The document discusses the increasing connectivity of people and devices through networks and the Internet of Things. It argues that we have transitioned from the Information Age to the Systems Age, where decision-making systems are needed to manage and make sense of the vast amounts of data. The proliferation of connected devices will create enormous networks that can provide transparency and optimize operations in areas like logistics and asset management. However, these complex networks also introduce risks if not properly managed. GE is working on network-based technologies and cognitive systems to help create intelligent networks and distributed decision-making.

1. The Internet of Things Business Transparency in the “Systems Age” Joseph James Salvo, Ph.D Manager, Business Integration Technologies Laboratory

3. Any questions, please message Rebecca Norton.

6. 330,000 employees worldwide

7. $173 billion in annual revenues

9. Began 1900 in Schenectady, NY

10. Founding principle … improve businesses through technology

11. One of the world’s most diverse industrial labsCornerstone of GE’s commitment to technology

12. 3,000 technologists strong Global Research Center Niskayuna, NY India Technology Center Bangalore, India China Technology Center Shanghai, China Global Research Europe Munich, Germany Brazil Technology Center Rio de Janeiro, Brazil

13. The Internet of Things Business Transparency in the “Systems Age” Joseph James Salvo, Ph.D Manager, Business Integration Technologies Laboratory

14. Why Now… Global Events Demand Transparency and Trust. India IT/engineering China Low cost mfg Tech Transfers Massive Infrastructure Build E-services Digitization Capital & Goods US Brands & Distribution Europe Large Open markets Global connectivity enables a new knowledge economy

15. Global Macroeconomic Drivers: Details Changing Fast Russia Raw materials Domestic market Retail sales reform Outsourcing New market Venture capital Retail sales reform China Hi TechMfg India Low cost IT/engineering Robotic Factories Silicon fab Tech Transfers Brazil Sudan Africa E-services Digitization Capital & Goods US Brands & Distribution Europe Large Open Markets Export high tech-high value to China Small business creation New business models Social contract questioned Outsourcing Business systems are global and vulnerable Oil pricing, Regulations, Natural Disasters

17. Cell Phones 3.3 billion

18. The Internet 1.4 billion users

19. Text Messaging 142 billion/yr.

20. Blogs 112.8 million

21. IPOD’S 100 million, RSS Feeds

22. IPad’s millions sold in first monthInformation and data is abundant, ubiquitous and “overwhelming”.

23. The Information Explosion is Just Beginning. Today: IPv4 supports 4.3×109 (4.3 billion) addresses, which is inadequate even if only one address goes to every living person. Tomorrow: IPv6 supports 3.4×1038 addresses. Every object that can be labeled will be. Earthgrid of 1mm spacing = room for 1018 tags per node Next: We will connect many objects to each other via hierarchical networks.

24. The Evolution of Connectivity Machine-to-Machine Decisions, Artificial Intelligence 1 Trillion Assets Brain Business Tool, Payment System, Personal Assistant & Entertainment Device Value Value Functionality Functionality Connecting People to People Connecting Assets to Assets Interoperability 2.3 Billion Interoperability Interconnectivity 500 Million Interconnectivity 50 Million Box 1985 2000 2010 Products Morph into Decision Systems that Learn and Integrate Information from Divergent Sources

26. Contradictory information is available from multiple outlets in real time.

27. The world is awash in so much information and content that without Powerful Decision Systemsto store, sort, validate and manage the data, people and businesses become paralyzed with confusion.Welcome to the “Systems Age”!

28. The New World Order: Global Business Networks “The need of a constantly expanding market for products chases the (businessman) over the whole surface of the globe. He must nestle everywhere, settle everywhere, establish connections everywhere. ….(until) All old established national industries have been destroyed or are daily being destroyed. They are being dislodged by new industries, whose introduction becomes a life and death question for all civilized nations, by industries that no longer work up indigenous raw material, but raw material from the remotest zones; industries whose products are consumed, not only at home, but in every quarter of the globe.” - Karl Marx, 1848 “The world is flat” - Thomas Friedman

29. In the “Industrial Age” Thomas Edison provided private 2-dimensional electrical distribution grids Manhattan late 1800’s In the Hyper-Networked “Systems Age” Smart-Grid provides real-time decisioning and customer collaboration Digital objects will coordinate decisions

30. Metcalfe’s Law: ethernet, cell phones, telematics The value of a network of N devices scales to roughly N2. Source: Metcalfe’s Law Recurses Down the Long Tail of Social Networking, By Bob Metcalfe http://vcmike.wordpress.com/2006/08/18/metcalfe-social-networks/ The value of a network exceeds its cost at the critical point.

