CONTENTS

1. Company Profile
2. Main Issue
3. Case Study
COMPANY
PROFILE
GE is a diversified company focused on
“solving some of the world’s toughest
problems”
GE’s Stock Price Plunge vs Other Industrial
Main Issue

Challenges GE face on digitization

industry
CASE STUDY
1. Why is GE pursuing industrial analytics?

The data collected from a product or a machine could be used to provide new tools for industries to
analyze their operations and by making adjustment based on the analysis, companies can formulate better
operations management.
This strategy is believed more critical for companies than marketing strategies or finance/accounting
strategies. So, the possibility to alter the operations management through industrial analytics will be a
popular and profitable business in the future.

“A Boston Consulting Group (BCG) study that estimated that by 2020 companies would spend €250
billion adopting different aspects of the Industrial Internet. Specifically, the study identified predictive
maintenance, self-optimizing production and automated inventory management as the greatest areas of
spend and opportunity”

Moreover, Industrial analytics helped GE to generate mountains data they had that would be staggering
the value to customers in predicting maintenance schedule and optimizing production since unplanned
maintenance and repair had significant economic consequence, i.e. loss in revenue and opportunity cost.”
 CASE STUDY
2. Do you believe that GE is better positioned
than its software rivals (SAP, IBM, etc)?

Based on the customer benefits comparison in below table, GE

Digital position, is still way behind its rivals (IBM, SAP, ORACLE, etc).
GE Digital Rivals (IBM, SAP, ORACLE, etc)
Able to determining how best to fit the equipment The software companies viewed platforms, data formatting,
with monitors and sensors, how to analyse and intelligent analytics and predictive modelling as the essence of the
interpret the data, and how to adjust and optimize engine of industrial digitization, and these were exactly their areas of
equipment. special competence
GE provide their customer with Customer Service They excelled at looking across the entire process and value chain,
Agreement (CSA). allowing them to optimize the entire system
GE only provide the industrial analytic for its They have the ability to the leverage solid, high-level customer
component only relationships. Often mission-critical to customers, and thus they
frequently interacted with the CEOs and CIOs of their customers
Software firms not only understood the compensation required to
attract and retain such talent, but they had more desirable corporate
cultures that were less hierarchical
 CASE STUDY
3. What have been the key actions that GE has thus far

● Creating analysis on predictive maintenance and production optimization by the use of

IoT.
○ Predictive maintenance could tell when is the right time to do a maintenance for
example, an airplane. Usage of analytics could help to increase engine life, increase
revenue and lower cost by preventing sudden maintenance.
○ Meanwhile product optimization can generate more impact on the customer’s
business by helping them to point out how to decrease their fixed cost.

● Take a license on GE’s analytics platform and software to customers as first move.
 CASE STUDY
4. What key actions does GE need to take to
grow its analytics business

● GE needs to use the same point of view as their software rivals,

since most of their rival are software solution company, not a
hardware company
● Ensuring human capital capabilities improvement to be proactive
and understanding the customer’s digital needs by :
○ Matching employees to the right job.
○ Providing the proper training.
○ Providing proper work methods and tools.
○ Establishing legitimate incentives for work to be accomplished.
● GE needs to open its Predix platform and tools to outside
developers.
THANK
YOU