GE undergoes another re-structure. Does it unlock a competitive advantage?

GE has just announced plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things (IIoT) software portfolio.

The spun out company will “start with $1.2 billion in annual software revenue and an existing global industrial customer base. The company is intended to be a GE wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own Board of Directors. The proposed new organization aims to bring together GE Digital’s industry-leading IIoT solutions including the Predix platform, Asset Performance Management, Historian, Automation (HMI/SCADA), Manufacturing Execution Systems, Operations Performance Management, and the GE Power Digital and Grid Software Solutions businesses.”

A couple of months ago, we posed the question about cross-over use-cases / functionality / products / data / process between IoT platforms and OSS.

Sure, there are fundamental differences between what a sensor network management platform (ooops, should I call that SNMP? That won’t cause any confusion will it??) and what an OSS does. However, there seems to be enough commonality and potential for shared insight to collude.

As far as I’ve ascertained (happy to be told otherwise), GE is the only organisation that has significant offerings in both spaces – Predix in sensor network management and a multitude of OSS / asset tools including Smallworld. Up until now, I understand that Predix and OSS have been kept in separate siloes by GE. Placing the two sets of assets together in the new, as yet unnamed, digital business increases the likelihood of collaboration surely.

If GE really is the only organisation at the Venn-Diagram convergence of IOT and OSS platforms, then it holds a competitive advantage in that niche. The only question that remains is to identify the use-cases and customers that the niche (and its functionality) is relevant to, if any.

PS. Just as an aside, the restructure also includes the announcement that GE is divesting a majority stake in ServiceMax, a product that is often bundled with its OSS offers, which it bought for $916M back in 2016. Silver Lake, a private equity firm will take over that stake in early 2019.

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