Industrial Internet Insights Report

for 2015

According to new research from GE

and Accenture, executives across the
Industrial and healthcare sectors see
the enormous opportunities of the
Industrial Internet and in many cases
are deploying the first generation
of solutions. The vast majority
believe that Big Data analytics
has the power to dramatically
alter the competitive landscape
of industries within just the next
year and are investing accordingly.
Yet challenges around security,
data silos and systems integration
issues between organizations
threaten to delay Industrial Internet
solutions that could offer distinctive
operational, strategic and competitive
advantages. Spurred on by boardlevel direction, surveyed executives
feel a sense of urgency in moving
more briskly toward the Industrial
Internet future.

Table of contents
Introduction

Tapping the potential value

The formula for the Industrial Internet

A sense of urgency

About the research

Moving to growth and value creation

10

But are companies up for the challenge?

12

Moving from todays implementation to tomorrows strategies

14

Big Data analytics in the healthcare industry: A diagnosis

16

Positive outcomes

17

Shaking up the healthcare space

18

Expectations are high and driven by the Board

18

An urgency to deliver improved patient outcomes

19

Talent issues

20

Driving better patient outcomes

21

Becoming an Industrial Internet value creator

22

Invest in end-to-end security

23

Break down the barriers to data integration

24

Focus on talent acquisition and development

26

Consider new business models needed to be successful with the Industrial Internet

31

Actively manage regulatory risk

32

Leverage mobile technology to deliver analytic insights

32

Conclusion

34

About GE

36

About Accenture

36

About GE and Accenture Alliance

36

Introduction
How big is the economic power of the Industrial
Internet? Consider one analysis that places a
conservative estimate of worldwide spending at $500
billion by 2020, and which then points to more optimistic
forecasts ranging as high as $15 trillion of global GDP
by 2030.1
The Industrial Internetthe combination of Big Data
analytics with the Internet of Things (see sidebar)
is producing huge opportunities for companies in all
industries, but especially in areas such as Aviation,
Oil and Gas, Transportation, Power Generation and
Distribution, Manufacturing, Healthcare and Mining.
Why? Because, as one recent analysis has it, Not all Big
Data is created equal. According to the authors, data
created by industrial equipment such as wind turbines,
jet engines and MRI machines holds more potential
business value on a size-adjusted basis than other types
of Big Data associated with the social Web, consumer
Internet and other sources.2

1. David Floyer, Defining and Sizing the Industrial Internet, Wikibon, June 27, 2013; Peter C. Evans and Marco Annunziata, General
Electric: Industrial Internet, Pushing the Boundaries of Minds and Machines, November 2012.
2. http://wikibon.org/wiki/v/The_Industrial_Internet_and_Big_Data_Analytics:_Opportunities_and_Challenges.

Tapping the
potential value
Executives of industrial companies
are well aware of the potential power
and source of value of the Industrial
Internet, according to new research
from GE and Accenture. (See About
the research.) For example, according
to our survey, 73 percent of companies
are already investing more than 20
percent of their overall technology
budget on Big Data analyticsand
more than two in 10 are investing
more than 30 percent. Moreover,
three-fourths of executives expect that
spending level to increase just in the
next year. (See Figure 1.)
Across the industries surveyed, 80 to
90 percent of companies indicated
that Big Data analytics is either the
top priority for the company or in the
top three. This finding is especially
strong in the Aviation industry, where

61 percent of those surveyed noted

that analytics is their top-ranked
priority; this number drops to about 30
percent or less for industries such as
Power Distribution (28 percent), Power
Generation (31 percent), Oil and Gas
(31 percent) and Mining (24 percent).
(See Figure 2.)
This prioritization of spending
becomes clearer when we look at
who is supporting Big Data initiatives.
Simply put, its no longer the usual
suspects such as the CIO or COO.
Indeed, 53 percent of all survey
respondents indicated that their Board
of Directors is the primary influencer
of their Big Data adoption strategy
more than those citing the CEO (47
percent), the CIO (37 percent) or
a business line P&L executive (15
percent). (See Figure 3.)

surveyed. Strong board-level support

can also be seen in industries such
as Manufacturing (67 percent noted
the Board as the primary influencer),
Aviation (61 percent) and Rail (60
percent).

Across the industries

surveyed, 80 to 90
percent of companies
indicated that big data
analytics is either the
top priority for the
company or in the top
three.

This board-level influence particularly

stood out in several industries such
as Mining, where the Board is the
top influencer for 73 percent of those

Figure 1:

Figure 1: InvestmentsWhat
in Big
Data analytics are strong
portion of your overall technology expenditure is
made in analytics Big Data?

1. What portion
of your overall
technology
expenditure is
made in Big Data
analytics?

Do you expect this to increase, stay the same

or decrease over the next year?

2. Do you expect
this to increase,
stay the same or
decrease over
the next year?

3%
22%
24%

24%

76%
51%

More than 30%

Increase

21%-30%

Stay the same

10%-20%

Decrease (0%)

Less than 10%

FigureFigure
2:
2: Big Data analytics is one of the top corporate priorities
How important is Big Data analytics relative to other
How important is Big Data analytics relative to other priorities in your company?
priorities in your company?

Aviation

61%

Wind

45%

Power Generation

31%

Power Distribution

28%

Oil & Gas

31%

Rail

40%

Manufacturing

42%

Mining

24%

29%

10%

45%

6%

63%

6%

56%

16%

56%

9%
47%

3%

10%

45%

3%

9%

55%

Top/highest priority

3%

3%

18%

Within the top three priorities

Within the top five priorities

3%

Not a priority

Figure3:3: Support for Big Data analytics initiatives is coming from the top of the organization
Figure
Please rate the level of influence of each of the following in setting the strategy for Big Data analytics adoption
in your company.

Figure 2

Our Board of Directors

53%

The CEO

47%

The COO

28%

Business line P&L executive

15%

The CIO

37%

The CFO

22%

Mid-level management

10%

Our customers

17%

32%

11%

39%

9%

46%

47%

35%
36%
25%

19%
31%
21%

29%

7%

44%
23%

15%
31%

2%

17%

1%

3%

2%

2%

4%

2%

4%

2%

5%

2%

5%
6%

11%

The formula for the

Industrial Internet
The Industrial Internet can be described as a source of both
operational efficiency and innovation that is the outcome of a
compelling recipe of technology developments:
Take the exponential growth in data volumesthat is, Big
Data available to companies in almost every industrial
sector, primarily the ability to add sensors and data
collection mechanisms to industrial equipment.
Add to that the Internet of Things, which provides even
more datain this case about equipment, products,
factories, supply chains, hospital equipment and much
more. (Cisco predicts that by 2020 there will be 50 billion
things connected to the Internet, up from 25 billion in
2015.3) With new technologies such as data lakes, the
ability to capture and process such data is now a reality.
Then add the growing technology capabilities in the area of
analyticsthe ability to mine and analyze data for insights
into the status of equipment as part of Asset Performance
Management (APM), or the delivery of healthcare, and then
even to predict breakdowns or other kinds of occurrences.
Finally, add in the context of industries where equipment
itself or patient outcomes are at the heart of the
businesswhere the ability to monitor equipment or
monitor patient services can have significant economic
impact and in some cases literally save lives.
The resulting sum of those parts gives you the Industrial
Internetthe tight integration of the physical and digital
worlds. The Industrial Internet enables companies to use
sensors, software, machine-to-machine learning and other
technologies to gather and analyze data from physical
objects or other large data streamsand then use those
analyses to manage operations and in some cases to offer
new, value-added services.

