How Big Data creates opportunities for productivity improvements - Industrial Internet from a GE perspective

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1 How Big Data creates opportunities for productivity improvements - Industrial Internet from a GE perspective Chalmers Hans Enocson CEO Nordic Region

2 The vision is clear The real opportunity for change surpassing the magnitude of the consumer Internet is the Industrial Internet, an open, global network that connects people, data, and machines. 2 #IndustrialInternet

3 GE 2013 Energy Management 5% / $7.4 B Oil & Gas 10% / $15.2 B Healthcare 12% / $18.3 B Aviation 14% / $20.0 B Capital 31% / $46.0 B Home & Business Solutions 5% / $8.0 B Global: Sales: $147 Bn employees App 2000 patents / yr Power & Water 19% / $28.3 B Transportation 4% / $5.6 B Nordics Local sales: $2.4Bn Exports $3.7Bn employees ~$147.4 Billion Revenue in 2012 $16.1 B Operating Earnings 3 February 2013

4 New era of Productivity Resource shifts Resource efficiency: Solutions for global needs Industrial Internet Intelligent devices, systems + automation Advanced manufacturing Digital fab + Material science Speed + empowerment Simplification + Digitization + Localization + Connections 4 February 2013

5 Reinventing the way we work GE Works We are entering a new era. In markets around the world, hardware and software are converging, shaping two powerful forces: The Industrial Internet and Advanced Manufacturing. Previously unimaginable products, services, and business models can now be realized. Revolutions are happening in productivity and manufacturing, creating the future of industry. GE is embracing and leading these revolutions to build, power, move and cure the world. Advanced Manufacturing - the emergence of: Future of Industry The Industrial Internet: -New tools & Technology -Agile Manufacturing & Systems -Open Interfaces & New Communities Advanced Manufacturing Industrial Internet -Brilliant Machines -Predictive Analytics -People at Work 5 GE Title or job number 3/22/2014

6 Introducing the GE Software Center Igniting the next industrial revolution by connecting minds and machines $1B investment over 3 years Launched in 2011 Silicon Valley location Aggressive strategy for talent acquisition & growth 6 #IndustrialInternet

7 7 February 2013

8 General Electric Company, All Rights Reserved.

9 Now we get Air Speed Calibrated Altitude Carrier Name Core Compartment Cooling Valve Position Core Speed Date GE Received Departure Station Destination Station EGT Exhaust Gas Temperature EGT1 EGT2 EGT3 EGT4 EGT5 EGT6 EGT7 EGT8 Engine Serial Number FMV Position FMV Position Demand Fuel Filter Delta Pressure Fuel Flow Ground Speed Mach Number Message Type N1 Fan Speed without modifier N1 Indicated Fan Speed N1 Maximum Fan Speed N1 Modifier Oil Filter Delta Pressure Oil Pressure PS3 Compressor Discharge Pressure T25 Compressor Inlet Temperature T3 Compressor Discharge Temperature Time GE Received Total Air Temperature Aircraft Total Air Temperature Engine VBV Position AVSV Position Aircraft ID Aircraft Pitch Angle Aircraft Roll Angle Control System Status Word 1 Control System Status Word 2 DMS Cumulative Chip Count DMS Per Flight Chip Count EMU Status Word 1 ENGINE_RATING Engine Bump Engine Position FADEC AS Software Version Id FADEC Hardware P/N FSV Demand FSV Main Demand FSV Position Fuel Boost Strainer Delta Pressure Fuel Density Center Tank Fuel Flow Demand Fuel Manifold Pressure Fuel Manifold Temperature HPTACC Demand HPTACC Position LPTACC Demand LPTACC Position MSV Demand MSV Position Minor Airframe Model Word Oil Quantity Aircraft Oil Supply Temperature P0 Ambient Pressure PS25 Compressor Inlet Pressure PT2 Inlet Total Pressure Report Code T12 Inlet temperature TBV Demand Aircraft Corrected Angle of Attack Temperature Static Air APU Bleed Isolation Valve Close Switch APU Bleed Isolation TBV Position TCORE Nacelle Temperature TOIL Oil Scavenge Temperature Throttle Resolver Angle VBV Demand VSV Demand Vib Broadband #1 Bearing - Engr Units Vib Broadband TF - Engr Units Vibration N1 #1 Bearing - Engr Units Vibration N1 Turbine Frame - Engr Units Vibration N2 #1 Bearing - Engr Units Vibration N2 Turbine Frame - Engr Units A/I valve position Wing Valve Open Switch AVM BB vibration Cockpit units AVM Fan vibration Cockpit units AVM High Wins Select Vibration - SS AVM LPT vibration Cockpit units AVM N2 vibrations Cockpit units Air Speed Calibrated - SS Altitude - SS Bleed Flow rate Control System Status Word 4 Control System Status Word 6 Copy Number Core Speed - SS EAI Switch Position - SS EAI Switch Position Open/Closed ECS Pack 1 Flow ECS Pack 1 High/Low ECS Pack 2 Flow ECS Pack 2 High/Low ECS Pack 3 Flow ECS Pack 3 High/Low EEC Subsystem Status Word 2 EGT Exhaust Gas Temp Unshunted - SS General Electric Company, All Rights Reserved.

