Realising the Industrial Internet (IIoT)

Opportunity:
How GE’s Predix delivers value today
and into the future

Eliza Ward, BSc. Hons, MBA

Snr Director Market Development, GE Digital
Industry 4.0 vs. Industrial Internet

Industry 4.0
• Automation and data exchange in manufacturing technologies: “Smart Factory” - cyber-
physical systems, the Internet of things (IoT) and cloud computing

Industrial Internet
• Integration of machinery with networked sensors and software (IoT) spanning all industrial
sectors, not just manufacturing
• From Manufacturing to Energy Management to Shipping & Logistics to Mining and beyond

..........
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 The Global Industrial IoT (IIoT) Opportunity is huge

Companies expect $10-15 trillion

80 billion connected estimated forecast of
5-10% growth or cost
devices by 2020 global GDP gains
efficiency gains

How does this compare with the Consumer IoT Opportunity?

Consumer Enterprise [IT] Industrial [OT]

~$170B ~$200B ~$225B

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GE Digital
How is European Manufacturing positioned to
take advantage of the IIoT opportunity?
• 15.0% of GDP, ~ 33 million jobs
• Germany, France & Italy > 50% of EU output but only 1-2% growth in the next 5 years
• C.f. Eastern Europe ~5% growth
• Since 2007, industrial productivity growth has fallen from 4% => 1%
…….. while consumer internet productivity growth => 19%.
• EU Political 2020 Agenda:
• Increase manufacturing value-added to 20% by 2020
• Digitization and Information and Communication Technologies (ICT) infrastructure
to make smart and connected factories a reality

• GE is also betting big on digital in Europe; $$$millions invested

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Operational agility to respond to demand in
whatever form it takes

Becoming a Digital Industrial company

5
GE’s Digital Industrial Transformation

GE for GE

Internal
Productivity

May 11, 2016

2011 2012 2013 2014 2015 2016+
A IIoT Platform for Data-Driven Operations
 HMI/SCADA Architecture & Technology
Predix HMI MONITORING, ANALYTICS

CLOUD
• Using Predix Edge connectivity for
Cloud (FUTURE)

control to cloud
• Cloud Micro-App and PREDIX EDGE GATEWAY
Microservices Built on APM
framework, leveraging Asset and Web HMI Web HMI MONITORING, CONTROL, ANALYSIS
Dashboard. HMI

HMI HMI
CLIENT-SERVER COMMUNICATIONS
Thick Client Thick Client

DATA, ALARMS, CONTROL,

COMMUNICATIONS
• Windows-based Servers and SCADA
Thick Clients SCADA Server Web Server
•
On Premise

Java-based HTML5 Web Client DATA ACQUISITION, CONTROL

• Mobile (iOS and Android)
support
• Multi-protocol support (OPC, PLC, DCS, RTU, etc.

OPC UA, DNP3, Modbus, etc…) Plant Floor Devices

EQUIPMENT
Inputs / Outputs
GE’s Digital Industrial Transformation

GE for GE GE for Customers GE for World

Supplier Customer

Internal Transform our Make available

Productivity customers outside of
traditional GE
customers
May 11, 2016
2011 2012 2013 2014 2015 2016+
Growth through Digital Transformation

• GE productivity gains: >$730 m cost savings in 2016

~10K Total Customers | 40% (200) Fortune 500

• European customers: e.g. Proctor & Gamble (ww & Germany), Jaguar Land Rover,
Uniper, AkzoNobel, Deutsche Bahn, Schindler and Maersk
• 54 publishable Customer References
• GE Industrial Internet solutions have improved some of our customers’
productivity by an average of 20%.
That’s like being given an extra day a week to get things done!

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Ingredients for a Digital Industrial company?

Create a Digital Twin

Serves as the digital foundation.

Enable the Digital Thread

Creates a virtuous loop of continuous improvements.

Business Model Innovation Runs Through the Plant Floor

Create the OT and IT capabilities that enable innovation.

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GE Brilliant Factory Vision
Creating the “Digital Thread”

Self improving Supply Chain

ecosystem Network

Virtual
Product
Design

Service/Repair Shop
 Introducing the
Brilliant Factory Showcase
Jenbach
GE Jenbacher: Lean – Six principles
Simplification Kaizen
Martin Mühlbacher
Global Supply Chain
& Site Leader

5S Visualization
$
$

$ Pull /
Value stream $
One piece flow
GE Jenbacher. Digital – Six principles
Connected Paperless Real-time

Wireless 3D model based Analytics

Benefit One piece flow
Real-time visualization of assembly line Real-time

Screens at each station

Real-time overview & central screens

„Everyone on the floor knows what‘s

going on  real-time“
Strategy | GE’s Digital Industrial Blueprint

Supplier Customer

Internal Transform customers New business

Productivity and/or suppliers models/revenue
streams

May 11, 2016

Get Connected, Get Insight, Get Optimized

New
Business
Models

New
Products &
Services

Operational
Capability
Digital Transformation Blueprint

• Clear vision • Incremental approach: Get Connected, Get

Insight, Get Optimized
• Build a roadmap for Digital Transformation
• Digital transformation is just as much about
• Deep technical/operational discovery, culture change as it is about the technology and
benchmarking against peers, clear ROI the vision

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The Power of 1%

If you could save just 1% of your costs,

Or improve your manufacturing productivity by just 1%.
And you could do this year on year on year....
What could you do with the value this would unlock?

Confidential. Not to be copied, distributed, or reproduced without prior approval.