by Gary Mintchell | Aug 1, 2018 | Commentary, Internet of Things, Software
For the past couple of years, I’ve been convinced that there is a coming consolidation within the industrial software market. You would think that this would be a profitable business, but evidently it’s harder than it looks.
This thought converges with all the Industrial Internet of Things plays. We have platforms and a large variety of software—not to mention a variety of hardware plays. As buyers begin to sort out preferences, there will be changes.
GE Digital on the block
I was trying to figure out where GE was going to wind up in all this. Last fall I thought that GE Digital’s Minds + Machines conference was doomed. Then the 2018 edition was announced. Then yesterday morning I scan news feeds about 6 am and see that most of the GE Digital assets are on the auction block—evidently including Predix.
GE had a “not invented here” syndrome. Rolling your own platforms when other tried and perfected ones already exist is always shaky. So the new CEO mandated partnerships. There’s no reason to build a platform when Amazon’s AWS and Microsoft’s Azure are available. Now it appears that much of the portfolio is for sale.
Investments
But all is not lost. At the smaller end of the spectrum of industrial software there is investment money available according to a note I received from OSIsoft. The note pointed out IIoT company Seeq raised $23 million; Trendminer, Falkonry and Toumetis all recently received investments; and last year, SoftBank also invested in OSIsoft.
When we are consolidating at the top, that usually means it’s time for innovation in the newly available openings for small companies.
Consolidation
I could obviously point to PTC doing its part to consolidate in the IoT software space. But news just came about Plex Systems, a cloud-based ERP and MES supplier.
It announced it has acquired DATTUS Inc. Its solutions connect manufacturing equipment and sensors to the cloud, manage high-volume data streams, and analyze in-motion equipment data. The acquisition is expected to accelerate Plex’s IIoT strategy, extending the Plex Manufacturing Cloud to new streams of machine data and the underlying intelligence. The acquisition was completed in July 2018.
DATTUS brings to the Plex Manufacturing Cloud three major capabilities that will become central to Plex’s long-term IIoT roadmap: IIoT Connectivity, IIoT Data Management, and IIoT Data Analysis. IIoT Connectivity: DATTUS has simplified machine connectivity, providing plug-and-play solutions that work with the wide variety of protocols and data types used by equipment and sensors on the manufacturing shop floor. IIoT Data Management: the DATTUS IIoT platform captures and manages the extraordinary volume and variety of machine data to support real-time visibility into activity across production operations. IIoT Data Analysis: DATTUS analytics enable operational and business leaders to understand IIoT data in motion, providing decision support in areas such as predictive maintenance and machine performance.
by Gary Mintchell | Jul 19, 2018 | Asset Performance Management, Internet of Things, Operations Management, Software
GE Digital initiates a huge turnaround in its attitude toward software and Industrial Internet development. GE invested large sums to build a Silicon Valley presence for its software. Hired many engineers. Took its industrial software base up a notch or two with its Predix platform. Tried to build its own cloud infrastructure. The mantra—not invented here.
[Late Breaking News: I was wrong. There will be another Minds + Machines. San Francisco, October 30-31. That’s an expensive trip. Anyone want to fund me? 😉 ]
During the last Minds+Machines conference in San Francisco new CEO John Flannery, barely two months into the job, said that GE Digital needed to work more closely with partners. Soon thereafter came the axe.
That is the context for this major announcement (this one came from Microsoft, so within it may be a bit of its bias) of a partnership. Following report is based upon a media blog from Microsoft.
GE and Microsoft announced an expanded partnership, bringing together operational technology and information technology “to eliminate hurdles industrial companies face in advancing digital transformation projects.” GE Digital plans to standardize its Predix solutions on Microsoft Azure and will deeply integrate the Predix portfolio with Azure’s native cloud capabilities, including Azure IoT and Azure Data and Analytics. The parties will also co-sell and go-to-market together, offering end customers premier Industrial IoT (IIoT) solutions across verticals. In addition, GE will leverage Microsoft Azure across its business for additional IT workloads and productivity tools, including internal Predix-based deployments, to drive innovation across the company.
GE also plans to leverage Azure across the company for a wide range of IT workloads and productivity tools, accelerating digital innovation and driving efficiencies. This partnership also enables the different GE businesses to tap into Microsoft’s advanced enterprise capabilities, which will support the petabytes of data managed by the Predix platform, such as GE’s monitoring and diagnostics centers, internal manufacturing and services programs.
According to Microsoft, leveraging Azure enables GE to expand its cloud footprint globally, helping the companies’ mutual customers rapidly deploy IIoT applications.
The global IoT market is expected to be worth $1.1 trillion in revenue by 2025 as market value shifts from connectivity to platforms, applications and services, according to new data from GSMA Intelligence. Note: I find this a very interesting comment.
