Takeaways from General Electric's (GE's) Minds + Machines Europe 2016 conference held mid-June in Paris, France. The event focused on the state of the Industrial Internet, which can be thought of as the Internet of Things (IoT) for industrial applications like manufacturing, power generation, and aviation.
A major theme throughout the GE conference was the rapidly evolving digital transformation in
industry. While digital transformation is picking up pace in many industries, GE is right in the mix with
its newly formed business, GE Digital. The business unit, which was officially formed last fall, is putting
its efforts in collecting and analyzing data to help industry professionals gain insight on the best way to
manage assets and operations in order to increase productivity and create overall efficiencies in
machines, fleets of assets, business units, and entire companies for that matter.
Asset Performance Management (APM) is a core area of focus for GE Digital and was highlighted
throughout the event. APM, GE Digital's first commercial offering based on Predix, leverages sensors,
connectivity, data, and analytics to help industrial and other asset-centric companies improve the
reliability and availability of industrial equipment and to minimize total cost of ownership.
Overall, IDC sees Asset Performance Management becoming a major focus for manufacturing and
energy companies, particularly for power plant owners in competitive wholesale markets. APM is much
more than asset maintenance schedules and minimizing downtime. Asset performance ties into the
overall business performance of a company and its financial goals. From fuel procurement to bidding
strategies, power plants have to take into account all aspects of operating a plant efficiently and
economically. In competitive power markets, it will become increasingly unlikely to see inefficient
baseload units running at a loss. APM will be a key factor in the ability for traditional fossil fuel power
plants to compete and contribute to a company's bottom line. The addition of renewable resources and
new, flexible natural gas power plants and the emphasis on energy efficiency and demand-side
management programs make for a cut-throat environment as a power generation owner. Having a
solid APM process in place can increase the economic performance of a power plant or fleet and
ultimately improve the financial health of a company.
To see the entire IDC Energy Insights report click here: