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1. Final - Over the past few weeks you have covered many topics and relative content regarding the Essentials of MIS.

For your final exam you should submit 10 comprehensive open ended discussion questions and answers. These questions and answers can be from any chapter in your text. You must thoroughly explain your answers.

2. This weeks case study is the Business Problem Solving Case Study Titled: GE bets on the Internet of Things and Big Data Analytics


You will complete a chapter case study each week to apply the chapters readings. Each case study contains questions at the end of each case, respond to these questions in a 1-2 page paper. Be sure to reference and apply the APA writing style to your paper. Your paper should include 1-2 pages NOT including the cover and reference pages. Your paper should include at least 2 references, 1 being your course text.

2. Discussion- Each week you will complete a 50 word discussion assignment. Your discussion post for this week should include your opinion on this weeks case study and at least 1 question for your fellow classmates to respond to.

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BUSINESS PROBLEM-SOLVING CASE GE Bets on the Internet of Things and Big Data Analytics General Electronics (GE) wants to be known as the world's Digital Industrial Company.

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BUSINESS PROBLEM SOLVING CASE GE Bets on the Internet of Things and Big Data Analytics to more easily and quickly connect their machines General Electric (GE) wants to be known as the to the Industrial Internet. The platform can accom- world's Digital Industrial Company. It is moving modate the size and scale of industrial data for every away from traditional manufacturing toward a much customer at current levels of use, but it also has been more technology-centric business strategy and busi- designed to scale up as demand grows. Predix can ness model that focuses on electric power genera- offer apps developed by other companies as well tors, jet engines, locomotives, and oil-refining gear as GE, is available for on-premises or cloud-based and software to connect these devices to the cloud. deployment, and can be extended by customers with GE is putting its money on the technology that con- their own data sources, algorithms, and software trols and monitors industrial machines as well as code. Customers may develop their own custom software-powered, cloud-based services for analyz- ing and deriving value from the data. GE hopes this applications for the Predix platform. GE is also building a developer community to create apps that strategy will turn it into a major software company. GE is using sensor-generated data from industrial can be hosted on Predix. Predix is not limited to industrial applications. It could be used for analyz- machines to help customers monitor equipment performance, prevent breakdowns, and assess the ing data in healthcare systems, for example. GE machines' overall health. GE has committed $1 bil- now has a Health Cloud running on Predix. Data lion to installing sensors on gas turbines, jet engines, security is embedded at all platform application lay- and other machines; connecting them to the cloud; ers, and this is essential for companies linking their and analyzing the resulting data to identify ways operations to the Internet. to improve machine productivity and reliability. In GE currently uses Predix to monitor and maintain other words, GE is betting its future on software and its own industrial products, such as wind turbines, the Internet of Things (IoT). jet engines, and hydroelectric turbine systems. In a number of industries, improving the produc- Predix is able to provide GE corporate customers tivity of existing assets by even a single percentage machine operators and maintenance engineers with point can generate significant benefits. This is true of real-time information to schedule maintenance the oil and gas sector, where average recovery rate checks, improve machine efficiency, and reduce of an oil well is 35 percent. That means 65 percent of downtime. Helping customers collect and use this a well's potential is left in the earth because avail- operational data proactively would lower costs in able technology makes it too expensive to extract. If GE service agreements. When GE agrees to provide technology can help oil extraction companies raise service for a customer's machine, it often comes with the recovery rate from 35 to 36 percent, the world's a performance guarantee. Proactive identification of output would increase by 80 billion barrels--the potential issues that also takes the cost out of shop equivalent of three years of global supply. visits helps the customer and helps GE. The oil and gas industry is also deeply affected by In early 2013, GE began to use Predix to analyze unplanned downtime, when equipment cannot oper- data across its fleet of machines. A single engine's ate because of a malfunction. A single unproductive operating data will only tell you there's a problem day on a platform can cost a liquefied natural gas with that engine. But by collecting massive amounts (LNG) facility as much as $25 million, and an aver- of data and