Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

Transcription

1 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

2 Introduction: The Industrial Internet By bringing connectivity and intelligence to industrial machines, the Industrial Internet has kicked off the next great industrial revolution. Twenty-six billion devices of all shapes and sizes will connect to the Internet by 2020 according to Gartner, though other sources estimate the number to be several times greater than that. The amount of data they will produce is astronomical. But that data, harvested wisely, will become a goldmine enabling sophisticated business insights and actions previously unimaginable. Companies across all industries, from agriculture to healthcare to transportation, are eager to reap the power of Industrial Internet data to reduce costs, become more efficient, and develop new strategies to grow. It all starts with connectivity. But how exactly do companies begin their Industrial Internet journeys? It all starts with connecting machines with other machines and to industrial applications in the cloud. Many businesses desire digital transformation, but are unsure of how to approach the first step, achieving connectivity. Connectivity plays a fundamental role in Industrial Internet capability, but overcoming the myriad of challenges associated with it requires reimagining how machines and people communicate. Twenty-six billion devices of all shapes and sizes will connect to the Internet by 2020, according to Gartner. Find out more 02 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

3 Chapter 1: THE IMPORTANCE OF CONNECTIVITY TO THE INDUSTRIAL INTERNET

4 Chapter 1: The Importance of Connectivity to the Industrial Internet Connectivity is the foundation of the Industrial Internet and is the central idea behind its core component, brilliant machines. Until now, industrial machines have largely been blind, deaf, and dumb. They have operated individually as stand-alone units, unable to exchange information with each other or the world at large. They have required the manual efforts of people to pass data between them, monitor their effectiveness, troubleshoot their failures, and optimize their operations. Discover how GE s new Predix platform will become your platform for Industrial Internet apps and connectivity. By outfitting industrial equipment with sensors, communication hardware (Wi-Fi cellular), compute infrastructure, and software applications, the Industrial Internet aims to create brilliant machines that are capable of both internal self-monitoring and external communication. Both require an extremely high level of connectivity. In fact, the Industrial Internet as a whole relies on constant, secure, and reliable connectivity as its most basic requirement. Such connectivity, once achieved, enables countless examples of the Industrial Internet in action. Watch the video 04 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

5 Chapter 1: The Importance of Connectivity to the Industrial Internet Taking an example from healthcare, connectivity is at the heart of communication between a pacemaker and an emergency response team. When lives are on the line and every second counts, the quality of a connection becomes paramount. Connectivity also brings care teams together. A stroke neurologist, a radiologist, and a primary care physician all in different locations can share realtime test results and historical data on a patient, collaborate on care options, and create a plan for treatment when timing is critical. Connectivity feeds data into the analytics engines that reveal meaningful insights, and deliver realtime metrics to enable continuous improvements in achieving patient care. In the energy sector, connectivity enabled the city of San Diego to install smart LED lighting in its downtown district that improved street lighting and cut utility costs for its residents. The fixtures, equipped with LightGrid technology that networks fixtures and conveys their operational and performance data to the municipality, replaced approximately 3,000 high-pressure LED lamps, saving the city upwards of $254,000 annually. The LightGrid technology allows the city to move to a metered rate for streetlight usage versus a flat-rate tariff, saving even more money. Smart connected systems are a technical and economic phenomenon of unprecedented scale potentially billions if not trillions of nodes... An Internet of infinite interactions and values. Jeff Immelt, GE Chairman & CEO 05 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

6 Chapter 1: The Importance of Connectivity to the Industrial Internet Healthcare and energy are not the only sectors where the Industrial Internet brings tangible benefits through connectivity. Just a 1% improvement in asset optimization due to connectivity is a powerful indicator of how connectivity can make vast improvements across all industries. While healthcare providers could save a total of $63 billion over 15 years and power producers have the potential to save $66 billion in energy costs, a host of other industries stand to benefit as well. Optimizing rail operations can save up to $27 billion in the same time period. A one percent reduction in capital expenditure would result in a $90 billion savings for oil and gas companies. The Industrial Internet uses connectivity to extract data from brilliant machines to identify opportunities for optimization. But getting all systems and machines properly connected is uniquely challenging. 26% Twenty six percent of an airline s total expenses go towards fuel. According to Stuart Dean, GE s ASEAN CEO, this 1% reduction in fuel could save aviation companies $30 billion a year.* Find out more 06 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW *Facts and figures based on GE estimates.

