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Big data will drive the industrial internet

Thor Olavsrud | June 24, 2013
While most big data headlines focus on sentiment analysis and other marketing activities, multinational conglomerate GE sees a future in which machine-to-machine communication and big data analytics spur a wave of innovation on par with the Industrial Revolution and the Internet Revolution.

"Asset health gives us an additive advantage," Courtney explains. "Every minute a piece of equipment runs, that's an advantage that I wouldn't have gotten out of it before. The value of the process side is multiplicative. If you can get five percent more yield from your equipment every day, 365 days a year, that's a substantial savings that drops directly to your bottom line."

Small Changes Are Big on the Industrial Internet

"The compounding effects of even relatively small changes in efficiency across industries of massive global scale should not be ignored," Evans and Annunziata write:

"As we have noted, even a one percent reduction in costs can lead to significant dollar savings when rolled up across industries and geographies. If the cost savings and efficiency gains of the industrial Internet can boost U.S. productivity growth by 1 to 1.5 percentage points, the benefit in terms of economic growth could be substantial, potentially translating to a gain of 25 to 40 percent of current per capita GDP. The Internet Revolution boosted productivity growth by 1.5 percentage points for a decade—given the evidence detailed in this paper, we believe the industrial Internet has the potential to deliver similar gains and over a longer period."

 

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