CHAPTER 1 The Industrial past was Prologue Flashcards
What is Fusion Strategy?
A definitive approach for industrial companies to compete against new competitors.
Who is Indra K. Nooyi?
Former Chairman and CEO of PepsiCo; Member of the Board at Amazon.
What does Linda Yates recommend regarding Fusion Strategy?
That every one of her clients, from the boardroom to managers, should read this book.
What has the authors’ research revealed about digital companies?
They have won in asset-light segments by harnessing data and AI.
What is a key message from Marc Bitzer regarding Fusion Strategy?
It brings clarity and strategic direction to the industrial sector.
What does Vimal Kapur suggest executives in industrial businesses do?
Read this book to learn how to integrate hardware and software.
What vision does Fusion Strategy provide according to Jeff Immelt?
A vision for the next wave of digitization combining new technologies with the legacy economy.
What does Shaileh Jejurikar emphasize about competitive advantage?
It can be created through collaborative intelligence and embracing data and AI.
What does Scott D. Anthony highlight about Fusion Strategy?
It is a must-read for leaders navigating disruptive change.
What is the purpose of datagraphs in Fusion Strategy?
To codify competitive advantages and unlock significant value.
What does Peter Koerte say about the language of this book?
It explains the power of data and AI without excessive jargon.
What does Kinya Seto believe this book provides for global companies?
A practical framework for creating their own fusion strategy.
What does Mukesh D. Ambani say about the fusion of industrial production?
It shows the possibilities of merging industrial production with digital technologies.
What insight does N. Chandrasekaran offer about competitive advantage?
Real-time insights have surpassed assets as the most valuable competitive advantage.
What does Anand Mahindra advise regarding industry transformation?
Read Fusion Strategy to understand the transition from analog to digital insight companies.
What does Sudarshan Venu say about Fusion Strategy’s relevance?
It’s relevant for both Indian corporations and policymakers.
What does Josh Foulger imply about digital technologies in business?
They have transformed how business is conducted in the B2B space.
What is the significance of studying dataflows according to Narayana Murthy?
To improve products, processes, and performance.
What percentage of the world’s gross domestic product was created by traditional manufacturing sectors?
Almost 75 percent.
What is the predicted impact of digital technologies on traditional industries?
They will significantly change how these industries operate.
What is the addressable market for digitalizing the industrial world?
$75 trillion.
What is the fusion frontier?
A future state where industrial products are infused with sensors and software.
What is the main goal of the Fusion Strategy book?
To explain how business is changing and how to use data and AI for fusion strategies.
What are datagraphs?
Dynamic representations capturing relationships between a company and its customers.
What triggers data network effects?
When a company’s product gets smarter as it gathers more data.
How does a virtuous cycle in data usage work?
Consumers find enhancements valuable, leading to continued use and more data collection.
What is the benefit of companies gathering product-in-use data early?
They can generate data-driven decisions faster and stay ahead of rivals.
What do datagraphs help redefine in strategy?
Scale and scope.
What are datagraphs?
Dynamic representations that help absorb, analyze data, and advise on actions
Datagraphs are not static; they evolve as more data is gathered.
How do datagraphs impact company strategy?
They redefine scale and scope by orchestrating ecosystems for complementary roles
This contrasts with traditional linear expansion based on accessing physical, human, and financial capital.
What is the difference between traditional and datagraph-driven scale?
Traditional scale is based on sales; datagraph-driven scale is based on ecosystem orchestration
Example: GM’s scale vs. Uber’s scale.
What kind of data do datagraph leaders focus on?
Detailed consumer behavior data, such as preferences, demographics, and purchasing context
This goes beyond just tracking sales numbers.
True or False: Industrial companies analyze data similarly to digital companies.
False
Digital companies analyze extensive data on consumer behavior that industrials do not.
What are the four types of analyses that algorithms can perform on datagraphs?
Descriptive, diagnostic, predictive, prescriptive
Each type offers different insights into data.
What is required for a successful fusion strategy?
Both datagraphs and authoritative algorithms
There is no business value in datagraphs without effective algorithms.
