GE has conducted research into corporate readiness for the digital transformation revealing a gap between acceptance and implementation of the IIoT.
GE used its Minds + Machines conference to unveil new research highlighting an emerging gap between the executive outlook for digital transformation and the initiatives companies have put in place. The survey of Information Technology (IT) and Operations decision makers found that while companies see the Industrial Internet of Things (IIoT) as presenting significant opportunities for future growth and competitiveness, the vast majority are not taking the actions required to benefit from those opportunities.
“The Industrial Internet is already having a profound impact on industrial companies of all sizes. We know this because we are seeing real benefits with our customers and across GE,” said Bill Ruh, CEO, GE Digital. “At the same time, a gap is emerging between outlook for the IIoT and actions. We are working to close that gap by partnering with customers to accelerate change and guide companies of all sizes along their digital journeys.”
According to the study, optimism among industry executives for the potential of the Industrial Internet is striking. Eighty percent believe the IIoT will or could be transformational to their companies and industries. Even more consider digital industrial transformation to be important to their competitiveness. At the same time, only 8 percent of those executives say digital transformation is ingrained in their businesses, and 10 percent do not have a digital transformation plan in place.
GE Digital Industrial Evolution Index
Based on the research study, GE created the GE Digital Industrial Evolution Index to track the real progress of digital transformation – from outlook on the IIoT to readiness to transform. The inaugural Index reflects a total score of 63 on a scale of 100 and indicates that while outlook for the Industrial Internet is very strong, scoring 78.3 (out of 100), company readiness significantly lags, scoring 55.2 (out of 100). This disconnect is the challenge that industry needs to address. Additional survey findings included:
* Digital Transformation Critical to Growth and Competitiveness: 86% believe digital industrial transformation is important to the competitiveness of their companies, with the majority (76%) rating the ability to provide higher quality services as the foremost outcome of digital industrial transformation.
* Connectivity and Industrial Apps Most Critical for IIoT: IT and Operations Decision Makers (IT/OTDMs) overwhelmingly cited connectivity (63%) and industrial applications (58%) as the primary technologies required for digital transformation.
* IIoT Platform, Apps and Analytics Priority Investments: Respondents view an IIoT-ready platform (22%), Industrial Applications (14%) and Big Data Analytics (14%) as the most important technologies to invest in.
* Cost Matters: Most respondents cited investment costs (42%) as the leading barrier to digital transformation, followed by system security (32%) and data privacy (32%) concerns.
* Digital Transformation Will Require Organisational Change: 54% of IT/OTDMs believe their organisations need to transform to enable digital transformation.
Advancing Digital Industrial Transformation
GE Digital is working to close the gap between opportunity and reality by making the Industrial Internet accessible for companies at every stage of the transformation journey. The company is helping customers realise real and immediate benefits from the IIoT by providing new partnerships, industry-leading tools and applications designed to drive efficiencies and growth.
The industrial world is complex and creates a unique set of technology challenges. IIoT requires multiple technologies – connectivity, control systems, cloud computing, data ingestion and management, analytics and machine learning, security, data governance – across a variety of different users and scenarios. GE Digital is applying its expertise and experience to make the IIoT more accessible, actionable and impactful for companies of all sizes – providing a blueprint they can adapt to get more out of their industrial assets, measure ROI and improve business returns.