Throughout industrial history, technological breakthroughs ranging from the steam engine to a personal computer have propelled leaps in machine and human productivity. Today, the technology of our time is “digital.”
Digital is flourishing and driving radical change. Industry is in transition. At the heart of industry are assets. Machines that output industrial goods and commodities. Some economists argue, that since 1970, the developed world has been in a productivity slump. Many of the incumbent firms have been operating in a slow pace volatile macro-environment forced to compete based on efficiency coupled with high internal cost structures, aging infrastructure and changing workforce. Information technology advances provide a significant productivity lift, allowing companies to compete based on innovation to expand and prosper. Digital has become indispensible and it is the future.
GE is going through a pivotal time, as are our customers. We are emerging as a digital industrial. Over the last five years, we made big bets in software. We created a market leadership position in Industrial Internet through aggressive investments in research and development, software capabilities, talent, and a customer partner ecosystem. To further strengthen our digital technology portfolio trajectory, we are integrating four leading software organizations into GE Digital. Our bold journey highlights the power of metamorphosis. At scale. It is also our differentiation.