CHAPTER 7 The Showdown of Smart Systems Flashcards
What is the Burj Khalifa known for?
It is the tallest building in the world and employs numerous smart systems for various functions.
These systems include ventilation, air conditioning, lighting, water management, and more.
What shift is Honeywell focusing on in their products?
From brick-and-mortar structures to ‘steel, glass, and click’ systems, integrating digital technologies.
This shift allows data to travel through physical materials in which people live and work.
How has Honeywell contributed to the Burj Khalifa?
By supplying integrated HVAC systems that enable real-time data collection and anomaly detection.
This has led to a significant reduction in maintenance hours and improved asset availability.
What is a key feature of the systems used in modern buildings?
They are interconnected and capable of seamless dataflows, enhancing efficiency and coordination.
This integration wasn’t possible in the analog age due to independent product optimization.
What are the three independent phases of the building industry?
Design, build, and operate.
Each phase has traditionally been controlled by companies with little coordination.
Why is real-time data access important for facility managers?
It provides end-to-end visibility for optimizing resource use, comfort, and accessibility.
Without real-time data, task assignment and problem resolution are inefficient.
What is a ‘building twin’?
A digital representation of a building that can save energy and ensure reliability.
It acts as a single source of truth for real-time data on building performance.
What does ‘fusion systems’ refer to?
Systems that integrate multiple products and analyze data to improve performance and occupant experience.
These systems track and analyze vast amounts of data across various components.
What is the significance of data network effects?
They enable insights from multiple buildings to be leveraged for better performance and decision-making.
This is particularly important for companies like Honeywell operating in numerous facilities.
What is the primary challenge for companies transitioning to fusion systems?
Avoiding the misconception that big data alone leads to data network effects.
Successful fusion systems require strategic integration and interaction among components.
What are the four crucial steps for companies pursuing fusion systems?
- Architect new systems with digital hooks
- Organize operations for seamless integration
- Accelerate updates to systems
- Monetize systems to unlock new value
These steps are iterative and involve continuous feedback.
What is the inside-out approach to architecting fusion systems?
Identifying how products and services fit into different fusion systems and ensuring seamless dataflow.
This approach focuses on interconnections and partnerships.
What does the outside-in, future-backward approach entail?
Starting with desired outcomes and working backward to identify new technologies and system interconnections.
This approach emphasizes external trends and opportunities.
How can companies derive competitive advantages in fusion systems?
By creating products that not only operate independently but also integrate effectively with others.
Customers increasingly prefer systems that work together over standalone products.
What is the outside-in, future-backward approach?
A design strategy that starts with the desired outcome and works backward to identify how to connect offerings into a broader system.
What technological advancements enabled Uber and Lyft’s mobility systems?
High-resolution maps on smartphones with 5G cellular capabilities.
What was the outcome of Honeywell’s AI-automated energy optimization pilot project?
Reduced energy expenses by a minimum of 10 percent.
What are the three issues business leaders must address to capitalize on fusion systems?
- Interlinking data across engineering disciplines
- Ensuring all functions focus on fusion systems
- Looking beyond the company to suppliers and partners
True or False: Systems thinking has consistently delivered results in organizations.
False.
What is the role of orchestrators in fusion systems?
To strategically coordinate and harmonize various interdependent components and subsystems for efficient operations.
Fill in the blank: Business ecosystems refer to the interconnected networks of organizations, including _______.
[suppliers, distributors, customers, and competitors]
What is a tripartite digital twin?
A digital representation that interlinks previously independent parts of a system.
How do fusion systems create value in an industrial setting?
By integrating analog and digital technologies across companies.
What is the difference between the innovation phase and the implementation phase in fusion systems?
- Innovation phase: Characteristics and capabilities are defined
- Implementation phase: Roles and responsibilities are better defined and value is shared
What is a significant challenge in coordinating multiple entities in a fusion system?
Mitigating the risk associated with investments in unknown and unproven offerings.
What are system-wide network effects?
Value created when each element of a system requires signals from other companies to pivot from selling products to offering fusion systems.
What are two ways companies can monetize the value created through fusion systems?
- Systems integration fees
- Software as a service
What is the significance of the Knowledge Graph initiative started by Google?
It aims to connect various data elements across multiple domains for system-level inquiries.
What role do digital twins play in fusion systems?
They provide a digital representation of physical entities, facilitating data integration and analysis.
What must orchestrators develop to ensure the success of fusion systems?
A unique playbook with formal criteria for selecting key partners and providing the right incentives.
Why is managing risk more complex in fusion systems than in individual products?
Because it involves external partners and interdependencies that can lead to systemic risks.
What happens when the shape of fusion systems evolves?
It affects how technologies connect different parts to generate and capture economic value.
Fill in the blank: Value creation happens in the _______ phase, and value capture occurs in the _______ phase.
[innovation, implementation]
What is the purpose of digitalizing industrial data?
To construct rich datagraphs of industrial equipment and unlock additional areas of efficiency.
What are system datagraphs?
They represent the interactions between products in industrial systems.
How can digital twins improve industrial operations?
By providing a single source of truth for virtual datasets that is physically accurate.
What technologies are combined in tripartite twins?
- Reality visualization
- Physics-based modeling
- Data-driven analytics
Why were digital twins not viable in the past?
Lack of powerful hardware at the edge and computing power in the cloud.
Which companies are involved in building multidisciplinary digital twins?
- ABB
- Arup
- Hitachi
- Honeywell
- IBM
- Nvidia
- PTC
- Schlumberger
- Siemens
What is the industrial metaverse?
A digital environment that enhances simulation, experimentation, and timely interventions driven by AI analytics.
What foundational tools does the industrial metaverse build upon?
- Computer-aided design (CAD)
- Computer-aided manufacturing (CAM)
Fill in the blank: The industrial metaverse allows for the representation of a complete digital universe including _______.
[extended supply chains, deployment of machines, interconnections with complementary devices]
What challenge do incumbents face in the context of interconnected systems?
Ensuring seamless integration of their machines with customers’ supply chains and manufacturing processes.
What must CEOs consider beyond their known competitors?
The actions of many players across industries.
What are the three different fusion strategies for industrial companies?
- Creating fusion products
- Extending into fusion services
- Developing fusion systems
True or False: Most industrial companies are currently familiar with digital technologies.
False
What is required for industrial companies to create value from fusion systems?
Generating system-level data network effects.
What is the added dimension of ecosystem strategy in fusion systems?
Focus on dataflows among players in the ecosystem.
What is the significance of understanding customer solutions in fusion strategies?
It allows industrial companies to better align with what customers are looking for.
Fill in the blank: The metaverse is a digital representation of the _______.
[physical world]
How will the industrial metaverse change the scope of knowledge in industrial companies?
It will expand beyond what they designed and built to include how products interact with humans, devices, and systems.