10 General Electric Company, All Rights Reserved.

11 2. Rise of the Machines WHAT HAPPENED WHEN 1B PEOPLE BECAME CONNECTED? WHAT HAPPENS WHEN 50B Machines BECOME CONNECTED? Entertainment is Digitized Social Marketing Emerged Communications Mobilized IT Architecture Virtualized Retail & Ad Transformed OT is virtualized Analytics become predictive Machines are self healing & automated Monitoring and maintenance is mobilized Employees increase productivity CONSUMER INTERNET INDUSTRIAL INTERNET General Electric Company, All Rights Reserved.

12 Historic Waves of Innovation 1750-present GE 2013 All Rights Reserved 13 Industrial Internet

13 Forces shaping the Industrial Internet 1 Internet of things A living network of machines, data, and people 2 Intelligent machines Increasing system intelligence through embedded software 3 Big Data Transforming massive volumes of information into intelligence 4 Analytics Generating data-driven insights and enhancing asset performance GE 2013 All Rights Reserved 14 Industrial Internet

14 Industrial Internet: Business Value Efficiency and cost savings The ability to model and understand the physical world makes it easier to optimize assets and processes New customer services Data and the insights it provides will enable new customer services and business models Risk avoidance Increased visibility and control help address environmental, health, and human safety issues 16 February 2013

15 The value to customers is huge Connected machines could eliminate up to $150 billion in waste across industries Industry Segment Type of savings Aviation Commercial 1% fuel savings Estimated value over 15 years (Billion nominal US dollars) $30B Power Gas-fired generation 1% fuel savings $66B Healthcare System-wide 1% reduction in system inefficiency $63B Rail Freight 1% reduction in system inefficiency $27B Oil and Gas Exploration and development 1% reduction in capital expenditures $90B Note: Illustrative examples based on potential one percent savings applied across specific global industry sectors. Source: GE estimates 17 February 2013

16 Our Approach General Electric Company, All Rights Reserved.

17 Platform 1 Platform 2 Platform a Platform b Platform i Platform ii Platform x Platform y Platform A Platform B Platform. Platform.. Solution 1 Solution 2 Solution a Solution b Solution i Solution ii Solution x Solution y Solution A Solution B Solution. Solution.. GE solutions today Based on hundreds of platform variants Need for a software platform GE Aviation GE Energy management GE Healthcare GE Oil & Gas GE Power & Water GE Transportation Can t scale, high lifecycle costs, low agility, lack of standardization 19 February 2013

