 Ladies and gentlemen, please welcome Founder, CEO, and Editor-in-Chief, Silicon Angle Media, John Furrier. Okay, hello everyone. We have a great customer panel here to talk about the industrial Internet, the benefits, the business outcomes. I'd like to welcome them up right now. A CEO of GE, Jeff, come on up. Michael Bororich, EVP and CTO of Apache. Okay, Andrew Boat, CIO and Senior Vice President of Statoil. Jim Compton, Vice-Chairman and Chief Revenue Officer of United. Terry Donnelly, EVP, Chief Operating Officer of ComEd in Chicago. And Dr. Peg Van Bree, CEO of St. Luke's Medical Center. Hey, Peg. Welcome to this great panel. Good. Thanks. Great distinguished panel here, some senior tech athletes, as we say, in the tech business. It's been fun to cover the big data business because watching the evolution of cloud, mobile and social and now with big data hearing the transformation stories is fantastic. And one of the things I always get interested in is seeing kind of the hype versus the reality. And one of the things that we see here with GE is they have the sizzle and the steak. So congratulations to you, Jeff and your team. Great work. So the first question, Jeff, I want to ask you, how did you put this all together? You have customers that we're going to hear from shortly. How did you get your people to mobilize around big data? It's not so much of a clear vision a few years ago. Now it's playing out in real time. We heard Florian talk about big data. The next Billy Bean, the next tech athlete, that person that could be in the organization, could be anyone, not just a PhD. How did you put it all together? So again, I'd say we've been working on this more or less inside the company for the last five years. The notion really comes out of, you know, I think the company is reasonably market focused for a big company. We spend a lot of time thinking about what our customers are saying and what they need. And we have this incredible legacy of installed base and our products are used in, you know, many hazardous settings. So, you know, 30,000 feet above the sea and 15,000 feet below the sea, we run the gamut. So I think this notion of asset optimization, enterprise optimization has been kicking around the company for maybe a decade, maybe longer. And I think we kind of slowly saw that the analytical piece was going to be as valuable as the physical piece. And that's probably four or five years ago. And then we went through a process inside the company of thinking about make versus buy. Do you acquire an analytical company or do you acquire people? And I think we kind of convinced ourselves that maybe it will take longer, but we would be better off trying to get talent inside the company and build it organically versus building it in organically. So we spent probably six or nine months going through this process of how could we build it the best. And so probably before last year when we started talking about it externally, we'd been working on it three or four years already inside the company. And now I think we've got, you know, maybe some of the building blocks in place. Now, the people on this, you know, we've been doing business with a stat oil and Apache and St. Luke's and United and ComEdison probably for 100 years, some of them 50 or 60 or 70 years. So we kind of started in the places that we knew the best with the customers we knew the best and try to bring the technology with us. You always talk about the backlog and its business is good, but I want to go to Mike. You were talking earlier about some numbers. So let's get to the business outcomes. Let's talk about process improvement. What does one percent mean to your business? I mean, you're in the oil area and people say, oh, one percent improvement. Well, so the numbers you're sharing. Well, the oil and gas business is a very large business. And, you know, just looking at the oil side with production, you know, now at 85 million barrels a day or so. So one percent improvement, you're in the range of a million barrels a day. So that's something in the range, depending on prices, about $35 billion a year just for one percent improvement in uptime. And so this is something that certainly has our attention. And we're quite excited to see this unfold. Terry, with the opportunities you guys have, the digitizing information. How has that changed some of the work environment in terms of the people, in terms of the productivity? Well, as you know, ComEd is a major utility in the U.S. We serve about 4 million customers off the Chicago land area. And, you know, in terms of big iron, you know, we love big iron as well. And the power grid is probably the biggest type of iron grid around. So what we've been doing is deploying technology on our grid, digitizing, for example, our substations. We have thousands of substations across. And what we're doing is proving for our focus is what kind of up-back savings can we get from the digitization, putting sensors, algorithms onto our substations. And what we've seen in some of the early analysis is about a 38 percent reduction in sort of inspection tasks on a substation. And when you multiply that by thousands and thousands of substations across the country, you can see the kind of opportunity you're developing. Also, what we've found is, you know, our IT department, our engineers, and our field personnel are working a lot closer together. You know, we need field personnel using mobile data, entering readings in real time so we can monitor that remotely. And for us, it's all about, you