The Industrial Internet and Brilliant Machines. Rich Carpenter Chief Technology Strategist GE Intelligent Platforms

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1 The Industrial Internet and Brilliant Machines Rich Carpenter Chief Technology Strategist GE Intelligent Platforms

2 GE Today is Growing Power & Water Energy Management Oil & Gas GE Capital Healthcare Aviation Transportation Home & Business Solutions $156B in critical infrastructure industries 2013, General Electric Company 2 Footer Global appears Research here 2 Date appears here

3 GE Businesses interacts at Internet scale Just differently

4 Driven by Brilliant Machines 200,000+ assets connected 21,000 aircraft engines 10,000 gas & steam turbines 15,000 wind turbines 110,000 medical equipment 12,500 locomotives Process Industry stores more data than any other sector close to 2 Exabyte's(10 18 ) of new data stored in McKinsey & Company Plus Power transformers Motors Water treatment Pumps, Valves Turbo Machinery Compressors Millions of analytics run daily 2013, General Electric Company 4 Footer Global appears Research here 4 Date appears here GE Intelligent Platforms 11/26/2013

5 The Industrial Internet GE is Committed $1.5 Billion investment over the next 3 years to Build software and analytics capability to drive 1% productivity increases. Source: 2011 GE Annual Report Jeff Immelt, GE Chairman and CEO 2013, General Electric Company 5 Footer Global appears Research here 5 Date appears here

6 Increasing Productivity 40 % of skilled workers will retire 1 50b machines will connect to the Internet 2 #1 Priority of CIOs is to drive more business insight 3 A new generation of workers expects answers at their fingertips. GE Intelligent Platforms 2013 Mining & Metals Productivity Summit Sources: 1. Wall Street Journal, 11/2/11; 2. More than 50 billion connected devices, ERICSSON, 2011; 3. The Essential CIO, IBM, 2011

7 Enabled by the Industrial Internet Power & Water Healthcare Thermal RM&D: 1.2MM sensor readings/sec leads to >15GB/day or 4-8TB/year when data is highly compressed Electronic Medical Records: average 5GB/day growing Medical Imaging: ~25GB generated/day Energy Management Aviation >1.5TB/day generated by smart grid monitoring devices, meters 2TB s+ generated for a single hour of an engine simulation Across the company GE handles over 5TB of data per day 2013, General Electric Company 7 Footer Global appears Research here 7 Date appears here

8 Forces Shaping The Industrial Internet Setting the stage for true business transformation 1 Internet Brilliant of Things Machines A living network of machines data and people 2 3 Big Data 4 Analytics Transforming Increasing system intelligence through embedded software massive volumes of information into intelligence Generating data-driven insights, enhancing asset performance by detecting and predicting

9 Brilliant Machines The next round of large-scale efficiency and productivity gains will leverage the technology principles powering information age companies and combine them with the unique requirements of our industry

10 Remote Monitoring & Mobility Meet The Nest Learning Thermostat... Day 1 Day 2 Day 7 Day 12 Day 30 Day 365 Installation as simple as changing a light fixture Nest learns to save You control it from anywhere Programs itself so you don t have to Knows more, saves more Pays for itself + negotiate with power companies

11 Enabling Technologies SOFTWARE The integration of traditional industries and IT technology reshapes the competitive landscape Examples Amazon, Trip Advisor CONSUMER ELECTRONICS New levels of computing power and networking enable solutions that are more accessible, simple, and powerful Examples Smartphones Navigation systems CONNECTIVITY Secure, trusted and high-performance connectivity on public networks Examples Skype, CrashPlan COLLABORATION FRAMEWORKS Cloud-based platforms provide faster routes to solutions, higher quality content & better manageability than traditional equivalents with better financials for all Examples: Wikipedia, Salesforce, Topcoder

12 Common Threads Self-assembling networks of nodes integrating into ecosystems Secure, efficient and high performance communication protocols enabling 3 rd party device connectivity Scalable computing power, available on demand Collaboration platforms with published interfaces as enablers for content creators and consumers

13 Connected Controls Architecture It starts with a platform architecture built for a connect world Capabilities Technologies CREATING BRILLIANT MACHINES ENABLING ADVANCED ANALYTICS Smart, powerful connections SINGLE INTEGRATED ARCHITECTURE Cloud based automation POWERING PEOPLE AT WORK High Performance Platforms ProfiNet networked I/O

14 Profinet Networked I/O PERFORMANCE ROBUSTNESS ECOSYSTEM

15 MORE POWER AT THE POINT OF Control INTEGRATION SIMPLICITY THE RIGHT CONNECTIONS DESIGNED-IN UPGRADEABILITY INDUSTRIAL INTERNET INTEGRATION

16 Smart Connectivity Object-based Protocols Embedded OPC-UA at the controller means you control what you share and can make what you share automatically visible No compromise to security Better Search New generations of search tools So you can easily find what you are looking for across the network With the ability to hashtag content on-the-fly for future reference Self Assembling Networks New controllers self-register by name So your applications don t have to change as the network and/or hardware evolves

