-fired 
generation 
System-wide 
Freight 
1% fuel savings 
Exploration and 
development 
1% fuel savings 
1% reduction in 
system inefficiency 
1% reduction in 
system inefficiency 
1% reduction in 
capital expenditures 
Note: Illustrative examples based on potential one percent savings applied across specific global industry sectors. Source: GE estimates
4 Big Data 
Forces shaping 
the Industrial Internet 
8 GESoftware.com | @GESoftware | 
#IndustrialInternet 
Internet 
1 of things 
Intelligent, 
SW-defined 
machines 
2 Big Data  
Analytics 
3 Physics + 
A living network 
of machines, data, 
and people 
Increasing system 
intelligence through 
embedded software 
Employing deep 
physics  engineering 
models to leap-frog 
what’s possible with 
data-driven 
techniques 
Transforming massive 
amounts of data into 
intelligence, 
generating data-driven 
insights, and 
enhancing asset 
performance
Reference Architecture  
Platform for the Industrial Internet must bridge OT  IT 
Single Record 
of Asset 
Business Process Management 
Industrial Big Data Management 
Event Processing 
PaaS 
SaaS 
Industrial 
Data Lake 
Analytics  
Modeling 
Integration with ERP / CRM 
Device mgmt. M2M, M2H, 
M2C 
Insight to Action 
• Maintenance 
• SW Upgrades 
• Machine Control 
Mobility and Collaboration 
Cyber-Security  Operational Reliability 
Any 
Machine 
Any 
Device
What do we need from Data Science? 
10
11 
Two ways of seeing a data set* (and the world) 
Computer Scientist: “get the knowledge locked in the data” 
The data set is record of everything that happened, e.g., 
• All customer transactions last month 
• All friendship links between members of social networking site 
Goal is to find interesting patterns, rules, and/or 
associations. 
Physical Scientist – “get the knowledge” 
(*See D. Lambert, or R. Mahoney, e.g.) 
• The data set is an partial, and often very noisy 
reflection of some underlying phenomenon, e.g., 
– Emission spectra from stars 
– Battery voltage varying with current, time, and temperature 
• Goal is better understanding or ability to predict 
aspects of that phenomenon, often through a 
mathematical model 
For certain kinds of problems, immense power in the 
combination
Example: Statistical Translation 
• Employ language experts to codify 
rules, exceptions, vocabulary 
mappings, etc. 
• Apply transformation to user’s query. 
• Gather and classify lots of translated 
docs (websites, UN, books, …) 
• Identify  match patterns 
• Map to user’s translation query. 
Regular Science 
approach 
Statistical (data-driven) 
approach 
Use of language is infinitely 
complex, but you can teach a 
computer all the rules and 
content. 
People say the same kind of 
things over and over. And 
somebody has already 
translated it. 
• Costly, hard to scale 
• Can translate nearly any statement 
(but accuracy variable) 
• In theory, could be better than 
human. 
• Incrementally low cost, highly 
scalable. 
• Limited in scope to digitized docs 
that have been translated before 
• Limited by skill of human translators 
Will flop with innovative 
use of language (new 
poetry, …) 
Too expensive and 
difficult to deploy 
comprehensively
13 
Three basic components of Industrial Data 
Science 
Physics/engineering-based models 
• Need much less data 
• Powerful, but difficult to maintain and scale 
Empirical, heuristic rules  insights 
• Straightforward to understand 
• Captures accumulated knowledge of your experts 
Data-driven techniques – machine learning, 
statistics, optimization, advanced visualization, … 
• Often not enough data in the industrial domain 
• Bias: limited to regions of parameter space traversed 
in normal operation 
• But easiest to maintain and scale
14 
© 2014 General Electric Company - All rights reserved 
Some Patterns
15 
Industrial Example: improving rule based systems 
Many equipment operators have a system something like this, with rules 
derived based on experience and intuition. 
Rule sets 
implemented in 
Analytics Engine 
Produce alerts 
Low-latency 
operational 
data 
Alerts
16 
Industrial Example: improving rule based systems 
Rule sets 
implemented in 
Analytics Engine 
Produce alerts 
Low-latency 
operational 
data 
Pattern, sequence, 
association mining, etc. 
