CHAPTER 4 Four Battlegrounds Flashcards
What does the term ‘smart’ imply for industrial products?
It implies capturing and tracking real-time, product-in-use data and utilizing data network effects
Merely having digital features does not make a product smart.
What are the two key questions CEOs must ask regarding industrial datagraphs?
- What is the reach of our industrial datagraphs?
- How rich is our industrial datagraph?
These questions help assess the scale and scope of datagraphs.
What are the four fusion battlegrounds identified in the chapter?
- Fusion Products
- Fusion Services
- Fusion Systems
- Fusion Solutions
These battlegrounds represent strategic areas for industrials to compete.
What is the primary focus of fusion products?
Collecting product-in-use data to analyze and improve performance systematically
This includes using telemetry to monitor real-time performance.
What technology is essential for fusion products?
Purpose-built chips for AI and machine learning
These technologies allow for performance monitoring and predictive maintenance.
What does ‘power by the hour’ refer to?
A service model that offers engine replacement on a fixed-cost-per-flying-hour basis
This model was pioneered by Rolls-Royce.
Fill in the blank: Fusion products can be stationary, such as _______.
[buildings, glass windows, gas turbines]
Any industrial product can be reimagined as a fusion product.
What strategy must companies pursue after developing fusion products?
Shift from products to services by extending the reach of their datagraphs into customers’ operations
This involves making products work deeper inside customer operations.
What organization did Rolls-Royce establish to enhance its data capabilities?
R2 Data Labs
This initiative focuses on using data to generate efficiencies and identify new revenue opportunities.
What must industrials ensure to gain customer trust in fusion services?
Guaranteeing the privacy of data and analyzing customer data anonymously
Customers will grant access only if the services prove valuable.
What is the goal of a fusion systems integrator?
To construct datagraphs by digitally connecting machines and expanding them to interlink with partners’ machines
This involves creating a system-level datagraph.
True or False: The digitalization of industrial machines only aims to improve individual products.
False
It also aims to optimize a higher-order system of interconnected products.
What is the significance of using structured and unstructured data in fusion systems?
It feeds into AI and machine learning applications to enhance system efficiency
This approach enables more comprehensive data analysis.
What is the first step in constructing a datagraph?
Digitally connecting all machines
This involves starting with structured data and then expanding to unstructured multimedia data.
What differentiates a fusion systems integrator?
The data it ingests across each system’s tripartite twins and the resulting data network effects
This enables insights into system performance relative to design levels.
Why is the reliability of individual machines less valuable?
Because the weakest part of the system creates the problem
Efficiency is determined by the collective performance of interconnected machines.
What is the role of datagraphs in minimizing systemic disruptions?
They expand the scope beyond products, tracking, analyzing, and predicting system failures
This allows for better operational insights.
What competencies did systems integrators develop in the industrial age?
Managing large complex projects by deploying human talent with expertise in engineering or IT systems
Examples include Schlumberger, Halliburton, Infosys, Accenture, Tata Consultancy Services, and Deloitte.
What is Yocova and who established it?
An experimental path to digital transformation established by Rolls-Royce
It aims to connect and collaborate within the aviation industry.
What is the significance of the airline industry in the context of fusion systems?
It illustrates the need for data exchange across various operations for improved safety and efficiency
However, many areas still have siloed databases.
What is the objective of a fusion solutions strategy?
To combine products, services, and systems to solve each customer’s unique problems
It requires a deep understanding of customer operations.
What do industrial companies need to do to develop a fusion solutions strategy?
Earn customers’ trust and access detailed data to construct proprietary datagraphs
This allows for customized solutions.
What must fusion solutions providers be perceived as?
Trusted solutions architects
They should not rely solely on their products but offer the best possible solutions.
What is the new logic in the fusion solutions approach?
Solved by Us
This shifts the focus from a company-centric view to customer-centric problem solving.
Identify the four battlegrounds for value creation in the industrial world.
- Fusion products strategy
- Fusion services strategy
- Fusion systems strategy
- Fusion solutions strategy
Each focuses on different aspects of value creation.
What is the focus of the fusion products strategy?
Digitalizing industrial products and delivering them at the highest performance levels
This is represented in the lower-left quadrant of the framework.
What is the goal of the fusion services strategy?
To improve customer financial performance through deep integration of industrial machines
This places industrials in competition with traditional players and service providers.
What is the aim of the fusion systems strategy?
To compete interlinked systems against independent products
This is depicted in the upper-left quadrant of the framework.
What does the fusion solutions strategy focus on?
Delivering comprehensive solutions for customer problems
This is shown in the top-right quadrant of the framework.
What is necessary for companies to win battles in the fusion strategy framework?
Invite and involve partners
This balances owning assets with accessing complementary resources.
What are the implications of data network effects in fusion strategies?
They refine products, processes, and modes of service delivery
Industrial companies must embrace digital technologies for future success.
What did Marc Andreessen state regarding the future of building?
“It’s time to build”
He emphasized the need for new methods that fuse physical and digital aspects.
What will be critical for industrials to navigate in the future?
Emerging ecosystems and defining key data elements
This will help in developing and deploying all four fusion strategies.
