CHAPTER 9 Fusion Principles and Practices

Question 1

What significant change did John May announce for John Deere’s strategy in 2020?

Answer 1

A shift from just machines to a ‘smart industrial’ strategy aimed at transforming agriculture and construction.

Question 2

What is the focus of John Deere’s new strategy?

Answer 2

The entire technology stack to enable machines to be more innovative, precise, and productive.

Question 3

What is the goal of Deere’s directive in 2023?

Answer 3

To deliver intelligent, connected machines and applications that revolutionize customer businesses.

Question 4

What economic value could Deere potentially unlock for farmers?

Answer 4

$40 per acre.

Question 5

What is defined as ‘engaged acres’ in Deere’s goals?

Answer 5

Acres with at least one operation digitally tracked by the customer in Deere’s digital platform within a twelve-month period.

Question 6

What are the three time horizons Deere must balance in its strategy?

Answer 6

Horizon one (1-3 years), horizon two (3-7 years), horizon three (7+ years).

Question 7

What does ‘backcasting’ involve?

Answer 7

Working backward from plausible futures to determine where business value could be created and captured.

Question 8

What is the primary design principle for collaborative intelligence in a fusion business?

Answer 8

To treat human intelligence and machine intelligence as interconnected rather than separate.

Question 9

What is a key challenge for retraining today’s workforce?

Answer 9

Articulating the scale, scope, and transition speed from independent human and machine operations.

Question 10

What should industrial companies prioritize in training their workforce?

Answer 10

Understanding the collaborative nature of human and machine intelligence.

Question 11

What is essential for successful digital transformation according to industrial leaders?

Answer 11

Human resources.

Question 12

What should companies like Deere do to attract future talent?

Answer 12

Recruit individuals who see their role as collaborating with machines and continually learning.

Question 13

Fill in the blank: The updated tagline of John Deere is ‘We run so life can ________.’

Answer 13

leap forward.

Question 14

True or False: Deere’s strategy emphasizes the importance of data in powering farming.

Answer 14

True.

Question 15

What must companies establish to navigate the uncharted terrain of digital disruption?

Answer 15

Analytical practices and strategic experimentation.

Question 16

What is the significance of collaborative intelligence in industrial operations?

Answer 16

It augments both human and machine capabilities for better decision-making.

Question 17

What must Deere do to maintain its competitive edge in the future?

Answer 17

Assess the relevance of existing competencies and embrace new principles and techniques.

Question 18

What new challenges does building tripartite digital twins present?

Answer 18

Collecting and analyzing data in real time across a broad cross-section of managers.

Question 19

What should backcasting reveal about the future business landscape?

Answer 19

Connections across weak signals that shape future trends and technologies.

Question 20

What approach facilitates a deeper understanding of emerging technologies and customer needs?

Answer 20

Adopting an outside-in perspective.

Question 21

What is a critical competence in industrial operations according to the text?

Answer 21

Knitting together products and equipment from different competitors across distinct domains.

Question 22

What is the intended outcome of Deere’s investment in training for collaborative intelligence?

Answer 22

An immediate and considerable payoff.

Question 23

What is the primary focus for industrial companies like Mercedes-Benz and GM regarding talent?

Answer 23

Hiring top-tier software engineers and AI experts who see their role as collaborating with machines

These companies aim to attract talent that embraces continuous learning and innovation.

Question 24

What is expected of Deere’s talent base by its 200th anniversary?

Answer 24

A strong cadre of specialist data scientists and talent that combines expertise with digital technologies

This reflects Deere’s evolution from a machinery focus to a trusted solutions provider.

Question 25

What is the significance of collaborative intelligence in industrial companies?

Answer 25

It must extend beyond corporate boundaries into critical partners in the ecosystem ## Footnote This integration involves leveraging technology across various functions and partnerships.

Question 26

True or False: Companies in the digital age should focus solely on competition and not on cooperation.

Answer 26

False ## Footnote Success now depends on creating alliances and partnerships within ecosystems.

Question 27

What are two essential practices for making ecosystems deliver today?

Answer 27

* Leveraging partners to complement internal competencies * Structuring partnerships to maximize profits ## Footnote This includes managing relationships with various partners in precision agriculture.

Question 28

What is the focus of adapting ecosystems for tomorrow?

Answer 28

Developing new relationships with companies in soil, seed, fertilizer, and other sectors ## Footnote This is part of a strategy to enhance fusion solutions.

Question 29

What are fusion leaders characterized by?

