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GE Announces Industrial Service Technologies to Help Airlines, Railroads, Hospitals, Manufacturing and Energy Companies Increase Productivity and Reduce Costs

Minds+Machines 2012 GE (NYSE: GE) today announced nine new industrial service technologies and a joint venture with Accenture that will help drive a productivity revolution and transform global industries. Combining product diagnostics software and analytics, these technologies will connect machines to machines, machines to people, and machines to business operations allowing airlines, railroads, hospitals, manufacturing and energy companies to operate more efficiently, reduce costs, and potentially eliminate $150 billion in waste across major industries.

The nine new intelligent services will expand GE’s Industrial Internet technologies and deliver four categories of outcomes and benefits to customers including optimized networks, optimized plants and facilities, optimized assets and service quality and productivity. The new technologies, available today, cross major industries, including energy, oil & gas, healthcare, aviation, rail, and manufacturing.

Additionally, as part of GE’s $1 billion overall investment into new service offerings and support for emerging business models announced last year, GE Aviation and Accenture today announced a new joint venture, Taleris™, which will provide airlines and cargo carriers around the world services to improve a plane’s efficiency by using aircraft performance data, prognostics, recovery and planning.

GE Chairman and CEO Jeff Immelt said, “The Industrial Internet is revolutionizing the services we provide our customers, helping them become more efficient and productive. GE will leverage our $150 billion services backlog to develop technologies that improve the performance of our industrial products and grow our dollars per installed base 4-5% annually.”

According to findings of a new GE report, “Industrial Internet: Pushing the Boundaries of Minds and Machines,” the power of 1% efficiency across industries is substantial savings. For example, over 15 years, just 1% fuel savings in the energy industry could save $66 billion, 1% fuel savings in aviation could yield more than $30 billion in savings and in healthcare, 1% of efficiency gained would mean $63 billion in global healthcare savings.

“The internet has changed the way we consume information and talk with each other, but now it can do more. By connecting intelligent machines to each other and ultimately to people, and by combining software and big data analytics, we can push the boundaries of physical and material sciences to change the way the world works,” Immelt said. “GE plans to launch 20 new additional Industrial service technologies in 2013 to continue to drive this productivity revolution.”

The products being announced today include:

Optimized Networks

GE networks all the active parts of our customers’ businesses, from assets and operations to the people who make everything run. This will minimize complexity and eliminate waste, allowing customers to fulfill the business mission better.

INTELLIGENT OPERATIONS - AVIATION

  • Flight delays cost airlines $40 billion every year worldwide. Ten percent of these delays are related to unexpected aircraft maintenance issues. GE Aviation’s Intelligent Operations services use proprietary algorithms to monitor data collected from aircraft equipment, to diagnose and predict aircraft maintenance issues before they occur. If an average domestic airline (14 million passengers, 85,000 flights per year) implemented Intelligent Operations services, 1,000 delayed departures and flight cancellations could be avoided each year, helping more than 90,000 passengers get to their destinations on time.

    GE and Accenture’s new joint venture, Taleris, will use Intelligent Operations technology to analyze data from “tip to tail” sensors for multiple aircraft parts, components and systems and make predictive recommendations to optimize aircraft maintenance and flight operations. Accenture will provide the architecture to integrate this intelligent information for customers, as well as planning and recovery to optimize the timing and route planning for proactive maintenance across a fleet of aircraft. Taleris will be assuming the planning and recovery business from Navitaire, an Accenture company that provides technology services for the airline industry. The final formation of Taleris is subject to regulatory review. A launch customer will be announced shortly.

RAIL NETWORK OPTIMIZATION – TRANSPORTATION

  • GE Transportation’s software solutions deliver customer value and productivity by improving asset, operations and network performance. GE offers solutions across the entire transportation network including railroads, shippers, intermodal terminals, and repair shops. The technologies -- RailConnect Transportation Management System and Movement Planner System – utilize analytics to give real-time access to critical information so railroads can move more freight faster and more intelligently. For North American Class 1 railroads, realizing operational efficiencies is the key. The industry operating ratio is ~73% and a 1% improvement represents $600 million or more in annual savings. In terms of network velocity, Norfolk Southern, a large North America Class I Railroad and a launch customer, estimates that for every 1 mph increase in network speed saves as much as $200 million in annual capital and operating expenses. The launch customer for this product is Norfolk Southern.