31. People create extensive networks People centric Internet and cellphone networks connect billions of people and information

32. Next up:Machine to machine networks will become collaborative Big Dog Boston Dynamics PackBot iRobot Do you really know who your computer’s “friends” are?

34. Thousands of power plants, aircraft and locomotivesGE needs to manage billions in assets while moving more than $1 trillion in goods.

35. Caution: A networked world built on brittle assumptions leads to global resets. Forecasts and predictions Don’t always anticipate Black Swan events Rare events may disrupt the “equations” Build systems that predict, observe and adjust in near real-time.The world is only deterministic in part.

36. Practical examples:Do you know where your trailer, railcar or container is…and what’s inside…?

37. Strategic Collaborations in Network Transparency ORLANDO, FLA. - MARCH 13, 2006 - Wal-Mart Stores, Inc. (NYSE: WMT) and the Trailer Fleet Services division of GE Equipment Services have announced an agreement whereby GE will supply Wal-Mart with trailer tracking technology for its fleet of 46,000 over-the-road trailers. The satellite based tracking system helps to manage billions of dollars of deliveries every week

39. Fuel conservation

40. RFID Inventories

41. Load balancingApply Geo-Analytics to Ever Expanding Asset Pools Network to Create Unprecedented Service Offerings

42. Portfolio of Service Products Cars and trucks Infrastructure Services Portfolio Optimization Recovery Planning Real-Time Routing Locomotives Local Decisioning Planning Optimization Create value through modeling, simulation and optimization

43. Accurate, timely shipment - Not a NEW problem Letter of complaint regarding improper grade of copper shipped via Gulf Logistics Company: 1750 B.C. Letter is certified with personal seal of witness (Shamash-Ilwir, son of Lalum) Source: British Museum, London

44. GE Wind Clean sustainable electrical networks being built

45. Real-time Location Timely Alerts Know where the assets are Know how they are used

46. The World Needs Transparent Logistics Networks Current Demands- Mobile asset tracking plus RFID Systems Big Box Retail Sector - Wal-Mart, Target 100,000+ SKU’sU.S. DOD - Military FDA - Pharma Food Scares- Salad, Spinach, Ground Meat, Tomatoes, EggsHealth Risks- Bird Flu, Mad Cow, Heparin, Milk, Pet Food “Who steals my purse, steals trash, but he that filches from me my good name robs me of that which not enriches him and makes me poor indeed.” William Shakespeare Need Farm-to-Fork transparency! Must Soon Label and Track Trillions of Objects

48. Near real time decisions will be made at the edge and machine consciousness will be used to help decide what should be remembered and what is best to forget.

49. The low cost and volume of data outstrips the value of transporting, sorting and storing it.Time-to-value-capture is the new data metric

50. The Singularity When machine capability exceeds human cognitive capacity

51. Computing power and cost will enable human level cognition by 2020(Given the correct architecture) Ray Kurzweil The Singularity is near The $1000 brain by 2020

53. The explosion of digital content in the 21st century will likewise change the perceived value of pure data in all its discrete forms.

54. Due to speed and cost considerations, fuzzy memories will evolve and prove to be more valuable than exhaustive searches through mountains of details for perfect recall.

55. A consciousness that blends today's experiences with memories in “brain-space” will be recruited to due likewise “in silico”.Evolution doesn’t select for memory but survival of the fittest. In an unpredictable networked world conscious decisioning will shine.

56. Cyberphysical systems and GEInterface Asset ID, tracking technology and Big Data analysis with Business Process Management SystemsTake advantage of the Metcalfe effectCreate a variety of cognitive architectures and tools to create distributed decisioning systems Helping to create an intelligent “Internet of Things”

57. Networking can make a big difference. A world without networks can be very dark

58. Learn more! GE Global Research website www.ge.com/research Edison’s Desk – GE’s longest running blog www.edisonsdesk.com Edison’s Desk on Twitter twitter.com/edisonsdesk Youtube account www.youtube.com/grcblog GE’s Genius of the Day www.ge.com/genius We’re on Facebook too! Engage with GE scientists and engineers about innovation and science

59. Many ways to apply! www.ge.com/research www.gecareers.com @GEresearchJobs www.facebook.com/GEGlobalResearchCareers

60. Please join us for the rest of the Software Webinar Series Supercomputing for Engineering & Scientific Discovery July 12th at 3:00 p.m. ET Social Media and CollaborationAugust 10th at 3:00 p.m. ET Enabling Distributed Action in Energy and Other Networks August 24th at 3:00 p.m. ET