In an interview for McKinsey the CEO of GE Jeffrey R. Immelt describes some aspects of the transformation from industrial company towards the data and analytics IT company.
The development in the IT direction was not based on one decision, it was more an evolution process.
In the meantime a new jet engine might have a hundred sensors on it and these produce a terabyte of data during a single fly between New York City and Chicago.
It is gonna happen… the companies cannot just ignore it. The data and analytics will be a core of the business in the future. So, in order to do that, the companies have to add technology, add people, they have to change their business models.
As CEO thinks risk first, it is crucial to see the improvements in form of more productivity, higher service sales, applications, etc. If the transformation end up having the platform that works, it’s a whole new company.
The biggest mistake would be, if anybody thought it was all about technology. It is not enough to hire technology people, to upgrade the software, things like that.
Product management, sales people and on-site support have to be different. The transformation will touch everything in the company. From own IT to manufacturing plants, just everything the company is doing.
The digitisation affect also the internal processes, that would be running in a much more continuous way.
At GE they’ve basically unplugged anything that was annual.
“The notion is that, in the digital age, sitting down once a year to do anything is weird, it’s just bizarre.“
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