Engineers wanted to see proof that it would make a difference. Ruh asked them for their hardest problem. As it turned out, the aviation unit had an issue. Shrouds on jets needed replacement faster than ever before. Ruh realised the models weren’t telling the whole story, but data and analytics could provide insight on what altitudes the shrouds were freezing at and why they were burning out quickly.
“It was like magic to them,“ he said. “They suddenly realised they could see things that they didn’t expect.”
The best companies in the world seem to be doing one thing,” said Ruh. “They take other people’s assets and they make them more efficient."
Ruh said the magic of Silicon Valley and startups is that they transform industries and aren’t afraid to use other company’s assets. He said that companies started to realise that all the traditional tactics to survive the current slow growth economy stopped working. CEOs were tasked with deciding how to continue growth and productivity in a slow economy. For industrial companies, that meant going digital, but left a question of what that meant for product sets and how to navigate the transition.
“There is a battle over who is going to actually manage the asset, not who is going to build it,” said Ruh. “[Companies] cannot allow others to make their assets more efficient.”
Ruh realised that GE needed to approach digital transformation in three different steps. First, the company had to transform itself. Second, the company looked to help customers, and finally they looked to more adjacencies.
“If we can’t apply the technology inside and show great gains, how can we go to a customer and sell it to them,” said Ruh. The goal was to engage the whole company, have everyone take ownership in being digital and ensure that digital was integrated into the company.
“If it’s separate from a company you don’t end up with a digital industrial you end up with a digital and an industrial,” said Ruh.
With a few proof-of-concepts, GE began the transition to integrating digital and improving efficiency. Their products are built at twice the speed and the executive team is focusing on making 500 factories more efficient. To innovate with new talent, the company opened a new office in the Bay Area close to Mode 2 Talent with a goal of attracting experienced engineers.
GE looked for new ways to manage their assets and deliver a better product for customers. For example, GE can now monitor 10,000 wind turbines globally to identify issues in individual wind turbines earlier and help generate 5% more electricity, which means 20% more profit.
Ruh believes CIOs need to play a large role in these transitions.
“The future is in the hands of the CIOs of every organisation,” said Ruh. “The CIO should be the hero of this story.”
