General Electric (GE) has transformed itself from a cumbersome conglomerate into an agile, digital industrial company. The change began with Jeff Immelt, who took over from Jack Welch in 2001. Immelt’s first move was to sell off non-core assets, such as NBC Universal and GE Capital, and focus on industrial operations. He also invested in new technologies and moved the company’s headquarters to Boston to attract top tech talent.
In 2015, GE launched Predix, a cloud-based platform for industrial data and analytics. By 2020, the company expects to generate $15bn a year from software sales. Despite these changes, GE has struggled to shed its old image. Immelt’s successor, John Flannery, has continued the transformation, focusing on cost-cutting and simplifying the business.
The company’s transformation has not been without challenges. GE’s stock price has fallen, and some investors are sceptical about the company’s new direction. However, GE remains committed to its new strategy and is confident that it will eventually pay off. The company is betting on its ability to combine its industrial knowledge with digital expertise to create a new kind of industrial company.
Go to source article: http://www.bloomberg.com/news/articles/2016-03-17/how-ge-exorcised-the-ghost-of-jack-welch-to-become-a-124-year-old-startup