The Internet of REALLY IMPORTANT Things Harel Kodesh CTO & Vice President, GE Software

What Does Robot Need? Brain, right? Assimov – I Robot Kubrick – HAL Wrong! GE – All that + Data!

1892 300,000 $150 1 A Little Bit About GE FOUNDED EMPLOYEES WORLDWIDE BILLION IN ANNUAL REVENUE 1 COMPANY IN DOW JONES INDEX ORIGINALLY LISTED IN 1896 © General Electric Company, 2014.  All Rights Reserved.

Fueled by IT / OT conversion 2015+ IT 2005+ Connected devices & machines Physics-based data science & predictions Industrial community cloud Industrial internet 1995+ Connected people Data-driven analysis Consumer / business public cloud Social Media & CRM INNOVATION Back-Office Automation Connected processes Reporting & dashboards On-premises client/server Industrial Internet provides a new wave to create innovation for entire industries. In promises bottom-line and top-line impacts that greatly surpass traditional IT benefits. Let’s take a walk down memory lane: For industrial companies, corporate IT focused by and large for many years on automating back-end business and compliance processes, such as accounting, supply chain management, procurement and inventory management. Corporate IT built expertise (such as in databases, application management) and drove best practices (such as IT Services Management, e.g. ITIL). With the advent of Cloud and Big Data technologies such as Hadoop, enterprises started to leverage those technologies predominantly in areas of social media, B2C sales, and CRM. We’re now at the threshold to connect 50 billion of devices, drive data science analytics on top of petabyte of machine data, all to be run in a highly secure and reliable industrial cloud environment. Essentially, the Industrial Internet is bringing IT innovations to the industrial (OT, or operational technology) world. For business that means, technologies, processes and practices need to be integrated across IT and OT. OT IT / OT Conversion TIME

CONSUMER INTERNET PLATFORMS The Internet of Things of S&P 500 Market Cap Today 19% = CONSUMER INTERNET PLATFORMS TRILLION data objects AMAZON managing 2 USERS 1.2B Facebook connects 5B+ DEVICES in 2014 You all heard about IOT (internet of things) – perhaps more than you really want to. IOT has been growing rapidly, with the advent of cheaper and more sophisticated sensors, ubiquitous connectivity, cloud-based data management, and powerful mobile devices. IOT also has become somewhat of a hype, with new products being launched now almost every day. Who has not heard (and perhaps wondered) about connected toothbrushes, connected belt buckles and egg cookers.

The Internet of Really Important Things of S&P 500 Market Cap Today 19% = CONSUMER INTERNET PLATFORMS TRILLION data objects AMAZON managing 2 USERS 1.2B Facebook connects 5B+ DEVICES in 2014 INDUSTRIAL INTERNET PLATFORMS 20B+ ASSETS by 2014 NEW EXABYTE of data by 2019 80 GROWING 2x Industrial Data Consumer Data = So, that is NOT the IOT we’re talking about today. What we are talking about is the Internet of Really Important Things. Well, arguably toothbrushes are important, and perhaps some of you even have discovered value in toothbrushes that tell you the time. However we’re not talking today about toothbrushes, belt buckles or egg cookers. We’re talking about locomotives, aircraft engines, wind farms and the electric grid. We’re talking about the Industrial Internet, which grows 2x as fast as the consumer internet, in terms of data volumes and connected devices. We’re now at the threshold to connect 20 billion industrial devices, generating massive amounts of data waiting to be analyzed, to drive new levels of efficiencies, customer service and productivity. Tomorrow’s Growth Opportunity

The Internet of Really Important Things INDUSTRIAL INTERNET PLATFORMS 20B+ ASSETS by 2014 NEW EXABYTE of data by 2019 80 GROWING 2x Industrial Data Consumer Data = Let’s look at examples how the Industrial Internet provides new ways to innovate entire industries. A wind turbine that checks itself into maintenance, and chats with other machines on the farm, and the grid itself, to optimize output. Connected locomotives and trains that self-optimize their route plans across train networks, to improve passenger service. An aircraft engine that self-optimizes to drive new levels of fuel efficiency. A CT scanner in a hospital that communicates with infusion pumps for better real-time patient care. No surprise, the Industrial Internet drives different outcomes than the consumer IOT. And also the technical requirements are a “whole lot” different… Tomorrow’s Growth Opportunity

cf push wind-turbine -i 30 -m 1024M -n GE-Predix-APM -p build/libs/GE-Predix-APM.war MICROSERVICE Industrial Big Data Data Science Control If we overcome the technical challenges, this opens up new, fascinating use cases. Let’s look at the example of a wind farm, operating already today on our Predix platform. Time series data are created at high speed, with 100 sensor points recorded every 40 nano (!) seconds. Those data streams are analyzed, in real-time using algorithms derived from machine leaning. Predictive analytics provide guidance from anything like how to adjust rotors for maximum output, how to balancing supply and demand on the grid for example to avoid outages or over capacity, or how to improve maintenance for top availability. And those analytics are executed in highly distributed environments, from the wind farm to an actual wind turbine. Did you want to push code to a live system, such as a software-defined industrial machine? Welcome to the Industrial Internet!