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Ge Predix and Business Model Canvas

The document discusses GE's Predix platform, which aims to help industrial companies extract value from asset data through advanced analytics and machine learning. Predix provides tools for collecting data from sensors, performing analytics at the edge and in the cloud, and building and running IIoT applications. The platform incorporates GE's decades of industrial expertise. Its business model involves a fee based on the performance improvements and cost savings customers achieve through predictive and prescriptive maintenance insights from Predix. Key challenges include ensuring customer adoption and value realization to generate ongoing revenue streams.

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Gianvito Liturri
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170 views

Ge Predix and Business Model Canvas

The document discusses GE's Predix platform, which aims to help industrial companies extract value from asset data through advanced analytics and machine learning. Predix provides tools for collecting data from sensors, performing analytics at the edge and in the cloud, and building and running IIoT applications. The platform incorporates GE's decades of industrial expertise. Its business model involves a fee based on the performance improvements and cost savings customers achieve through predictive and prescriptive maintenance insights from Predix. Key challenges include ensuring customer adoption and value realization to generate ongoing revenue streams.

Uploaded by

Gianvito Liturri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business model canvas

Very common and useful tool to analyze the business model of a company with respect to its nature
(traditional or digital) → how a company creates and captures economic value (benefit/utility
for the customer - the cost suffered from the company to deliver that benefit)
It’s made by 9 building blocks:

GE Predix platform
Insights
Predix Platform is purpose-built for deriving specific industrial insights and outcomes across
diverse and highly regulated industrial markets. The idea of GE Predix is related to the
emerging need of industrial companies to adapt to the disruptive change of the data driven
services, borne from the IIOT opportunities.
Digital transformation for traditional industries such as power, oil and gas, aviation and
transportation is about extracting additional value from a companies’ operations. By
harnessing data from physical assets and plants, an organization can derive operational
benefits (gains in operational insights and increased team collaboration, leading to process
improvements, cost savings, product enhancements and new data-rich, digital services).
Main goal:Predix Platform equips industrial organizations with everything they need to
rapidly build, securely deploy, and effectively run IIoT applications from edge to cloud,
turning asset data into actionable insights.

Target
The market gap in which they tried to enter with Predix was the lack of suitable tools for
analyzing the big amount of data that can be collected with IOT devices in big traditional
companies (but necessary tool to adapt with the digital transformation)

Problems to face
● Industrial data generated by sensors embedded within assets is growing very fast;
yet today, less than 3% of that data produce value
● Once collected, these massive datasets are frequently fragmented and siloed into
repositories
● The data remains largely unexplored since readying the data for analysis is a
laborious and time-consuming process
● Existing applications may be too old or monolithic, restricting usage of the industrial
data. Adding functionality requires extensive reprogramming that can take years, and
integration with other applications or systems involves external services that make it
cost prohibitive
● Diverse software development practices can lead to performance variability across
different parts of the organization

Analytics and ML
Predix Platform supports a comprehensive approach to uncovering the relationships in
industrial data by providing a rich, industrial-grade analytics library and framework to create
machine learning analytics. When these analytics are applied to data at the edge for
example, operational analytics can ensure the efficient operation of assets by detecting and
acting upon anomalies in near real time. Those analytics can be improved over time based
on historical analysis in the cloud to direct prescriptive controls and signal predictive
maintenance alerts.
→ Main goal: use advanced analytics and data science to achieve operational excellence

Build and run Applications


Predix Studio gives customers the ability to rapidly design, iterate, and deliver powerful IIoT
applications that address their digital industrial use cases with little coding required.
As the destination for developers, Predix.io offers SDKs, tutorials, reference apps, training,
certification, forums, and a community code exchange that can help developers accelerate
their development experience.

Growing an ecosystem (Network)


One important goal of GE is also to create an ecosystem based on partnerships and Predix,
sharing best practices, reference architectures, and case studies; and influencing global
standards development to ensure interoperability.
Purpose built
Predix Platform incorporates decades of operational domain expertise as essential industrial
capabilities that are specifically designed for the unique requirements of industrial
companies across many different industries:

Business model canvas of Predix


● Value prop:
○ traditional: the old value prop of GE was to provide superior products to meet
client and seller spec; provide assistance to customers and share risks
○ new: predictive maintenance (use of ML to understand in almost real time
how the machine is working) solution for machinery to reduce downtime (that
generates high fixed costs for the companies); Predictive maintenance
employs the use of sensors to precisely collect data describing an asset’s
condition and overall operational state. The data can then be analyzed to
predict when failure events will occur
Prescriptive maintenance: Use analytics to optimize the operations in which
machineries are used (ex: put sensors in the engine of aircrafts in order to collect data
and help companies save fuel and money during the landing and the take off →
optimize the fuel consumption); Prescriptive maintenance takes this analysis a
notch higher by not only predicting failure events, but also recommending
actions to take. Potential outcomes when such recommended actions are
performed are then calculated and anticipated.
So the value prop in a nutshell: analytics and data science for predictive and
prescriptive maintenance
● Cust relationship: it’s a continuous relationship between customers and GE since in
order to provide correct analytics data must be collected in real time continuously and
the outcome of the analysis must be provided in shorts time
● Revenue Streams: fee on performance revenue model, so if actually the SW helps
companies generating savings on raw materials or production you tax them for a
percentage. The risks in this business model are:
○ If there is no saving because the company is not able to generate value from the data
driven insights i provide with Predix (coming from the machines i provide you
equipped with all the sensors that allow me to collect data), GE is not gonna have any
revenue streams. This business model so requires a lot of training of the customers in
order to make them able to use the data analytics i provide → GE needed a
partnership with a big consultant company (Accenture) that helped companies
redesigning the processes.
○ On the other hand, if the customer is able to perfectly understand and apply
the insights you provide them, they will reach an optimization plateau and
they will break the relationship with you.
● Key resources:
○ In the old paradigm of GE, the main key resources were related to the
knowledge provided by mechanical engineers, electric engineers…
depending on the type of sector.
○ In the new digital paradigm, GE scouted lot of IT engineers from Silicon
Valley in order to collect big IT competencies
● Key partners: in order to provide efficient prescriptive and predictive maintenance
you have to work with the complementors of goods of the product built by the
company. Data cannot be separated by their context, that is made also by
complementary goods analysis (Omission bias: GE could’t capture data coming from
equipment not produced by them). Obviously big complementors would have never let
GE acquire their data since they would establish a lock in relation with GE (strong relational
dependence), very risky (GE could start asking for money to maintain this relation). This
problem made GE have bad times understanding the client business → bad overall analytics.

Final takeaway
Data cannot be abstracted from its industry context (if you just model things you miss part of
the environment fundamental variables that can affect your analysis) and there is the need to
integrate more data scientists and domain experts/inline operators (they develop a
fundamental knowledge, hardly codifiable, on how the process actually works that must be
taken into consideration and integrated).
Moreover, if you totally delete the human body in the decision making process,you face some
information asymmetry since some knowledge cannot be codified in ML → you need humans and
their knowledge and ability to detect the causality effect

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