CHAPTER 8 The Clash of Custom Solutions Flashcards
What do fusion products create value by improving?
Uptime for a company’s machines
What do fusion services enhance?
Customer productivity
What do fusion systems ensure?
Uptime on all the equipment used by the customer
How do fusion solutions differ from other strategies?
They start with defining customer problems and then solving them
Which strategy creates the most value?
Fusion solutions
What is the first step for industrials in the framework?
Start with fusion products
What is a key limitation of products, services, and systems infused with AI?
They are incomplete solutions to customer problems
What essential element is involved in mobility solutions according to Tesla?
Fully autonomous ride-sharing network
What percentage of total input costs for farmers is accounted for by agricultural equipment?
Less than 10 percent
What must John Deere do to lead in precision agriculture?
Improve the productivity of the remaining 90 percent of farmers’ input costs
What approach must machinery companies now take instead of vertical integration?
Ecosystem approach
What do commercial buildings require for optimal functioning?
A unified architecture that interlinks systems
What should Honeywell and Siemens understand to provide comprehensive solutions?
How a building is used
What does the strategy grid in chapter 4 illustrate?
The progression from fusion products to fusion solutions
What is a solution company expected to be?
Proactive rather than reactive
What do companies need to have to develop fusion solutions?
Access to relevant privileged data
What are the three critical questions companies should ask when architecting solutions?
- How many customers are impacted by the problem? * Are datagraphs and AI necessary? * Is the problem relevant?
What is backcasting?
Envisioning desired conditions and defining actions to attain them
What do fusion solutions become viable when companies do?
Not just optimizing current capabilities
What must a transportation solutions leader consider regarding vehicle design?
Purpose-built cars and their economic and environmental impacts
What is an example of a scientific discipline intersecting with digital thinking?
Biology through gene sequencing and editing
Why would customers prefer solutions providers?
Expertise in assembling the best solutions from available products
What is critical to delivering solutions?
The organizing logic of interconnections
Fill in the blank: Fusion solutions are designed to solve each business customer’s unique _______.
Problems
True or False: Fusion services have a broader scope than fusion solutions.
False
What does the richness of datagraphs allow companies like Deere to do?
Become a trusted solutions provider
What is necessary for Honeywell’s foray from systems into solutions?
A robust set of partners
What role can Gen AI play in constructing optimal solutions?
Frame problem definitions and generate multiple ideas
What must companies do constantly in the solutions space?
Redefine core problems to be solved
What is the final step in the logical plan for executing fusion solutions?
Establish methods to monetize the solution
What do companies risk if they do not properly frame the problem?
Wasting resources and missing opportunities
What do customers look for in solutions providers?
Customers choose solutions providers for their expertise in assembling the best solutions from available products, services, and systems.
What is critical to delivering solutions in the context of fusion solutions?
The organizing logic and interconnections of complementary products, services, and systems.
How does Honeywell deliver tailored solutions?
Honeywell designs buildings using existing modules and subsystems, adding necessary features to meet customer needs.
What do industrials need to develop customized solutions?
Industrials must combine humans and technologies and develop digital skills to integrate products, services, and systems.
What is the future of solutions development expected to rely on?
Integrated dataflows and accumulated expertise from data network effects across settings.
What must providers develop to accelerate progress on fusion solutions?
Robust digital tools for efficiently providing customized solutions on a large scale.
What role do CEOs play in the development of new capabilities?
CEOs must choose which capabilities to develop internally and which to partner with digital startups.
True or False: Most significant problems are static.
False
What is essential for a fusion solutions provider to refine their offerings?
Access to real-time data about how solutions work in different settings.
How can industrials monetize fusion solutions?
Through outcomes-based contracts, profit-sharing agreements, subscription models, and tailored solutions.
Fill in the blank: Customers are often willing to pay more for ______ than for products.
[solutions]
What is crucial for solutions companies to create maximum value?
Bringing cross-industry expertise and datagraphs to understand and redefine problems.
What is the role of trust in fusion solutions?
Trust is vital as the fusion solutions company will manage dataflows from partners that could be competitors.
What must solutions providers focus on to resolve conflicts?
Fairness in conflict resolution and communication of ecosystem rules.
What is the solutions gap?
The difference between what customers need and what the best offers provide.
How can fusion solutions be financially lucrative?
By exploring solutions from related industries.
What are the two poles where solutions ecosystems will emerge?
- Digitally led
- Discipline-led
What must industrial companies embrace to avoid competitive challenges?
Digital engineering to define their machine architecture.
What is the role of datagraphs and digital twins in fusion systems?
To create a dynamic interplay that enhances customer operations and value.
What is a key advantage of new entrants in the fusion solutions market?
They can provide unbiased recommendations and innovative solutions using digital technologies.
What must a fusion solutions provider be seen as to attract partners?
An innovator with capabilities at the nexus of scientific disciplines and digital technology.
What is the significance of privacy and security in fusion solutions?
They are paramount for value creation and capture in coordinated actions across companies.
What should companies do to prepare for the clash of customized solutions?
Recognize the need for fusion products and adapt to changing market dynamics.
What is the primary goal of using data in industrial systems?
To convert data into business value and increase customer productivity
This involves applying lessons learned to develop system-level solutions.
What are the benefits of monetizing data in industrial settings?
Increase reliability and reduce the risk of machine downtime
Unlocking new ways to enhance customer productivity through data graphs and algorithms.
What does the term ‘seamless systems’ refer to?
Systems that unlock value previously trapped within siloed functions and individual companies
This approach facilitates better integration and functionality.
What challenge do industrial companies face regarding system connectivity?
Connecting with different systems and managing data flows during operations
Companies must architect their data management strategies effectively.
What is the significance of customization in industrial systems?
Integrating products and systems to address specific customer needs
This is based on accumulated insights over time.
Who are the main competitors in the battle for customization?
Industrials with in-depth machine knowledge vs. those acting as customer agents
Mastery of AI tools is crucial for success.
What are the four battlegrounds in the industrial and digital landscape?
Different value vectors representing strategic opportunities
Both industrial and digital companies can seize shares of a $75 trillion opportunity.
How does Generative AI contribute to solving problems in industrial sectors?
By delivering a comprehensive, multidisciplinary approach
This applies to areas like personalized transportation and sustainable energy.
What should every industrial company consider for future opportunities?
Their present strategy and evolutionary paths
This includes adapting to new market conditions and technologies.
What is the leadership challenge mentioned in relation to fusion?
Making fusion an integral part of strategy formulation and execution
This requires a set of principles and practices for effective leadership.
Fill in the blank: The final battle centers on customization via integrating products and systems to address specific _______.
customer needs