As part of this expanded partnership, the companies will go-to-market together and also explore deeper integration of Predix IIoT solutions with Power BI, PowerApps and other third-party solutions, as well as integration with Microsoft Azure Stack to enable hybrid deployments across public and private clouds.
by Gary Mintchell | Jun 6, 2018 | Asset Performance Management, Data Management, Internet of Things
Have you been wondering about GE Digital and such products as Predix Asset Performance Management since the announcements of the new GE CEO reducing the group and throwing it into turmoil?
Well, just when I realized I had not heard anything for a while, this press release appeared. I don’t usually write about the announcements that come daily about sales “wins” or about success stories. But I felt this was significant in that it was news that GE Digital is still out there and that here is a user that is not a GE company. Also it reflects a trend of collaboration among companies. Plus another trend—one of the original hopes for the Industrial Internet of Things, that is, adding ability for OEMs to monitor their equipment at the customer’s site and provide service and support.
Here, GE Digital and SIG, a leading provider of packaging systems and solutions for the food and beverage industry, announced a strategic partnership to power digital innovation in food and beverage packaging.
SIG will deploy GE Digital’s PredixAsset Performance Management (APM) and Predix ServiceMax industrial applications across more than 400 customer factories worldwide to drive new levels of efficiency, create intelligent solutions and enable new possibilities for its customers.
The food and beverage industry is ripe for digital transformation, with consumers increasingly seeking innovative, convenient products that are not only safe and sustainable but also affordable and differentiated. At the same time, producers are facing competitive pressures, supply chain complexities and ever-shorter production cycles – creating an increased need for technologies that can enable producers to quickly identify, predict and act on changing consumer and market demands.
The unique combination of GE Digital’s APM and ServiceMax applications will enable SIG to build an end-to-end digital platform that will bring a new level of insight and data-driven intelligence to its customers worldwide – helping them and SIG transform how they predict, manage and service the entire lifecycle of SIG filling lines. By automatically collecting and analyzing asset data – tapping into billions of data points across its operations globally in real time – SIG and their customers can move beyond traditional asset monitoring and predictive service models to reimagine their supply chain, enhance quality control technologies and evolve their portfolio mix.
“Our ability to harness data is central to delivering on our promise of opening up new opportunities for our customers,” said Rolf Stangl, SIG, CEO. “By tapping into information in new and innovative ways, we will be able to deliver an unmatched level of performance, security, transparency and creativity across the entire food and beverage supply chain – through to the end consumer.”
SIG’s customers fill more than 10,000 unique products into SIG packaging across 65 countries worldwide. In 2017 alone, SIG produced 33.6 billion carton packs for its customers. Through this large-scale partnership, SIG and GE Digital will co-innovate packaging solutions and technologies to address the industry’s two biggest needs today: improving asset performance and optimizing service delivery.
The new digital service model will also enable SIG to deliver new solutions and business models based on advanced performance metrics, including as-a-service delivery, performance-based and subscription solutions.
The initial deployment is expected to go live in July 2018 with the global rollout anticipated to begin in January 2019.
by Gary Mintchell | Nov 15, 2017 | Commentary, News
GE’s restructure includes sharp cuts at GE Digital.
Jeff Imelt had a dream for GE. It would get on board the digital manufacturing train. They would ride it toward new modes of profitability. He built a division called GE Digital and spent a lot of money on it.
Then profits and stock price took a dive. One of those activist investors got a seat on the board. The kind of guy who doesn’t want to build a company. He wants to break it up in order to get a quick payday.
Immelt’s out. Flannery, former CFO, is in. When he spoke at Minds + Machines a few weeks ago, we knew there were cuts coming. But he said he was all in on digital. But he also said he wanted more use of partners and less of inventing everything inside.
Well the shoe dropped. $400 million in cuts at GE Digital. Lots of layoffs. We’ll just have to see what the future holds for GE in the software business.
The creation of GE Digital and its Predix product befuddled most of us on the outside. There were many aspects that looked like they were thrown together in order to satisfy upper management’s drive to show results of digital transformation.
(Aside: those of us who have worked in product develoment, like me, have never seen upper management pressure to get something released before its time—he said sarcastically.)
From The New York Times, “GE Digital, Mr. Flannery said, “continues to be vital to the company.” But its spending will be trimmed sharply as it concentrates on a narrower set of products that improve the efficiency and performance of G.E.’s industrial equipment.”
by Gary Mintchell | Oct 27, 2017 | Internet of Things, Manufacturing IT, Operations Management, Software
GE Digital continues to build out its platform and ecosystem of applications while new GE CEO John Flannery confirmed his commitment to the digitalization strategy begun under his predecessor.