Answer 29

* Acknowledgment of technological and managerial legacies * Embracing digital technology for transformation * Understanding the impact of data and algorithms * Systems thinking and effective communication ## Footnote These qualities are essential for leading digital transformation.

Question 30

Fill in the blank: Fusion leadership starts at the _______.

Answer 30

[top] ## Footnote Effective leadership requires alignment in views regarding digitization across the management team.

Question 31

What must organizations do to nurture fusion thinking throughout the organization?

Answer 31

Reskill internal talent across all levels and functions ## Footnote This prepares employees for changes in business processes and culture.

Question 32

What is the risk of using generic scorecards in transformation efforts?

Answer 32

High probability of failure in transformational efforts ## Footnote Scorecards must reflect the company's specific aspirations and resources.

Question 33

What should metrics focus on to match the battles in fusion strategy?

Answer 33

* Impact on customer productivity and profitability * Privacy and security of industrial data * Long-term partnerships contributing to success ## Footnote Clear metrics help organizations understand their performance and adapt strategies.

Question 34

How should companies shift their strategy when metrics indicate stress?

Answer 34

By tracking parameters indicating market or rival changes and adjusting focus accordingly ## Footnote This ensures that strategy evolves with market conditions.

Question 35

What is the key focus of Deere's evolution in technology over the last twenty-five years?

Answer 35

Transitioning from products to services, systems, and solutions ## Footnote This evolution is reflected in the development of a technology stack.

Question 36

What is the ultimate goal for industrial companies in the context of digital transformation?

Answer 36

To build networks of machines that transmit data for powerful AI algorithms ## Footnote This aims to unlock significant value from the data collected.

Question 37

What must CEOs of asset-heavy industrial companies realize about digital transformation?

Answer 37

Now is the time to seize opportunities presented by digital transformation battlegrounds.

Question 38

List the four battlegrounds of digital transformation for industrial companies.

Answer 38

* Battle of brilliant machines * Race to deliver remarkable results * Showdown of smart systems * Clash of custom solutions

Question 39

What is essential for business leaders to secure a competitive edge in the fusion landscape?

Answer 39

Develop the capability to recognize signals of attractiveness in battlegrounds and take decisive actions.

Question 40

In the battle of brilliant machines, what type of architecture is expected to win?

Answer 40

Digital-first architecture.

Question 41

What should organizations focus on in the race to deliver remarkable results?

Answer 41

Embedding deeply into customer operations and leveraging data and analytics.

Question 42

How should companies navigate the showdown of smart systems?

Answer 42

Determine their role in interconnected ecosystems and manage dataflows within these systems.

Question 43

What must organizations equip themselves with in the clash of custom solutions?

Answer 43

The power of Gen AI and deep domain knowledge.

Question 44

True or False: Data and AI are considered tomorrow's opportunities.

Answer 44

False.

Question 45

What is the common theme among CEOs of industrial companies regarding digital disruption?

Answer 45

They recognize the need to become digital-first with more attention to data and AI.

Question 46

What disagreements exist among CEOs regarding digital transformation?

Answer 46

Timing and speed of resource reallocations.

Question 47

What does Strategy Next represent compared to Strategy Now?

Answer 47

A fusion approach that is distinctly different from the traditional approach.

Question 48

Describe the growth dynamics of Strategy Now.

Answer 48

Linear, gradual, within industry boundaries.

Question 49

Describe the growth dynamics of Strategy Next.

Answer 49

Nonlinear, exponential, across industry boundaries.

Question 50

What type of competitors does Strategy Next face?

Answer 50

Digital natives with new capabilities focused on products as used.

Question 51

What is the focus of scale and efficiency in Strategy Now?

Answer 51

Physical assets and production-based scale.

Question 52

What is the focus of scale and efficiency in Strategy Next?

Answer 52

Information assets and data-based scale.

Question 53

How does Strategy Now approach customer insights?

Answer 53

Ad hoc surveys and operational improvement.

Question 54

How does Strategy Next approach customer insights?

Answer 54

Real-time observations and insights on links to customer outcomes.

Question 55

What type of network effects does Strategy Next leverage?

Answer 55

Data network effects.

Question 56

What can lead to the fading away of successful companies?

Answer 56

Overinvesting in current strengths and underinvesting in future needs.

Question 57

What is the essence of the quote attributed to Leonardo da Vinci?

Answer 57

'Knowing is not enough; we must apply. Being willing is not enough; we must do.'