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BEST PRACTICES RESEARCH
© Frost & Sullivan 2015 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Application Convergence Impact and Customer Impact ............................................. 3
Best Practice Visual .............................................................................................. 7
Conclusion........................................................................................................... 7
Significance of Growth Excellence through Application Convergence ................................. 8
Understanding Growth Excellence through Application Convergence ................................. 8
Key Benchmarking Criteria .................................................................................... 9
Best Practice Award Analysis for GE Predix .................................................................... 9
Decision Support Scorecard ................................................................................... 9
Application Convergence Impact .......................................................................... 10
Customer Impact ............................................................................................... 10
Decision Support Matrix ...................................................................................... 11
The Intersection between 360-Degree Research and Best Practices Awards ..................... 12
Research Methodology ........................................................................................ 12
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 13
About Frost & Sullivan .............................................................................................. 14
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Background and Company Performance Industry Challenges
A new form of industrial revolution is currently being experienced: the shift from
traditional analogous operations to digitalized processes. As industries find themselves at
the cusp of this digital makeover, they must seek answers to the challenges they face in
this constantly changing business environment.
As all industries depend on fixed and variable resources to function, directly or indirectly
they are impacted by the volatility of the prices of these resources. While a fall in prices
may be detrimental to the business of oil and gas companies, it is a boon for consumers.
It, however, remains a challenge for companies to align their operations with the
fluctuating nature of prices.
As an enterprise becomes increasingly digitalized, large amounts of data are generated
across the operations. However, as these operations are often disparate, Frost & Sullivan
points out that the data thus generated is siloed and not integrated. As such, creating
holistic insights significantly becomes a challenge as the data is incongruent. The aspect of
siloed data collection, data transparency, integration and visualization makes analytics a
complex process.
Another challenge faced by companies is the increasing vulnerability of data. As more and
more devices and machines get connected, each becomes a point of vulnerability.
Cybersecurity is a growing concern for digitalizing industries, especially due to the
sensitive nature of the data generated. Ensuring the safety of software platforms and
applications to enable secure operations, while saving on money, time, and resources,
remains a daunting task ahead of the complete digitalization of enterprises.
Application Convergence Impact and Customer Impact
Completeness of Vision
Companies and industries embracing digitalization are increasingly moving towards the
vision of a totally integrated digital enterprise. To achieve this vision, Frost & Sullivan
notes that companies must look at ways to incorporate not only the Internet of Things
(IoT), but also connect machines and people through a common platform.
GE’s software platform – Predix - provides industries with an innovative software
technology platform that optimizes industrial processes, assets, and operations. Predix
can be deployed on machines, in situ or in cloud, to connect the devices and machines on
the floor. Apart from device integration, data assimilation and management, data
analytics, and mobility are also provided with the help of the same platform. Predix
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connects machines with people and generates insights based on the data created through
the enterprise. The platform supports the development of cloud-based analytics
applications that take into consideration the operational data to generate targeted action
points for better decision-making.
Frost & Sullivan appreciates the fact that a major challenge overcome by GE Predix is the
integration of disparate data sources. Predix brings together the operational technology
end of the business and the information technology end. This marriage of formerly distinct
ends of the spectrum creates synergies that impact the complete organizational structure
through insights that can be generated with it. Applications like SCADA, PLC, and
Gateways from the operational end of the enterprise are brought in conjunction with
supply chain management, enterprise resource planning, and other such applications from
the traditional information technology domain.
The scale of the Predix platform extends across a spectrum of industry verticals ranging
from power, transmission, smart cities, healthcare, manufacturing, aviation,
transportation, energy management and oil and gas. GE also pioneered the development
of platform-based approach in the market to drive an integrated ecosystem of industry-
specific applications. The organization aims to deliver secure connected assets and total
data management and to drive the flexibility of mobile and cloud solutions. The ability to
merge the platform effectiveness to create an integrated responsive enterprise properly
reflects on the platform’s superior capabilities. The convergence of social, mobile, cloud,
big data, machines and applications, all enabled by Predix, results in improved operational
and asset efficiencies, while reducing the downtime and driving profitability.