know, reliability, improving less power outages and better storm response. And we're using that technology to drive those improvements as well. We've been seeing a reduction in unplanned downtime. And you guys are talking about zero downtime, essentially changing the business models of the service industry. Jim, I want to ask you, you have a large supply chain. Obviously, fuel cost is a big concern. We were mentioning that earlier behind backstage. How do you look at that zero downtime impact to your business? Yeah. Well, John, you know, the airline business is all about optimization, as you know really well, and from a number of angles. And what's unique about the airline business is the product we sell is a perishable product. Seat leaves and it's empty. It's a perishable product that you can never put back on the shelf. And likewise, if a aircraft is out of service, that whole aircraft is a perishable product. So downtime is really critical. And minimizing downtime is a really strong initiative at United Airlines and how we can do that. And some of the things that we're talking about today in terms of the data is one of those opportunities for us to drive that downtime. So it's critical to us. And the area of fuel, our largest operating cost is fuel. And so that 1% that you asked Michael about John, you know, a dollar change in the barrel of oil is $100 million in expense to United Airlines, right? And so the ability to be efficient and to optimize the routings and so forth, minimize that downtime is critical. So Chad, this sounds like these are big numbers, I mean, billions. Are the analysts getting the total available market a little bit smaller than it really actually is? I mean, how many trillion? John, I think this will come with time. In other words, I think this industry grew up around social media. And so, you know, the ubiquitous nature of Facebook, and we were talking about Twitter this morning. And in social media, it's great, but it's all about the ubiquitous nature. I think what we try to convey here is that small changes in the world we all live in are amazing, right? So I'd say that's what people are starting to get a handle on is how even small changes make a big difference. The other thing I would throw in, you know, you're in a business that's all about words and how you describe things. I think what's hardest for maybe any CEO or any leader is how do you explain things at a level that various people can relate to? And so the industrial internet is a great banner to attract partners, to attract the industry to say, look, this is a big deal, but it doesn't mean anything to our customers. You know, no one from in downtime means something to a GE person, a service engineer or a customer. And so I think one of the tricks for these big initiatives is to how to tell a big story and a small story at the same time. That's what gives them reality, that's what makes, that's what gives them appeal. And that's, I think what we've, you don't know that when you start, but I think that's what we've tried to do with this initiative. Yeah, I mean, Florian had a great conversation. It's two points, business process and inform yourself, empower yourself. Peg, talk about health care, because actually there's a lot of data involved and there's unplanned downtime. You have patients come in and they want to get back out. And so how do you guys use the data? And is there people in your organization that could be the next Billy Bean? Is the process improvement coming from the top? Is it coming organically in the organization? And how are you guys looking at that human component and working with all the different machines that you have in the hospitals? And we actually do it a couple different ways. I mean, certainly we have ideas coming from the top, but we have lots of workers who have ideas of how we can improve our processes. What we've done, I mean, similar to what you saw Professor Zettemair this morning talk about is we've wired our entire hospital for RTLS. And we track patients and we track equipment. And we use that to better understand how what we ultimately want to do is shorten the length of stay. That's our measure of efficiency. It's not about getting people out of the hospital before they're ready to go home. It's about not wasting time that first and second days. And so we use that to determine when do you place a patient in a bed? Which bed do you put them in? And even in some of the work that we've done, we've decreased hours from just the decision of which bed to put a patient in. And it sounds really small, but it has huge implications because typically if you don't have a patient in a bed by three o'clock that day, you've wasted that entire day from a testing perspective. And so we've determined that if we can decrease our length of stay about one day, that's $22 million of variable cost that we can afford. Of course, there's the other side is that we have to rebuild our hospital. We could probably build a much smaller hospital, run at a higher percent occupancy, and then really provide the kind of cost savings that all of us need as employers in the healthcare system. So efficiency is one point. But about productivity, I was made a comment, putting the most expensive doctors in the right place and you said, no, it's putting the patients in the right place. So how is the productivity improvement coming from the workers? Because in the keynote we heard you don't need to go to the PhD or go to the doctor for advice. Normal caretakers can take care of things. All right, so