UNITED States multinational conglomerate General Electric Co (GE) aims to be among the top 10 software companies with some US$15 billion (RM62 billion) of revenue by 2020.
More than half the revenue is expected to come from outside the US as the 140-year-old powerhouse radically shifts into an industrial digital company.
“If you are in the industrial world, the nature of the product is one that generates data. Somebody is going to be a leader in terms of the digitalisation of the industry. We think it can be us,” GE chairman and chief executive officer Jeffrey Immelt told Business Times.
He believes GE needs to be a data analytics company providing software and technology as it is a key element for the company to grow and serve its customers worldwide.
As part of its transformation programme, GE opened its first new business unit, GE Digital, earlier this year. Immelt also announced that GE plans to invest more than US$1 billion on software and digital technology.
The new subsidiary could deploy software that allows it to monitor all aspects of a complex piece of machinery or assets and optimise performances.
GE also announced earlier this month it would spend US$1.4 billion to purchase two of the world’s leading producers of machines used for 3D metal printing — Sweden’s Arcam AB and Germany’s SLM Solutions Group AG.
Immelt has said the deal is part of GE’s drive to grow its 3D printing business into a US$1 billion business by 2020 by producing more 3D printed complex metal parts at lower weights and engineering costs.
GE, a Fortune 500 company, is involved in aviation, oil and gas, healthcare, transportation as well as power and water industries.
The company also moved its headquarter from Connecticut to Boston in January as part of its transformation exercise. The new location sees the company surrounded by tech firms and universities.
On how he managed such a big company with more than 300,000 people, Immelt said: “In some ways it’s like a small city in terms of the people. I think you have to pick really good leaders, so I think a lot about the people we put in place. I think we have the good processes that help hold us together and I think you have to build a culture of communication, openness, transparency.”
He said as a CEO, he always has to try to see the world through the eyes of the people who are closest to the customers and on the ground.
“So when I am here in Kuala Lumpur, I am not thinking about all the problems back in the US. I am trying to see the company through the eyes of the team here in Malaysia so that I can have an appreciation about how they do their work.
“I don’t want to be a faceless person to them. I want them to know me as Jeff. I want them to feel like they were teammates, we work together and I think you have to humanise the company in a very dramatic way.”
He said informality and access are important for a big company.
“So it’s very important that I am Jeff, that I am a human, we work together and maybe I am their boss’ boss’ boss’ boss’ boss’ boss but when I am here, we are on the same team.”
On the most valued quality in a corporate leader, Immelt said a good CEO drives change, sets standards and develops leaders.