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    What Are The Next Steps? What Capabilities Must GE Invest in or Develop Over The Next Five Years To Accelerate Industrial Internet Efforts

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    GE must invest in software development over the next five years to accelerate its Industrial Internet efforts. This includes focusing on increasing customer adoption of network capabilities, bundling software with hardware, developing analytics and shifting to outcome-based service offerings. GE will also need to upskill its salesforce and revisit its metrics to focus on recurring software revenue streams. However, GE faces hurdles such as different levels of maturity across its businesses and a lack of coordinated software strategy and delivery.

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    What Are The Next Steps? What Capabilities Must GE Invest in or Develop Over The Next Five Years To Accelerate Industrial Internet Efforts

    Uploaded by

    isha
    328 views1 page
    GE must invest in software development over the next five years to accelerate its Industrial Internet efforts. This includes focusing on increasing customer adoption of network capabilities, bundling software with hardware, developing analytics and shifting to outcome-based service offerings. GE will also need to upskill its salesforce and revisit its metrics to focus on recurring software revenue streams. However, GE faces hurdles such as different levels of maturity across its businesses and a lack of coordinated software strategy and delivery.

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    GE must invest in software development over the next five years to accelerate its Industrial Internet efforts. This includes focusing on increasing customer adoption of network capabilities, bundling software with hardware, developing analytics and shifting to outcome-based service offerings. GE will also need to upskill its salesforce and revisit its metrics to focus on recurring software revenue streams. However, GE faces hurdles such as different levels of maturity across its businesses and a lack of coordinated software strategy and delivery.

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    328 views1 page

    What Are The Next Steps? What Capabilities Must GE Invest in or Develop Over The Next Five Years To Accelerate Industrial Internet Efforts

    Uploaded by

    isha
    GE must invest in software development over the next five years to accelerate its Industrial Internet efforts. This includes focusing on increasing customer adoption of network capabilities, bundling software with hardware, developing analytics and shifting to outcome-based service offerings. GE will also need to upskill its salesforce and revisit its metrics to focus on recurring software revenue streams. However, GE faces hurdles such as different levels of maturity across its businesses and a lack of coordinated software strategy and delivery.

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    of 1

    2. What are the next steps?

    What capabilities must GE invest in or develop over the


    next five years to accelerate Industrial Internet efforts.

    GE must invest in Software Development to accelerate Industrial Internet efforts. GE's


    revenue from software rose 160% from $ 2.5 Billion in 2010 to $ 4 Billion in 2013. This is a
    testament to the potential of software as a service that GE needs to tap into. However, 63% of
    the customers were not using utilising the network capabilities delivered by GE and therefore,
    they need to focus on adoption. One way to increase adoption would be to augment existing
    hardware functionalities with software like GE Renewable did for PowerUp and E.ON.
    Progressive, forward looking companies will be early adopters and success with such projects
    will get more customers on board.

    The decision on whether software should be licensed and sold separately or bundled with
    hardware for free is a vital one. Another viable alternative to these is to build capabilities in
    analytics and shift to an outcome-based service offering. Service offerings are recurring
    revenue sources and tie the customer closer to the firm and since GE is already selling the
    hardware, they are in a position to leverage this to their advantage.

    Salesforce would need upskilling because they have been used to selling industrial hardware
    equipment whereas software required nurturing an ongoing, revenue sharing relationship with
    customers. The sales methodology needs to focus on C-suite buy-in as opposed to getting
    only operations leads on board.

    The very metrics used to measure success need to be revisited. These metrics should also be
    frequently revised given the nature of rapidly evolving software needs of customers.

    GE will face hurdles because its firms are in different sectors and therefore are in different
    stages of maturity. This poses different adoption and legacy software challenges. Another
    hurdle they will encounter is that connected devices require a coordinated, common software
    technologies whereas GE has a localised software delivery with no overarching strategy and
    therefore varying degree of success. They also had to decide if they wanted a GE needs to
    leverage upcoming cloud technology to build connected and integrated, unified technology
    capabilities instead of the fragmented on-premise approach.

    Attracting the right talent and delivering no frills features is also very important. Pricing is
    another challenge GE will face, given its diverse offerings.

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