I mean it sounds very simple, but even knowing when to clean the room and even knowing when the room is cleaned. You know, if you're a nurse manager worth your salt, you've so enfranchised that housekeeper to be part of your team. Typically this happens in hospitals everywhere. They say, don't tell admitting that we have a bed available. Give us another hour to get caught up on our work. Will you do that across? We have 27 floors in our hospital. You have patients waiting in the emergency room far longer than they need to be. So productivity of just keeping those patients moving and getting people where we can actually take care of them in a meaningful way is very important. How early is it for you guys? I mean, this is, you remember to relate to those examples. I mean, how early is it in the industrial evolution of big data in your world and in healthcare? Kind of toes in the water, are you guys all in? Or how far along is it? I mean, I think we're trying to be on the front end of this, but I still think it's early in the water. But we've now, we're participating in the Hospital of the Future, the HOF project, where we basically have a simulation model for our entire hospital. So it helps us make decisions if we want to change services, change areas, change processes to understand the impacts of that before we do it. Terry, we're talking about big machines here, but energy is also a big deal for people on planned downtime. It's not even an option, but how do you guys in the energy field, obviously you have the sensors, you have the smart meters, the grid, all those things are complex. You can't just turn a switch overnight and change things. How are you approaching the industrial internet from your perspective? Well, I think we just started our rollout of smart meters. We partner with GE as our supplier of the meters. You know, we are dealing with industrial systems here, but we also, for our system, it's connected to four million customers. And our challenge is how do you bring the customer along in this journey? That, for example, we built our smart substation in Oak Park, Illinois. It's just west of Chicago. And we ran 45 tours through that substation. And initially it's like we think, you know, eyes will glaze over and things like that, as we show advanced relays and data systems and dashboards with thermometers and fan speeds and things like that. And it really worked. It really connected people. It really interested us. I can see how this helps me. I mean, now, of course, you go to the nth degree. I mean, unplanned downtime for utility is the ultimate holy grail. It means no power outages. And, you know, the issue of us is how do you use what we're working with now as visualization tools. A lot of smart grid is real time, not batch. It's real time. And how do we use visualization tools to get our line personnel, which are highly skilled to the program, sooner, better, faster. We're seeing 10 to 15% improvements in storm response for some of these tools that we're putting in place. And that's significant when you see the impacts of storms that's having across the industry as we recover from Sandy. Sonja, I want to get the question to get you in here. On the IT side, you know, Jeff was talking about, you know, physical analytics kind of coming together, which to me is that software, right? So software is eating the world, as Mark Andries wrote in the Wall Street Journal. How is the IT side of it? Because, you know, the analytics is networks. You've got to manage all the data. How do you guys keep up with managing the software back and new kinds of software with traditional IT out to large, large, important machines out there? Well, I think to our business, it's very much what Jeff also said. It's about bringing technology and IT together in a smarter way. So what we see is that traditionally this type of solutions we've had have been used for more administrative processes, while now they're being used for the drilling, for finding the oil and gas. But it tends to be quite similar. So we're trying to actually use the knowledge, the architecture skills, the how to bring things together, how to share the data, how to make it secure, because information security is key. The more you share, the more you open. So we see a big opportunity, and we're using that quite a lot internally. So it's a kind of a shift, and I think it's all about ensuring that you're able to join the two worlds in a more efficient way. So on the efficiency side, how does that relate back to some capex reduction or operating cost reductions? How are you guys taking that efficiency there? We've seen from our side, you know, we have offshore fields, and it's very expensive to send people out there. So what we've done is we've used the sensor data, we monitor onshore, so we're able to have expertise sitting in one shared center that can leverage all the offshore fields. And that means that we can actually bring the problem to the people instead of the people to the problem. And that's extremely more efficient, and it makes it also more reliable for everyone involved. And we're actually trying to do a similar thing now with environment, because we're very much linked to having, you know, producing within a climate and areas where the environment is very fragile. So what we're doing, instead of just overseeing what the production is going on, we're actually overseeing the subsea environment like the marine life. And we're using new sensor technologies to monitor clams to see if they're healthy. So then we can in