What does ‘fusion’ mean in the context of digitalization?
The process of joining physical and digital domains, among other definitions
Fusion includes combining various elements to create a single entity.
List the five strands of fusion in digitalizing industrial sectors.
- Interlocking physical and digital business domains
- Intertwining humans and machines
- Infusion of digital thinking into analog disciplines
- Interlinking physical and virtual worlds
- Interconnections among companies
These strands shape the future of industries.
How is the automobile industry an example of fusion?
It shows the transition from analog products to digital services like mobility as a service
Ride-sharing networks rely on real-time data for affordability.
What is Tesla’s shadow mode?
A feature that simulates driving to gather data for improving AI algorithms
It helps identify areas where the AI can improve by observing human behavior.
What distinguishes Tesla’s data collection from other automakers?
Tesla collects data from over 2 million cars, allowing for extensive real-time analytics
This data helps refine their autonomous driving capabilities.
What is the role of Gen AI in industrial applications?
To derive deeper insights from multiple types of data
It enhances productivity and creativity in industrial contexts.
What does the automotive sector’s shift from combustion engines to electric vehicles signify?
An irreversible global shift toward battery electric vehicles
Traditional automakers now embrace electric vehicles as essential.
What are digital twins in the automotive sector?
Digital replicas of physical vehicles used for real-time insights and simulations
They enhance the design and operational efficiency of vehicles.
How do automakers benefit from partnerships in the evolving ecosystem?
By sharing complementary capabilities and ensuring interoperability
Collaborative efforts help de-risk portfolios and enhance service delivery.
What is the impact of the metaverse on the automotive sector?
It allows for collaborative virtual environments for design and testing
Companies like BMW use platforms for factory design and vehicle performance evaluation.
What is the primary capability of coordinating and matching riders with drivers based on?
Assembling the ecosystem of relevant partners and ensuring real-time data delivery
This involves the fusion force 5 concept.
In which sectors do the five fusion forces operate?
- Automotive
- Farming
- Agriculture
- Mining
- Construction
- Real estate
- Health care
- Transportation
- Logistics
- Other asset-heavy sectors
What must every industrial company develop to remain competitive?
A fusion strategy
Which traditional engineering disciplines intersect with digital technology?
- Mechanical
- Chemical
- Civil
- Aerospace
- Agriculture
- Metallurgy
What do farming executives refer to when discussing advancements in agriculture?
Precision farming and decision agriculture
What are some examples of advancements discussed by construction executives?
- Self-healing materials
- Intelligent buildings
- Connected windows
What is the ultimate goal of using data-rich insights in industrial sectors?
To create new products, customer experiences, and services
True or False: Fusion strategy is merely a push to use more technology.
False
What does fusion strategy emphasize compared to traditional industrial strategy?
Defining software architecture and generating data-driven insights
How has strategic thinking in industrial companies historically focused?
On existing resources and capabilities
What type of mergers and acquisitions may differentiate companies in the next decade?
Mergers that create fusion between physical and digital
What is essential for industrial companies to embed themselves in ecosystems?
Recognizing their roles in newly forming digital ecosystems
What does the book aim to cover regarding industrial companies and digital technologies?
Best practices in a competitive landscape
What is the significance of Industry 4.0?
It represents a global shift towards next-generation technologies
What may India’s digitalization drive lead to in the industrial sector?
Evolving from a back office to an advanced manufacturing powerhouse
Fill in the blank: The strategies described in this book will help you find new ways to unlock _______.
[value]
What is a digital twin?
A digital replica that feeds data to make products perpetually upgradeable
What does the book suggest for data scientists in companies that haven’t embraced data implications?
Map the company’s position relative to rivals and develop ways to get richer data
What is a key attribute of leaders who win in a fusion world?
Understanding how data and AI guide decisions across the company
What should professionals passionate about digital technologies believe?
That industrials can win despite challenges
What did Jeff Bezos suggest about decision-making with information?
Most decisions should be made with around 70 percent of the information
What did Mahatma Gandhi say about the future?
The future depends on what you do today