7 Chapter 2: TWO KINDS OF CONNECTIVITY CHALLENGES

8 Chapter 2: Two Kinds of Connectivity Challenges Technical Challenges There are many technical challenges regarding connectivity, but perhaps the greatest is standardization. Businesses typically use machines of various makes, models, and vintages which is perfectly normal. But in order to have true Industrial Internet connectivity, there must be a way to connect and deploy machines regardless of vendor or vintage. This requires establishing common standards of connectivity that makes cross-vendor, cross-model compatibility easy. For individual businesses, developing these protocols have historically been challenging. Designing and implementing a network that works across IT and CSP organizations typically takes from several weeks to a few months, drastically bottlenecking how quickly a business can transform. On top of that, these networks are usually built for one-time use, which places an endless burden on budget and resources. A transportation company will never be able to achieve Industrial Internet connectivity if lead times remain long and networks are not scalable. Companies need faster solutions that can be built as models and then reused. When I see how humans and brilliant machines are being interconnected and I see the difference this makes in a hospital, in an airport, in a power generation plant, I m not just optimistic, I m enthusiastic. This new technological revolution is upon us. Marco Annunziata, GE Chief Economist 08 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

9 Chapter 2: Two Kinds of Connectivity Challenges Single-purpose networks often become unstable and don t allow for redundancies or proactive monitoring. And it is not long before instability becomes unreliability. Which means that connectivity is often simply not consistent or available. Current data suggests that five to twenty percent of assets have connectivity issues at any given time, and two to three percent of issues last longer than a month. And the application connectivity that goes with those issues is inconsistent for pricing, interfaces, customer support, and global contracts. If this kind of unreliability is what currently exists, then for many businesses, Industrial Internet levels of plug and play global connectivity seem like a pipe dream. Business Challenges Of course on the business end, suboptimal connectivity and unreliability incurs high costs. Implementing and operating a highly customized, proprietary, and idiosyncratic network is extremely expensive to set up and maintain. And because retrofitting and upgrading networks ha been costly and difficult, the lifespan of machines connected this way is severely limited. So is their business value. 09 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

10 Chapter 2: Two Kinds of Connectivity Challenges If a company spends most of its time trying to establish connectivity and interoperability, and then troubleshooting an unreliable network, it fails to harness the business value of connectivity. An unreliable network is inflexible and cannot meet business demands because inconsistent access to a centralized hub like the cloud renders it unable to develop and deploy new capabilities. The machines essentially revert to operating in silos and are unable to offer any meaningful actionable insights. Industrial Internet connectivity requires reliable network access to the cloud. What we need is a way to standardize connectivity design and operations so that networks of machines become reliable, consistent, easy to deploy, and scalable. An unreliable network is inflexible and cannot meet business demands because inconsistent access to a centralized hub like the cloud renders it unable to develop and deploy new capabilities. 10 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

11 Chapter 3: THE IMPORTANCE OF A PLATFORM FOR CONNECTIVITY

12 Chapter 3: The Importance of a Platform for Connectivity Businesses can t take advantage of the Industrial Internet without solving connectivity issues. This requires finding a way to network machines easily and reliably while unifying the technical architecture and user experience. As software platforms have evolved over the last decade, they ve become capable of providing sophisticated levels of integration. An Industrial Internet platform can help bring about connectivity and manage its complexities by providing developers with common architecture and tools for building and deploying machine apps. Looking at other sectors in the business world, software platforms, especially those that are cloud-based, are all about continuity, connectivity, and collaboration. The sheer size and speed of the Industrial Internet require a platform that uses the power of the cloud to centralize information and decouple hardware from software, enabling universal machine compatibility. We re talking about unprecedented amounts of information. And for the first time in history, people know what to do with all this data. Harel Kodesh, Vice President and General Manager of Predix, GE Digital 12 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