real time also see what our operation is actually doing in that area. And with historic data, that also brings assurance that we can do this in a safe, secure way, even in the Arctic. I mean, that's one of the business outcomes is obviously safety, and we've heard in the keynote knowing what questions to ask. So in that case, you've got a lot of different observation points coming in passively and actively, you're doing some stuff out there. How do you look at that? We've heard, you know, that example, that it didn't look good, like it was improvement, but we've heard questions, you see a different result. Do you guys experience that? How do you look at that? And do you have data scientists on your teams doing this? Yeah, we do have data scientists. And what I find is very, very encouraging is that when we bring people that know the problem, like the business side, together with these data scientists, they kind of, you see how the enthusiasm grows. And, you know, we have example, we used typically our data scientists for our trading area, because trading is very much into analytics and understanding how to deal with it. And now you can more or less use that kind of expertise also within other areas. So it is important to have, you know, I think mathematicians are going to be one of the key assets going forward. Sonja, how will the role of this CIO change? I mean, I bet everybody in the room here today who runs an industrial company thinks about their own IT department, and how is that going to... Well, I think the CIO role is very important to be a strategic role for the company and not an operational role. So it's not about keeping the lights on, but it's actually finding the opportunities. So what I see the big change is that I can come with a skill set that says something about how do you actually leverage what you're trying to achieve into solutions that are known to be working within an integrated environment, because you already have solutions and you want to integrate more. So this is about being very close to the business line, understanding what are the key issues, and then being able to develop new solutions together, and not just being as kind of a separate area that works on its own. Something, John, I'd follow up on just that Florian said, and it was part of your question, is we had to retrain the GE leadership team in terms of how to do business reviews and how to ask questions. You know, I'm a 30-year GE guy. I used to run this business. I can sit down and have a CT review with the best of them. I can do reviews, I can do pretty well. On analytics and software, we had to retrain the leadership team who basically were big iron team, big iron guys, you know, and we had Bill and his team come in front of my leadership team and kind of go through, okay, here are the 10 questions you ask when you're doing a review. And so we all have to relearn stuff and don't be too proud. I mean, I think we've kind of gone through a retraining process at the top of the company in terms of how do you know enough about analytics? How can you ask the right questions? That's a good point. Organizationally, I mean, with social media you mentioned, people are now connected with mobile devices. Everyone has a voice. Everyone has something to say. So you technically have to listen to the employees as they speak and they could challenge you on product and be the next Billy Bean. So it's going to require some different thinking. So from a process kind of management reorganization, anyone want to jump in and share observations anecdotally but it requires a new mindset in terms of how you manage. We heard that challenge laid out earlier so anyone want to share anything about how they're handling the people capital, the human capital side of their business. I think what's important to actually embrace is that it's the time of asking questions. It's the time of actually being curious of how can we actually do it differently because if we're just linearly going the path we've done from the last 10 years, we're not going to get to a better place. It counts for all roles in the whole organization is to kind of have the courage to ask the questions, is there a better way? And that goes from the business side asking different questions, but also from the IT side understanding it differently. So I think it's a big change in the way we work. Jim, how about you guys? Jim, you have United's legacy supply chain. You've got a lot of moving parts. We're actually finding a great thirst to... It's probably driven from the commercial side of the house has lived on a lot of these data issues and people in their personal lives to your point about social media and things like that. So there's a little bit less of the unknown and so that, for instance, we're introducing the 787 this past year and that airplane is not evolutionary. It's revolutionary both from the airplane and the Gen X engine that GE has provided for us on that. But your technicians, there's a great thirst because this is information that makes them more productive, makes them be more proactive. Bidirectional, too. So we're actually kind of jumping on that that there's a great thirst from the people that are working on these with their hands on them and so forth. That we've grown over the years kind of with technology. Can you give an example of some process improvement you guys recently implemented as a result of... Well, I think the 787's launch has not had its problems and that airplane, for instance, if you went back to the 777 has 100 software