Category Archives: General Electric

The Era of Contact Workers! General Electric

From “Womb to Tomb” to “Outsourcing” and “Contract Workers” !
The Evolution of Human Resource Practices and Philosophies.

Over the past three decades we have witness major changes in how organizations of all types and sizes have changed their philosophy about their employees. GE is an excellent example of these changes.

“Womb to Tomb” was the preferred human resource philosophy of the 1950’s to 1970’s. The underlying premise was that companies should hire professionals out of college, provide training and then offer benefits, like pensions, holidays, healthcare that would lock them into becoming loyal, dedicated employees. The assumption is that this would provide the required talents and commitment.

“Outsourcing” was the prevalent approach in the 1980s and 1990s, when it was the common practice to seek out the lowest cost labor whereever it was and reduce the “long term/ expensive” professionals and management.
First of all companies stopped training and relied on getting their candidates from professional schools or pirating them from their competitors. Then they moved from pensions to 401K programs placing the responsibility for retirement on the employee and not the organization.

Now we are in the “Contract Worker” phase where every employee must recognize that they control their own destiny and should not be committed to anyone or any organization and just focus on themselves. This is being accelerated with the advent of the 401K programs and the demise of the pension plans, as well as the most recent changes in healthcare. Healthcare is now like the 401K where each employee must purchase and pay for their own healthcare.

“Everyone is on their Own!”

The results of outsource and contract worker human resources policies are that all employees must develop their own personal strategic career plan and be continually focused on assuring that they get the best deals possible and not be concerned about the organization. This means that they need to think and act strategically about themselves and their future, be entrepreneurial about their won careers. Company loyalty needs to be low on their priority list. If their current employer doesn’t meet their career and personal needs then they must be able package and sell their services and talents to those who provide the most attractive career and monetary offering.

I am not saying that these changes are the best nor that they will continue since they have very negative consequences for both the organizations and the individual, but it is the current practice and everyone must recognize and adapt to it, until a need human resource “fad” comes along.

Bill Rothschild, CEO Rothschild Strategies Unlimited LLC and GE Alumni

GE to establish energy firm combining several businesses

HARTFORD, Conn. — General Electric Co. has established an energy company that combines its LED, solar, energy storage and electric vehicle businesses and a software system to help customers improve efficiency.

The Fairfield, Connecticut-based conglomerate said Wednesday the company, known as Current, will begin with more than $1 billion of revenue and build on the company’s energy businesses. It will be based in the Boston area and have a presence in California’s Silicon Valley, though exact locations weren’t provided.

Through its software GE will analyze energy consumption and provide customers with data detailing patterns of use and recommendations to improve efficiency.

GE says customers include Walgreens, Hilton Worldwide and JPMorgan Chase.

Current is expected to create about 200 jobs. Maryrose Sylvester, a former president and CEO of GE Lighting, will serve as CEO.

GE Lighting Brings Innovation and Cutting Edge Technology to Railway Interchange

Products including their robust and reliable grade crossing signals as well as their newer advancements in railway technology such as the Tricolor are expected to be there. You can get a firsthand experience and see all products up close and personal. GE Lighting, Railway Interchange of 2015 is taking place in Minneapolis, Minnesota Booth 1661, is also expected to bring their latest innovation to the product offerings; the signal retrofit for Transit and Railroad Waysides.

This one of a kind product is the newest retrofit solution to the GE Lighting LED railway family and is creating all the buzz. One white LED module is a fit for all colors, utilizing the lens and color filter of the existing housing. The latest product offers easy installation and alignment and is sure to reduce inventory and maintenance costs. Backed by GE reliability and GE warranty, the retrofit white LED solution for Transit and Railroad Waysides also meets selected AREMA recommended practices*.

The First and Only Industrial Cloud

Companies have been tapping into cloud technology for years now to reduce data storage costs and manage vast quantities of data generated by the Internet. However, GE found that the existing cloud systems did not effectively address the unique requirements of industrial organizations, so GE invested in creating Predix. This platform-as-a-service (PaaS) enables industrial companies to capitalize on the cloud’s potential in a way that was never before possible.

Predix goes beyond the traditional cloud storage, networking, and computational abilities to take advantage of the huge quantities of data to be obtained by the increase in connection over the next five years. Analysts estimate that more than 50 billion assets will be connected to the Internet by 2020. Predix will have the capability to capture and analyze the volume, velocity, and variety to effectively transformative the industry.

As Jeff Immelt, CEO and chairman of GE, observes, “Cloud computing has enabled incredible innovation across the consumer world. With Predix Cloud, GE is providing a new level of service and results across the industrial world.”

In contrast to platforms that have to rely on outside vendors to supply specific operational capabilities, GE Predix’s secure and comprehensive environment ensures consistency of service, performance, compliance, and security even for global deployment. The “service delivery” model also means customers can scale up and down in a rapid and cost effective manner as their requirements change.