3. The Internet of Things, Cisco, http://share.cisco.com/internet-of-things.html.

7 7

A sense of urgency
A striking finding from our survey
was the sense of urgency felt by
respondents in implementing Industrial
Internet solutions. This is driven in part
by the impact being felt at an industry
level as well as the competitor level.
For example, 84 percent of those
surveyed indicated that the use of
Big Data analytics has the power to
shift the competitive landscape for
my industry within just the next year.
A full 87 percent believed it will have
that power within three years. Eightynine percent say that companies that

do not adopt a Big Data analytics

strategy in the next year risk losing
market share and momentum.
Executives are looking over their
shoulders at competitors as well.
Seventy-four percent said that their
main competitors are leveraging
Big Data analytics proficiencies to
differentiate their capabilities with
clients, investors and the media.
New entrants are also coming into
their industries, according to 93
percent of respondents, and these
newer entrants are leveraging Big
Data analytics as a key differentiation
strategy.

There is risk in not taking action now,

according to surveyed executives.
Asked to name their top three fears
if they are unable to implement a Big
Data strategy in the next few years,
the number one answer was, Our
competitors will gain market share at
our expense. The second top answer
was the concern that investors will lose
confidence in their companys ability to
grow. (See Figure 4.)

Figure 4: Companies are aware of the risks of not implementing a Big Data strategy soon
Figure 4:
If Ifwe
are unable to implement our Big Data strategy in the next one to three years, my top three fears are:
we are unable to implement our Big Data strategy in the next one to three years, my top-three fears are:
Our competitor(s) will gain market 28%
share at our expense
66%
We will not be able to recover and 18%
catch up if we delay
45%
We will start to lose qualified talent 18%
to competitors
48%
Our investors will lose confidence in our 17%
ability to effectively grow our business
61%
Our product(s)/solution(s) cannot be 9%
competitively priced 52%
I don't believe there will be any 3%
impact 3%
We have already implemented our 5%
Big Data strategy
5%
None of the above

Top
Top 3

2%
2%

About the research

Recognizing that Big Data analytics is the foundation of the
Industrial Internet, GE and Accenture fielded a survey in China,
France, Germany, India, South Africa, the UK and the United
States that explored the state of Big Data analytics and how
it is being viewed across eight industries. Sectors surveyed
were Aviation, Wind, Power Generation, Power Distribution,
Oil and Gas, Rail, Manufacturing, and Mining. A similar survey
was conducted for the US Healthcare industry and results
are integrated into this report. Companies represented had
revenues in excess of $150 million, with more than half of
them having revenues of $1 billion or more. More than half of
the respondents were CEOs, CFOs, COOs, CIOs and CTOs, and
the sample also included vice presidents and directors from
information technology, finance, operations and other crossfunctional management areas.
This study adds to the growing portfolio of thinking and reports
on this topicone of those being the recent Accenture report,
Driving Unconventional Growth through the Industrial Internet of
Things (IIoT), which explored the opportunity the IIoT represents
and implications for the workforce. The report also outlines
seven steps companies can take to overcome challenges they
may encounter as they prepare to use and analyze the vast
amount of data they have at their disposal to generate new
revenue-producing products and services. The report is available
at http://www.accenture.com/us-en/technology/technology-labs/
Pages/insight-industrial-internet-of-things.aspx.

Moving to growth
and value creation
Industrial companies are at varying
stages of adoption of Big Data analytics
and, as with all new technologies,
a maturity curve is emerging that
delineates the early adopters from those
who are at a more foundational level.
One of the first stages in that maturity
curve is connecting operating assets
and performing monitoring and problem
diagnosis. Industrial companies are
focused on moving from this type of
asset monitoring to areas of higher
operational benefits. By introducing
analytics and more flexible production
techniques, manufacturers, for instance,
could boost their productivity by as
much as 30 percent.4
Industrial companies are addressing
their needs for better efficiency and
profitability in two major categories:
asset and operations optimization.
In the area of assets, its clear that
Industrial companies are progressing
in creating financial value by gathering
and analyzing vast volumes of machine
sensor data. Additionally, some
companies are progressing to leverage
insights from machine asset data to
create efficiencies in operations and
drive market advantages with greater
confidence.

Predictive maintenance of assets is

one such area of focus, saving up to
12 percent over scheduled repairs,
reducing overall maintenance costs
up to 30 percent, and eliminating
breakdowns up to 70 percent.5 For
example, Thames Water Utilities Limited,
the largest provider of water and
wastewater services in the UK, is using
sensors, analytics and real-time data
to help the utility respond more quickly
to critical situations such as leaks or
adverse weather events.6
Another example comes from the
Oil and Gas industry, where one of
Americas premier regulated energy
providers, Columbia Pipeline Group, has
placed a particular focus on pipeline
operations and safety. Using existing
asset data integrated with digital
visualizations, analytics and shared
situational intelligence, pipeline operators
can respond to potential events even
faster. This helps prioritize maintenance
tasks, resource allocation and capital
spend more effectively based on risk
assessment.
The movement toward more
sophisticated use of analytics is also
exemplified by fuel consumption
solutions in the airline industry. Fuel is
typically the largest operating expense
for an airline; over the past 10 years,
fuel costs have risen an average of 19
percent per year. The ability to reduce

flight time by using full flight data, tip

to tail, as well as using performance
analytics to combine an aircrafts flight
data, weather, navigation, risk data
and fuel operation, can result in direct
bottom-line savings.
Smart buildings are another prevalent
type of Industrial Internet solution. The
city of Seattle, for example, is applying
analytics to building management data
to optimize equipment and related
processes for energy reduction and
comfort requirements. The software
identifies equipment and system
inefficiencies, and alerts building
managers to areas of wasted energy.
Elements in each room of a building
such as lighting, temperature and
the position of window shadescan
then be adjusted, depending on data
readings, to maximize efficiency.7
Although improving existing operations
through Big Data analytics is highly
valuable, it is, relatively speaking, lowhanging fruit. Moving up the maturity
curve are solutions that go beyond
being proactive to being predictive. For
example, a petrochemical producer
can rely on predictive maintenance
to avoid unnecessary shutdowns
and keep products flowing. Apache
Corporation, an oil and gas exploration
and production company, is using
this approach to predict onshore
and offshore oil pump failures to help
minimize lost production. Executives

Determine how your company compares with others in your industry along the
Industrial Internet maturity curve by engaging with the Industrial Internet Evaluator*
(gesoftware.com/IIEvaluator). See how others in your field are leveraging Big Data
analytics for connecting assets, monitoring, analyzing, predicting and optimizing
for business success.
* Note: Use of the Industrial Internet Evaluator is subject to the terms at the website referenced here.
4. Industry 4.0: Huge potential for value creation
waiting to be tapped, Deutsche Bank Research, May
23, 2014.

