Confidential. Not to be copied, distributed, or reproduced without prior approval.
GE Digital Industrial Internet rEvolution
marzo 31, 2017
Corrado Giussani Sr Channel & Alliances Manager GE Digital
“Industrial companies are in the information business, whether they want to be or not.” Jeff Immelt, Chairman & CEO, GE Source: McKinsey, 2015
Confidential. Not to be copied, distributed, or reproduced without prior approval.
An Uncertain World
Supply-driven Cost Pressure
Commodities
eCommerce Up, Foot Traffic Down
F&B/CPG
Automation + Aging Workforce
Industrial Workforce
Declining price of sensors / compute, Rise
of AI/ML IT
Autonomy, Ride Sharing, Electrification Automotive
GE Digital
Confidential. Not to be copied, distributed, or reproduced without prior approval.
4 * US only
New Infrastructure = Opportunity & Disruption
1750-1830: Steam, Rail
1880-1920: Electricity, Telephone
1960-2000: Computer, Internet
2010-…: IoT, Big Data, AI
New infrastructure drives productivity growth.
The most agile incumbents invest in order to survive and thrive, but many do not.
GE is the only remaining founding member of the DJIA.
New market entrants capitalize on the new capabilities and emerge as leaders.
Operational agility to respond to demand in whatever form it takes
5
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Asset Performance Management
Operations Optimization
Digital Twin/ Digital Thread
Maximize performance and asset availability
Increase system efficiency across operations
Optimize lifecycle of design, manufacturing, service,
& repair cycles
Transforming Industrial Operations
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11010111101010101 0101101101
Creating New Value
Improved operational performance and efficiency
1 New customer services and business models 2
Continuous innovation and faster time to market 3
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Digital Thread: Brilliant Factory reference architecture
marzo 31, 2017 Customer Presentation 7
DESIGN
MANUFACTURING
QUALITY
OPERATIONS
EQUIPMENT
SUPPLY CHAIN
Virtual Product Design
Virtual Manufacturing
Supply
Chain
Network Production
feedback loop
Service/Repair Shop
Design feedback
loop
Factory Floor Equipment
á Quality
á On time delivery 58%
á Throughput
Outcomes â Downtime 10 -15%
â Labor costs 14%
â Inventory 30%
â Lead time 60%
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Systematically Ascend the Maturity Curve
8
The Digital Transformation Playbook
• Asset Utilization • Operational Cost
Reduction • Worker Productivity • Industrial Data
Standardization (Data Semantics)
• Products-as-a-service
• Pay per Use • Software Based
Services • Data Monetization
• Pay per outcome • New connected
ecosystems • Platform enabled
marketplace
• Continuous real time demand sensing
• End to end automation
• Resource optimization and waste reduction
Operational Capability
New Products & Services
New Business Models
Autonomous, Pull Economy
GE’s Digital Industrial Transformation Strategy
Partner Ecosystem
Digital Talent and Culture
Business Model
Innovation
Capabilities & Operating
Model
Data and Connected
Infrastructure
1 2 3 4 5
GE for GE “Productivity”
GE for Customers “Apps”
GE for the World “Platform”
Our
Pla
y H
ow w
e W
in
Harness the Platform Go Together, Go Far Building Digital DNA
Change the Game
Very different capability set than consumer internet; GE is building capabilities that are necessary to win
9
All About Outcomes
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The Industrial Internet Journey�
Gain visibility across the plant and enterprise
Identify issues with cause analysis
Take fast action to minimize production impact
Predict when issues are about to impact quality, delivery or performance
Take proactive action toward no unplanned downtime
Boost production output with longer period of continuous operation
Maximize production performance across the enterprise
Create more efficient operating processes for production and equipment maintenance
Leverage history of plant performance to create best capital investment decisions
GET CONNECTED GET INSIGHTS GET OPTIMIZED
© 2016 General Electric Company - All rights reserved 10
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Some Use Cases
Confidential. Not to be copied, distributed, or reproduced without prior approval.
GE Transportation Success Story Grove City Engine Remanufacturing�
• 240,000 sq. ft.
