One of the most interesting points made in GE’s “Unleashing the Industrial Internet” event was GE CEO Jeff Immelt’s statement that only 10% of the value of Internet-enabled products is in the connectivity layer; the remaining 90% is in the applications that are built on top of that layer. These applications enable decision support, the optimization of large scale systems (systems “above the level of a single device,” to use Tim O’Reilly’s phrase), and empower consumers.
Given the jet engine that was sitting on stage, it’s worth seeing how far these ideas can be pushed. Optimizing a jet engine is no small deal; Immelt said that the engine gained an extra 5-10% efficiency through software, and that adds up to real money. The next stage is optimizing the entire aircraft; that’s certainly something GE and its business partners are looking into. But we can push even harder: optimize the entire airport (don’t you hate it when you’re stuck on a jet waiting for one of those trucks to push you back from the gate?). Optimize the entire air traffic system across the worldwide network of airports. This is where we’ll find the real gains in productivity and efficiency.