5. G. P. Sullivan, R. Pugh, A. P. Melendez and W. D.

Hunt, Operations & Maintenance Best Practices: A
Guide to Achieving Operational Efficiency, Release
3.0, Pacific Northwest National Laboratory, US
Department of Energy, August 2010.
6. Press release, Accenture to Help Thames Water
Prove the Benefits of Smart Monitoring Capabilities,
March 6, 2014.

10

7. Accenture Analytics and Smart Building

Solutions are helping Seattle boost energy efficiency
downtown, Accenture, http://www.accenture.com/
SiteCollectionDocuments/PDF/Accenture-Analyticsand-Smart-Building-Solutions.pdf.

Wed like to take a more holistic approach to

asset maintenanceto look at an asset from
the point at which it went into service across
the entire lifecycle, leveraging analytics to
improve operations.
Matt Fahnestock, Vice President IT Service Delivery,
NiSource Inc., Columbia Pipeline Group

If you generate a small savings on each

flight, it translates to big savings at the end
of the year. Even a 1 percent savings can
translate into millions of dollars.
Jonathan Sanjay, Regional Fuel Efficiency Manager,
Air Asia Berhad

Using Big Data analytics can be powerful. It

moves us beyond being reactive and allows
industries to predict and prevent. There
are challenges with disparate data sources
and varying levels of quality. At Johnson
Controls, we are building an infrastructure
to standardize and manage information.
Ultimately, we want to be able to leverage
predictive analytics to prevent and solve
problems, while continuously improving
processes.
Craig Williams, Vice President, Quality,
Johnson Controls Power Solutions

11

at Apache claim that if the global Oil

and Gas industry improved pump
performance by even 1 percent, it
would increase oil production by half
a million barrels a day and earn the
industry an additional $19 billion a
year.8
The Healthcare industry provides
another example. Technology tools are
enabling providers to collect health data
in real time and then use advanced
predictive analytics techniques to help
uncover what will likely happen next.
By proactively measuring, monitoring
and managing this data, providers
can improve care management and
address risk factors and symptoms
of chronic disease early and provide
positive reinforcement in new and more
effective ways.
One leading US health systems work
in infection, or sepsis, management
is an example of the power of
predictive analytics to improve clinical
delivery. Recognizing that sepsis is a
leading driver of in-hospital mortality,
the medical center defined early
leading indicators of sepsis and used
technology tools to monitor patients to
drive earlier diagnosis and intervention.
The new initiative saved hundreds of
lives and has saved millions of dollars
for the health system.9
In another case, a leading Floridabased hospital and medical center
used real-time tracking and analytics
to optimize patient flow, cutting
emergency department (ED) wait times
by 68 percent. Upon admission, an ED
patient receives a tag. A dashboard
then begins monitoring the patients
journey, combining patient Real-TimeLocation System (RTLS), interfaces
and bed placement timestamps to
evaluate and display real-time patient

throughput metrics. The hospital

was able to achieve shorter lag
time between discharge and patient
pickup, with most ambulatory patients
on their way in about 30 minutes.
These achievements are all the more
impressive given that the hospitals
census continues to rise: the average
patient age is 74 years, and 85 percent
of admissions come through the ED.10
As companies master these higher-level
capabilities they can also move into
innovative, revenue-generating services.
For example, a global energy company
is leveraging analytics to analyze tens
of thousands of data points in a wind
farm every second. With this data,
the company can use data science
to direct a set of performance dials
and levers (speed, torque, pitch, yaw,
aerodynamics and turbine controls) to
fine-tune a wind turbines operation and
help enhance its energy production. By
having this level of control with a single
turbine and leveraging this technology
across a farm, energy providers can
gain up to 5 percent improvement
on power output. With an integrated
approach to providing fuel-powered
energy as well as renewable-produced
energy, analytics can contribute directly
to new revenue streams with positive
bottom-line impact.
Intelligence-based services are likely
to be the answer to Whats next? in
the realm of information technology
and the Industrial Internet. One of
the executives we surveyed as part
of our research offered an insight
behind the urgency to implement more
innovative kinds of Industrial Internet
solutions based on Big Data analytics:
information technology needs to move
from the era of automation-based
savings alone to an era of intelligence
and value creation.

8. Scott MacDonald and Whitney Rockley, The

Industrial Internet of Things, McRock Capital.
9. Better Than a Crystal Ball: The Power of Prediction
in Clinical Transformation, Accenture, http://www.
accenture.com/SiteCollectionDocuments/PDF/AccentureCystal-Ball-Power-Clinical-Transformation.pdf.
10. Losing the Wait, GE Healthcare.

12

But are companies

up for the
challenge?
Are companies ready for more
predictive and innovative kinds of
value-creating solutions? The answer
here is mostly Not yet, but they are
actively positioning themselves for
such solutions. Asked to describe their
current capabilities in Big Data analytics,
almost two-thirds of respondents (65
percent) are focusing on monitoring
the ability to monitor assets to identify
operating issues for more proactive
maintenance. Fifty-eight percent
have capabilities such as connecting
equipment to collect operating data and
analyzing the data to produce insights.
However, only 40 percent can predict
based on existing data, and fewer still
(36 percent) can optimize operations
from that data. (See Figure 5.)
This finding is validated by other
responses. When asked about their
progress in managing business
operations, only one-fourth said they
had predictive capabilities and only 17
percent indicated the ability to optimize.
In a separate query, when asked about
capabilities on the analytics spectrum
from connect to monitor to analyze
to predict to optimize, answers were
primarily on the lower end of that
spectrum. Only 13 percent indicated the
ability to optimize, and 16 percent said
they did not fall on the spectrum at all.
(See Figure 6.) However, connecting,
monitoring and analyzing are necessary
precursors to development of predictive
models and optimization capabilities,
so the advancement of industrial
companies along the maturity curve
positions them to take advantage of
more sophisticated Big Data analytics.

