GE also has been on record touting billions of dollars in cost savings attributed to this digital transformation, mainly due to fault tolerance & lower operating costs. Even companies you think would have got it together have experiences spectacular failure experimenting with digital platforms. Andreessen’s article helped accelerate the company’s digital transformation. The Failure of GE’s Digital Transformation. GE announced a few days ago that it was selling off its digital assets business, which to a large extent refects the failure of its industrial IoT platform, Predix. Even for digital-first industries like high-tech, media and telecom, only 26% saw success. Adam Lashinsky. Digital transformation, which is the integration of digital technology into all aspects of a business, is a $1.7 trillion industry and yet 70% of all digital transformations fail! Read full article. For those companies that didn’t fail outright, only 16% saw improvements in their performance and ability to sustain change over the long haul. The most obvious example is GE Capital, the finance company that dealt GE a near-fatal blow during the 2008 crisis. The 100+ year old enterprise created a division responsible for GE’s digital transformation in 2015 — so-called GE Digital. History of GE Digital . This last spring, a two month time-out was called so developers could tackle Predix problems. Like GE, for example. Nike Digital transformation failure taught brand importance of … While there are many causes of failure or underdelivering expected value in digital transformation, one that can be avoided is digital transformation exhaustion – the fatigue that happens due to continuous change. A new business unit called GE Digital followed in 2015, with the goal of turning GE into a technology powerhouse. [ Culture change is the hardest part of digital transformation. GE’s digital transformation learning. Predix was part of GE’s six year, $4-billion transformation into a digital industrial company under the leadership of CEO Jeffrey Immelt. GE started its digital transformation process in 2011 in an ambitious way — building a huge IoT platform. GE, Ford and other major players poured $1.3 trillion into transformation initiatives, 70% of which — or $900 billion —was wasted on failed programs. A further issue with GE Digital was its need to provide quarterly performance updates and a profit-and-loss statement, which restricted its ability to commit to long-term value creation and pushed the digital arm to focus on short-term goals. Get the digital transformation eBook: Teaching an elephant to dance. "Immelt inherited a company from Jack Welch that … The $900 billion reason GE, Ford and P&G failed at digital transformation Two-thirds of businesses recognize their company must digitize by 2020 in order to stay competitive. 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