1.- Digitization in the industry happens on an evolutionary basic and in the industrial world data and data analytics is the core of the company.
Sensors produce data from the machines, the details then collected by cloud computers, the analytic software processes the data and the information is used to monitor machine performance for the purpose of optimizing the performance. Then the results are then sold to business clients.
The key elements of the industrial market place are as follows:
I. Intelligent machines with advanced censors control and software appilcations.
II.Advanced analytics to process the data.
III. People at work to connect with people for higher service quality
IV. Contracting the right person.
2.- .i. Acquiring the companies or making its own digital firm.
ii. Having partners who can do the task or do it by ourselves.
iii. Outsourcing the project to someone else.
3.-Among these alternatives GE choose to develop its own new digital capabilities within the company to capture the full value of the digital firm. If GE had chosen to have other organization do the task then it could have cost a lot more in the long run.
4. Because analytics is taking now a more important role.
5.- A single flight from New York to California can produce more than one terabytes of data from different sensors on the plane. And this information is important for decision making.
6.- Companies need to combine technology, people and business models to get an integrated system.
7.-The existing labor force of the company is trained to do manufacturing work and they do not have the right skills needed to become a digital firm. For this GE has to recruit differently and create different teams. Different project managers have to be hired, different sales person have to be hired, different on sight support have to be hired and so on. Company also needs to hire data scientists and work into analytics while not ignoring its industrial origins or manufacturing base.
8.-By “culture of simplification” Immelt means internal change of the company and cultural simplification. In the digital age sitting down once in a year to do anything is not acceptable may it be business review, strategic planning or whatever. For this there should be fewer layers and processes for decision making, setting “fast works” or schedules with everything on a defined clock.