Growth Potential
Industries (oil and gas, power, mining, etc.) are progressively transforming and adopting
digital technologies. End-users who are progressive in nature are looking at cloud-
based/hosted/hybrid data models to leverage the best synergies of both worlds. However,
the degree of market adoption is still low. As industrial processes are yet to be completely
digitalized, there is a significant growth potential for software processes that enable the
digitalization. GE’s cross-industry experience and the capability to understand the
requirement of industries to be able to connect a wide variety of machines, sensors,
systems, processes, devices, and personnel instills a sense of confidence in the end-users
mind as a trusted partner. Furthermore, Predix’s ecosystem partners (Intel, AT&T, Cisco,
among others) have all developed several cutting-edge hardware solutions to drive
incremental value to customers.
As the transformation of industries is an ongoing process, Predix takes into account older
machines that may still be a part of the operation, along with newer, sophisticated
machinery. The platform thus enables the connection of all machines in the domain, old
and new, on a large industrial scale through its various applications that synthesize
protocols to procure the data from the devices - irrespective of their age or make. Predix’s
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hardware agnostic software platform enables it to be applied across industries, thereby
offering immense growth potential for the platform in the industrial IoT sector.
GE's vision is to truly build an industrial application ecosystem of the future. The company
is inviting system integrators and value-added resellers to build applications on its
platform and open up a collaborative innovation system. Instead of being constrained by
internal development, GE Predix is looking to leverage global experts in the field and
develop cutting-edge solutions for emerging customer challenges. A case in point is that of
SoftBank licensing the GE Predix platform to leverage the extensibility of the platform and
subsequently build out industry-class applications.
Disruptive Capability of the Application
The digitalization drive is rapidly becoming a competitive edge for companies as they
increasingly invest in the adoption of software platforms. GE Predix has enabled
technology disruption in the industry with its innovative software platform that supports
hardware agnostically. Predix is bringing about the revolution in the industrial IoT by
allowing applications to converge all of the elements of an enterprise in a single platform.
With more than 40 applications already released by GE using the Predix platform in 2015,
the disruption of technology used traditionally by industries has gained significant traction.
Unlike its other competitors, Predix enables the convergence of the infrastructural and
digital domains, viewed as the new core competency by industries. The application of
Predix in industries is bringing about a true disruption in technology by enabling newer
ways of operating machines. For example, the application of Predix to a digital wind farm
allows the operators to alter the angle of the blades in real time, adding up to 10% in
energy output and drive significant value-delivery to a wind farm in the scale of 100
megawatts. Predix has been implemented by leading companies and cities such as
TransCanada, Impala Platinum, AirAsia, San Diego and Israel National Water Company as
part of its customer portfolio. In addition, GE Predix has been implemented in over 200+
Electrical Submersible Pumps (ESP) wells to drive reduction in performance variability by
using its analytics platform.
Recently, GE Predix introduced its purpose-built ‘Predix Cloud’ specifically for industrial
data and analytics across several industries. The cloud’s unique differentiation is fivefold:
1. Specifically built to accommodate scale for industrial assets. The Predix Cloud builds on
best-in-class partnerships with Intel, Pivotal, Cisco, AT&T, Vodafone, and Softbank.
2. The offering of a Platform-as-a-service (PaaS) analyzes and stores data in real-time
with a closed-community secure model.
3. Easy to access through on-demand and pay-as-you-use pricing models.
4. Platform agnosticity helps in working across a wide range of industries and industry-
specific applications.
5. Rapid data and service provisioning. This is quite critical to operations, as companies
compete on speed of service and scale.
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To address security concerns, applications are monitored and reviewed in isolation before
implementation to reduce extent of damage. Furthermore, GE has incorporated ‘software-
defined mortar’, which isolates each application layer to customize the amount of data
that each layer can access. This ensures a differentiated approach in threat detection,
isolation and data loss prevention.
Business Value to Customers
Industrial data can be challenging to handle, given the scale of enterprise and the large
volume of data generated. GE Predix clearly tackles this challenge by providing prompt
access to data and analytics for real-time decision making, while creating real business
value in terms of time and costs for its customers through the analytics and resulting
actionable insights. The enterprise- and industry-wide scalability to provide real-time
information to the organization for efficient operations delivers business value that is
unmatched by other systems in the market.