loadable parts, for lack of a better word, the 787 has 300 and it's sending off 28 times the amount of information than a 777 did. But because of that information we've already done two significant mods to the airplane that has significantly improved the reliability that significantly has get back to my earlier comments of how do you reduce downtime, right? So very much we're seeing that right at the beginning as this new technology rolls out. I think, from a utility standpoint, I mean, our engineers have been dealing with data for 100 years, I think, or more on ever since they turned the first generator on in 1903 in this station right here just in the shadow of Chicago. I think, so in one side we have an advantage, our engineers are people in utility thirst for sensors, data, monitoring. So we can kind of tap into that passion and bring it to an exponentially new level. I think the challenges are use cases, applications. What are you doing with that data to actually drive value? It's not just nice to know. Everybody's like, oh, it's nice to know. Well, how do you drive the value? I mean, we had two summers ago was one of our worst summers for summer peak demand. So many days over 100, 45 days over 90, things like that. And what we saw is we installed advanced monitoring on all our big transformers. These are really big transformers in substations. They could black out a whole area if they fail. And these are like continuous monitoring. It's like a continuous monitoring of blood test in your body where they're telling you your cholesterol level, so to speak. But they're giving you your gas levels and all, but it's on a continuous basis. And we're getting that data remotely. We're able to... It's kind of like a Fitbit, right? You know what's going on? After you permanently. And you're getting these readings, gas readings in transformers, temperatures, those types of things. And we were able to intervene fan speeds, fans cool transformers. We were able to intervene in nine cases when it was close to 100 degrees. Intervene in nine cases of large transformers to prevent failure. We were able to, like, derate them, get them under control. Every one of them, if they failed, you're looking at $7 million, two weeks of round-the-clock work, not to mention the potential outage you would have. So we had a real... And what we have to do as a company is make heroes of this and how glamorous that is in preventing the thing that didn't happen. You know, we're always good in the utility of, you know, war stories and reacting to the big emergencies. Culturally, we are. You know, storm, let's go to the scene of the battle. What we really need to do is make heroes of prevention. And I think that's the challenge of trying to shift the culture where you can then say it's not just nice to know for sensors, it's how you use it for value, how you use it for prevention. I would say one of the huge opportunities is that you can get information across a lot of parties and be very transparent. You know, in healthcare, it's really about how do we partner with our physicians and other staff to improve processes. And all of a sudden, we're data-rich and information-rich in ways that we've never been before. And I think that has been really empowering. And so you can, when you're looking at patient flow, decide where are your bottlenecks? What are the opportunities? And you really go from this kind of emotional, you know, one-off story to what is our trend? And so what do we want to do about that to change it? And really go back towards, I think, as we heard again this morning, changing our processes so we can avoid it in the future. You know, I'm really bullish on this area and the industrial internet vision I was mentioned earlier. You know, I'm from a disclosure standpoint. I'm sold on it. The edge of the network, you see Intel and Cisco here, folks. That's all they talk about. The edge is people as a machine. So great vision. I'm drinking the Kool-Aid. But there's naysayers out there. So let's talk about that. I want to talk about naysayers because everyone in this room understands and we're talking about the business benefits from senior leaders in the industry, captains of industry. But within your organization you have to sell it through and convince naysayers not necessarily in a bad way, skeptical people. Like, hey, the engineers are how do I get it through the knot hole? How do you take the vision of the industrial internet, which makes a lot of sense there's business benefits, it's not just sizzle, it's the steak as well. How do you sell it through, guys? So let's just go through it and discuss it because that's a big point that comes up in the crowd. Hey, I love it. I want to get data scientists. How do I get my organization? How do you sell it through? How do you make it happen? Well, I promise I wouldn't go down the line but this is one I want to go down the line. Sure. You know, I saw an article in the newspaper and it talked about this man that lived to be a hundred years old. And they said, well, how did you live to be a hundred? What did you do that was different than other people? He said, well, when there was some worrying that needed to be done, I always thought I'd let the other feller do it. And I think what we see here is the opportunity to let software and sensors do a little of the worrying for us. And I do think that there is a thirst for this, but I think as people see, my goodness, this is a huge benefit. It allows me to rest easier at night and get a career advancement too. People look