Every December, GE Chairman and CEO Jeff Immelt hosts a meeting with analysts and investors to walk through the company’s strategy and financial goals for the upcoming year and review major wins from the past year. This year, Immelt discussed GE’s transformation into the world’s largest digital industrial company and his plans to lead the digitisation of industry and revolutionise how we make things by adopting 3D printing and other additive manufacturing technologies.
Highlighting past achievements, Immelt pointed to plans to merge GE’s Oil & Gas unit with Baker Hughes to create Baker Hughes, a GE Company. “The Baker-Hughes deal makes us one of the three big players in oil and gas,” Immelt said. “This is a good deal for investors in the right time.”
The combination will create a $32-billion fullstream oil services business — based on 2015 combined revenues — with operations in over 120 countries. He also noted that it’s been a year since GE’s acquisition of Alstom’s power and grid business — its largest single deal in history. He said that the integration of Alstom with GE’s energy businesses has already driven growth and synergies across the portfolio — on track with projections and growth targets. “Alstom and Baker Hughes are good deals and they add to the company strategically and financially,” Immelt said.
In addition to Alstom and the Baker Hughes announcement, Immelt said that GE has continued to expand its digital and additive manufacturing capabilities — the two key technologies the company is using to unlock new ways of working with customers and suppliers.
In early 2016, GE opened Predix — the operating system for the Industrial Internet of Things (IIoT) — to businesses and partners to develop software solutions for their own operations and customers. Internally the platform has saved about $500-million in services and manufacturing productivity across GE, Immelt said. Companies such as Exelon, University of California San Francisco, BP and Proctor & Gamble have started using data insights from Predix apps to increase efficiency and productivity.
Overall, there are more than 20,000 developers working on Predix. For 2017, GE expects to grow the platform to 35,000 developers and continue to expand its digital capabilities. The company has acquired software companies such as Meridium, ServiceMax and Wise.io that bring together sensors, cloud-based algorithms and advanced field technology to help transform the way engineers and coders work together.
BUILDING A $1-BILLION ADDITIVE BUSINESS
Over the last few years, additive manufacturing has started changing the way we make things by bringing 3D printing from developing small-scale prototypes to industrial-strength products. Today, GE has deployed additive technology in factories around the world to manufacture parts for jet engines from GE Aviation, GE Power turbines and GE Oil & Gas machines. At GE’s Global Research Centre, GE has invested $1.5-billion to keep developing these new technologies.
Immelt said that additive manufacturing was also a perfect example of the GE Store — the practice of sharing expertise and technology across GE’s business portfolio. That’s because additive development and production centres can work on different parts for different businesses at the same site and learn from the process.