Customer Ownership Experience
The digitalization and all-encompassing platform for industries is a fledgling concept, one
that is yet to be scaled across industries. GE Predix can be used by diverse industries
ranging from oil and gas and power to healthcare and aviation, in order to enable
operations and asset optimization using the machine and network architecture. Predix has
invested and placed a significant emphasis on user experience (UX). The UX strategy is
comprehensive and instilled across GE Software and design. Frost & Sullivan agrees that
the meticulous steps GE has taken to bring a true visually enriching and business-
impacting experience is truly commendable. The single purpose mission was to
standardize its software experience (look and feel) and provide support and resources for
the company’s designers. As described in Frost & Sullivan surveys about end-user
requirements, it's not just about the technology, but rather the perceptive vision of how
the technology will be used. GE’s well-thought out methodologies to deliver a complex
technology in a compelling way speaks quite well about the company's closeness to its
customers. The investment in UX has enabled GE to deliver rapid turnarounds and new
product introductions in record time when compared to industry norms. Some of the key
product examples include myFleet and myEngine, which were aimed at remote monitoring
and diagnostics.
Customer Service Experience
Predix provides services to not only customers, but also to developers to install wide-
ranging analytics for industrial purposes. The software platform offers pre-packaged
services for machine learning, exploratory analysis, and engineering-based modeling.
These services are expected to create accurate insights and provide predictive analysis in
the processes to save time and cost. Through years of software experience, Predix has
enabled analytics of futuristic machines and IoT applications. The comprehensive approach
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demonstrated by Predix speaks volumes of its customer-centricity towards the needs of all
stakeholders in the industrial software market space. The stewardship displayed by GE
Predix in building out the industrial cloud with layered provisioning and security has a
strong potential to become the industry standard for connecting people, processes and
technologies.
Best-practice Visual
Conclusion
GE’s Predix is an innovative and disruptive software platform that enables the futuristic
vision of totally integrated digital enterprise. Predix is able to connect machines of any
vintage from any vendor,helping customers connect all the available assets for centralized
and optimized operations. Through partnerships with companies such as Intel, AT&T,
Vodafone, Verizon, Amazon, Pivotal, SoftBank and Cisco, Predix creates a comprehensive
ownership experience, while its pre-packaged services give its customers a holistic service
experience.
With its strong overall performance, GE’s Predix has earned the 2015 Frost & Sullivan
Global Growth Excellence through Application Convergence Award.
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Significance of Growth Excellence through Application
Convergence
Application convergence drives a spectrum of opportunities for value-enhancement as new
applications and ecosystems get created. A case in point is that of the convergence of
information technology and operational technology through the application of software in
the industrial markets. Further, application convergence leads to the extension of
customer value and unique points of differentiation. At its core, application convergence
can only be sustained with leadership in three key areas: customer demand, business
value, and competitive positioning.
Understanding Growth Excellence through Application Convergence
Application convergence leads to opportunities for new value creation in undiscovered
ways, resulting in solutions which outperform existing approaches and drive superior
performance by utilizing multiple system inputs.
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Key Benchmarking Criteria
For the Global Growth Excellence in Application Convergence Award, Frost & Sullivan
analysts independently evaluated two key factors — Application Convergence Impact and
Customer Impact — according to the criteria identified below.
Application Convergence Impact
Criterion 1: Completeness of vision
Criterion 2: Growth potential
Criterion 3: Ability to drive application ecosystem interest
Criterion 4: Disruptive capability of the application
Criterion 5: Impact of applications over legacy approaches
Customer Impact
Criterion 1: Business value to customers
Criterion 2: Customer's perception of value
Criterion 3: Customer ownership experience
Criterion 4: Customer service experience
Criterion 5: Brand Equity
Best Practice Award Analysis for GE Predix
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;
ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by application convergence attributes and
customer impact (i.e., the overarching categories for all 10 benchmarking criteria; the
definitions for each criteria are provided beneath the scorecard). The research team
confirms the veracity of this weighted scorecard through sensitivity analysis, which
confirms that small changes to the ratings for a specific criterion do not lead to a
significant change in the overall relative rankings of the companies.