18 Platform 1 Platform 2 Platform a Platform b Platform i Platform ii Platform x Platform y Platform A Platform B Platform. Platform.. Asset optimization Operations optimization Asset optimization Operations optimization Asset optimization Operations optimization Asset optimization Operations optimization Asset optimization Operations optimization Asset optimization Operations optimization Many Industries. One Platform. GE Aviation GE Energy Management GE Healthcare GE Oil & Gas GE Power & Water GE Transportation Predictivity Solutions Solutions for industrial asset and operation optimization Common architecture for machine, network, server and UX Predix Platform 20 February 2013 GE Confidential

19 Early Progress - Real Results 24 GE industrial internet solutions launched since Q through Q3: $400M in orders, $290M in revenue We are working on the next 24 solutions We are at the start of a 15 year journey

20 GE Predictivity Solutions GE Aviation Fuel performance, risk insight, navigation insight and fight synchronization GE Healthcare Asset management, patient safety, patient flow, collaboration across networks GE Manufacturing Manufacturing process, food safety assurance GE Mining Concentrator insights and efficiency maximum mine production GE Oil & Gas Total equipment reliability, sub-sea inspection system optimization, field production and pipeline insights GE Power Distribution Grid delivery optimization advanced meter insights GE Power Generation Turbine power flexibility and performance, maximizing asset lifetime GE Rail Locomotive Uptime, trip insights, maintenance and parts management GE Water Connected controls for plant operations to increase efficiencies and reliability GE Wind Wind turbine performance, total wind farm output maximized 22 February 2013

21 Aviation - Value of Data & Analytics Monitor fleet of ~25,000* engines MM flight records/month B777 GE90 DATA + = 90,000 flight records analyzed ~200 parameters per flight record ~18MM parameters per month Drives strong alignment with customers Creates productivity in long-term service agreements Value-added services fuels growth Prognostics Dispatch reliability Preventive maintenance Asset utilization Prevent failures = customer efficiency Asset Productivity Enhanced service offerings Airline cost structure Fuel performance Streamline operations = increased airline productivity System & Optimization Time & space management Fuel efficiency Airspace capacity Integrated systems = value-added services * Includes GE & joint-venture engines with CFM and Engine Alliance. CFM is 50/50 JV with SNECMA. Engine Alliance is 50/50 JV with Pratt & Whitney

22 Intelligent Machines Hospital centric care Intelligent Operations Intelligent Care Area WF Industry trend Intelligent Care Network WF Integrated Care network Services 2.0 in Healthcare Engage consumers & patients Help improve outcomes across my community Help improve outcomes across my enterprise Help improve the performance of my department / site / function Help improve Operations Help operate & improve performance of device Wide range of and rapidly changing decision makers & business models

23 Connecting Productivity to Care Intelligent Machines Intelligent Operations Intelligent Care Area Workflow Intelligent Care Network Workflow Max Equipment Performance No Wait States Eliminate clinical variation Optimize across population Predict part failures Improved asset utilization Safe & optimized protocols Devices talk to each other Anticipate bottlenecks Unify distinct systems Eliminate waste / inefficiency Care Traffic Control Profit based partnerships Decision support cockpits Productive/intuitive interfaces Patient safety/ surveillance Cohort/population mgmt Care transitions mgmt Protocol adherence/ quality surveillance Patient engagement Pay for outcomes

24 Industrial Healthcare Mount Sinai: Uncovering patterns across the 1,171 bed, 2.7 million square foot hospital Hospital operations management early warning system created using real-time data and clinical workflow patterns to: Predict capacity bottlenecks Improve patient flow Enable remote monitoring to reduce liability Facilitate intelligent decisioning General Electric Company, All Rights Reserved.

