CHAPTER 9 Fusion Principles and Practices Flashcards
What significant change did John May announce for John Deere’s strategy in 2020?
A shift from just machines to a ‘smart industrial’ strategy aimed at transforming agriculture and construction.
What is the focus of John Deere’s new strategy?
The entire technology stack to enable machines to be more innovative, precise, and productive.
What is the goal of Deere’s directive in 2023?
To deliver intelligent, connected machines and applications that revolutionize customer businesses.
What economic value could Deere potentially unlock for farmers?
$40 per acre.
What is defined as ‘engaged acres’ in Deere’s goals?
Acres with at least one operation digitally tracked by the customer in Deere’s digital platform within a twelve-month period.
What are the three time horizons Deere must balance in its strategy?
Horizon one (1-3 years), horizon two (3-7 years), horizon three (7+ years).
What does ‘backcasting’ involve?
Working backward from plausible futures to determine where business value could be created and captured.
What is the primary design principle for collaborative intelligence in a fusion business?
To treat human intelligence and machine intelligence as interconnected rather than separate.
What is a key challenge for retraining today’s workforce?
Articulating the scale, scope, and transition speed from independent human and machine operations.
What should industrial companies prioritize in training their workforce?
Understanding the collaborative nature of human and machine intelligence.
What is essential for successful digital transformation according to industrial leaders?
Human resources.
What should companies like Deere do to attract future talent?
Recruit individuals who see their role as collaborating with machines and continually learning.
Fill in the blank: The updated tagline of John Deere is ‘We run so life can ________.’
leap forward.
True or False: Deere’s strategy emphasizes the importance of data in powering farming.
True.
What must companies establish to navigate the uncharted terrain of digital disruption?
Analytical practices and strategic experimentation.
What is the significance of collaborative intelligence in industrial operations?
It augments both human and machine capabilities for better decision-making.
What must Deere do to maintain its competitive edge in the future?
Assess the relevance of existing competencies and embrace new principles and techniques.
What new challenges does building tripartite digital twins present?
Collecting and analyzing data in real time across a broad cross-section of managers.
What should backcasting reveal about the future business landscape?
Connections across weak signals that shape future trends and technologies.
What approach facilitates a deeper understanding of emerging technologies and customer needs?
Adopting an outside-in perspective.
What is a critical competence in industrial operations according to the text?
Knitting together products and equipment from different competitors across distinct domains.
What is the intended outcome of Deere’s investment in training for collaborative intelligence?
An immediate and considerable payoff.
What is the primary focus for industrial companies like Mercedes-Benz and GM regarding talent?
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.
What is expected of Deere’s talent base by its 200th anniversary?
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.
What is the significance of collaborative intelligence in industrial companies?
It must extend beyond corporate boundaries into critical partners in the ecosystem
This integration involves leveraging technology across various functions and partnerships.
True or False: Companies in the digital age should focus solely on competition and not on cooperation.
False
Success now depends on creating alliances and partnerships within ecosystems.
What are two essential practices for making ecosystems deliver today?
- Leveraging partners to complement internal competencies
- Structuring partnerships to maximize profits
This includes managing relationships with various partners in precision agriculture.
What is the focus of adapting ecosystems for tomorrow?
Developing new relationships with companies in soil, seed, fertilizer, and other sectors
This is part of a strategy to enhance fusion solutions.
What are fusion leaders characterized by?
- Acknowledgment of technological and managerial legacies
- Embracing digital technology for transformation
- Understanding the impact of data and algorithms
- Systems thinking and effective communication
These qualities are essential for leading digital transformation.
Fill in the blank: Fusion leadership starts at the _______.
[top]
Effective leadership requires alignment in views regarding digitization across the management team.
What must organizations do to nurture fusion thinking throughout the organization?
Reskill internal talent across all levels and functions
This prepares employees for changes in business processes and culture.
What is the risk of using generic scorecards in transformation efforts?
High probability of failure in transformational efforts
Scorecards must reflect the company’s specific aspirations and resources.
What should metrics focus on to match the battles in fusion strategy?
- Impact on customer productivity and profitability
- Privacy and security of industrial data
- Long-term partnerships contributing to success
Clear metrics help organizations understand their performance and adapt strategies.
How should companies shift their strategy when metrics indicate stress?
By tracking parameters indicating market or rival changes and adjusting focus accordingly
This ensures that strategy evolves with market conditions.
What is the key focus of Deere’s evolution in technology over the last twenty-five years?
Transitioning from products to services, systems, and solutions
This evolution is reflected in the development of a technology stack.
What is the ultimate goal for industrial companies in the context of digital transformation?
To build networks of machines that transmit data for powerful AI algorithms
This aims to unlock significant value from the data collected.
What must CEOs of asset-heavy industrial companies realize about digital transformation?
Now is the time to seize opportunities presented by digital transformation battlegrounds.
List the four battlegrounds of digital transformation for industrial companies.
- Battle of brilliant machines
- Race to deliver remarkable results
- Showdown of smart systems
- Clash of custom solutions
What is essential for business leaders to secure a competitive edge in the fusion landscape?
Develop the capability to recognize signals of attractiveness in battlegrounds and take decisive actions.
In the battle of brilliant machines, what type of architecture is expected to win?
Digital-first architecture.
What should organizations focus on in the race to deliver remarkable results?
Embedding deeply into customer operations and leveraging data and analytics.
How should companies navigate the showdown of smart systems?
Determine their role in interconnected ecosystems and manage dataflows within these systems.
What must organizations equip themselves with in the clash of custom solutions?
The power of Gen AI and deep domain knowledge.
True or False: Data and AI are considered tomorrow’s opportunities.
False.
What is the common theme among CEOs of industrial companies regarding digital disruption?
They recognize the need to become digital-first with more attention to data and AI.
What disagreements exist among CEOs regarding digital transformation?
Timing and speed of resource reallocations.
What does Strategy Next represent compared to Strategy Now?
A fusion approach that is distinctly different from the traditional approach.
Describe the growth dynamics of Strategy Now.
Linear, gradual, within industry boundaries.
Describe the growth dynamics of Strategy Next.
Nonlinear, exponential, across industry boundaries.
What type of competitors does Strategy Next face?
Digital natives with new capabilities focused on products as used.
What is the focus of scale and efficiency in Strategy Now?
Physical assets and production-based scale.
What is the focus of scale and efficiency in Strategy Next?
Information assets and data-based scale.
How does Strategy Now approach customer insights?
Ad hoc surveys and operational improvement.
How does Strategy Next approach customer insights?
Real-time observations and insights on links to customer outcomes.
What type of network effects does Strategy Next leverage?
Data network effects.
What can lead to the fading away of successful companies?
Overinvesting in current strengths and underinvesting in future needs.
What is the essence of the quote attributed to Leonardo da Vinci?
‘Knowing is not enough; we must apply. Being willing is not enough; we must do.’