Figure 5: Current Big Data analytics capabilities are stronger in the areas of monitoring and connecting equipment than in
Figure 5:
predicting
issues and optimizing operations
In my company, our current capabilities around Big Data analytics include the ability to: (Multiple responses.)
In my company, our current capabilities around Big Data analytics include the ability to (multiple responses):

Monitor equipment/assets to identify operating

issues for more proactive maintenance

65%

Connect equipment/assets and collect

operating data

58%

Analyze data to provide useful insights

58%

Gain operational insights that lead to better

decisions

57%

Consolidate and correlate data from various sources

to feed analytic insights

48%

Predict based on existing data

40%

Optimize (e.g., operations, workforce

efficiencies, business decisions)

36%

Other

0%

None of the above 2%

Source: GE Insights, September 2014

Base: Total sample; n=254

Q10

Figure 6: Companies Big Data capabilities are strongest in the area of analysis

Figure 6:
big data
capabilities
average
across where
the company,
where do
On averageOn
across
the company,
do your company's
Bigyour
Datacompanys
analytics capabilities
fallanalytics
on the spectrum
below? fall on the spectrum below?

35%

18%

19%
16%
13%

Connect

Source: GE Insights, September 2014

Monitor

Analyze

Predict

Figure 5
13

Optimize

Moving
from todays
implementation
to tomorrows
strategies

However, when asked about future

plans, respondents stated their
priorities in more ambitious plans
for analytics: increasing profitability
(60 percent), gaining a competitive
advantage (57 percent) and improving
environmental safety and emissions
(55 percent) represent more pervasive,
cross-functional and sophisticated use
of analytics.

What does the roadmap of surveyed

companies look like in the next one
to three years? Understandably, initial
investments are focused in areas
representing the connection and
monitoring of assets for improving the
ability to react and repair and move
toward zero unplanned downtime.

Breaking this out by business line,

individual strategies emerge for
particular industries. As shown in
Figure 7, survey respondents were
asked what their top three priorities
were for the next one to three years.
The shaded areas indicate the
highest-ranked priorities, by industry.

Figure 7: Top business priorities, by industry

Highest-ranked priorities

Priorities: 1-3 years

Aviation

Wind

Power
Generation

Power
Distribution

Oil & Gas

Rail

Manufacturing Mining

Increase profitability
through improved resource
management

61%

71%

56%

59%

56%

67%

58%

55%

Gain a competitive edge

58%

55%

53%

69%

50%

50%

76%

48%

Improve environmental
safety and emissions

39%

61%

50%

75%

59%

43%

52%

58%

Gain insights into customer

behaviors, preferences and
trends

58%

61%

47%

56%

38%

60%

70%

39%

Gain insights into

equipment health for
improved maintenance

55%

48%

34%

56%

47%

73%

67%

39%

Drive operational
improvements and
workforce efficiencies

42%

48%

41%

72%

44%

53%

55%

64%

Create new business

opportunities with new
revenue streams

45%

61%

34%

53%

47%

40%

52%

58%

Meet or exceed regulatory

compliance

32%

39%

41%

63%

50%

33%

39%

39%

14

In the 60s through the 90s, railroads

focused on manpower reduction by
automating processes. But we have greatly
exhausted that. Now the focus is on better,
more informed and intelligent decisions. This
is coming from several directions, but top
down more so than bottom up.
Fred Ehlers, Vice President - Information Technology,
Norfolk Southern Corporation

The impact of unplanned downtime on industrial

companies is real and significant. See how
unplanned downtime impacts industries from
Aviation, to Oil and Gas, to others. Learn more.
(gesoftware.com/the-power-of-ge-predictivity)

15

Big Data analytics in

the healthcare industry:
A diagnosis
Among the healthcare organizations we surveyed as
part of our Industrial Internet research, an overwhelming
majority acknowledged the critical role of analytics
in driving improved clinical, financial and operational
outcomes. These organizations feel that analytics will
have the power to dramatically improve patient outcomes,
even in the next year. However, challenges around system
barriers between departments, budgetary constraints and
organizational obstacles are impeding implementation of
their analytics initiatives.

In the past, decision-making was more

straightforwarddoctors simply made a decision based
on knowledge of the domain, personal experience, and
evaluation of the patient's physical signs and symptoms
plus relevant diagnostic laboratory data. Now there is
much more data available to the clinician that requires
additional expertise and having the right people with
the right skills to interpret the databiostatistics,
epidemiology, health informaticists, other health
professional clinicians, and so forth. Caring for patients
is now a team activity, and learning to work in teams is
an important skill for physicians to acquire.
Christopher C. Colenda, MD, MPH
President and Chief Executive Officer,
West Virginia United Health System

16

Big Data analytics in the healthcare industry: A diagnosis

Positive outcomes
More than half of the healthcare
executives surveyed believe that
analytics can drive a variety of positive
outcomes for their organizations,
including improved diagnostic speed
and confidence (named by 54 percent
of respondents); reduction in patient
wait times and length of stay (56
percent); and better clinical outcomes
and patient satisfaction scores (59
percent). Fifty-seven percent of
respondents overalland 66 percent
of operations-focused respondents
named improved healthcare system

profitability as an important business

impact of analytics.
In the next one to three years, these
healthcare organizations see Big
Data analytics driving several kinds
of positive results in particular. The
top outcome named (by 44 percent
of respondents) was the ability
of analytics to integrate a view of
clinical, financial and operational
datadata that is currently spread
across multiple disparate systems.
The second outcome cited was
the ability to provide unified patient
records (38 percent). Perhaps not
surprisingly, 34 percent of operations-

focused respondents (compared

with 25 percent of clinical-focused
respondents) looked to the outcome
of predictive analytics that provides
actionable insights into opportunities for
operational improvements.
Asked to name their best current
capabilities around analytics, top
answers focused on improving
patient flow (56 percent); tracking and
monitoring the utilization of healthcare
equipment (49 percent); tracking
clinical, financial and operational
measures (46 percent); and managing
workforce productivity and engagement
(46 percent). (See Figure 8.)

Figure 8: Healthcare companies strongest capabilities in Big Data analytics

In my organization, our current capabilities around analytics include the ability to:
(Multiple responses)
Improve patient flow

56%
59%
58%

Track and monitor the utilization and location of

healthcare equipment

49%
51%
46%

View/track clinical, financial, and/or operational

performance measures

46%
43%
48%

Manage workforce productivity and engagement

46%
47%
50%

Streamline workflows

38%
41%
36%

Optimize clinical procedures to drive improved patient

outcomes

36%
31%
40%

Connect information across the care continuum

36%
37%
40%

Consolidate and correlate patient data for analytic

insights

33%
29%
38%

Proactively manage defined patient groups/populations

31%
33%
32%

Optimize reimbursement rates

31%
31%
30%

Benchmark performance against my peers across

clinical, financial, and/or quality performance measures

31%
27%
34%

Minimize payment cycles

26%
27%
24%

Overall (n=61)
Clinical (n=51)
Operations (n=50)

17

Big Data analytics in the healthcare industry: A diagnosis

Shaking up the
healthcare space

leveraging analytics as a key strategy

over the past two to three years.