Outcome 
data 
Combine ML plus rule-based 
alerts with outcome data to 
produce better alerts 
More 
actionable 
alerts
17 
Industrial Example: improving rule based systems 
Rule sets 
implemented in 
Analytics Engine 
Low-latency 
operational 
data 
Outcome 
data 
Recommendation 
engine 
Use ML and outcome data to refine 
and extend rule base, providing yet 
further actionability, resulting in 
substantial improvements in 
operational outcomes. 
Tune parameters of 
existing rules, and 
create new rules. 
Actionable 
Recommendations
18 
Another Industrial Example: use advanced physical 
models to create new features for ML approaches 
Sensor Data 
Predicted Values 
and Δs 
Variety of Machine 
Learning 
Techniques 
Outcome 
data 
Using as ML features the: 
1. Deviations from 
expected physics,  
2. Inferred or hidden 
parameter estimates 
provides much richer and 
effectively less noisy 
data, resulting in much 
stronger predictions and 
models.
Fleet/operation-wide optimization levels. 
Trade-offs to optimize business 
performance 
19 
Climbing up the value chain toward Condition-based 
Performance Management and Business Optimization. 
Need: 
• Earlier detection 
• Root cause 
• Scaling to more 
equipment Types  
instances 
19 
Fix it when it breaks 
Prescriptive recommendations (multi-channel) 
Predictive Maintenance (“future”) 
Condition-based Maintenance (“now”) 
Model-driven 
Work-driven 
Time-driven 
New levers for 
optimization across the 
operation or business 
“Equipment heath 
is not a given, but 
a variable”
20 
Capability / Impact Ramp 
Sophisticated, optimized 
management of business 
Complexity 
Science Predictive 
analytics 
Rules 
Data Anomaly 
augmentation 
Detection 
Advanced 
Basic 
Reporting 
Reporting 
Data completeness, breadth, quality Operational 
optimization 
Prescriptive 
analytics 
Alerts 
Highly-actionable 
management 
info 
High-value 
guidance 
operations
Broad range of deep Data Science capabilities 
needed 
Optimizes the design  
operations of complex 
business and physical 
systems, extracting more 
value at lower risk 
Innovates new ways of 
performing reliability 
analysis, statistical 
modeling of large data, 
biomarker discovery and 
financial risk management 
Focuses on developing 
algorithms and systems for 
real time video analysis 
Research in algorithms and 
software systems that analyze  
understand images to produce 
actionable insights 
Develop scalable and cross-disciplinary 
machine learning 
 predictive capabilities to 
derive actionable insights from 
big data 
Modeling complex system and 
noise processes to detect subtle 
deviations and estimate critical 
system parameters 
Industrial 
Data 
Science 
Employing deep physical and 
engineering understanding of 
equipment and processes to 
generate normative models. 
Sensor  
Signal 
Analytics 
Knowledge 
Discovery 
Delivering data and 
knowledge-driven decision 
support via semantic 
technologies and big data 
systems research 
Applied 
Statistics 
Physics  
expert-based 
Modeling 
Machine 
Learning 
Computer 
Vision 
Image 
Analytics 
Optimization  
Management 
Science 
21
22 
“Industrial Data Science” 
① Outcome-oriented application of mathematical  physics-based 
analysis  models to real-world problems in industrial operations. 
② Tools  processes needed to do that continually  at scale. 
Improve the performance of industrial operations, e.g., 
• Higher equipment uptime, utilization, 
• Lower maintenance/shop costs, longer component life 
• Fleet level optimization  trade-offs 
• Business optimization (linking to financial  customer data) 
• Service / contract management 
Combination of : 
• Physical  expert modeling experience  depth 
• Installed base of industrial equipment and data. 
• Big Data, Machine Learning, and statistical capabilities 
Industrial 
Data 
Science 
What 
is it? 
Why do 
we do it 
What’s 
needed

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Big Data, Physics, and the Industrial Internet: How Modeling & Analytics are Making the World Work Better (Matt Denesuk)

  • 1. Big Data, Physics, and the Industrial Internet How Modeling Analytics are Making the World Work Better. Matt Denesuk Chief Data Science Officer GE Software October 2014 Imagination at work. Contact: matthew.denesuk@ge.com © General Electric Company, 2014. All Rights Reserved.