13 Chapter 3: The Importance of a Platform for Connectivity A platform for Industrial Internet connectivity must meet some unique requirements. Foremost, it should solve the problem of I want to connect and see all my industrial assets, regardless of vendor. Its core should be reusable, efficient, and optimized for cost savings. And fundamentally, its architecture should feature standardized design and operations and the ability to consume as a service. An Industrial Internet platform can solve connectivity issues by providing a brain for machine hardware. But that brain also needs to think beyond autonomic functions. As devices proliferate along with massive amounts of data from machines intelligent sensors, software platforms need to host applications that can analyze this data, provide actionable information, and in some cases act. To put the Industrial Internet to work, businesses need a platform that can simultaneously foster connectivity, handle the volume and speed of the big data analysis, offer a robust developer environment, and be fundamentally secure and reliable. To that end, we have created GE Predix.* * Predix is a trademark of General Electric Company. 13 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

14 Chapter 4: WHAT IS PREDIX?

15 Chapter 4: What Is Predix? Predix is a powerful cloud-based platform for the Industrial Internet. It was designed from the ground up with the connectivity, big data, security, and actionable requirements of the Industrial Internet in mind. Through Predix, a company s industrial assets can connect to each other and to the industrial cloud a centralized information, application, collaboration, and analytics hub securely and reliably. Once connected, the platform allows a company s systems, machines, and people to communicate via a highly secure and easily accessible set of tools, microservices, and applications delivering the automation, big data analytics, and insight value of the Industrial Internet to the business. Predix, the cloud platform for the Industrial Internet, helps you integrate OT and IT, so that you can focus on creating innovative apps for your business. Watch the video Predix also enables companies to build and manage powerful Industrial Internet apps that can foster innovation and simplify communications among systems, software, and the people who use them. 15 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

16 Chapter 4: What Is Predix? How Predix-Ready Assets Work with Industrial Internet Solutions Industrial machines usually sit at the edge of an Industrial Internet of Things network. They carry sensors, connect to local gateways and control systems, and communicate further upstream to the cloud. Predix provides a common tongue for all these devices to connect, interoperate, and communicate regardless of vendor or vintage. Once devices are seamlessly connected to the cloud, Predix can collect and transmit data for realtime analytics. GE s Digital Wind Farm is a prime example of this connectivity in action. In May 2015, GE launched the world s first Digital Wind Farm, a dynamic, connected, adaptable wind energy ecosystem that pairs world-class turbines with the digital infrastructure for the wind industry. According to GE estimates, the technology boosts a wind farm s energy production by up to 20% and could help generate up to an estimated $50 billion of value for the wind industry. The Digital Wind Farm uses the Industrial Internet to address a longstanding need for greater flexibility in harnessing renewable power into the existing power grid more effectively. In this model, each turbine is connected to advanced networks that can analyze its operations in real time and make adjustments to boost operational efficiencies. As more data is collected, the system actually learns over time, becoming more predictive and futureproofing wind farms by maintaining top performance and avoiding the maintenance issues that typically occur as turbines age. Predix is more than just cool new technology. It s a foundational platform for the next kind of industrial company. GE has already taken this journey internally. Bill Ruh, Chief Digital Officer and CEO, GE Digital 16 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

17 Chapter 4: What Is Predix? Once built, every turbine is connected to a digital infrastructure enabled by Predix. Because each turbine was previously defined in the software, every single turbine now has a digital twin. Just as the physical turbine is planted, a virtual copy of itself starts reacting to realworld conditions and calculates course corrections when those conditions change. It operates in the cloud, connecting the turbines virtually. The new technology allows the turbines within the farm to communicate with each other about wind conditions and performance. The result is a unit of turbines that work as an interconnected system, rather than a line of independent wind generators. This is the perfect example of using big data, software, and the Industrial Internet to drive down the cost of renewable electricity, says Steve Bolze, president and CEO of GE Power & Water. Big data is worthless without the insight to take action, and our vision for the industry is to use today s data to predict tomorrow s outcomes. By harnessing the full power of the Industrial Internet, we can create a world where wind farms learn, adapt, and perform better tomorrow than they do today. Read the full case study to see how connectivity powers peak performance and predictive maintenance for the success of GE s Digital Wind Farm. 17 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

