To help investors better understand Predix, GE also has redefined Digital Revenue to exclude $3 billion in hardware related to its gas-fueled power plants, providing a clearer picture of the "pure" software business and avoiding double-counting, Chief Financial Officer Jeff Bornstein said.
GE estimates the industrial internet market will be worth $225 billion a year by 2020, and Flannery, who became CEO on Aug. 1, appears committed to Immelt's vision of being a major player, according to two people familiar with his thinking.
It already has attracted some large customers, including power utility Exelon Corp and elevator maker Schindler Holding AG, and orders rose 24 percent to $2.3 billion in the first half of 2017.
Large rivals such as Siemens AG and a crop of nimble startups are pressing to gain market share in GE's main areas of energy, aviation, locomotives, health care and oil and gas.
Chicago-based startup Uptake signed a deal in March with subsidiaries of Berkshire Hathaway Energy to provide analytics on thousands of wind turbines, including those made by GE.
- GE's Old CEO Did an Abysmal Job, but the New Guy Might Be DifferentTheStreet.com
- General Electric Trims 'Digital Revenue' Targets, May Sell Predix StakeInvestor's Business Daily
- Report: GE may sell a stake in its industrial software businessSiliconANGLE News (blog)
- GE Shifts Strategy and Financial TargetsFSM News (registration) (blog)
- General Electric Company (GE) Looks To Software To Reignite GrowthStockNews.com (blog)
- GE shifts digital business strategySeeking Alpha
- General Electric (GE) adopts different strategy for Predix, Uber picks new CEOMarkets Morning
- GE Makes Shifts in Strategy and Financial TargetsThe Ledger Gazette