  • 2. What’s this all about? Industries that are all about data IT see outsized productivity performance gains • Telecom, financial srvcs,… 2 Making industrials all about data IT will transform how the world works • Power, water, aviation, rail, mining, oil gas, manufacturing, … And Big Data + Physics is the enabler
  • 3. What happened when 1B people became connected? Entertainment digitized [ ] © General Electric Company, 2014. All Rights Reserved. Social marketing emerged Communications mobilized IT architecture virtualized Retail ad transformed Consumer Internet [ ] [ ] [ ] [ ]
  • 4. Now what happens when 50B Machines become connected? Industrial Internet Brilliant Power Logistics Optimization Brilliant Factory Factory Optimization Smart Grid Hospital Optimization Real-time Network Planning Intelligent Medical Devices Connected Machines Brilliant Hospital Brilliant Rail Yard Shipment Visibility Employees increase OT is virtualized Analytics become predictive productivity Machines are self healing automated Monitoring and maintenance is mobilized [ [ © General Electric Company, 2014. All Rights Reserved.
  • 5. Cornerstone of IoT Transformation is Software-Defined Machines (SDM’s) CONSUMER COMMERCIAL INDUSTRIAL • Easily connect machines to Internet • Embed apps and analytics into machines and cloud, making them intelligent and self-aware • Change and update capabilities of machines and devices without changing hardware • Deliver intelligence to users providing continuously better outcomes • Extend Industrial Internet platform via API and ecosystem
  • 6. Example: Wind Farm in Analytics Age (40 TB/yr/ 500 wm farm)
  • 7. The Value to Customers is Huge Efficiency and cost savings, new customer services, risk avoidance – 1% improvements cuts $276B in waste across industries Industry Segment Type of savings $30B 7 GESoftware.com | @GESoftware | #IndustrialInternet Aviation Power Healthcare Rail Oil and Gas Estimated value over 15 years $66B $63B $27B $90B Commercial Gas-fired generation System-wide Freight 1% fuel savings Exploration and development 1% fuel savings 1% reduction in system inefficiency 1% reduction in system inefficiency 1% reduction in capital expenditures Note: Illustrative examples based on potential one percent savings applied across specific global industry sectors. Source: GE estimates
  • 8. 4 Big Data Forces shaping the Industrial Internet 8 GESoftware.com | @GESoftware | #IndustrialInternet Internet 1 of things Intelligent, SW-defined machines 2 Big Data Analytics 3 Physics + A living network of machines, data, and people Increasing system intelligence through embedded software Employing deep physics engineering models to leap-frog what’s possible with data-driven techniques Transforming massive amounts of data into intelligence, generating data-driven insights, and enhancing asset performance
  • 9. Reference Architecture Platform for the Industrial Internet must bridge OT IT Single Record of Asset Business Process Management Industrial Big Data Management Event Processing PaaS SaaS Industrial Data Lake Analytics Modeling Integration with ERP / CRM Device mgmt. M2M, M2H, M2C Insight to Action • Maintenance • SW Upgrades • Machine Control Mobility and Collaboration Cyber-Security Operational Reliability Any Machine Any Device
  • 10. What do we need from Data Science? 10
  • 11. 11 Two ways of seeing a data set* (and the world) Computer Scientist: “get the knowledge locked in the data” The data set is record of everything that happened, e.g., • All customer transactions last month • All friendship links between members of social networking site Goal is to find interesting patterns, rules, and/or associations. Physical Scientist – “get the knowledge” (*See D. Lambert, or R. Mahoney, e.g.) • The data set is an partial, and often very noisy reflection of some underlying phenomenon, e.g., – Emission spectra from stars – Battery voltage varying with current, time, and temperature • Goal is better understanding or ability to predict aspects of that phenomenon, often through a mathematical model For certain kinds of problems, immense power in the combination
  • 12. Example: Statistical Translation • Employ language experts to codify rules, exceptions, vocabulary mappings, etc. • Apply transformation to user’s query. • Gather and classify lots of translated docs (websites, UN, books, …) • Identify match patterns • Map to user’s translation query. Regular Science approach Statistical (data-driven) approach Use of language is infinitely complex, but you can teach a computer all the rules and content. People say the same kind of things over and over. And somebody has already translated it. • Costly, hard to scale • Can translate nearly any statement (but accuracy variable) • In theory, could be better than human. • Incrementally low cost, highly scalable. • Limited in scope to digitized docs that have been translated before • Limited by skill of human translators Will flop with innovative use of language (new poetry, …) Too expensive and difficult to deploy comprehensively
