Written By :Appsierra

Mon Jul 24 2023

5 min read

GE Digital Transformation: Explained

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The momentum behind digital transformation is developing among industrial companies globally. It isn’t only an abstract concept or an initiative for addressing sometime in the future. The digital age is here, and the industrial internet of things is powerful, and the benefits from creating digital operations are real. As industrial companies mobilize for the digital age, many of them are charging line management executives with the efficiency for digital industrial transformation in addition to or as a progression of their current position. As they are taking this new endeavour, they grapple with issues that range from how to govern and fund transformation to where to apply digital technology for the most impact right now.

Important Questions to be Addressed

If you are an industrial company in the middle of structuring a digital industrial transformation, there are serious questions to be addressed, such as:

  1. Where should the digital industrial transformation be set within our organization, or should we have a centralized strategy to allow different divisions to adopt an approach in line with the individual markets.
  2. Should the chief information officer also be the chief GE digital transformation officer, or should these roles be separate? What skills should be caused by a chief digital transformation officer, and how should the role be the source and supported?
  3. How can we develop a capital allocation methodology that will estimate desired levels of investment required for achieving digitalization?
  4. How will you balance your investment in digital industrial transformation with your individual decision on existing ongoing investment needs?

The Need for Transformation

GE digital transformation has made the bulk of its revenues by selling its customers’ industrial equipment and maintenance services over the last century. Nevertheless, it has intensified the competition from companies that were not just in the business of selling equipment.

Your competitors use the information generated by large machines or equipment for providing services that advance productivity and reduce downtime. GE’s realization of this trend has the potential for reducing just community equipment providers. The importance of this year is also underlined and the requirement for making drastic changes in GE’s business model.

Factors of GE Digital Transformation

Below are the factors of GE Digital Transformation:

1. Data-driven solutions for clients to enhance machine efficiency

GE connects sensors to its machines to collect data output. You would then analyze this data to include real-time data to increase system reliability, avoid downtime and enable predictive maintenance to be efficiently scheduled. GE now tracks and scans 50 million data elements with 10 million sensors for 1 trillion Dollars of assets handled every day by connecting sensors to their computers. The main objective is to shift consumers to zero unexpected downtimes. GE has christened the industrial computer integration, data, and internet access of the ‘industrial Internet.’

GE Digital Transformation
GE Digital Transformation

2. Using intelligent collaboration mechanisms

GE works in the company by adapting modern devices and services to promote a digital society. GE was one of the early adopters of Apple iPhones and iPods, for example. In addition, GE creates an internal group called GE Mobile Centre, which is developing software to make mobile devices more useful to its many commercial units to optimize mobile abilities. Likewise, GE has also collaborated with Box, an organization that shares content and cooperates, to assist its staff and collaborators in distributing content across networks and sites using the cloud.

3. Achieve business buy-in for digital offerings

GE digital transformation has eventually caused businesses some conflict between the unprofessional industrial thinking that keeps everything within a given step-by-step framework and the initial ethics of failure and learning. The staff of the Global Software Centre, which was willing to take part in this effort during the initiation, worked with business units to address this opposition.

These innovative business units’ dramatic changes and revenues from industrial Internet services have made it impossible for other units to stay agnostic. We wanted a number, so we developed them very quickly and succeeded them. A number wanted to, so we built them at a really fast rate and got them popular quickly. The efficiency improvements and sales increases were apparent to other leaders, who then asked their own companies, ‘How can we do this?’” The peer pressure and obvious advantages have led to a domino effect within business groups, and others have started experimenting with software services.

4. Preparation and identification of resources for digital GE transformation

The first phase of GE’s transformation path is considering what technology was on the market and what kind of architecture and administration was needed. Teams have spent time participating in events and talking to experts and colleagues about the automation opportunities and skills needed. Besides, GE Power analyzed the production, financing, and field services operations. There have been more than 2,500 manual operations per day, spending millions of hours performing. Furthermore, calculations show that over half a million person-hours of initial transactions are used to correct human mistakes. The team narrowed the top 10 manual procedures to find which places to automate first. It involves moving merchandise between stores, creating invoices, distributing invoices, setting up newspaper headlines, applying cash, collecting cash, and disputing disputes. Both these mechanisms are complex. As a proof of principle, they have chosen one method – consumer charging.

5. The digital triumph of target

The aim has been to refurbish hundreds of its shops to provide consumers with convenience and inspiration. Using a comprehensive digital approach, the retailer concentrates on strengthening its consumer personalization ability. Target offers its clients the advantages of both E-Commerce and physical stores to exploit the retailers’ in-store and digital advantages. Target used the offline outlets to expand its digital operations instead of replacing the physical stores with the digital network. The physical stores of the store handle about 80% of their digital volume, with digital distribution being a major focus.

The keys to an efficient GE digital transformation:

  1. The right leaders to drive the digital vehicle
  2. Treatment of the digital workforce tomorrow
  3. Creation of a seamless channel of communication
  4. Improvement of current information technology practices.
  5. Proactively manage the transition.


A magic bullet does not guarantee sustainability in digital change. However, if ample money were to ensure success, the efforts of the big-shot companies to transform digitally would not be rich in failure tales. Digital transition of enterprise calls for thorough strategic and careful execution. Digital transformation can be effective by an optimal alignment of digital progress and corporate goals.

Also Read: Digital Transformation Trends

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