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Jeff Immelt’s Vision and minset:
1) Move from being just a product offering (commoditized) to service
2) Utilize the existing assets out there in the market combining it with huge customer
base, vast expertise across industries and large set o data points.
3) Invest in technology, product and services

What Industrial Internet Initiative planned to achieve:

1) Provide outcomes-based services contingent on improving operational performance via data
collected and analyzed in cooperation with customers. NO UNPLANNED DOWNTIME
2) Open, global network that connected machines, data, and people, and provided data
synthesis and analysis allowing for real-time and predictive solutions to optimize the complex
operations of GE’s varied customer base, including predicting maintenance and repair needs and
informing performance and operational decisions.
3) Integrate all data and then plug and play as per specific requirements
4) A software to mediate rather than to dictate decisions. Also helps improve on delivery fronts.

Advantages GE had over others:

1) Huge existing customer base and scale of operation with longstanding relations.
2) Massive installations across industries. (300 billion worth of assets in over 10 industries)
3) Patented and specific technologies that were hard to replicate.
4) Industrial expertise in domains helping in problem understanding and solving
5) Large data and data points available on which predictive analysis can be done.
6) Large tech skill pool/ human resources
7) High Local responsiveness being spread across wide geography.
8) New business model and structural change
Possible Roadblocks:
1) Competitors already providing services over existing GE assets.
2) Pitching it in: The customers might not know that if they need it and can’t see when
it works. .
3) GE does not have such deep capabilities in AI, Analytics and Big Data
4) Making internal and external stakeholders believe and be part of the vision
Few points of concern to select business model:
1) Product vs Service
2) Licensing vs Solution (analysis, results and improvised ouput)
3) Break fix vs Outcome Guarantee
4) Selling vs outcome based
5) Monetization vs Customer expectation(the buyer within the customer is changing)
3 proposed business models:
1) Develop software capabilities and give them away for free as part of an intensified focus
2) Should license these offerings as a separate product.
3) Embrace the initiative and pursue software and analytics investments that enabled new,
outcomes-based service offerings that would mean rich, deep integration with GE customers
and their data

Shifting from transactional models:

Shifted from Transactional Model (Selling boxes) to Contractual (CSA contracts) to Selling
customer outcomes which had higher responsibility, liability and guarantee
How to Execute the vision:
1) Getting to a common platform: Assessing and analyzing data at hand. Knowing utility of
these from team (eg oil and gas team talk), Collaborating with internal teams by asking for
support to lend technical prowess.
2) Involving and educating stakeholders:
• Inform them how it’ll increase productivity, efficiency, optimize performance and help
improve finances
• For employees and internal stakeholders: make people feel a part of GE software and share
strategic roadmap. Instill a feeling that ‘My business will do better if I do better’
“ Measurable Metrics: Growth of Business vs Dollars spent per installed base”
3) Product, Price and Sales: Providing Pre-sales resource, An enablement engine and post
sales support. “Offer something that is 10X it’s value”
For sales: Solution architecture is a presales function that really digs deep into the discovery
process with the customer to determine how they make money. It provides a framework to
help the sales team knit together the broad array of capabilities at GE, across hardware,
software, and services, to build the right offering for the customer.
Frontline ready to tell a story how now business outcomes can be achieved. Add
characters including solution architectures, to support the story and make it come alive
for customer.
4) Getting Early wins: Predix, Wind POWER-UP, E.ON (understanding customer financial
situations to deliver solutions mutually beneficial to both)
5) Building an Ecosystem: Joint Ventures, Venture Investing, Tie-ups (multiple examples in
case)
6) Asking right questions to drive right behaviour within organization: Provide answers to
What,Why,How in order to get people thinking differently.
Inferences from Exhibits:
Exhibit 1: Gives a magnitude of how much just a 1% improvement can mean. (Low importance)
Exhibit 2: The Evolution of models (Very Important)
Exhibit 3: Divisions of GE (not important)
Exhibit 4: Backlogs ( Low imp) ( Possible point of Roadblock)
Exhibit 5: Scope of Industrial Internet: ( Important)
Exhibit 6: Map (not imp)
Exhibit 7: Sample TEnX (low imp)
Exhibit 8: GE’s prod. Solutions (low imp)
Exhibit 9: Predix (Important as one can visualize how the systems integrate)
Exhibit 10: Commercializing ( Very imp)
In simple words, what adds value to your
Exhibit 11: Tie-ups/Partners (low imp)
investments: e.g You invest in a software, an
Exhibit 12: Stock prices (low imp)
employees high skill level is a CA. But if you pay
to train them to get skilled, it’s a Comp. Invest
IMPORTANT: Complimentary Assets and Investments:
Ge assets: physical, know how (intangible), ge has deep knowledge about clients which know
one else has GE has aligned complementary assets as per customer need Why others can’t
do it (GE already has large database on usage, expertise, installed hardware that generates
performance data which is easy for ge to handle as they have partnered for along time)- GE
quantifies the benefits for Eon with x amount of benefit, hence happy to share data
Complementary asset in order to support primary investment (what is a co product
CA- when once resource, enhances the value of another resource
CA’s are co specialised Eg: co banking: need staff/sales force to have knowledge of product
portfolio in order to reap results from a core banking solution