  • 13. 13 Three basic components of Industrial Data Science Physics/engineering-based models • Need much less data • Powerful, but difficult to maintain and scale Empirical, heuristic rules insights • Straightforward to understand • Captures accumulated knowledge of your experts Data-driven techniques – machine learning, statistics, optimization, advanced visualization, … • Often not enough data in the industrial domain • Bias: limited to regions of parameter space traversed in normal operation • But easiest to maintain and scale
  • 14. 14 © 2014 General Electric Company - All rights reserved Some Patterns
  • 15. 15 Industrial Example: improving rule based systems Many equipment operators have a system something like this, with rules derived based on experience and intuition. Rule sets implemented in Analytics Engine Produce alerts Low-latency operational data Alerts
  • 16. 16 Industrial Example: improving rule based systems Rule sets implemented in Analytics Engine Produce alerts Low-latency operational data Pattern, sequence, association mining, etc. Outcome data Combine ML plus rule-based alerts with outcome data to produce better alerts More actionable alerts
  • 17. 17 Industrial Example: improving rule based systems Rule sets implemented in Analytics Engine Low-latency operational data Outcome data Recommendation engine Use ML and outcome data to refine and extend rule base, providing yet further actionability, resulting in substantial improvements in operational outcomes. Tune parameters of existing rules, and create new rules. Actionable Recommendations
  • 18. 18 Another Industrial Example: use advanced physical models to create new features for ML approaches Sensor Data Predicted Values and Δs Variety of Machine Learning Techniques Outcome data Using as ML features the: 1. Deviations from expected physics, 2. Inferred or hidden parameter estimates provides much richer and effectively less noisy data, resulting in much stronger predictions and models.
  • 19. Fleet/operation-wide optimization levels. Trade-offs to optimize business performance 19 Climbing up the value chain toward Condition-based Performance Management and Business Optimization. Need: • Earlier detection • Root cause • Scaling to more equipment Types instances 19 Fix it when it breaks Prescriptive recommendations (multi-channel) Predictive Maintenance (“future”) Condition-based Maintenance (“now”) Model-driven Work-driven Time-driven New levers for optimization across the operation or business “Equipment heath is not a given, but a variable”
  • 20. 20 Capability / Impact Ramp Sophisticated, optimized management of business Complexity Science Predictive analytics Rules Data Anomaly augmentation Detection Advanced Basic Reporting Reporting Data completeness, breadth, quality Operational optimization Prescriptive analytics Alerts Highly-actionable management info High-value guidance operations
  • 21. Broad range of deep Data Science capabilities needed Optimizes the design operations of complex business and physical systems, extracting more value at lower risk Innovates new ways of performing reliability analysis, statistical modeling of large data, biomarker discovery and financial risk management Focuses on developing algorithms and systems for real time video analysis Research in algorithms and software systems that analyze understand images to produce actionable insights Develop scalable and cross-disciplinary machine learning predictive capabilities to derive actionable insights from big data Modeling complex system and noise processes to detect subtle deviations and estimate critical system parameters Industrial Data Science Employing deep physical and engineering understanding of equipment and processes to generate normative models. Sensor Signal Analytics Knowledge Discovery Delivering data and knowledge-driven decision support via semantic technologies and big data systems research Applied Statistics Physics expert-based Modeling Machine Learning Computer Vision Image Analytics Optimization Management Science 21
  • 22. 22 “Industrial Data Science” ① Outcome-oriented application of mathematical physics-based analysis models to real-world problems in industrial operations. ② Tools processes needed to do that continually at scale. Improve the performance of industrial operations, e.g., • Higher equipment uptime, utilization, • Lower maintenance/shop costs, longer component life • Fleet level optimization trade-offs • Business optimization (linking to financial customer data) • Service / contract management Combination of : • Physical expert modeling experience depth • Installed base of industrial equipment and data. • Big Data, Machine Learning, and statistical capabilities Industrial Data Science What is it? Why do we do it What’s needed