at it as an opportunity to personally grow as well and contribute to a team. I think so. In fact, you know, in meeting young people that come to our organization, often I hear people saying, you know, I want to make a difference. I want to make a mark. I want to do something significant. It really is, I think we're at the toe in the water stage. We have a great opportunity here for someone to make a difference, and we are going to see the next. How did you get by that? As an example, we've had a naysayer in your organization, people that are supposed to raise their hand and kind of put the brakes on. How did you get through that? Well, I think, you know, certainly we're working through those kinds of issues now, but I think it's again selling the upside of saying, look, you know, do you want to do you want to be worrying about this every day, or do you want, you know, software machines? We've already had some success cases to help us with that. In fact, down in Australia, we've seen fairly modest, about a half a million dollar savings, but it's a start. Harry and Jim, you're going like this. You've had some naysayers. You know, I think naysayers are bound in any transformation. I would like to say that Chicago baseball teams needed a little bit of money ball. But I think the, you know, there's technical constraints and things like sensors, and I think we heard Jeff in your opening about sensors, you know, at the bottom of the ocean working in harshest environment. We're just trying to get them to work in an underground ball, you know, or on poles, and you know, and they need, the issue for us is what about when the power's out? So what happens with all the sensors and things like that, and trying to work through the technical issues, and you really have to plow through that and get the folks to lead by example. Journey to yes versus a journey to no. It's a mindset that we're looking to do. And from a customer standpoint, I think we've all read articles and, you know, around smart meters and, you know, data privacy is just spying on customers and things like that. You know, this is really around how our smart meter deployment is just begun, and we're making a tremendous investment to deliver customer value. How does customers get value of this? And a lot of it is around simple things like what has really resonated is outage detection. You know, it really has resonated meaning you have to call us now to report an outage, and smart meters ultimately will tie us automatically let us know when your power's out. You may, don't have to be home, and we'll communicate with you on that even though you're not here, we'll know when you're in the store and we'll eliminate truck rolls, and what you get is like, man, I get that. You know, so it's that's been helpful. Jim, talk about your transformation experiences with this, moving this through the organization. Yeah, so I think, you know, before I think the naysayers that I see, it's almost too strong a word they actually had really good input. Terry touched on some of the challenges. There's a lot of data coming at folks and I think to a large extent in a lot of things that we're looking at we're actually cashing that data and which means that you're going back to analyze the data so there's a latency effect that I think Terry was alluding to earlier. And so generally sometimes the naysayers raising an issue. Hey, that's nice, but I have a legacy system here that's tied to a supply saying that a part of an aircraft may not be in the right spot even though you're telling me proactively and things like that. And so I think there's, you know, I think a lot of, to me it's more people are defining some of the other issues around it in order to optimize what we're trying to do and it's actually added some value to it. And I see that more through the organization. So time to value drives a lot of the transitions over from crossing the cancels let's speak. Well, the thing I want to talk about next is strategically looking at the opportunity of real time or on time in your case. I want to ask you guys what's the most amazing thing that you've done or seen in your organization that surprised you around big data that you could point to and very quickly I want to go back down because it's a great panelist here with Jeff. Just something that surprised that was amazing that big data or the connected internet has done for your organization. Do you want me to start? Yeah, go ahead. I just think it's incredibly empowering just how one project can have offshoots in many others. I mean in terms of just the organizational capabilities but the confidence to look at that and we've seen some really dramatic improvements in our throughput but also dramatic learnings in terms of how do we operate as a company and what other things do we have to change about our culture in order to really, I think optimize what we have in place. I think maybe these can be boring examples, I don't know, but as a utility we've made the transition in which I was most heartened by in our control rooms and they operate off historically paper maps and schematics is the lifeblood of a system operator at the schematics and drawings and we've made the transition in a couple of years to managing configuration and the system operators operating off electronic mapping products that manage real-time configuration, not just marking up a map with pencil. This was an organic transformation and so it was very impressive. I don't think we can underestimate there's a lot of folks in our organization that