Big Data analytics is both a

promise and a threat to healthcare
organizations. Three-fourths of
those surveyed believe that the use
of analytics has the power to drive
a productivity transformation in
healthcare in the next year, and 87
percent believe it will do so over the
next three years.
Eighty-four percent of respondents
agree that healthcare providers who
adopt an analytics strategy in the
next one to three years will outpace
their peers in the marketplace. And
74 percent have seen competitors

The threat of analytics-based

competition is on the minds of
healthcare executives, especially if
they are unable to integrate analytics
into clinical and operating processes
in the coming years. Seventy-four
percent of respondents named losing
qualified talent to competitors as one
of their three greatest fears; another
70 percent were concerned that their
financial performance would cease
to be competitive in the marketplace;
two-thirds feared that other healthcare
providers would make greater
headway in providing the highestquality care. (See Figure 9.)

Figure 9: Top concerns of companies if they are unable to effectively integrate

analytics capabilities
If we are unable to integrate analytics into our clinical and operating
process in the next one to three years, my top three fears are:
We will start to lose qualified
talent to competitors

74%
75%
74%

Our financial performance

will cease to be competitive
in the marketplace

70%
69%
74%

Other healthcare providers will

make greater headway in providing
the highest-quality care
We will not be able to effectively
integrate our operations across
the continuum of care
I don't believe there will
be any impact

We have already implemented

our analytics strategy

66%
65%
68%
61%
63%
60%
2%
2%

2%
2%
2%

Overall (n=61)
None of the above

7%
6%
6%

Clinical (n=51)
Operations (n=50)
18

Expectations are
high and driven
by the Board
Overwhelming percentages of
healthcare respondents are already
seeing positive outcomes from their
analytics investments. Ninety percent
or more of healthcare organizations
lay claim to having successfully
implemented analytics related to
improving patient outcomes and to
driving improvements in operational
efficiency.
Relative to their competitors,
about one-third of healthcare
organizations (31 percent) claim
that they are significantly ahead of
the game in the area of analytics,
with another 39 percent saying they
are at least somewhat ahead of the
competition. Only 2 percent of those
surveyed claim to be lagging behind
competitors in this area.
A look at investment levels reveals
that healthcare companies are
not investing to the same level as
industrial companies, but percentage
of budget is still significant. About
half of all healthcare organizations
surveyed (clinical, 53 percent;
operations, 50 percent) are investing
from 11 to 20 percent of their
overall technology budget on Big
Data analytics. About one-third are
investing more than 20 percent; by
contrast, 73 percent of industrial
companies are investing at that level.
(See Figure 10.) Asked to name their
top three challenges in implementing
analytics solutions, the number one
response was budget constraints
are slowing our analytics initiatives.

Big Data analytics in the healthcare industry: A diagnosis

Even if investment is not at the

same levels as industrial companies,
executive commitment is strong: Big
Data analytics strategies are being
driven from the very top of these
organizations. Eighty-two percent
of respondents said their Board of
Directors is either a primary or strong
influencer of the analytics adoption
strategy at their company. Almost as
many (77 percent) named the CEO as
a driving force. By contrast, just 43
percent named the CIO as the strong
or primary influencer and 52 percent
named the COO.

An urgency to
deliver improved
patient outcomes
Healthcare organizations, unlike
their industrial counterparts, have a
greater focus on how analytics can
drive better patient care rather than
as a means to achieve competitive
advantage. For example, the
perceived threat level posed by
analytics-based competition appears
to be lower than among the industrial
companies surveyed. There, recall,
74 percent said that their main
competitors are leveraging Big Data
analytics proficiencies to differentiate
their capabilities. Only 30 percent of
healthcare executives had that fear.
Instead, the power of analytics to
improve patient outcomes was a
greater concern for respondents.
Over half (54 percent) stated that their
competitors were already gaining
analytic insights in operations and
52 percent thought their competitors
viewed analytics as a strategy to drive
patient outcomes. (See Figure 11.)

Figure 10: Percentage of technology spend on analytics initiatives

What portion of your overall technology expenditure is made in
analytics initiatives?
Overall (n=61)

34%

Clinical (n=51)

49%

31%

Operations (n=50)

13%

53%

34%

14%

50%

More than 20%

11%-20%

5%-10%

12%

3%

2%

4%

Less than 5%

Figure 11: Perceptions of competitors analytics capabilities

My understanding of other healthcare providers with analytics capabilities is
that they: (Multiple responses)

Are gaining analytic

insights in at least one
area of their operations
View analytics as a
strategy to drive improved
patient outcomes
Have made significant
progress in the ability to
capture and store data
for analytic purposes

54%
59%
58%
52%
51%
56%
46%
49%
48%

Have publicly stated

their intent to optimize
their operations by
leveraging analytics

44%

Are leveraging their

analytics proficiencies
to differentiate
their capabilities

30%

45%
48%

25%

figure 10
Have no visible plans to
leverage analytics

36%

7%

4%

6%

19

Overall (n=61)

Clinical (n=51)

Operations (n=50)

Big Data analytics in the healthcare industry: A diagnosis

The top three capabilities targeted for

development in the next three years
indicate that healthcare organizations
are planning on building out the
infrastructure required for leveraging
analytics. Forty-four percent said they
are planning to build an integrated
data source for patient information;
43 percent noted plans to create an
analytics platform for managing large
volumes of data; and 41 percent
claimed to be developing analytics
capabilities that drive improvements in
clinical performance. (See Figure 12.)

Talent issues
What kinds of talent and
competencies will be needed in the
analytics area in the coming years
to help healthcare organizations
succeed? Two-thirds of respondents
named patient-care analytics as the
most important competency; 51
percent cited software development/
engineering. Far fewer (38 percent)
cited the need for data scientists.
The surveyed executives seemed
relatively unconcerned about talent

shortfalls. Asked to rank their top three

challenges, only 23 percent named
Talent acquisition is impacting our
ability to understand and realize the
potential from our collected data.
Perhaps related to this last point is
the fact that healthcare executives are
more open than their industrial peers
to using external analytics providers.
Sixty-one percent intend to pursue
relationships with providers who are
experts in their industry and who
can quickly translate their needs into
analytics solutions.