analyzing the data across its entire fleet age midsized LNG facility experiences about five of machines, GE was able to cluster engine data down days a year. That's $125 to $150 million lost. by operating environment. The company found that Minimizing downtime is critical, especially consider- the hot and harsh environments in the Middle East ing declining revenues from lower energy prices. GE and China caused engines to clog, heat up, and lose sees a $1 billion opportunity for its IoT software. efficiency, so they required more maintenance. GE The foundation for all of GE's Industrial Internet found that engines had far fewer of these problems if (IoT) applications is Predix, a software platform they were washed more frequently. Fleet analytics launched in 2015 to collect data from industrial sen- sors and analyze the information in the cloud. Predix helped GE increase engine lifetime and reduce engine maintenance. The company thinks it can save its can run on any cloud infrastructure. The platform has customers an average of $7 million of jet airplane standards and protocols that allow customers open fuel annually because their engines will be more 427 Part III: Key System Applications for the Digital Age 428 efficient. Predix's robust data and analytics platform risk-assessment solution combines internal and exter- nal factors (such as flooding) to provide an accurate, made it possible for GE to use data across every GE up-to-the minute visual representation of where risk engine all over the world and cluster fleet data. exists in a pipeline. This risk assessment tool enables Predix is starting to provide solutions for GE cus- pipeline operators to see how recent events affect their tomers. For example, Invenergy LLC, North America's risk and make real-time decisions about where field largest independent, privately held renewable energy service crews should be deployed along the pipeline. provider is implementing GE Asset Performance Man- The risk assessment tool visualization and analytics agement reliability management software on 13 tur- bines at six gas-operated thermal plants in the United capabilities run on Predix. Weather has a sizable impact on risk for pipelines in States. The software is based upon Predix and will areas prone to seismic activity, waterways, and wash- perform predictive analytics on turbines that produce outs. Checking weather patterns along thousands of an operating capacity of 3,159 megawatts, enough to miles of pipe for rain or flood zones, and integrating power a half-million homes. The software will help those data with other complex pipeline data sets is plant technicians more accurately predict and diagnose very difficult to perform manually. But by bringing all equipment failures before they occur in order to avoid relevant data together in one place, GE gives pipeline unplanned outages. During preliminary testing, the operators easier access to information to help them system identified a turbine journal bearing experienc- ing early-stage vibration. A failure could have damaged address areas with the greatest potential impact. GE expects customers to benefit immediately from the turbine and produced an unplanned outage, but having all of their data integrated. But it wants them to Invenergy technicians were able to detect and repair be able to do more. In addition to being able to examine the malfunction three months before it would have all current risk, pipeline operators would benefit from occurred. The GE system will also help Invenergy bet- ter manage its assets to achieve the optimal solution for a "what-if” calculation tool to model hypothetical sce- reducing cost, managing risk and improving availabil- narios, such as assessing the impact of adjusting operat- ity and reliability. ing pressures or addressing particular areas of corrosive British oil and gas company BP plc had been using its pipe. GE would give them the tools for a color-coded own software to monitor conditions in its oil wells but view of how those actions affect pipeline risk. decided to get out of the software business and became GE wants to go beyond helping customers manage a GE customer. By the end of 2015, BP equipped 650 the performance of their GE machines to managing the of its thousands of oil wells with GE sensors linked to data on all of the machines in their entire operations. Predix. Each well was outfitted with 20 to 30 sensors Many customers use GE equipment alongside of equip- to measure pressure and temperature, transmitting ment from competitors. The customer cares about run- 500,000 data points to the Predix cloud every 15 sec- ning the whole plant, not just GE turbines, for example, onds. BP hopes to use the data to predict well flows and 80 percent of the equipment in these facilities is not and the useful life of each well and ultimately to obtain from GE. If, for example, if an oil and gas customer has an enterprise-wide view of its oil fields' performance. a problem with a turbo compressor, a heat exchanger GE identified pipeline risk management as a major upstream from that compressor may be the source of challenge for the oil and gas industry. There are 2 mil- the problem, so analyzing data from the turbo com- lion miles of transmission pipe throughout the globe, pressor