Realizing the Industrial Internet (IIoT) Opportunity:

Douglas RuddSr. Marketing Manager, Channels & AlliancesGE Digital Europe

14 November 2017Edit Presentation Title in [Insert Tab > Header & Footer] | 2

14 November 2017 3

Minds + Machines 2017

#IndustrialInternet

Software is impacting every industry

20BN

Hotel Service

50BN

Taxi Service

18BN

Consumer App Economy

Owns no vehicles

Owns no real-estate

Creates a few apps

UBER

Apple

Industry 4.0 vs. Industrial Internet

5

Industry 4.0

• Automation and data exchange in manufacturing technologies: “Smart Factory” - cyber-physical systems, the Internet of things (IoT) and cloud computing

..........

Industrial Internet

• Integration of machinery with networked sensors and software (IoT) spanning all industrial sectors, not just manufacturing

• From Manufacturing to Energy Management to Shipping & Logistics to Mining and beyond

The Global Industrial IoT (IIoT) Opportunity is huge

6GE Digital

80 billion connected devices by 2020

How does this compare with the Consumer IoT Opportunity?

Companies expect 5-10% growth or cost

efficiency gains

$10-15 trillionestimated forecast of

global GDP gains

Sources: IDC, McKinsey & GE

Consumer~$170B

Enterprise [IT]~$200B

Industrial [OT] ~$225B

Applications $80B $130B $125B

Platform $90B $70B $100B

How is the European Market positioned to take advantage of the IIoT opportunity?

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• 15.0% of GDP, ~ 33 million jobs

• Germany, France & Italy > 50% of EU output but only 1-2% growth in the next 5 years

• Central Europe ~5% growth

• Since 2007, industrial productivity growth has fallen from 4% => 1%

…….. while consumer internet productivity growth => 19%.

• GE for GE

• Integrates 1000 digital technology experts

• 400 new positions over next two years

• Activities:

• Software development

• Business processes

• Application resiliency

• Building and running infrastructure

• Access to big data solutions

GE for Customers and GE for the World

Employs ~80 software developers – will reach 250

• where GE Digital incubates Industrial Internet startup companies,

• collaborates with customers on new application development

• works to extend and promote GE’s international developer ecosystem

GE Digital Hub, CEE GE Digital Foundry, Paris

Operational agility to respond to demand in whatever form it takes

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Becoming a Digital Industrial company

GE’s Digital Industrial Transformation

May 11, 2016

GE for GE

Internal Productivity

Confidential. Not to be copied, distributed, or reproduced without prior approval. 11

GE’s Digital Industrial Transformation

May 11, 2016

GE for World

Make available outside of

traditional GE customers

Supplier Customer

GE for Customers

Transform our customers

GE for GE

Internal Productivity

Customer Challenge Action Solution Architecture Outcomes

Predix leverages data from connected elevators, escalators and PORT Technology to identify service needs before they occur

Scale Predix–based solution throughout fleet of assets to deliver premium digital solutions powering smart buildings and urban mobility

Heightened ability to scale predictive maintenance solutions across the fleet

Reduce downtime by using Predix to predict and resolve service issues before they occur

Position Schindler to develop digitized offerings for new value streams w/in elevator industry

Fully digitize service infrastructure and more accurately foresee necessary maintenance for millions of devices

Adopt Predix to predict maintenance and catalyze digital transformation

AutomotiveChemicalsFood & BeverageHeavy IndustryOil & GasPower GenerationTransportation

NALATAMEuropeMENATAPACChina

Asset Performance ManagementAutomationBrilliant ManufacturingCyber SecurityPredix

Catalyze digital transformation by adopting Predix

1

Connect elevators and eliminate downtime through predictive maintenance

2

Ingredients for a Digital Industrial company?

14

Enable the Digital ThreadCreates a virtuous loop of continuous improvements.

Create a Digital TwinServes as the digital foundation.

Business Model Innovation Runs Through the Plant FloorCreate the OT and IT capabilities that enable innovation.

Confidential. Not to be copied, distributed, or reproduced without prior approval.

If you could save just 1% of your costs,

Or improve your manufacturing productivity by just 1%.

And if you could do this year on year on year....

What could you do with the value this would unlock?

The Power of 1%