a look inside digital industrial transformation - ge … ~$170b enterprise [it] ~$200b industrial...
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© 2017 General Electric Company - All rights reserved
A Look Inside Digital Industrial Transformation
© 2017 General Electric Company - All rights reserved
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
© 2017 General Electric Company - All rights reserved
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
GE Oil & Gas Digital 12
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
GE Oil & Gas Digital 13
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
© 2017 General Electric Company - All rights reserved
The Power of Big Data Analytics
Colin ParrisVice President, Software ResearchGE
GE Oil & Gas Digital 15
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
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011001
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1101111110101011010
11010111101010101
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011001
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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
© 2017 General Electric Company - All rights reserved
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
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wn
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ea
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idstr
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ulls
tre
am
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BH
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E+
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*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
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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