Predix is different from any cloud services currently available to businesses, as it has been purpose built to capitalize on the opportunities to be found in the Industrial Internet. To that end it includes the following features:

  • Asset Connectivity: Predix Cloud provides advanced connectivity-as-a-service for the billions of connected industrial assets that analysts predict for the near future. That will be achieved by combining proprietary technologies with global telecommunications partners to enable rapid provisioning of sensors, gateways, and software-defined machines.
  • Scalability for Machine Data: Machines produce different types of data, which consumer cloud services are not built to handle. Predix Cloud was created to store, analyze, and manage machine data in real time. From capturing and analyzing time series data from a locomotive with thousands of sensors to delivering large object data like a 3D MRI image to a doctor for diagnosis, Predix Cloud is built for the variety, volume, and velocity of industrial data.
  • Security + Compliance: Incorporating decades of experience in operational security and information security, Predix Cloud is designed with the most advanced security protocols available, including customized, adaptive security solutions.
  • Governance: Leveraging GE’s global network and deep expertise across more than 60 regulatory areas, Predix Cloud is designed to streamline governance and drive down compliance costs while respecting national data sovereignty regulations globally. Consequently even highly regulated industries such as aviation, energy, healthcare, and transportation, can build and deploy services.
  • Interoperability: Predix Cloud will operate seamlessly with applications and services running in a broad spectrum of cloud environments, allowing businesses to capitalize on its optimized security and data structure offerings while maintaining legacy solutions.
  • Gated Community: Unlike public cloud services, which are open to any individual or organization, Predix Cloud is based on a “gated community” model restricting access to members of the industrial ecosystem.
  • Developer Insight: Developers will have visibility into their operating environments and all connected to it. That gives businesses the ability to deploy and monitor machine apps anywhere and to adjust to changing demands in the physical and digital world without any loss of security or visibility.
  • On-Demand Availability: Businesses will be able to easily access and scale with the Predix Cloud through a convenient on-demand, pay-as-you-go pricing model.

The gain in efficiency and productivity engendered by the Industrial Internet is predicted to save hundreds of billions of dollars each year. But only if they have the means to tap into it effectively. That’s what GE Predix allows companies to do. It’s a platform that GE was able to develop due to its unique combination of information technology (IT) and operational technology (OT) expertise and deep industrial domain knowledge.

Businesses will have access to GE Predix beginning in 2016.

General Electric is Getting Down To “Fighting Weight”

Pictured above, GE CEO Jeffrey Immelt is taking President Barack Obama on a tour of giant building 273 in the General Electric’s “Main Plant” in Schenectady, New York. This is the image Immelt wants everyone to picture his company as.

Thank you to my comrade KC Jones for kicking off this discussion by writing about “Time to sell GE Stock? NO! Time To Buy

Headlines all over the place:

General Electric Co will shed most of its finance unit and return as much as $90 billion to shareholders as it becomes a “simpler” industrial business instead of an unwieldy hybrid of banking and manufacturing.

The company on Friday outlined a restructuring plan that includes buying back up to $50 billion of its shares, selling about $30 billion in real estate assets over the next two years and divesting more GE Capital operations. GE stock jumped 8.5 percent.

 

“The stock has been under-owned by institutional investors, and that’s going to change now,” said Tom Donino, co-head of equity trading at First New York Securities.

Jeffrey Immelt
Jeffrey Immelt

For decades, General Electric was happy to reap the enormous profits that arose from its finance arm as it swelled into one of the country’s biggest lenders.

But as banking has become a less profitable and riskier business, G.E. will complete a transformation it began amid the tumult of the financial crisis: selling off most of that division over the next two years.

Beginning by selling $26.5 billion worth of real estate assets, G.E. is hastening to return to its roots as one of the mightiest industrial companies in the world, whose operations include jet engines, oil drilling equipment and medical devices. What it will mostly shed is GE Capital, a lender with hundreds of billions of dollars’ worth of assets.

The divestiture campaign, code-named Hubble within G.E. and put together in about six weeks, will erase one of the main legacies of the conglomerate’s vaunted former chief executive, John F. Welch Jr. But it is also a recognition that manufacturing, not finance, represents the company’s future.

“We’re not sentimentalists,” Jeffrey R. Immelt, the multinational’s current chairman and chief executive, said in an interview.

GE is close to selling the real estate portfolio that GE Capital Real Estate holds. It most likely will however still continue as a commercial real estate lender but not directly own real estate assets. GE Asset Management will continue to own real estate holdings as part of its asset base that it manages for GE’s pension/401(k) and external asset management business.

Immelt, 59, has been shrinking GE Capital since its access to credit dried up in the financial crisis, imperiling all of Fairfield, Connecticut-based GE.

His strategy: move away from finance and focus on industrial operations, the traditional heart of the company founded by Thomas Edison (and built by a real army of great developers/innovators/managers like Charles Steinmetz, Gerald  Philippe,  Ivar Giaever, Reg Jones). Investors favor the perceived consistency of industrial earnings over financial, which can be volatile.

I learned almost a half century ago that the General Electric Company was/is the greatest company in the World. As a quote in my university 50th Reunion book says: “Everything I know about supply chain, logistics and electronic commerce, I learned from General Electric.”