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The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players
as Competitor 2 and Competitor 3.
DECISION SUPPORT SCORECARD FOR GROWTH EXCELLENCE THROUGH APPLICATION
CONVERGENCE AWARD
Measurement of 1–10 (1 = poor; 10 = excellent)
Growth Excellence through
Application Convergence
Application
Convergence
Impact
Customer
Impact Average Rating
GE Predix 9 9 9.0
Competitor 2 7 8 7.5
Competitor 3 6 6 6.0
Application Convergence Impact
Criterion 1: Completeness of Vision
Requirement: Ability to showcase a long-term vision and pioneer industry transformation.
Criterion 2: Growth Potential
Requirement: Ability to leverage the benefits of converging technologies and drive growth.
Criterion 3: Ability to Drive Application Ecosystem Interest
Success of application convergence depends on the ecosystem maturity, its partners and
strategy to build-out industry-specific solution
Criterion 4: Disruptive capability of the application
Requirement: The new application’s capability to replace existing market incumbents and
provide a path to long-term sustenance.
Criterion 5: Impact of applications over legacy approaches
Requirement: Capability of applications to deliver a set of superior solutions is key to win
support from customers.
Customer Impact
Criterion 1: Business Value to Customers
Requirement: Capability to deliver superior business value instead of simple substitution.
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Criterion 2: Customer's Perception of Value
Requirement: Customer view-points on blurring of application and its potential to create
new revenue streams.
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service, and have a
positive experience throughout the life of the product or service
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality
Criterion 5: Brand Equity
Requirement: New application enhances the company’s brand, creating and/or nurturing
brand loyalty
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts can then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
DECISION SUPPORT MATRIX FOR GROWTH EXCELLENCE THROUGH APPLICATION
CONVERGENCE AWARD
High
Low
Low High
Cu
sto
mer I
mp
act
Application Convergence Impact
GE Predix
Competitor 2
Competitor 3
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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry players and for identifying those performing at best-
in-class levels.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
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Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1 Monitor, target, and screen
Identify Award recipient candidates from around the globe
Conduct in-depth industry research
Identify emerging sectors Scan multiple geographies
Pipeline of candidates who potentially meet all best-practice criteria
2 Perform 360-degree research
Perform comprehensive, 360-degree research on all candidates in the pipeline
Interview thought leaders and industry practitioners
Assess candidates’ fit with best-practice criteria
Rank all candidates
Matrix positioning all candidates’ performance relative to one another
3
Invite thought leadership in best practices
Perform in-depth examination of all candidates
Confirm best-practice criteria Examine eligibility of all
candidates Identify any information gaps
Detailed profiles of all ranked candidates
4
Initiate research director review
Conduct an unbiased evaluation of all candidate profiles
Brainstorm ranking options Invite multiple perspectives
on candidates’ performance Update candidate profiles
Final prioritization of all eligible candidates and companion best-practice positioning paper
5
Assemble panel of industry experts
Present findings to an expert panel of industry thought leaders
Share findings Strengthen cases for
candidate eligibility Prioritize candidates
Refined list of prioritized Award candidates
6
Conduct global industry review
Build consensus on Award candidates’ eligibility
Hold global team meeting to review all candidates
Pressure-test fit with criteria Confirm inclusion of all
eligible candidates
Final list of eligible Award candidates, representing success stories worldwide
7 Perform quality check
Develop official Award consideration materials
Perform final performance benchmarking activities
Write nominations Perform quality review
High-quality, accurate, and creative presentation of nominees’ successes
8
Reconnect with panel of industry experts
Finalize the selection of the best-practice Award recipient
Review analysis with panel Build consensus Select winner
Decision on which company performs best against all best-practice criteria
9 Communicate recognition
Inform Award recipient of Award recognition
Present Award to the CEO Inspire the organization for
continued success Celebrate the recipient’s
performance
Announcement of Award and plan for how recipient can use the Award to enhance the brand
10 Take strategic action
Upon licensing, company may share Award news with stakeholders and customers
Coordinate media outreach Design a marketing plan Assess Award’s role in future
strategic planning
Widespread awareness of recipient’s Award status among investors, media personnel, and employees
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About Frost & Sullivan
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