will only tell part of the story. Customers there- moving liquid oil or gas from its point of extraction to fore want GE to analyze non-GE equipment and help refining, processing, or market. About 55 percent of them keep their entire plant running. transmission pipeline in the United States was installed If a customer purchases a piece of GE equipment before 1970. Pipeline spills are not frequent, but when such as a gas turbine or aircraft engine, GE often they occur, they cause serious economic and environ- enters into a 10-to 15-year contractual services agree- mental damage as well as bad publicity for pipeline ment that allows GE to connect to and monitor that operators and energy companies. Pipeline operators machine, perform basic maintenance and diagnostics, are always anxious to know where their next rupture and provide scheduled repairs. GE receives a bonus will be, but they typically lacked the data to measure payment for keeping the equipment running at a pipeline fitness. Operators had no way of integrating specified threshold. GE may now be able to apply multiple sources of data into one place so they could such outcome-based pricing to coverage of non-GE see and understand the risk in their pipelines. machines. GE developed a pipeline-management software suite for accessing, managing, and integrating critical data GE CEO Jeffrey Immelt wants GE to become a top 10 software company by 2020. In order to do this, GE for the safe management of pipelines, including a risk assessment tool to monitor aging infrastructure. GE's needs to sell vast amounts of applications and Predix- based analytics. Although few businesses have the 429 Chapter 11: Improving Decision Making and Managing knowledge capital or infrastructure to operate a platform for inte- grating and analyzing their loT data, GE faces compe- tition from many sources, Amazon, Google, IBM, and Microsoft are all getting into Internet of Things plat- forms, and dozens of start-ups have similar ambitions. The biggest question is whether other large industrial companies will turn to GE or to another cloud plat- form to manage their information. And if you're a manufacturer of some size and sophistication, will you allow GE to "own" the data on your business, or will you manage and analyze the data yourself? Sources: Paul Gillin, "Industrial IoT Revs Up at Big Renewable Energy Provider," Silicon Angle, May 17, 2017; www.predix.io, accessed May 20, 2017; Laura Winig, "GE's Big Bet on Data and Analytics," MIT Sloan Management Review, February 2016; www.ge.com, accessed May 20, 2017, Devin Leonard and Rick Clough, "How GE Exorcised the Ghost of Jack Welch to Become a 124-Year-Old Startup," Bloomberg Businessweek, March 21, 2016; Holly Lugassy, "GE Leverages Pivotal Cloud Foundry to Build Predix. First Cloud for Industry,"CloudFoundry.org, May 11, 2016; Cliff Saran, "GE Predictive Analytics Optimises Irish Power Electricity Pro- duction," Computer Weekly, July 13, 2015: Charles Babcock, "GE Predix Cloud: Industrial Support for Machine Data," Information Week, August 6, 2015; and "GE: IoT Makes Power Plants $50M More Valuable," Information Week, September 29, 2015. CASE STUDY QUESTIONS 11-13 How is GE changing its business strategy and business model? What is the role of informa- tion technology in GE's business? 11-14 On what business functions and level of deci- sion making is GE focusing? 11-15 Describe three kinds of decisions that can be supported using Predix. What is the value to the firm of each of those decisions? Explain. 11-16 To what extent is GE becoming a software company? Explain your answer. 11-17 Do you think GE will become one of the top 10 U.S. software companies? Why or why not? ON MyLab MIS Go to the Assignments section of MyLab MIS to complete these writing exercises. 11-18 Give three examples of data used in location analytics and explain how each can help businesses. IT-19 How do each of the following types of systems acquire and represent knowledge: expert system, neural network, genetic algorithm? Chapter II References Agrawal, Ajay, Joshua S. Gans, and Avi Goldfarb. "What to Expect from Artificial Intelligence." MIT Sloan Management Review (February 7, 2017). Alavi, Maryam, and Dorothy Leidner. “Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues." MIS Quarterly 25, No. 1 (March 2001). Ask, Julie A., Michael Facemire, and Andrew Hogan. "The State of Chatbots." Forrester Research (October 20, 2016). Breuker, Dominic, Martin Matzner, Patrick Delfmann, and Jörg Becker. "Comprehensible Predictive Models for Business Processes." MIS Quarterly 40, No. 4 (September 2016). Erik Brynjolfsson, Tomer Geva, and Shachar Reichman. "Crowd-Squared: Amplifying the Predictive Power of Search Trend Data." MIS Quarterly 40, No. 4 (December 2016). Lacity, Mary C., and Leslie P. Willcocks. "A New Approach to Automating Services." MIT Sloan Management Review (August 2016). Burtka, Michael. "Genetic Algorithms." The Stern Information Systems Review I, No. 1 (Spring 1993). Carr, David F. "Collaboration in the Cloud." Profit (February 2016). Davenport, Thomas H. "Big Data at Work: Dispelling the Myths, Uncovering the Opportunities. Harvard Business Review (2014).
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Running head: CASE STUDY


