William Ruh takes jibes at Silicon Valley's startup culture
William Ruh, CEO, GE Digital
“How many of you want to get on an aircraft whose jet engine is a minimally viable product (MVP)?” William Ruh, CEO of GE Digital, asked senior executives from local and global engineering R&D centres in India at the Design Engineering Summit in Bengaluru in November. “I don’t think anyone would like to. The way to design an aircraft engine is not as a minimally viable product.”
Ruh was taking potshots at the lean startup lexicon in Silicon Valley. MVP is a version of a new product that allows a team to collect customer feedback with minimal effort.
There were more jibes at the culture of software product development that has its roots in America’s West Coast. “If you think about engineering skill sets, they (software and industrial internet) are directly opposite in terms of the culture of building great products,” said Ruh, senior vice president and chief digital officer at GE, who joined the $122-billion company from Cisco in 2011.
GE has undergone more than its share of disruptions. In 2016, it relocated its headquarters from Fairfield, Connecticut, to Boston. In August 2017, John Flannery succeeded Jeffrey Immelt as CEO. Less than a year later, GE fell out of the Dow Jones 30-stock index for the first time in 110 years. And now Lawrence Culp has replaced Flannery.
Ruh emphasised how the drivers of the industrial internet are different from those of consumer internet products like Google and Uber. “In the consumer space, people want to be cool and connected. Try selling ‘cool’ and ‘connected’ to the owner of a power or oil and gas plant. Productivity, efficiency and reliability—that’s what they buy,” Ruh said. “We have moved from ‘products’ to ‘outcomes’: How many hours am I going to get from that aircraft engine? Or what’s the fuel efficiency of a gas turbine?”
“ The new models are going to displace—not you, but your profitability.”
(This story appears in the 21 December, 2018 issue of Forbes India. To visit our Archives, click here.)