General Electric (GE) changes strategy with its division offering industrial software. GE Digital needs to save costs and improve profitability. The new chief, John Flannery, is even thinking about selling an interest in the division and completing extensive collaborations.
GE has had the necessary problems with its Predix software platform, which keeps track of things like wind turbines and lifts and predicts when it’s broken. This can be avoided by timely maintenance. The platform had technical problems and this spring, GE took two months to tackle those problems.
Predix is mainly offered to companies in sectors such as energy, aviation and gas and oil business. GE already has customers. GE is actively putting customers in recesses in new sectors.
In order to give investors greater clarity on GE Digital, the company discontinued declaring sales of hardware for gas turbine in sales of the software business. That’s a loss of $3 billion, bringing expected revenue to $12 million in 2020.
GE already has a number of major customers for Predix. In the first half of the year, orders for software increased by 24 percent to $2.3 billion. However, there is also increasing competition not only from small startups, but also large companies like Siemens. GE believes that the entire market for industrial internet in 2020 will worth about $225 billion.
Uber confirmed that a new CEO was chosen, but did not want to say it is Dara Khosrowshahi, Bloomberg reported citing its sources. He is currently serving as CEO at travel company Expedia. The 48-year-old Iranian American is likely be the successor to Travis Kalanick at the Uber, according to the report. The co-founder of Uber stepped down because big shareholders were not ready to see him anymore. He had been on leave for an indefinite period. Under his rule, the company became involved in allegations of sexual harassment and other misconduct in the workplace.
Jeff Immelt was also in the race for the top position at Uber. However, the former boss of the industrial electric giant General Electric (GE) did not know about the job at the weekend. Also, Meg Whitman, the current CEO of Hewlett Packard Enterprise (HPE), was named but eventually chose HPE.