A Look Inside Digital Industrial Transformation - GE … ~$170B Enterprise [IT] ~$200B Industrial...

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A Look Inside Digital Industrial Transformation


The Internet of Really Big Things

Darren HaasVP Cloud Engineering

Consumer~$170B

Enterprise [IT]~$200B

Industrial [OT] ~$225B

Applications $80B $130B $125B

Platform $90B $70B $100B

Market opportunityDigital industrial revolution by 2020

Source: Harbor Research, IDC, TCG Analysis

Why a platform for digital-industrial transformation?

⎼ Faster innovation

⎼ Reduce risk

⎼ Lower total cost of ownership

⎼ Easier monetization

⎼ Leverage a growing ecosystem

PREDIXThe engine of modern industry

Confidential. Not to be copied, distributed, or reproduced without prior

approval.

Edge to Cloud Distributed Compute

Digital Twin and Physics-based Analytics

Digital Transformation+ =Built for

industry +

Machine connectivity Industry insight

machine apps

automation & control +

intelligencemachine learning

scalable cloud

machine-level

securitydata

governanceDigital Twins

The Predix Difference: Built from the ground up for industrial computing

The platform to build and manage Digital Twins

7

Real world computing from edge-to-cloud

Real world computing from edge-to-cloud

Predix-ready

gateways

Predix-ready

appliancePredix-ready

controllersCloud

San Diego Gulf of Mexico Dubai

North Atlantic Central U.S. Rio de Janeiro


On-Ramp Journey

Erik Lindhjem

GE Oil & Gas Digital 11

METRICS Reactive Preventive Predictive Proactive

Annual Maint. Spend % of RAV

13% 8% 5% 2%

Annual Maint. Spend $

$130,000,000 $80,000,000 $50,000,000 $20,000,000

Stores value % of RAV

7% 4% 1.60% 0.60%

Stores value $ $70,000,000 $40,000,000 $16,000,000 $6,000,000

Production Improvement %

-3% 0% 1% 3%

Production Improvement $

($25,458,750) $0.00 $8,486,250 $16,972,500

Strategy & Practice

Replacement

Asset Value

Production

capacity tons

per day

Net margin

per ton

$1B

500K

$4.65

SCENARIO

Value Story


System 1 + Meridium Portfolio Strategy

APM/

Meridium

Enterprise Impact

System 1

Enterprise /Strategic Level

Machine /Tactical Level

Intelligent Asset Strategy• Operations Executive Management• COO/Plant/Asset Manager• Reliability Manager• Maintenance Manager

Enterprise Fleet/Equipment Analysis• Supervising Machinery Engineer• Maintenance Manager• Operations Manager• Reliability & Process Manager/Engineer

Machinery Condition & Diagnostics• Reliability Engineer• Machinery Engineer• Condition Monitoring Engineer

• Condition Data Technician

Seamless integration from enterprise level to deep tactical equipment level(Real Edge-2-Cloud)

1

Multi-stage analytics tailored to customer need2

Enterprise level for mid to long term analysis and strategic planning

3

Machine level for technical tactics, short term oversight and intervention

4

Integrated Enterprise Value


Reactive to Predictive to Proactive

February 10, 2017

Total annual

savings

Production

Increase

Maintenance

and

operating costs

5

9

14

Savings through commissioning phase

$2m

Customer

ValueScope

• 4 regions with 9 sites

• Combination of gas

gathering, water

treatment, and gas

processing

Project Objectives

• Operations

• Commissioning

Functionality

• Acquisition, Integration, Analysis, Presentation

• Online continuous vibration and process

• Offline portable vibration

• Lube oil


The Power of Big Data Analytics

Colin ParrisVice President, Software ResearchGE


First child,

5-10 months

Parents live

~ 600 miles

Spends $1.2K/month

online

Age 25-34

Income < $70K

Female

Ind

ust

ria

l

Individual LIFE Individual PERF.

0 10 20 30 400

0.1

0.2

0.3

0.4

0.5

0.6

Life

Trips [K]

P{

Eve

nt

}

50 55 60 65 70 750

0.1

0.2

0.3

0.4

0.5

Efficiency [%]

P{

E }

Performance

Last inspection found

distress ranking < 2

Flies 80% in

Pacific NWFlying in

North America

2.6 Service

Years

Due for overhaul

in 7.1 months

Temp. T49

delta < 10o F

Co

nsu

me

rDigital TwinModels that continuously increase insights in each asset to deliver specific business outcomes.

Model of 1

P&L of 1

Platform for all

Amazon Apple Google

Inlet and exit Pressures, temperatures, flow

rates, vibration 30-60 day advance notice with zero

unplanned downtimeBearings

Digital Twin driving business outcomes across Oil & GasStrategic Transformation

Reservoir Production Surrogate and network models - Flood and field

continuous optimization, Historical data

Physical Digital Outcomes

Early Warning(LM 2500 Bearing Failure)

Dynamic

Optimization(Reservoir Production

Optimization)