17 Collaborative Development Scenarios Controls What GE Provides Development platform Development tools Hosting & infrastructure Digital asset lifecycle management What Customers Do Create, deploy, operate & manage control systems procuring content across communities Appliances Additional GE Services Solution hosting Shopping experience management What Customers Add Private label portal? Solution navigation & dashboards

18 Real-time Operational Intelligence Changing the Automation Paradigm from Data Everywhere Organizational Context Proximity awareness Role filtering Mobility Integrated analytics Business Collaboration to Actionable KNOWLEDGE, Anywhere, Anytime. 18 RtOI Overview 11/26/2013

19 From Data Everywhere to actionable Knowledge Anywhere Anytime Context (Org/Relationships) Role Based Proximity Awareness Mobility Integrated Analytics Collaboration (P2P/M2M) Mobile KPI Mobile Notes Mobile Tasks Agent Connectivity Provisioning Exception based Advanced Alarming HHA HA L Dev S Dev Setpoint S Dev Temperature Vision L Dev LA LLA High High Alarm High Alarm Low Alarm Low Low Alarm Small Deviation Large Deviation Time Data Acquisition & Control Workforce Enablement Data Management

20 RTOI in a connected world Actionable Knowledge, Anytime, Anywhere Information in context Delivered by role Location based Intelligent notification Optimal actions Increased collaboration 20 Automation Software Overview 11/26/2013

21 Advanced Alarming The next generation analytic plug-ins (Q3 2013) Alarm Condition Data Stream Proficy Analytic Plug-In* Noise Reduction Causal Results Higher Operational Efficiency Getting to the Vital Few *Proficy CSENSE Technology Inside 21 RtOI 11/26/2013

22 Trusted remote connection products and technology designed for the Industrial Internet More Security Layers By Design Authentication via X.509 certificates Secure tunnel via TLS/SSL No listening ports on agent Uses HTTP/HTTPS over internet no network or VPN connections Service Diagnostics Secure Transport Advanced Analytics Secure Remote Connection and Monitoring Remote Service Diagnostics Enabling the Cloud 22 RtOI 11/26/2013

23 The Future Of Tomorrow s Control User Is Seamless Context-driven Regional Community based Connected DEVELOPER INTEGRATOR OPERATOR MAINTAINER MANAGER ONE fully integrated SDE Robust pre-built components Seamless requirementsmodel-code Simulation-based validation ONE tool for system-wide integration Automation Configuration & troubleshooting toolkit Plug & play Not confined to a control room Shifting skillsets & roles Scalable experience Simplification & guidance in the face of growing complexity Models, not schematics Intelligent diagnostics, prognostics, and analytics Knowledge management Mobile, hands-free Real-time operational intelligence Integrated decision support & planning tools Enterprise integration Fleet analytics Operational analytics

24 M2M-M2C Architecture Security The GE Roadmap ON-PREMISE Tools CONNECTED ANYWHERE COLLABORATION CROWDSOURCING Analytics Enterprise Engineering Configuration for Complex systems Large asset drag n drop System level plug n play Libraries of apps Persistent config backup Auto Model Generation Model adaptation Real Time Control Remote services Fleet as a system N+1 Redundancy Peer control learnings PREDIX INSIDE Analytics Cloud assisted control Crowd sourced data models Predix ERP Catalog of control apps fleet Business applications Enterprise Bus Engineering applications DETERMINISTIC & NON-DETERMINISTIC CONTROL FABRIC Operator applications Self assembling forming control configurations Controllers on Asset Hardware abstracted, common platforms Hypervisor enabled systems Integrated Supervisory Control New UX paradigms Pervasive mobility the Edge Embedded agents

25 Brilliant Machines Example

26 Water System Integrators Are Mostly Concentrated In Metropolitan Areas Source: Data from searching system integrator directory from The Automation Integrator Guide (integratorguide.com). Source: EPA - Clean Water Needs Survey (CWNS), 2008 and Safe Drinking Water Information System, (SDWIS) accessed 2011 Note: Some states not shown due to reporting omissions to the EPA during the reporting cycle However, water and wastewater facilities are everywhere

27 Current Paradigm Not Quite Working 73% facilities have 0 qualified system integrators in their county Windshield time dramatically increases support costs Equipment vendors have poor support models due in large part to lack of context Transaction costs for small projects too high As a small facility, we need to really watch costs. The traditional competitive bid process is really expensive. Just going through the formality can make and investment not worth considering Small end user We are the masters of misapplication. There aren t any products made for our needs. We need to find equipment from other places and adapt it for our purposes Small end user We don t see customer service. We always rely a lot on asking other operators Small end user

28 Developing New Business Models Pump Station Appliance One simple system, 3 steps to automated control

29 Thank You