6. What example does Immelt use to illustrate the value of digital knowledge to GE customers?
Immelt stresses the importance of digital knowledge to all companies, industrial or not. To
exemplify its value to GE customers, he cites locomotive velocity, an important productivity
factor to railroad CEOs. Analytics allow railroad customers to schedule better, minimize
downtime, and limit mechanical issues – all of which improve velocity. Even what appears to be
a minuscule improvement can have vast impacts on profit. According to Immelt, if a company,
such as Norfolk Southern, increased its average velocity from 22 miles per hour to just 23 miles
per hour, they could make an additional 250 million dollars in annual profit. Fortunately, the
benefits of digital knowledge are not limited to the railroad industry; all of GE’s customers can
benefit from the company’s enhancements in analytics.
7. What does Immelt mean when he says GE will become a “platform” and “app” company?