GRID IQ SOLUTIONS AS A SERVICE – ENERGY

  • GE’s Grid IQ™ Solutions as a Service (SaaS) allows utilities to monitor, manage and control their grid more intelligently. Using a cloud computing services model, these capabilities can be deployed in 50% less time than traditional turnkey project models and 10% of the estimated implementation cost. This allows utilities to work on grid modernization projects without worrying about the financial impact of ongoing IT operations. Grid modernization projects are capital intensive, but GE’s SaaS offering allows the utility to modernize their operations on an OPEX basis versus a CAPEX basis. This change can minimize the utilities’ initial project expenses, and smaller utilities and cooperatives supporting municipalities can expect benefits that could double their net income. Grid IQ™ SaaS replaces the utilities’ IT infrastructure requirements with cloud-based computing and helps utilities manage risks associated with long-term technology investment decisions. SaaS transfers the investment need from the utility to GE by deploying a standard system. The launch customer for this product is Electric Cities of Georgia and the City of Norcross, Georgia.

Optimized Plants & Facilities

GE connects all the machines, equipment and people to make plants and facilities perform better. This offers a complete view of plants and predicts and prevents disruptions, allowing customers to get the most out of their facilities.

HOSPITAL OPERATIONS MANAGEMENT (HOM) – HEALTHCARE

  • GE’s Hospital Operations Management (HOM) integrates bed assignment, departmental workflow, patient flow, transport, and equipment management to reduce wait times and enable more efficient quality care to be delivered throughout a patient’s stay, from admissions to discharge. Better communications around the hundreds of people, processes, and assets involved in healthcare can save hospitals both time and money, and help reduce the inefficiencies that cost hospitals millions of dollars each year. The launch customer for this product is The Mt. Sinai Hospital, Manhattan.

FUEL AND CARBON SOLUTIONS (F&CS) – AVIATION

  • GE Aviation’s Fuel & Carbon Solutions uses proprietary algorithms to evaluate airline operations data and identify opportunities to reduce fuel consumption by more than 2%. If an average-sized airline (70 aircraft, $1 billion annual fuel costs) implemented Fuel & Carbon Solutions to achieve 2% improvement in fuel consumption, their annual fuel expenditure would decrease by $20 million and their CO2 emissions would decrease 60 metric tons - which is equivalent to removing more than 10,000 passenger vehicles from the road. The launch customer for this product is Air Asia.

REAL-TIME OPERATIONAL INTELLIGENCE – MANUFACTURING

  • GE’s Real-Time Operational Intelligence (RtOI) software gives manufacturers a plant-wide perspective on operations, enabling them to proactively detect and predict factors that could have a harmful impact on quality – plant conditions, equipment risk and process breaches. Increased operator efficiency can help reduce recalls nearly 20% making manufacturers less susceptible to the $10 million in brand damage typically associated with a product recall. The launch customer for this product is JHP Pharmaceuticals.

Optimized Assets

GE offers new software and upgrades that allow customers to monitor and control assets better, helping to reduce resource use and improve reliability.

FLEX EFFICIENCY ADVANTAGE – ENERGY

  • GE’s Flex Efficiency Advantage is real-time monitoring on power generation equipment. Power plants can react to real-time changes in power demands, grid conditions and fuel supply, dialing up or down the amount of energy needed and where it comes from. Improved fuel performance and extended maintenance intervals help utilities to increase energy output as well as deliver better and more reliable customer service. A 5% increase in energy output can deliver a total of $1 billion in new value for power plants. The launch customer for this product is Korean Southern Power Co Ltd (KOSPO).

DOSEWATCH – HEALTHCARE

  • GE’s DoseWatch provides visibility into radiation dosing so that physicians can eliminate radiation patients receive by 40%, while maintaining the high image quality necessary to diagnose and treat diseases like cancer. The software maintains patient safety and compliance with regulations while enabling hospitals to save on cost of care and patients receiving treatment for one disease are no longer exposing themselves to levels of radiation that could make them susceptible to other side effects. The launch customer for this product is the University of Washington.

SUBSEA INTEGRITY MANAGEMENT- OIL & GAS

  • GE's Subsea Integrity Management technology is an underwater remote monitoring system that increases production reliability. The software receives data from sensors measuring vibration, temperature, and leak detection for well heads, manifolds and production stations. With deepwater asset spend expected to exceed $225 billion by 2015, coupled with over $15 billion per year in lost production, GE's condition monitoring system will provide immediate and long term value to deepwater production customers. The launch customer for this product is Shell.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and helping to cure the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

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