Case Study: GE Bets on the Internet of Things and Big Data Analytics



Case Study: GE Bets on the Internet of Things and Big Data Analytics
GE is evolving into much of a corporate model and corporate plan premised on
technology. They also offer refrigerators, microwave ovens, and investment banking alongside
GE Capital to spend on power plants, propulsion systems, railcars, and petroleum-refining
equipment and applications to link this equipment to the cloud-based database (Laudon, 2018).
GE spends its resources in infrastructure that tracks and manages automated equipment and
software-driven, cloud-based applications to access and extract input value (Laudon, 2018). GE
claims that this approach makes them an international innovation corporation.
In the implementation of technology-based business features, GE is currently focusing on
specific functions and a certain level of the decision making process. The company uses sensorgenerated information from robotic systems to support clients’ track device efficiency, avoid
failures, and evaluate the general safety of the devices. This revolutionary development creates
up doors for GE’s clients, thus making them turn from a conventional supplier into more of a
global technological enterprise (Laudon, 2018). GE has engaged close to $1 billion to configure
detectors propulsion systems, and supplementary machinery; to connect them to the cloud, and to
analyze the following information to define methods of improving computer productive capacity
and dependability. In other words, the company relies on technology and the Internet of Things
(IoT) for success.
The framework for all implementations of GE’s smart factory is Predix, a digital network
introduced in 2015 to retrieve information through sensing devices and process cloud
intelligence. Predix can activate on any system inside the cloud. The network has available
provisions and parameters which enable consumers to link their devices to the smart factory
more effectively and automatically. First, Predix will sell applications created by other firms, and



also GE, are available for on-site or cloud-based delivery and will be expanded by users utilizing
their specific datasets, applications, and technology. For the Predix platform, customers may
create their personalized applications. The company is also developing a group of developers to
produce applications that could be featured on the Predix. Secondly, Predix does not confine
itself to commercial implementations. For instance, it may be utilized to analyze information in
health-care programs. GE currently has a Predix Insurance Network. Information encryption is
integrated into all software technology levels, and this is important for businesses connecting
their activities to the Web. At present, Predix utilizes power plants, propulsion systems, and
hydropower generator networks to track and manage its consumer goods. Thirdly, Predix will
offer real-time information to the system controllers and repair engineers of GE business users to
plan repair inspections, increase system performance, and reduce latency. Aiding consumers to
capture and utilize this operating information constructively will reduce the savings of GE
commercial transactions. If GE decides to offer support to a client’s computer, a value promise
also goes with it. It allows the client and enables the company to proactively identify possible
future problems that also carry the expense off from store visits.
Numerous consumers utilize GE appliances as well as other products from various
companies. They need GE to evaluate machinery other than GE and to support them in operating
their whole factory. GE is consequently talking to some of its clients regarding potentially
managing the visual data from all the computer features in their procedure, making them largely
invested in technology.
I believe that GE could be a top 10 corporation for the technology application by the
current year. GE has to market large volumes of software and Predix related applications t...

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