Figure 12: Top analytics capabilities targeted for development

Which of the following are you planning to build or grow over the next three years? (Multiple responses)

Integrated data source for

patient information
Analytics platform for managing
large volumes of data
Analytics capabilities that drive improvements
in clinical performance
Automated tracking of patient
and staff flow
Mobile capabilities for improved staff
productivity/patient care
Adoption of cloud-hosted model
for analytics solutions
Automated external reporting
(e.g., CMS, Joint Commission, MU)
Tracking and reporting compliance
Monitoring healthcare equipment
to ensure greater availability
Analytics capabilities that drive improvements
in financial performance
Analytics capabilities that drive improvements
in operational performance
Enterprise data warehouse
Automating manual workflows

44%
45%
48%
43%
39%
48%
41%
41%
44%
38%
35%
40%
34%
35%
36%
34%
31%
36%
31%
29%
30%
31%
33%
34%
28%
27%
32%
25%
24%
28%
25%
25%
22%
21%
22%
20%

Overall (n=61)

18%
16%
18%

Clinical (n=51)
Operations (n=50)
20

Big Data analytics in the healthcare industry: A diagnosis

Driving better patient

outcomes
Healthcare organizations clearly
understand the potential of analytics
to drive better patient outcomes
and operational efficiencies. With
board-level support, will they be
able to translate that commitment
to budgetary support to build the
right infrastructure, overcome system
barriers and attract the talent needed

to realize their vision? With outcomes

such as better clinical results,
improved profitability and improved
diagnostic confidence (see Figure
13), it is unlikely that any provider will
wish to lag in realizing the wide range
of benefits that analytics can deliver.

Being successful at Big

Data requires putting the
foundational elements
in placeallocation of
strategy, capital and
mindshare.
David Hefner, CEO (retired), Georgia
Regents Medical Center

Figure 13: Likely outcomes delivered by analytics capabilities

Outcomes most likely to be impacted by analytics in our organization include: (Multiple responses)

Better clinical outcomes and patient

satisfaction/HCAHPS scores

59%
61%
62%

Improved healthcare system profitability

57%
55%
66%

Reduction in patient wait

times and/or length of stay

56%
55%
54%

Improved diagnostic speed and confidence

54%
57%
54%

Increased clinician and

workforce productivity

51%
53%
54%

Reduction in operating costs through

improved asset management

49%
51%
54%

Improved coordination across

the care continuum

48%
47%
48%

Reduction in cost of treating

chronic disease

38%
39%
38%

Reduction in preventable
adverse events (e.g., HAIs)

33%
31%
34%

Overall (n=61)
Clinical (n=51)
Operations (n=50)

21

Becoming an
Industrial Internet
value creator
What can companies do today to start
advancing their Industrial Internet capabilities
on the maturity curve to more valuecreating activities? Based on our research
and experience, here are several actions to
consider.

22

Invest in end-toend security

The value of the Industrial Internet
is being brought to bear due to
the confluence of a multitude
of technology enablers such as
cloud, mobility, Big Data and
analytics. These technologies,
while innovative and even gamechanging, nevertheless can expose
a company to security risks. Indeed,
the survey found that one of the top
three challenges to deliver on the
promise of the Industrial Internet
is security (35 percent). Security
is of special concern in the Power
Generation sector. (See Figure 14.)
Although these results are not
surprising, what is concerning is that
less than half (44 percent) feel they

have end-to-end security in place

against cyber-attacks and data leaks.
This has enterprise-wide implications.
The tools and technologies
leveraged to protect companywide assets would be appropriate
in the operational technology (OT)
environment as well. IT and OT leaders
responsible for security policies
related to the Industrial Internet should
consider the following best practices:
Assess the risks and consequences.
Use experts to evaluate and fully
understand vulnerabilities and
regulations to prioritize the security
budget and plan.
Develop objectives and goals.
Set the plan to address the most
important systems with the biggest,
most impactful and immediate risks.

Enforce security throughout

the supply chain. Incorporate
robustness testing, and require
security certifications in the
procurement process to ensure
vendor alignment.
Utilize mitigation devices
designed specifically for
Industrial Control Systems
(ICS). Use the same effort given to
the IT side to ensure ICS-specific
protections against industrial
vulnerabilities and exploits on the
OT side.
Establish strong corporate buyin and governance. Gather internal
champions, technical experts,
decision-makers and C-level
executives to ensure funding and
execution of industrial security best
practices.

Figure 14: Percentage of companies, by industry, that named security as a top three challenge
Security concerns are impacting our ability to implement a wide-scale Big Data initiative

Aviation

32%

Wind

39%

Power Generation

31%

Power Distribution

44%

Oil & Gas

34%

Rail

37%

Manufacturing

27%

Mining

39%

Security concerns are impacting our ability to implement a wide-scale big data initiative

23

Break down the

barriers to data
integration
Asked to name the top three
challenges faced in implementing Big
Data analytics initiatives, the answer
most frequently appearing (36 percent)
was System barriers between
departments prevent collection and
correlation of data for maximum
impact. In addition, for 29 percent of
executives, a top-three challenge was
in the consolidation of disparate data
and being able to use the resulting data
store. (See Figure 15.)
All in all, only about one-third of
companies (36 percent) have adopted
Big Data analytics across the

enterprise. More prevalent are initiatives

in a single operations area (16 percent)
or in multiple but disparate areas (47
percent).
The lack of an enterprise-wide analytics
vision and operating model often
results in pockets of unconnected
analytics capabilities, redundant
initiatives and, perhaps most important,
limited returns on analytics investments.
New technologies such as data lakes,
combined with Industrial Internet
capabilities, enable operators to funnel
sensor data from various networked
machines onto a single platform. From
there, massively parallel processing
capabilities analyze the data as a
unified whole rather than as a billion
separate bits of information, each with
its own individual file path.11

Data management itself will be a core

skill set. Industrial companies report
that a vast amount of the time is
consumed by accessing, cleansing,
manipulating and consolidating
machine data before data scientists
can examine the resulting datasets
to create predictive models. Breaking
down organizational, data and system
silos will be both a requirement and an
outcome of companies implementing
their Big Data strategiesat least
the ones that hope to generate the
greatest benefits from their efforts.
Given these findings about data silos,
it is not surprising that our survey data
shows a move toward centralization
of the analytics function in one
way or another. For 50 percent of
executives surveyed, their companies
are moving toward either an overall

Figure 15: Top challenges in implementing Big Data initiatives, overall

Please rank the top three challenges your organization faces in implementing Big Data initiatives:
Security concerns are impacting our ability to implement
a wide-scale Big Data initiative

14%
35%

Consolidation of disparate data and being able to

use the resulting data store are difficult

13%
29%

System barriers between departments prevent collection and

correlation of data for maximum impact

12%
36%

Quality and cost of collecting machine data are a barrier

9%
23%

The integrity of the network for transmission of

massive amounts of data is not reliable enough

9%
28%

Talent acquisition is impacting our ability to understand and

realize the potential from our collected data

8%
26%

Organizational barriers prevent effective

cross-departmental use of analytics

7%
22%

Poor data quality or lack of confidence in the data

6%
26%

Budget constraints are slowing our Big Data

analytic initiatives

6%
26%

Reliance on multiple vendorsno integrated solutions

5%
20%

Other
We are not experiencing any challenges
with our Big Data initiatives

0%
10%
10%

Top
Top 3

11. Ideas Lab, Trawling for Big Insight in the Industrial Data Lake,
GE Ideas Lab Staff, August 15, 2014.

24

We arent planning to just aggregate Big Data.