25 Typical Hospital 1. Asset Optimization Addressable waste: $25-50 MM/yr Hospital Operations is the 2. Patient Flow Optimization 70% Bed Occupancy Target 70% Industry 45% You 18% 45% Asset Utilization 3. Workforce Optimization Pursuit of 18% Infusion Pump Utilization Target 85% Industry 65% You 50% 65% Capacity Utilization A Frictionless Patient Experience 4. Whole Hospital Optimization 45% Hand Hygiene Compliance

26 Industrial Internet in Energy ~1,550 units monitored by M&D today 24x7x365 coverage Everything from the biggest machines generating power to transformers on power poles can be connected to the Internet providing status updates and performance data to: Reduced infrastructure maintenance Years of data on-line vs. months Faster response early detection Fewer trips (unplanned outages) General Electric Company, All Rights Reserved.

27 Energy Generation Self-optimizing Farm to Grid When the grid needs more voltage, wind farms take action. Every second, 150,000 data points on a farm are analyzed to integrate 400MW onto the grid. Turbine to Battery Battery storage makes predictable power a reality, driving wind farm output, improving service productivity and creating new revenue streams for customers. Wind Farm to Wind Farm Farm to farm communication allows automated control of a wind farms voltages to the grid, providing stability to a broader regional area through optimizing multiple farms. Turbine to Turbine If a turbine loses wind speed or wind direction, it simply asks its neighbor what it s doing and replicates the action, improving availability and power output. Turbine to Remote Monitoring GE turbines are monitored and analyzed 24x7 using 150+ unique software rules to detect, prioritize, and identify the best fix for wind turbine operation issues. It s like having a team of experts around the world solving issues real time. General Electric Company, All Rights Reserved.

28 Next gen critical infrastructure Resilient-sustainable infrastructure (RSI) US natural disasters 2012 Over $107 billion in overall losses* Deployment of intelligent automation of grid networks to reduce customer outages *Source: Munich Re NatCatService 2013 GE 2013 All Rights Reserved 30 Industrial Internet

29 Example Use Case Rail optimization The GE RailConnect Transportation Management System and Movement Planner System help railroads analyze critical information in real time. Customer estimate: every 1-mph increase in rail network speed saves $200M in annual capital and operating expenses Asset Management + Analytics + Experience 31 GE Confidential

30 Rail network optimization GE 2013 All Rights Reserved 32 Industrial Internet

31 Rail - Edge Movement Planner Operations Optimization Develops a detailed, near-optimal plan for dispatching trains over a time horizon of 8 to 12 hours Schedules all mainline activities including meets, passes, crew changes, inspections Eliminates operating inefficiencies from manual dispatching Integrates with computer-aided, dispatch system to auto route trains Increases average train speed by 2-4 miles per hour, while decreasing travel times and operating costs. General Electric Company, All Rights Reserved.

32 Industrial Internet solutions create value across the oil and gas industry Monitor flow parameters to maximize production rate Monitor corrosion / fatigue to prevent integrity issues Reduce input costs Lower repair costs Reduce fuel consumption Reduce need for skilled capabilities in high cost or remote locations through automated solutions Reduce production losses Avoid unplanned shutdown Increase intervals between planned shutdowns 34 February 2013

33 Example Use Case Taleris Objectives Help airlines maximize aircraft utilization Minimize the impact of maintenance Go from diagnostics to root cause analysis Results Advanced prognostic algorithm allows airlines to detect issues before they cause downtime/expense Monitors 10,000 independent parameters, transmits wirelessly Integrates with airline s enterprise systems Platform-agnostic solution can be installed on any make/model, providing continuity among entire fleet Asset Management + Analytics + Experience 35 GE Confidential

34 Example Use Case Field force automation Predix FFI application examples Locate, monitor, configure, maintain and assess machine data (on site or off site) Get machine info: warranty, operational status, history, manuals Facilitate collaboration among support personnel Manage work preparation, crew mark-up and material allocation Create/collect work orders from ERP (Enterprise Resource Planning), OMS (Operations Management Software) and CIS (Customer Information Systems) Right field worker. Right skills/parts. Right location. Right time. Machine + Experience 36 GE Confidential

35 Connect with us youtube.com/ge software linkedin.com/ company/ge-software 38

36 Thank you

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