150 Years of GE: From light bulb manufacturer to a digital company for the industry and a leader in health, energy, and aviation business for the future
Challenge
Industrial output is expected to fall to less than 1% in the next decade, compared to 4% a decade ago. As a result, GE’s operating costs will yield a substantially diminished return until in 2008 during the financial crisis. Revenue and market capitalization As a result, improving industrial productivity through software and analytics will be key for GE to gain a competitive advantage in the future.
“When you figure out how to make an asset more efficient, you will become the most important person to that asset’s owner”
Bill Ruh, CEO of GE Digital
- GE established a Center of Excellence for Software that focuses on developing software for the industry.
- GE developed Predix, a platform for IIoT applications designed to help GE businesses transform their operations.
- GE established GE Digital as a subsidiary providing software and the Industrial Internet of Things (IIoT). Predix was launched in 2016 with the concept of “Connectivity-as-a-Service” for GE businesses and companies across industries.
- GE announced plans to form an independent company focused on building an Industrial Internet of Things (IIoT) software portfolio, comprising GE Digital, GE Power Digital, and GE Grid Solutions.
GE’s Digital Transformation Roadmap
Phase 1: GE for GE
Starting with a focus on improving asset performance, Digital Twin and Asset-Performance Management (APM) tools were introduced to help GE with predictive maintenance, reduce downtime, and increase the efficiency of assets.
Phase 2: GE for Customers
Inviting third-party developers to create cloud-based sales applications on GE Digital’s Predix platform, resulting in a 5% yearly increase in power generation business management and a 20% increase in profits.
Phase 3: GE for the World
GE Digital begins making Predix available to non-GE customers. Leading Digital Industrial Transformation In 2015, App Revenue Reached $5 Billion US dollars and grew 20% per year.
Putting Industrial Data to Work
Long-standing insights in power generation, utilities, oil and gas, plant, and aerospace help more than 21,000 GE’s customers worldwide across industries optimize efficiency and better-analyzing operations lead to better results
In 2021, GE announced another major business transformation plan
To become a leader in 3 key and high-growth industries, GE has formed a separate company to become the leading global public company of the future, GE Health-Care, a healthcare business, driving precise health through integrated and efficient healthcare, GE Vernova, GE’s existing energy portfolio, including Renewable Energy, Power, Digital, and Energy Financial Services, GE Aerospace, aviation business, building the future of smart, efficient, and more sustainable aviation.
“Leveraging GE’s multi-billion-dollar global brand gives us a competitive advantage in our end markets, allowing these businesses to win in the future.“ H. Lawrence Culp, Jr. , GE Chairman and CEO
Decode GE’s step-by-step business transformation with 9 boxes of Digital Transformation Canvas