Increased yield and reduced operational cost-

~15% NPV improvement

Continuous

Prediction(Frame 5 Nozzle

Damage) Unplanned outage reduction, Predictive Maintenance

$8MM in savings

S1 Nozzle – Oxidation, Cracking Operating data (Pressures, Temperatures),

Environmental Data

011001011110

10110110101101110101

011101101100111110110

110111111010101101010

11010111101010101

0101101101

011001

10110110101101

0111011011001111101

1101111110101011010

11010111101010101

0101101101

011001

10110110101101

0111011011001111101

1101111110101011010

11010111101010101

0101101101

Customer Business & Data

Customer Value

InspectionOptimization

Work Planning Work Optimization Service Optimization New ServiceCreation

DesignImpact

AvailabilityEfficiencyEconomics

PerformanceCustomer

Experience

Services Transformation

Production Optimization

Factory Operations Optimization

Process Optimization

Design for Manufacturing

Production Transformation

Digital Twin – Value Creation Virtuous Cycles – 661K+ Twins $300MM+Work Transformation

Oil Field Digital Twin Demo

From Machine Learning to Learning Systems…

Learning + Edge Controls

Learn from

Humans

Learn from SimulationLearn from Self Learn from Fleet

Learning + Edge Controls

New services: NPV Bank, Network Efficiency, Inspection-as-a-Service

Oil Field Production Optimization

Semi Automated Tag Mapping

50-70% Reduction in data

ingestion time

Reservoir optimizer

10-15% NPV increase

Equipment failure early warning

30-60 day lead time

Lift optimizer

10-20% Production increase

Consumer Leadership Industrial Leadership

TESLA Self-Driving

New services: Driverless Trucks. Buses, Water Taxis….

Learning + Edge ControlsLearning + Edge Controls

Human Expert Trainer

One car to all cars

Cloud/Edge Learning

Road Experience

TESLA GE

Oil & Gas

Digital Twin – Delivering Business Value in PREDIX APM

Parts TwinsFrame-5 Stage1 Nozzle

Product TwinsArtificial Lift

Process TwinsField engineer scheduling

System TwinsField Optimization

PREDIX APM Upstream


Your Digital Industrial Transformation

Mark Rosenberg

22

The journey to value for Oil & Gas operators

Level 0 Level 2 Level 3 Level 4 Level 5Level 1

Monitoring &

diagnostics

Analytics

Optimization &

prediction

Artificial

intelligence

Data collection

& visualization

Autonomous / De-

manned operations

Phase 4

Autonomous Operations

Phase 3

Optimize Production

Phase 1

Accelerated

Response

Phase 2

Reduce

NPTEn

terp

ris

e v

alu

e

Digital maturity

23

Oil & Gas customers looking beyond asset productivity

Optimized asset life

Maximum asset utilization

Accelerated problem resolution

Zero unplanned downtime

Fully autonomous operations

Complete production visibility

Integrated remote collaboration

Economically optimal production

7.1

9.2

8.4

9.1

7.1

7.0

8.5

8.1Customer value assessments

on a 1 (low) to 10 (high) scale

NPT

Avoidance

Stairway

Production

Optimization

Stairway

24

The Predix-Powered Oil & Gas world

Software and

analytics

Fullstream industry

domain

Fullstream service

excellence

Differentiated

productivity

leader

=

Architecture

Apps

Equipment data

Logging and evaluation

data

Production data

Reservoir

data

Well completion

data

Drilling

data

25

Outcome KPI 2017 2020Value to

Customer*

Value to

Segment

Reduced NPT- LNG Reliability 2-3% +1% $40-50M

$3-7B

LNG process optimization Production +4% +6% $5-10M

Avoid unplanned downtime Availability 1% 3% $10-20M

$6-12BReduce OpEx cost-

RefiningOpEx Cost $30k/d $60k/d $10-20M

Reduce artificial lift NPT Availability +3% +8% $10-25M

$5-8B

Optimize lift sizing Production +10% +25% $20-30M

Reduce NPT - drilling Cost/well 10% 30% $5-$15M $15-20B

Maximize ultimate recovery ROA 20% 40% $300-$350M $20-50B

$200bOpportunity

for industry

Creating the Fullstream productivity leader for the oil and gas industry

Do

wn

str

ea

mM

idstr

ea

mU

pstr

ea

mF

ulls

tre

am

GE

BH

IG

E+

BH

I

*Annualized value creation opportunity for average sized opportunity (ie: mid-sized refinery, mid-sized LNG facility, 100 BOPD oil field

operation)

Oil & Gas Predix-powered outcomes

26

Data

management

Analytics

orchestrationSimulationAsset services

Inspections

onrampEdge

System 1

onrampConnectivity

Risk

management

Incident

management

Digital

inspections

Maintenance

optimization

Workflow

optimization

Operations

optimization

Visualization and

collaboration

System health

Contribution

model

• Utilize and extend

Predix, APM,

Meridium,

ServiceMax cloud

services

• Contribute back to

GE Store

GE Oil & Gas digital solution map

O&G vertical product suites

Core services

Digital twin foundation

Edge and on-ramp services

Upstream• Onshore

• Offshore

• Subsea

LNG/FPSO• LNG

• FPSO

• FLNG

Downstream• Refinery

• Petrochemical

• Fertilizers

Midstream• Pipelines

• Storage

Customer

outcomes

• Non-productive

time avoidance

• Production

optimization

• Process

optimization

Powered by

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What Do You Do Now?

1. Review How Digital Can Transform Your Business Beyond

Optimization of Individual “Silos”

2. Adopt a Cloud-Based Asset Performance Management &

Production Optimization-Based Strategy

3. Bring the Future to Life

A Look Inside Digital Industrial Transformation - GE … ~$170B Enterprise [IT] ~$200B Industrial...

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