2017-04-06 aig conf digital transformation & brilliant factory for … · 2017-04-21 ·...

Realising the Industrial Internet (IIoT) Opportunity:

How GE’s Predix delivers value today and into the futureEliza Ward, BSc. Hons, MBA

Snr Director Market Development, GE Digital

Industry 4.0 vs. Industrial Internet

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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

The Global Industrial IoT (IIoT) Opportunity is huge

3GE Digital

80 billion connected devices by 2020

How does this compare with the Consumer IoT Opportunity?

Companies expect 5-10% growth or cost

efficiency gains$10-15 trillion

estimated forecast of global GDP gains

Consumer~$170B

Enterprise [IT]~$200B

Industrial [OT] ~$225B

How is European Manufacturing positioned to take advantage of the IIoT opportunity?

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• 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

Operational agility to respond to demand in whatever form it takes

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Becoming a Digital Industrial company

GE’s Digital Industrial Transformation

May 11, 2016

GE for GE

Internal Productivity

20152012 2013 20142011 2016+

A IIoT Platform for Data-Driven Operations

HMI/SCADA Architecture & Technology

SCADA Server

HMIThick Client

Inputs / Outputs

PLC, DCS, RTU, etc.Plant Floor Devices

EQUIPMENT

DATA, ALARMS, CONTROL,COMMUNICATIONS

SCADA

MONITORING, CONTROL, ANALYSISHMI

CLIENT-SERVER COMMUNICATIONS

DATA ACQUISITION, CONTROL

MONITORING, ANALYTICSCLOUD

PREDIX EDGE GATEWAY

Predix HMI• Using Predix Edge connectivity for

control to cloud• Cloud Micro-App and

Microservices Built on APMframework, leveraging Asset and Dashboard.

• Windows-based Servers and Thick Clients

• Java-based HTML5 Web Client• Mobile (iOS and Android)

support• Multi-protocol support (OPC,

OPC UA, DNP3, Modbus, etc…)

Cloud

(FUTU

RE)

On Pr

emise Web Server

Web HMIWeb HMI

HMIThick Client

GE’s Digital Industrial Transformation

May 11, 2016

GE for World

Make available outside of

traditional GE customers

Supplier Customer

GE for Customers

Transform our customers

GE for GE

Internal Productivity

20152012 2013 20142011 2016+

Growth through Digital Transformation

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

• 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!

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

Ingredients for a Digital Industrial company?

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Enable the Digital ThreadCreates a virtuous loop of continuous improvements.

Create a Digital TwinServes as the digital foundation.

Business Model Innovation Runs Through the Plant FloorCreate the OT and IT capabilities that enable innovation.

Virtual Product Design

Supply Chain Network

Service/Repair Shop

GE Brilliant Factory VisionCreating the “Digital Thread”

Self improving ecosystem

Introducing theBrilliant Factory Showcase

Jenbach

GE Jenbacher: Lean – Six principles

$

$$

$

Simplification Kaizen

Visualization

Value stream Pull / One piece flow

5S

Martin MühlbacherGlobal Supply Chain

& Site Leader

GE Jenbacher. Digital – Six principles Connected Paperless Real-time

Wireless 3D model based Analytics

Benefit Real-time visualization of assembly line

„Everyone on the floor knows what‘sgoing on real-time“

Real-time overview & central screensScreens at each station

Real-timeOne piece flow

Strategy | GE’s Digital Industrial Blueprint

May 11, 2016

New business models/revenue

streams

Supplier Customer

Transform customers and/or suppliers

Internal Productivity

Get Connected, Get Insight, Get Optimized

Operational Capability

New Products &

Services

New Business Models

Digital Transformation Blueprint

• Clear vision• Build a roadmap for Digital Transformation• Deep technical/operational discovery,

benchmarking against peers, clear ROI

• Incremental approach: Get Connected, Get Insight, Get Optimized

• Digital transformation is just as much about culture change as it is about the technology and the vision

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

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?

The Power of 1%