want to make this change and they want to step into it now. They're off the paper maps. Again, that may not be a glamorous story but it's just a story of culture change and moving to how you can use visualization tools that really add value. It's been impressive. I think for me I'd actually I'm going to jump over onto the revenue side of the house because it's been exciting to see the marketing team and the e-commerce team use data to what I call drive attachment rate to a person just buying an airline fare and buying products around the fare whether it's an upgrade into first-class and things like that. The ability to do that is actually by building a one-on-one relationship with the customer with our elite customers that we know about and what their travel patterns are and finding out that customers want to participate in their experience. That's become a result of the data that we're able to So a more intimate relationship with the customer on a personal level. That's driving more revenue. It's driven more revenue as folks have wanted to enhance their experience within travel that we just weren't capturing before. We'll get the revenue in a second. That was my next question because that's the top line. What I would like to highlight and one of the most important areas for us is the seismic data. That's understanding the underground, kilometers underground and what we see the big difference is that we've had the data available for many, many years but the way we process it now the high-performance computers the analytics that goes into it we're actually giving the geologists and geophysicists a completely different tool to be able to actually predict where are these small pockets where the engineers and start-ups our company has been the most successful discoverer of the world and I think that is very much due to the fact that we are able to use technology and we really truly believe in the technology perspective to really help us to understand what's going on in many different areas so that's at least an accomplishment also on our revenue side. And in our industry we use a lot of rotating equipment things that spin and sensors on that rotating equipment I think is going to be a continually growing field to help us minimize it down. So the CAPEX reduction, the OPEX reduction and some of the changes in the organization these are all great examples of great outcome kind of metrics if you will for companies but obviously top-line revenue really is being enabled. We're seeing that in traditional IT as well where cut costs, consolidate data centers do all these things. Now in a software model you have a lot more leverage business analysts, the data science being much more anyone, the revenue is an opportunity. So we're seeing examples Jim you mentioned one can you guys talk about how the top of the business in terms of revenue service revenue or product revenue is increased because of the efficiencies. And we'll start with Meg, we'll start with you because we got to get the hospitals in there. So it's part of our work we've done realignment of our OR schedules and our cath labs schedules and it's for the first time really allowed us to bring in additional business because we have greater efficiency, we have kind of smoothed out the peaks and valleys so we can staff more on a consistent basis so we've seen absolute opportunity. Is the IT involved in that in your organization or is it more the business driver, the strategic aspect of that? How do you guys looking at that? I mean we look at it really from, I mean certainly we are ORs and cath labs are kind of like the engines of hospitals and so you have to have as much throughput as you possibly can but traditionally in hospitals how you assign who has time is based upon how long you've been there and what kind of historical rights you've had and if you become very data driven and understand who's using their time who doesn't you can really increase your throughput. We found in our outpatient ORs we could almost double the number of cases by reorganizing the OR schedule and not in ways that would be displeasing to our surgeons. I mean we did it using simulation modeling but it actually made them more efficient even though they gave up some of their promised time and you know you can't show that as I tell people no surgeon decides to change their OR time because a hospital administrator asked them to do that. I mean you only could show that through data and understanding of the processes. Jim in your business obviously IT's been a big driver going back you know generations the mainframe to now how has it changed internally in terms of infrastructure guys IT guys to the front lines driving revenue as you mentioned is a great example in the personalization that persona of one to the customer. In some of the I think the IT folks are more and more in the business units working with the side by side and so that they understand the business process that we're trying to accomplish right from the start. So I think the biggest change is the IT's expertise in describing and understanding kind of the business that we're trying to do and trying to drive that's been by far the biggest change. The other piece I think is you know one of the challenges of the idea of a lot of data but the other challenges in our business there's still a lot of legacy systems and so forth and to be able to the IT to understand the business process and build systems outside that legacy system but yet still tie in and go after the core information they do that they need