machines. By identifying what made one machine more efficient or downtime- prone than another, GE could more tightly manage its operations. For example, by using high performance analytics,GE learned that some of its jet aircraft engines were beginning to require more frequent unscheduled maintenance. A single engine’s operating data will only tell you there’s a problem with that engine. But by collecting massive amounts of data and analyzing the data acrossits entire fleet of machines, GE was able to cluster engine data by operating environment. The company found that the hot and harsh environments in the Middle East and China caused engines to clog, heat up, and lose efficiency, so they required more maintenance. GE found that engines had far fewer of these
problems if they were washed more frequently. Fleet analytics helped GE increase engine lifetime and reduce engine maintenance.4.To what extent is GE becoming a software company? Explain your answer.GE wants to go beyond helping its customers manage the performance of their GE machines to managing the data on all of the machines in their entire operations. Many customers use GE equipment alongside of equipment from competitors. The customer caresabout running the whole plant, not just GE turbines, for example, and 80 percent of the equipment in these facilities is not from GE. If, for example, if an oil and gas customer has a problem with a turbo compressor, a heat exchanger upstream from that compressor may be the source of the problem, so analyzing data from the turbo compressor will only tell part of the story. Customers therefore want GE to analyze non-GE equipment and help them keep their entire plant running. GE is in discussions with some customers about managing sensor data from all of the machine assets in their operation.5.Do you think GE will become one of the top 10 U.S. software companies? Why or why not?GE CEO Jeffrey Immelt wants GE to become a top 10 software company by 2020. In order to do this, GE needs to sell vast amounts of applications and Predix-based analytics. Although few businesses have the capital or infrastructure to operate a platform for integrating and analyzing their IoT data, GE faces competition from many sources. Amazon, Google, IBM, and Microsoft are all getting into the Internet of Things platforms, and dozens of start-ups have similar ambitions. The biggest question is whether other large industrial companies will turn to GE or to another cloud platform to manage their information. And if you’re a manufacturer of some size and sophistication, will you allow GE to “own” the data on your business, or will you manage and analyze the data yourself?
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