The sixth Minds + Machines conference featured about 90% growth in attendance from last year. Begun five years ago not long after the company began assembling its digital strategy as a thought leadership gathering, the conference has evolved into a substantial user conference. Attendance was reported at about 3,700 filling much of Moscone Center West in San Francisco.
I’ve summarized the announcements from the event below. My initial takeaway for the biggest news of the day was GE’s emphasis on building a partner ecosystem. As the company built out its Predix platform, it seemed to be on a track for keeping everything close to home. Saying that they could move more quickly to market, they talked about working more with partners. One executive told me that the partnership with Microsoft for Predix on Azure was the most significant announcement of the week.
This is my first time here and reinforces the idea that GE Digital is a major player in the industry segment begging comparison with Siemens. Some thought also ABB (they should not have forgotten Schneider) also.
Most of my discussions involved Asset Performance Management, the new Operations Performance Management (see below), and helping me understand Predix.
Following is a summary of announcements:
Flannery touched on some statistics from a survey concerning the “digital gap” of perceived importance of a digital transformation and how far along companies are.
GE Digital Industrial Evolution Index
The inaugural Index reflects a total score of 63 on a scale of 100 and indicates that while outlook for the Industrial Internet is very strong, scoring 78.3 (out of 100), company readiness significantly lags, scoring 55.2 (out of 100). This disconnect – between outlook and company readiness – presents both a challenge and opportunity for companies seeking to benefit from the IIoT. 86% believe digital industrial transformation is important to the competitiveness of their companies, with the majority (76%) rating the ability to provide higher quality services as the foremost outcome of digital industrial transformation.
GE unveiled expansions to its suite of edge-to-cloud technologies and industrial applications.
Edge-to-Cloud Intelligence on Any Industrial Asset, Anywhere
GE Digital is expanding its Predix Edge capabilities to help run analytics as close to the source of data as possible. Predix Edge gives customers with limited connectivity, latency limitations, regulatory or other constraints a way to deploy applications closer to the originating data.
Enhancements include:
• Predix Edge Manager allows customers to support large fleets of edge devices – up to 200,000 connected devices from a single console.
• Predix Machine enables microservice-based applications to run at the edge on customers’ virtualized data center infrastructure or on server-class hardware from GE or its partners. This also supports Predix Edge Manager, which was previously available only as a cloud service.
• Predix complex event processing (CEP) allows for faster and more efficient analytics and other event processing at extreme low latency, available at the edge in Q1 2018.
Predix Platform on Microsoft Azure
Announced last year and available generally in 2018, GE Digital and Microsoft partnership extends the accessibility of Predix to Microsoft’s global cloud footprint, including data sovereignty, hybrid capabilities and advanced developer and data services, enabling customers around the world to capture intelligence from their industrial assets.
Operations Performance
Alongside its Asset Performance Management (APM) software, the core application, GE Digital introduced Operations Performance Management (OPM), a solution helps industrials optimize the throughput of industrial processes.
OPM uses real-time and historical data – along with advanced analytics – to help customers make better operational decisions. The solution provides an early warning if industrial processes deviate from plan, arms operators with the information and time to troubleshoot operational issues and helps them take preventative actions to meet business goals. GE Digital’s OPM software initially targets the mining industry and will expand to additional industries early next year.
Enhanced Field Service Management Solutions
With service technicians looking to embrace technology to improve their productivity and deliver a better experience for customers, ServiceMax from GE Digital announced several enhancements to its FSM suite – enabling even greater efficiencies and bringing advanced analytics to service operations.
• Artificial intelligence-enabled predictive service times now integrate the Apache Spark AI engine to improve service time estimates.
• Additionally, a new application integration solution enables service providers to launch and share FSM data with third-party mobile applications installed on the same device.
• New capabilities in schedule optimization allow for dependent job scheduling between work orders for multiple visits aimed at improving first-time fix rates.
Predix Studio
GE Digital also introduced Predix Studio to help companies build and scale their own industrial applications and extend its Asset Performance Management (APM) suite. Available in Q1 2018, Predix Studio simplifies the development process by giving customers the ability to extend applications and empower industrial subject matters experts to build apps in a low-code, high-productivity environment.
Digital Twin Analytics Workbench
A solution that applies a library of algorithms and templates to make it faster and easier for companies to build their own digital twins on Predix. The Analytics Workbench, currently a technology preview from GE Power, can be used to augment existing digital twins with new data streams. For example, power producers using drones to inspect wind turbine blades, pipelines or fuel reserves can integrate visual inspection data into the digital twins they already use to manage generation assets and grid infrastructure.