We are gearing up to re-engineer the business
around this capability.
Matt Fahnestock, Vice President, IT Service Delivery, NiSource Inc.,
Columbia Pipeline Group

The biggest challenge was the data itself

to get it to the right system and to the right
person. It seems so easy for data to be
transferred, but its notits much more
difficult than people realize.
Jonathan Sanjay, Regional Fuel Efficiency Manager, Air Asia

25

We had more data

than we could actually
use; it was good to
have this information,
but you need resources
to analyze the data,
derive best practices
and generate new
flight plans. There were
not enough resources
to interpret the data.
Jonathan Sanjay, Regional Fuel
Efficiency Manager, Air Asia

Once standards
and practices are
established, it
becomes easier and
more manageable
to carry out higher
and higher levels of
IT/OT integration that
go beyond time and
costs savings to value
creation via data
visibility and agile
availability of data.

centralized group to manage Big Data

analytics initiatives or a coordinating
group within the IT function. Half of
these companies (49 percent) also
intend to appoint a Chief Analytics
Officer responsible for business and
implementation strategies concerning
analytics. (See Figure 16.)
Bringing the OT and IT divisions
together to deliver on the value of the
Industrial Internet will be key to driving
maximum benefits. Only 26 percent
are considering merging the IT and
OT organizations to deliver analytic
solutions. IT/OT convergence is an
important objective because:
Two of the top three challenges as
discovered in the surveysystem
barriers between departments
(36 percent) and disparate data
(29 percent)would be greatly
mitigated by being addressed by
jointly held OT/IT responsibility. The
OT executives would have clear
visibility of operational processes,
data stores and usage, while the
IT executives would have the
line of sight to new technologies
that would help mitigate the data
integration issues.
As other organizations leverage
asset data outside of the Operations
arena, such as in Finance for capital
management purposes, the need for
consolidation and business-focused
analytics to derive valuable insights
will drive the OT/IT convergence.

Focus on talent
acquisition and
development
Executives surveyed are aware of their
own talent shortfalls in the area of Big
Data analytics and the critical nature
of sourcing and developing the talent
needed to succeed in these areas.
About half of those surveyed note
that they have talent gaps in several
critical areas including analyzing data,
interpreting results, and gathering and
consolidating disparate data. (See
Figure 17.)
Hiring talent with the expertise
needed is the most obvious remedy
to the talent gap issue, named by 63
percent of survey respondents. Yet
the fact is that there wont be enough
experienced talent to go around in this
burgeoning area of Big Data analytics.
Indeed, shortages in the number of
data scientists are projected, as well
as the number of managers capable of
using Big Data analyses to make good
decisions. Another option favored by
55 percent of executives is to partner
with organizations such as universities
to groom the talent needed. This is
an option being used at one of the
aviation companies surveyed.
The use of skilled external talent
experts in an industry who can quickly
translate business needs into analytics
solutionsis also an option favored
by more than half of respondents (54
percent). (See Figure 18.)
When it comes to retaining talent for
augmenting internal skills, industry
knowledge is key to success (30
percent), exceeding analytics talent
alone (24 percent). However, it is those
who hold both industry knowledge
and analytics skills who would be
preferred by most industrial companies
(43 percent). (See Figure 19.)

IT and Operational Technology

Alignment Innovation Key
Initiative Overview,
Kristian Steenstrup,
Vice President and Gartner Fellow,
Gartner Research, 26 March 2014

26

Figure 16: Anticipated organizational changes to implement Big Data analytics

Which of the following organizational changes have occurred or do you expect will occur to support your companys
use of analytics? (Multiple responses)
A centralized group will be formed that manages all Big
Data analytic initiatives

50%

A group within our IT organization will lead all

analytic initiatives

50%

A Chief Analytics Officer will be appointed,

responsible for our business and implementation
strategy around analytics

49%

A group within our OT (operations technology)

organization will lead analytics initiatives

29%

Our IT and OT organizations will either merge or

jointly lead analytics activities

26%

None of the above

3%

Figure 17: Talent gaps in the area of Big Data analytics

In which of the following areas do you have gaps in your talent? (Multiple responses)

Analyzing data

56%

Interpreting results

48%

Gathering and consolidating disparate data

48%

"Bridge" roles (people with ability to analyze data,

interpret and tell the story)

42%

Storytelling

28%

Other

0%

We have no talent gaps

9%

figure 16
27

Figure 18: Strategies to fill talent gaps in Big Data analytics

Which of the following will your company pursue to ensure you have the talent needed to fulfill
your Big Data analytics strategy?
Hire new talent with the expertise we need

63%

Partner with organizations that have the talent we

need (e.g., universities, specialty companies,
technology vendors)

55%

Work with Big Data analytics providers who are

experts in our industry that can quickly translate
our needs to analytic solutions

54%

Use existing in-house resources (provide training

as needed)

46%

Acquire companies with Big Data analytics

expertise

39%

Work with Big Data analytics providers who have deep

expertise in the field of Big Data analytics and Big Data
processing (but not necessarily in my industry)

33%

Other

0%

When choosing an outside consultant for a Big Data Analytics initiative, I would choose

Figure
19: Desired qualities in outside consultants in Big Data analytics
someone with:

When choosing an outside consultant for a Big Data analytics initiative, I would choose someone with:

24%
30%

Deep industry knowledge

73%
3%

Both industry knowledge and analytics

experience

43%

Analytics cross-industry experience

N/A, we do not hire outside consultants

for Big Data analytics initiatives

figure 18
28

Talent acquisition is difficult in the

maintenance-engineering world. Experience
is a good thing, but Qantas has a relationship
with universities where we recruit double
degree majors: aero engineering and
computer programming. Personally, I feel
that this is the best combination of skills.
Bertrand Masson, Manager Aircraft Performance
and Fleet, Qantas Airways Ltd.

29

When it comes to incident response, our

regulators are requesting that we review
and plan with so much more information
than before. Its now in one data mart; all
of the information is available and will
play a large role in saving us time and
money in the whole regulatory process.
Matt Fahnestock, Vice President, IT Service Delivery,
NiSource Inc., Columbia Pipeline Group

30

Consider new
business models
needed to be
successful with the
Industrial Internet
To begin moving up the maturity curve
of Industrial Internet solutions, it is
important to think boldly about the
new business models needed. As
noted earlier, digital services based
on Big Data analytics capabilities
represent an important evolution of the
Industrial Internet. Some companies
are already converting products into
product-service hybridsintelligent
physical goods capable of producing
data for use in digital services. These
services enable companies to create
hybrid business models, combining
the benefits of operational efficiency
with recurring income streams from
digital services. These digital services
will also enable firms in resourceextracting and process industries to
make better decisions, enjoy better
visibility along the value chain and
improve productivity in other ways.

