General Electric is tapping a new source of revenue for its wind energy business: data. The company is betting big on the emergence of connected devices — GE calls the trend the “Industrial Internet” — to open up new money-making opportunities across its many divisions. Now, it plans to do the same for its wind turbine business.
“GE is increasingly using software and data analysis throughout its industrial businesses to improve performance and efficiency of its machines so it can reap more service revenue,” according to Reuters. “The company offers a product designed to help wind farm operators raise output by up to 5 percent by optimizing performance based on environmental conditions.”
The company plans to analyze the data that its wind turbines generate to provide performance-based service to its customers. The benefits extend beyond increased efficiency and output. By monitoring a turbine’s performance, and proactively responding to any problems, GE executives expect to limit downtime. The closer customer relationship aligns service profits with its customers’ success, a potential win-win for both sides. It’s yet another example of the servitization trend that’s gaining momentum in field service and manufacturing.
“Our view is with technology advancements, the turbine that you buy today will run better tomorrow,” Anne McEntee, CEO of GE’s renewable energy division, tells Reuters.
Read more at Reuters.