18 Chapter 4: What Is Predix? Three simple deployment models make it easy for any business to get connected with Predix. Predix accommodates all scenarios where businesses are trying to connect their assets to the Industrial Internet. This way, no matter what their existing configuration is, companies begin their Industrial Internet journeys quickly and painlessly. Scenario #1 Older equipment with no digital footprint. Predix can look at the vibration patterns in a 50-year old machine to determine where failures occur most often, giving a true view of your plant, factory, etc. to help keep costs down. Scenario #2 Machines with a digital footprint that speak different languages. Predix can talk to all of your machines, regardless of model or language, gather data, talk to the cloud, and begin to see patterns. Scenario #3 Next generation equipment created with Predix Machine. These advanced machines are built to make real-time adjustments based on gathered data and what they have learned previously. Using Predix software as your cloud platform can connect multiple systems throughout a business to maximize efficiency. Watch the video 18 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

19 Chapter 5: PREDIX CONNECTIVITY VALUE PROPOSITIONS

20 Chapter 5: Predix Connectivity Value Propositions The value that comes from using Predix to power Industrial Internet business transformation is its ability to truly understand industrial hardware and cutting-edge big data software. Its benefits are many, in both technical and business areas. Technical Benefits Standardization Predix provides a common way to connect machines to each other and to the cloud. This plug and play model offers service provideragnostic connectivity across the globe, simplifying connectivity and the management of it. The platform provides a common way to connect machines to each other and to the cloud. True Connectivity Predix turns all of your equipment into interoperable and social softwaredefined machines that autonomously connect to the Industrial Internet, execute native or cloud-based machine apps, analyze collected data, and securely respond to changes in that data. 20 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

21 Chapter 5: Predix Connectivity Value Propositions Fast Deployment Because Predix enables a plug and play model, lead time to deployment is much shorter than with traditional architectures. With Predix, systems and machines can be connected in about a week. Secure, end-to-end solution Predix offers highly secure connections, both locally and through private VPN to the industrial cloud. One Source Predix offers the simplicity of consistent pricing, APIs, support, and contracts. Productivity across all machines, regardless of vendor or vintage Predix works in and across multiple assets, providing cross-vendor and model compatibility, and opening up new levels of machine-to-machine communication and the sharing of real-time control and data. No Language Barriers Predix supports open standards, protocols, and technologies for rapid software design and cloud delivery. In aviation, connectivity keeps the industry s time on wing at an optimum percentage. The Predix platform connects sensors, equipment, and machines that monitor key performance indicators for aircraft engines including exhaust temperatures and time an engine is in use. The results are used to schedule preventative maintenance and monitor post-maintenance success. Find out more 21 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

22 Chapter 5: Predix Connectivity Value Propositions Business Benefits Shortened Time to Value With many businesses eager to harness the power of the Industrial Internet, Predix s pre-built infrastructure allows organizations to begin their journeys faster, since they do not need to reinvent the technology wheel each time they need a new solution. Predix allows developers to focus on unique differentiators, saving time and creating applications that work for them. Lower Cost Predix lowers the cost of implementing and operating Industrial Internet networks. Piecing together connectivity technology through complex integrations is expensive and timeconsuming. Predix offers a plug and play solution that allows businesses to focus on innovation instead of integration. Longer Lifespan Predix can extend the lifespan of machines. As a cloud-based platform, the features and functions it provides to machines can be easily retrofitted and upgraded, extending their relevance. Actionable, Scalable Decision Making Predix connectivity empowers real-time analytics, application logic, and/or data that can run at the edge, on gateway, and/or in the cloud. This real-time decision making has a significant impact on industries from aviation to manufacturing. 22 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

23 Chapter 5: Predix Connectivity Value Propositions Adaptability to Fluctuating Business Demands While many companies rely on onpremise solutions, the sheer size, speed, and volume of big data will soon make this approach unviable. The cloud-based Predix platform is designed to handle big data, and working in the cloud helps companies stay nimble, adaptable, and efficient. The business models that come with cloud Platform-as-a-Service (PaaS) provide major cost savings. Rather than buying their own hardware, which depreciates over time, companies simply pay either for what they use, or for a monthly service. The options are flexible and scalable. As the IT industry continues to grow, data centers will need to expand their existing centers. Cloud computing allows companies to move applications to a provider s infrastructure, saving the cost of an expansion. According to Computerworld s 2015 Forecast, cloud computing initiatives are the single most important initiative in 16% of IT departments surveyed. And that number will grow dramatically over the coming decade. In an industry survey, 81% of respondents deem financial risk from recalls as significant to catastrophic. 81% Source: GMA Capturing Recall Costs 23 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