Begin by asking: What productservice hybrids beyond remote

monitoring and predictive asset
maintenance resonate with our
customers and our customers
customers? What product, service and
value can we deliver to clients? How
prepared are we to accelerate our
move toward a services-and-solutions
business model? How do we develop
and add the talent we need to be
successful?
Focus on rapidly progressing to
predictive analytics and optimization
capabilities to derive the greatest value
from operational insights.
Asset Performance Management
(APM), at its baseline level, delivers
value to industrial companies by
monitoring availability and performance
of assets across the entire enterprise.
However, predicting equipment
outages for proactive action, before a
catastrophic event can occur, results
in significantly greater value with
increased overall productivity. Taking it
to the next leveloptimizationwill allow
for greater insights that can be used
for business trade-offs. For example,
with complete visibility into output from
a fleet of power generation plants, an
energy trader can execute optimal
transactions in the market, leading to
greater profitability.

31

It is also important to think about

tomorrows partner ecosystem.
Companies will work with partners
and suppliers to create and deliver
services as well as reach potential new
customers. Think of the partnering
taking place among farm equipment,
fertilizer and seed companies, and
weather services, and the suppliers
needed to provide IT, telecom,
sensors, analytics and other products
and services. Ask: Which companies
are also trying to reach my customers
and my customers customers? What
other products and services will talk to
mine, and who will make, operate and
service them? What capabilities and
information does my company have
that they need? How can we use this
ecosystem to extend the reach and
scope of our products and services
through the Industrial Internet?

Actively manage
regulatory risk
A full 55 percent of industrial
companies surveyed indicated that
improving environmental safety or
emissions was part of their data
strategy over the next one to three
years. Additionally, 42 percent of
industrial companies reported that
meeting or exceeding regulatory
compliance was part of their
companys strategy in that same time
period.
Industrial companies experience
myriad regulatory requirements around
safer operations, better emissions
controls and more effective use of
resources such as water. Companies
can leverage the capabilities of Big
Data to help actively manage their
operating environment and risk profile.
Ways that Big Data analytics can
assist include:
Predictive maintenance that
identifies equipment issues for early
and proactive action, creating better
operating equipment that lowers
overall emissions.
Wide-reaching monitoring and
diagnostics systems that can
identify an equipment failure early,
before it becomes a catastrophic
event.
Monitoring and managing the
processing of water within an
operating plant, reducing overall
water use and, in some cases,
enabling the use of recycled water.

Leverage mobile
technology to
deliver analytic
insights
The research revealed that less than
50 percent of survey respondents
currently have integrated user
experience capabilities. Yet, industrial
workers do their jobs in physically
challenging circumstances that give
them limited ability to interact with
software and devices while they
work. Traditional user interfaces and
interaction paradigms that were
created to be suitable for desk-based
enterprise environments are not always
appropriate for people working in
places like locomotive yards, power
plants and offshore drilling platforms.
This means there is a substantial unmet
need to deliver information to Industrial
Internet users in a manner that is
aligned with how they work day to
day. New user experience approaches
should be developed to support the
following:
Hands-free (and sometimes
eyes-free) interactions. Industrial
workers typically work with their
hands, which means that interacting
with screens and buttons requires
them to put down tools and
disengage from the task at hand.

Leveraging the historical records

that machine data provides to be
used when an audit question arises.

32

Meaningful integration of data

and tools. Current industrial
software is siloed and requires
users to interact with numerous
systems and screens to accomplish
even basic tasks. This creates
sizeable time inefficiencies and
requires workers to dedicate
mental resources to memorizing
how to operate complex software
rather than performing core job
responsibilities.
Data-driven, collaborative
workflows. Analytics and
collaboration tools hold huge
promise to improve the effectiveness
of industrial workers, but will require
changing how people work from
reactive, standardized workflows to
anticipatory and adaptive ones.

Mobility comes into play for our industry.

A guy in the field can now, in real time,
provide information about assets and status.
Before, he used to have to get in his car,
drive home, wait till the next day and
then enter the data.
Matt Fahnestock, Vice President, IT Service Delivery,
NiSource Inc., Columbia Pipeline Group

For Big Data initiatives, we do it ourselves and

rely on vendors. We look for systems integrators
and partners who both understand operations
and bring analytics resources to bear.
Fred Ehlers, Vice President, Network and Service Management,
Norfolk Southern

33

Conclusion
Industrial companies are rapidly
implementing programs to realize
financial gains from the Industrial
Internet, motivated by the potential
for high-order benefits and the
threat of competitor advancement.
While current implementations
consist of asset monitoring,
diagnostics and fundamental
analysis, the lure of game-changing
market shifts and the need for
strong regulatory compliance are
driving investments in predictive
analytics and optimization for
decision-making. Overcoming
barriers such as data silos and lack
of robust security will not be easy.
However, its clear the race is on
with urgency across the executive
team and with board-level focus.

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About GE
GE {NYSE: GE} works on things that
matter. The best people and the best
technologies taking on the toughest
challenges. Finding solutions in energy,
health and home, transportation and
finance. Building, powering, moving and
curing the world. Not just imagining. Doing.
GE works. For more information, visit the
companys website at www.ge.com.

Copyright 2014 General Electric

Company. All rights reserved.
GE and the GE Monogram are trademarks
of General Electric Company.
Copyright 2014 Accenture.
All rights reserved.
Accenture, its logo, and High Performance
Delivered are trademarks of Accenture.
This document is intended for general
informational purposes only, does not
take into account the readers specific
circumstances, and may not reflect the
most current developments. Accenture and
GE disclaim, to the fullest extent permitted
by applicable law, any and all liability for
the accuracy and completeness of the
information in this document and for any
acts or omissions made based on such
information. Accenture and GE do not
provide legal, regulatory, audit, or tax advice.
Readers are responsible for obtaining such
advice from their own legal counsel or other
licensed professionals.

About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with more than
305,000 people serving clients in more
than 120 countries. Combining unparalleled
experience, comprehensive capabilities
across all industries and business functions,
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most successful companies, Accenture
collaborates with clients to help them
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governments. The company generated net
revenues of US$30.0 billion for the fiscal
year ended Aug. 31, 2014. Its home page is
www.accenture.com.

About GE and Accenture Alliance

GE and Accenture have formed a strategic
global alliance to develop technology and
analytics applications that help companies
across a range of industries take advantage
of the massive amounts of industrial
strength big data that is generated through
their business operations. The alliance
expands on Accenture and GEs relationship
announced in 2012 with the establishment
of Talerisa joint venture company
between GE Aviation and Accenture
dedicated to providing airlines and cargo
carriers around the world with Intelligent
Operations services to predict, prevent
and recover from operational disruptions.