DECEMBER 2019CIOAPPLICATIONS.COM9the install base information (the transactional records for every piece of equipment that gets shipped and serviced) and records on every employee involved in the production process. Phase 2 is focused on laying the broad foundations of the SAP platform to drive future innovation and growth. In this phase, we will be leveraging the GE-developed Predix cloud-based platform to realize the concept of digital thread, utilize big data and analytics, and build the digital enterprise of the future. When Phase 2 is completed, we will be able to drive better inventory optimization, predict the status of our assets, understand the failure modes of our equipment, and manage the cost of quality much more precisely. In short, GE Power is not taking the traditional waterfall approach to ERP implementation, starting with foundation first then growth. Instead, we are running a true agile methodology to accelerate business value and learn as we grow.3. Technologies for the FutureWith ERP deployments, user experience has always been a challenge (and rightfully so). The focus for ERP now needs to be on driving a rich user experience with customized personas of roles being performed. Digital-savvy employees entering the workforce do not want complex manuals and training guides to use our systems. Rather, they want their digital work experience to be no different than their social life or personal use of technology. As a result, we are investing in social platforms to drive collaboration across common functions to solve problems much faster, and we are also embracing mobility. We are experimenting with how to eliminate the human key board interface with technologies such as holo lens to bring in 3D visualization to our processes and voice activation to complete transaction entries.Changing Role of CIOs The role of the CIO has dramatically changed. The IT organization is one of the few functions in a modern global business environment that has a holistic view of the entire business and can connect nearly all functions. The lines are now being blurred between CDO/CIO/CMOs, and this is a good thing. CEO's recognize that leveraging digital capability can help drive out cost, increase revenue, and directly impact share price. At GE, our supply chain leaders now talk regularly to our CIOs internally as they make decisions on purchasing intelligent machines that can be connected to our digital brilliant manufacturing suite of applications for performing predictive analytics. Our products are now being manufactured keeping software and data in mind. We are leading the charge of the new digital industrial world. Within GE Power, our equipment powers approximately 1/3 of the overall world's electricity needs, so there is tremendous opportunity to continue driving a new digital industrial future. We are working towards a digital world where we can digitize our assets to drive more optimization and value for our end customers. Using Technology to Curb ERP Cost ERPs should be focused on achieving or supporting business outcomes. The outcomes should justify the cost. Within GE Power there are multiple ways we are looking at optimizing the overall cost of our ERP program. We are leveraging bots to digitize all our regression testing needs. We work horizontally to leverage a single team across GE to manage data conversions, testing and to develop our integrations. Within GE we have built digital hubs, which provide these services to all our different business units so we can get the benefit from the economies of scale. We are also building a DevOps model to make ourselves accountable for the ERP software that we roll out. We are experimenting with collaborative tools to optimize the cost of change management. There are a few levers that we are exercising to optimize our ERP costs but at the end the business outcomes should justify the investment.4. Reaping Out ERP ValueERP is not a one-time event; it is an ongoing culture of continuous improvement. Mining transactional data from ERP and operations data provides business insights with opportunity to drive revenue growth or cost out opportunities. For example, equipment monitoring in the field provides insights into predicting equipment failure, service outages. This equipment insight with ERP transactional data can help determine the appropriate stocking levels of critical parts and avoid stock outs. The net impact is avoided downtime for a customer who needs parts for a power plant urgently (as an example). GE is building capability to transform ourselves and our customers into digital industrial companies, and having a single view of global operations helps drive out cost in the supply chain. We can identify quality issues in the manufacturing process, compare this across geographies and can determine if the issue is related to product design, varying manufacturing process, or even human error. The possibilities for ERP driving improvement are nearly endless.
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