to get in order for us to introduce ancillary products and things like that has been critical and I think that's probably the two significant changes that we've seen in our company. How about investment areas there's always talk about you know where you're investing your capital or your focus and obviously driving revenues hits the top line but now you got to reinvest for the future and this consequence as we heard some of them can you guys just share some of the investment areas Terry we'll start with you I mean obviously what you're focusing in on where you're spending your money for improvements is it personal is it equipment both? Well it's both you know we work with the legislature here in Illinois we have the Energy Infrastructure Modernization Act and as a utility we're regulated and you know our economics are regulated so for us it's about how do we articulate an investment or a value proposition and the issue with smart grid for us was the grid needs work to be competitive with the 21st century it needs to be it needs a transformation so we articulated a suite of investments in both infrastructure and technology because we believe in both you can't have one without the other and then the second I'll call it leg of the stool was around well what benefits are we providing you know we can talk about revenue growth but our benefits are more how do we deliver O&M savings to customers they pass directly to customers with us and we don't we don't keep them also how do we deliver service improvement reliability improvement by 20% duration by 10% reliability metrics how do they improve so our commitment to improve those to customers in terms of value there's an economic benefit transforming the grid I mean we work with GE on fabricating the meters at a factory on the back of the yards the old stockyards in Chicago GE factory this is where we make the meters fabricate the meters this is transforming the grid is economics there's jobs there's an opportunity here and that's a big theme and then finally then it's it's it's the investment recovery so we promise to do this investment will deliver these benefits and we need we just need some some regulatory streamline regulatory treatment for those recovery and we're working that model we're in year two of that hey how about your business because you're looking at a changing landscape with IT but also you mentioned some of the business benefits of big data how are you guys investing what are the priorities I mean for us I mean it's technology and equipment and faster newer really pretty things are really important to us but it's also how do we better utilize that equipment is important for us I mean you know most hospitals are running somewhere south of 70% capacity and so we want to be very careful about whatever big investments we make and and right now it's for us about how do we optimize the investments we have and then as we add new equipment or new facilities make sure that we're doing that in the smartest way possible so how about you what are you guys investing in the IT side well we're from a company perspective we're investing in big projects where we build out new fields and of course a very capital intensive so it's important when we build them that we build them to last for at least 30 years because there are industrial plans that are going to be there for a long time it's important to leverage the right technology but as has been mentioned before technology is only part of the equation it's very much about changing the way you work as well and if there's a you know very easy example you've seen for example in African countries that they're now using mobile banking but if you go to I'm sure here in the US as well you still have a lot of people using their checkbooks so even though the technology is there people tend to use the old way of doing it so it's very important to ensure that you're not just addressing the technology side but you're putting enough effort into the processes John I make just maybe three points from from from our standpoint if we were sitting here ten years ago basically the relationship we would have is the product breaks we fix it you know that was the nature of the relationship and in some ways you get misaligned interest when that's when that's the nature of the relationship I think today with these service relationships in particular the analytics it's really all about outcomes you know first and foremost we have to align with what the CEO is saying what's in the annual report what is the CFO think and that's how you have to think about this number one I'd say the second point is these are closed systems products tend to be closed systems analytics are open systems right so you have to have this transparency with their customer and the data has to be in a place that and that's uncomfortable for us right we grew up in the industrial world which is basically I have 200 patents on every CT you can't touch it you know so you have to get your team ready for that and the third thing we never made real progress here until we brought people in from GE you know we never made progress and so one of my lessons learned is the importance of really good people who have different insight into how this world really really works we're getting out of time thanks for ending on that note guys thanks for a great panel great insights and I went off script a little bit but I wanted to get your personal takes on some things Jeff thank you so much for your time thanks great thanks to all of you for being a part of us great