24 Chapter 5: Q&A with GE s Connectivity Guru, Ganesan Ramu Q: Why is connectivity so important? A: Connectivity is extremely important to the Industrial Internet. If you can t connect, there s nothing to manage. And remember, this is about critical power and vital machines for services such as utilities, aviation, and healthcare. Q: What are the challenges associated with getting your industrial business connected? A: Historically, connectivity deployment took many months to bring to market, often over a year. There is a huge learning curve with each solution new teams, new designs, building infrastructures, and a large army of people managing all of it. The time to market and costs have been major pain points. 24 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

25 Chapter 5: Q&A with GE s Connectivity Guru, Ganesan Ramu Q: How is Predix different? A: Predix helps companies connect machines to the cloud in significantly less time. The platform simplifies connectivity and the management of that connectivity. It consolidates all of this through one offering so that it s all prebuilt. Predix becomes a plug and play model that connects to the cloud. It s a highly available service offering connectivity in any part of the world, broad WAN technologies and a comprehensive dashboard to consolidate all engagement from health to billing and customer service. It s also highly competitive, offering low data plan rates and low TCO. Q: What is your vision for Predix? A: While Predix is already up and running, we re currently developing an ecosystem of partners. Predix is the Mobile Voice Network Operator of the Industrial Internet. It offers one shop for managed services such as customer engagement and proactive monitoring via secured and highly available global connectivity with 24x7 monitoring and support. Right now it takes about a week to implement this, but eventually, the time to onboard will be incredibly short or even instantaneous just like downloading a new version of software. Everyone is trying to build their own connectivity there are about a million connections, and at any given time, 5 20% will have downtime issues. 20% 25 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

26 Chapter 6: GET CONNECTED WITH PREDIX

27 Chapter 6: Get Connected with Predix The journey to the Industrial Internet begins with connectivity. As an organization, one easy step you can take immediately is to start to identify the specific connectivity challenges your business currently faces. Make it a project with a cross-functional team empowered to figure out how to address those challenges. Align your business goals with those of your technology experts. Together, you can outline a strategy for addressing connectivity by either looking at existing solutions or building tailored options through a platform. What are the broad possibilities for connecting your machines, making them brilliant, and taking advantage of the Industrial Internet for your business processes? In this context, evaluate Predix. Whether you re starting from the application layer down, or building from machine hardware up, allow your in-house or partner developers and systems integrators to weigh in on how best to use a software platform to meet your needs. Connectivity is key, and once you ve spent time assessing your needs, you can start implementing it in stages an easy task, thanks to the nature of the cloud. 27 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

28 Chapter 6: Get Connected with Predix Predix s mission is to deliver connectivity and make it accessible to all industries through a secure and highly available global virtual network. That connectivity is a gateway to the rest of the Predix platform, where businesses can gain all the efficiencies and growth opportunities that come with the Industrial Internet. Connectivity through Predix to the industrial cloud for assets/edge devices is already available today through several partners and is offered across the globe. Contact us to learn how you can harness the power of the Industrial Internet with Predix. GE is your trusted partner. And Predix is your cloud platform for the Industrial Internet. 28 Connect to Win: START YOUR INDUSTRIAL INTERNET STRATEGY NOW

29 2015 General Electric Company All rights reserved. GE, the GE Monogram and Predix are trademarks of General Electric Company. No part of this document may be distributed, reproduced or posted without the express written permission of General Electric Company. THIS DOCUMENT AND ITS CONTENTS ARE PROVIDED AS IS, WITH NO REPRESENTATION OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF DESIGN, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE. ALL OTHER LIABILITY ARISING FROM RELIANCE UPON ANY INFORMATION CONTAINED HEREIN IS EXPRESSLY DISCLAIMED.