• 300+ employees
• 2,000+ engine repairs annually
• 250+ machines
20% reduction in unplanned downtime
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Oil & Gas: Florence
• â50% lead time • â39% inventory • +0.8 inventory turns
Healthcare: Hino
• â32% hrs./CT unit • â42% CT lead time • +2 inventory turns
Aviation: Muskegon
• +25% on-time delivery • $20MM cost-out • +1 inventory turns
Transportation: Grove City
• +7% efficiency • 10% à 80% ABM
work scopes • +2 inventory turns
Multi-modal: Pune
• +18% equipment effectiveness
• 40% ↓ OCPH $ • +3 inventory turns
Renewables: Haiphong
• â36% lead time • +5% productivity • +2 inventory turns
2016 Brilliant factory showcases
Power: Jenbach
• â17% lead time • +5% machine
utilization • +1 inventory turns
Digital solutions built on foundation of lean productivity
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Actuals Plan
$730.1 $518.5
2016 Productivity
Productivity – By pillar
Services
Total
Manufacturing/Supply Chain Engineering
Cross-thread Commercial
2016
$508.8
$730.1
92.4 70.8
29.6 28.5
Productivity – By Business Power
Total
Aviation Oil & Gas Healthcare Transportation Energy Connections Renewables Current
2016 $269.9
$730.1
240.1 56.0 64.5 51.5 38.7 7.8 1.6
‘16 ROI 500%
188%
190% 75% 116% 168% 96%
>600% 22%
Digital Productivity Summary ($ in millions)
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Customers are realizing outcomes today
marzo 31, 2017 Customer Presentation 15
GE Transportation Major IOC
Predix
CHALLENGE Unplanned machine downtime up to 20%
OUTCOME Up to 20% increases in machine yield on inserters
Provider of informed mail and messaging
management equipment
Asset Performance Management
CHALLENGE Unable to trace customer deliveries back to specific batch
OUTCOME 20% increase in capacity
Increase in traceability of batch-to-customer
A multi-national manufacturing corporation,
active in healthcare products, coatings and
chemicals
Brilliant Manufacturing
A division of GE that supplies technology to the
rail, mining, marine, stationary power and drilling
industries
CHALLENGE Connecting data on disparate, aging machines
OUTCOME 20% reduction in unplanned downtime at the locomotive manufacturing plant
Cyber
A major international oil and gas company
based in Europe
CHALLENGE Need to secure 55 global sites from central location
OUTCOME Gain visibility into OT security threats
Immediate notification of specific threats
Confidential. Not to be copied, distributed, or reproduced without prior approval.
GE Digital’s experience spans industry
marzo 31, 2017 Customer Presentation 16
Automotive
Food & Beverage/CPG
Utility /Power Generation
Heavy Industry
Oil & Gas
Chemical/Pharma
Aviation
Healthcare
Power/Renewables
Mining
Cities
Rail
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Industrial-grade technology
Optimized for asset data models and
operational workflows
Designed for Industrial Big Data
and Analytics
Modern Development tools for faster
Innovation
The Need for a New Kind of Platform
17
• Strategic Inflection Point: How to rapidly develop, manage, and secure Industrial IoT apps and services?
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Industrial Requires a whole new operating system
marzo 31, 2017 Customer Presentation 18
Predix, the operating system for the Industrial Internet
Machine connectivity
Industry insight
Over 100 years of domain expertise
Applications & analytics for IoT use cases
GE's competitive advantage + = Built for industry +
machine level
security
massive-volume
data edge-compute
multi-modal machine learning
regulatory processes
extensible by customers,
partners
data sovereignty protection
in-stack security
global hybrid cloud
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Connected Assets Industrial Data Management
Cloud & Mobile Industrial Data Science
Cloud-based platform for Industrial Internet
Asset Performance Mgmt Operations Optimization
Digital Twin Industrial Analytics
Profitable Growth Increase production
for market advancement
Risk Mitigation Lower operations and
financial risk
! Reliability
Increase availability and longer asset life
Predix: Purpose-built for Industrial IoT
Cost Reduction Lower operating
costs with greater efficiencies
Optimized for Industrial Requirements
Confidential. Not to be copied, distributed, or reproduced without prior approval.
marzo 31, 2017 Customer Presentation 20
GE Digital’s ecosystem is driving the Industrial Internet
System Integrators ISVs Telcos Technology Partners Resellers
Strategic Partnerships Customized Solutions Joint Selling
Confidential. Not to be copied, distributed, or reproduced without prior approval.
We are ready to get started
marzo 31, 2017 Customer Presentation 21
Digital Foundries
