Why G.E. May Become the Next Google of the Industrial Internet - Steve Blacker

1 GE has hired more than 250 engineers in the past 18 months for its new software center in San Francisco The company plans to increase that work force of computer scientists and software developers to 400 and to invest 1 billion in the center by 20152 The buildup is part of GE39s big bet on what it calls the quotindustrial Internetquot Their goal is to bring digital intelligence to the physical world of industry as never before While the concept of Internetconnected machines that collect data and communicate often called the quotInternet of Thingsquot has been around for years and other information technology companies are pursuing this emerging field For example IBM has its Smarter Planet and Cisco champions the quotInternet of Everythingquot GE though has a major leg up on any of its potential competitors3 GE39s efforts and major resource commitment gives them the first real big opportunity to sweep through the industrial economy much as the consumer Internet has transformed media communications and advertising over the last decade The end result could make GE the Google of the industrial Internet and give it a major advantage to help sell its vast array of existing products and services Because GE is the nation39s largest industrial company a producer of aircraft engines power plant turbines rail locomotives and medical imaging equipment it has massive leverage expertise and contacts throughout the industrial complex In addition GE makes the heavyduty machinery that transports people heats homes and power factories and lets doctors diagnose lifethreatening diseases4 The major technologies that animate Google and Facebook are also vital ingredients in the industrial Internet tools from artificial intelligence like machinelearning software and vast streams of new data In industry the data flood comes mainly from smaller more powerful and cheaper sensors on the equipment Smarter machines for example can alert their human handlers when they will need maintenance before a breakdown It is the equivalent of preventive and personalized care for equipment with less downtime and more output5 Today GE is putting sensors on everything be it a gas turbine or hospital bed Their goal is to design the software for gathering data and the clever algorithms for sifting through it for cost savings and productivity gains Across the industries it covers GE estimates such efficiency opportunities at as much as 150 billion For example First Wind an owner and operator of 16 wind farms in America is a GE customer for wind turbines It has been experimenting with upgrades that add more sensors controls and optimization software Paul Gaynor CEO of First Wind states this translates to 12 in additional revenue from just 2 farms6 Mount Sinai Medical Center in New York has been working with GE to optimize the operations of a 1100 bed hospital Patients get a black plastic wristband with a location sensor and other information Similar sensors are on beds and medical equipment The resulting data can be used to automate and streamline operations and make for better decisions such as in assigning beds It acts as an intelligent assistant to admitting officers GE estimates that the optimization and modeling technologies can translate into roughly 10000 more patients treated per year and 120 million in savings and additional revenue over several years7 All of the above is built on GE39s strength in research and its ability to leverage it across its varied industrial businesses The company is currently rallying support for its vision from industry partners academics venture capitalists and startups Jeffrey R Immelt GE39s chief executive has personally gotten involved in recruiting His message he says is that if you want to have an effect on major societal challenges like improving health care energy and transportation consider GESteve39s most recent book You Can39t Fall Off The Floor The Insiders39 Guide to ReInventing Yourself and Your Career chronicles his 50 year career working for over 25 different companies with 189 lessons learned and insider tips from Gayle King Cathie Black Chuck Townsend and 28 others Blacker is still going strong today as a partner in Frankfurt ampamp Blacker Solutions LLC His web site is blackerreinventionscom and email address is blackersolutionsaolcomRead all Steveamp8217s MediaBizBloggers commentaries at Media ReinventionsCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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Why G.E. May Become the Next Google of the Industrial Internet - Steve Blacker

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