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

Becoming Digital Industrial Bill Ruh – CEO, GE Digital & CDO, GE @BillRuh_GE

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

The problem we are solving: productivity needs a “reboot”

• Lean and ERP productivity is maxed out

• Technologies in edge and compute have evolved

• IT + OT convergence can drive new efficiencies and business innovations

• Manufacturing prime for disruption

• Requires investment & outcomes

4%

1%

1991-2010 2011-2015

Digital + Industrial Productivity

Global productivity Driving industrial transformation

1

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

Digital leaders own asset productivity

Owns no vehicles

Owns no real-estate

Creates a few apps

Success Defined • Assets are significantly more

efficient • Create a compelling user

experience • Develops a robust ecosystem • The software is a vehicle for

value creation

Apple

2

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

GE Digital enables productivity around industrial assets

Optimize

Asset Performance Operate

Build Manufacturing Services

End to end approach connecting across the asset value stream

Increased throughput Decreased downtime Increased productivity Increased machine utilization

Outcomes

3

Operating platform + Ecosystem

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

GE for GE GE for Customers GE for World

Sharing the Digital Industrial blueprint

• Digital thread • Digital twin • Services transformation

• Outcomes for customers • Optimize GE machines • Industrial apps portfolio

• Enable industrial companies • Industrial-focused security • Predix industrial operating system

Productivity: Brilliant Manufacturing Apps: Service Transformation Platform: Operating System

• BP – 650+ connected wells; 2-4% higher global operations efficiency

• Exelon – 33k MW, enterprise- wide • Port of LA – digitize maritime shipping • RasGas $2.5M outage savings

• Parts supplier savings $25M • FieldVision - $200M outage productivity

• Schindler – 200M data points collected per day from connected equipment

• Lixil - reduce scheduling time by 66% • Gerdau – 11 plants, 600 connected

assets

Outcomes

4

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

Digital organization framework

CIO

GE Digital Power

Renewables Oil & Gas Aviation Healthcare Transportation Energy Connect

Mutual accountability … metrics & incentives aligned to GE Digital

Enterprise-wide horizontal products Digital Technology infrastructure & services

Chief “Automation” Officer • Process innovator and educator for

business. • Deployment of horizontal solutions • Partners with CDO on customer

engagement.

Externally sold horizontal products

GE Business CEO

Chief Digital Officer • Externally sold vertical products &

portfolio • Productive disruptor and culture shaper • Commercial sales team in the business

CDO CEO & CDO

CIO

5

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

•50% lead time

•39% inventory

• +0.8 inventory turns

•32% hrs./CT unit

•42% CT lead time

• +2 inventory turns

• +25% on-time delivery

• $20M cost-out

• +1.1 inventory turns

• +7% shop efficiency

• 10% 80% analytics-based repair work

• +2 inventory turns

• +18% equipment effectiveness

• 40% cost improvement

• +3 inventory turns

•36% lead time

• +5% productivity

• +2 inventory turns

Digital solutions built on foundation of lean productivity

Brilliant factories Oil & Gas: Florence Healthcare: Hino Aviation: Muskegon

Transportation: Grove City Renewables: Haiphong Multi-modal: Pune

6

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

Leveraging digital wind ecosystem with customers (data driven wind apps) and partners (digital solar and prognostic solutions)

Renewable Energy digital value

10,502 Turbines Optimized

62 / 261 Customers / Wind Farms

around the world

1.3 / $75MM Estimated TWh and value (USD)

of additional generation

75 Number of sites using Digital Plan of the Day

• 13.5K+ assets monitored

• 2K+ anomalies resolved yearly

• $36MM+ annual O&M savings

• 20 GW of wind power connected to Predix

• 1,286 GWh of additional AEP increase generating $64MM in value

• Energy forecasting generating a value of $2MM per fleet/year

Leveraging Digital Wind Ecosystem with

• Co-innovation of Digital Wind Apps with 4 Strategic Customers

• Partners (Digital Solar and Prognostic solutions)

GE for GE GE for Customers GE for World

Global Customer Experience

7

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

Digital transformation suite

Lower operating cost … extend asset lifetime … optimize asset performance

APM ServiceMax Connected assets

Information Insights Outcomes

Lower downtime

Predictive analytics

Data at scale

Edge to cloud

Technician productivity

Higher service revenue

GE GE Customers Other Industrials OEMS

Target market

Killer set of applications to lead in industrial services

8

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

APM impact in power & utilities

Fleet-wide software agreement 16 power plants 500+ GT units 40,000 MW of coverage

• Enterprise level visibility & system of operations

• 92,000 assets under management

• 65% critical failure-mode coverage, increasing every quarter

Enterprise-wide software agreement 16 power plants in New York state 5,600 MW of coverage 1,400 miles transmission and distribution

"Killer" app for Industrial Internet – $387B in productivity for electricity

9

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

800K

Supply Chain Operations

Steam Turbines

Power Plant Operations

Leap Engines

Locomotives

Data

AI & Statistics Modeling

Predict the future Digital Twins active today

Digital Twin is the value

Understand the past

10

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

Edge to cloud distributed compute

Digital Twin and physics-based analytics

Digital transformation + = Built for

industry +

Machine connectivity Industry insight

machine apps

automation & control + intelligence

machine learning

scalable cloud

machine-level

security data

governance Digital Twins

The Predix difference: built from the ground up for industrial computing

11

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

Independent Software Vendors (ISVs)

Technology Partners

Strategic Systems Integrators

Industrial Representatives/Resellers

• Revenue & renewal

• Customer digital transformation with horizontal and vertical solutions

• Force multiplier

• Influence, relationships

• Industry expertise & solutions

• Global scale

• Local customer relationships

• Go-to-market on mid-market accounts

• Accelerated regional sales coverage

• Joint research & development

• Joint go-to-market partnerships

• Industry expertise

Platform Adoption & Proliferation

Mindshare, Pipeline, Top Accounts, Customer Stories

Accelerate Mid Market, Industrial Insight

Accelerate Product Roadmap, Source, Influence

The GE Ecosystem

12

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

Digital Industrial Revolution in Full Force By 2020

152M Cars connect to the

internet…6 fold increase

10B Internet connected

light bulbs

+1B Growth in the installed Base of Smart Meters

1M Terabytes a day

generated by GE machines

Winners will master data and insights ... At speed & scale

13