Fusion Strategy: How Real-Time Data and AI Will Power the Industrial Future

by Vijay Govindarajan

Two world-renowned experts of innovation and digital strategy explore how real-time data and AI will radically transform physical products—and the companies that make them. Tech giants like Facebook, Amazon, and Google can collect real-time data from billions of users. For companies that design and manufacture physical products, that type of fluid, data-rich information used to be a pipe dream. Now, with the rise of cheap and powerful sensors, computing power, and artificial intelligence, things are changing— fast . In Fusion Strategy , world-renowned innovation guru Vijay Govindarajan and digital strategy expert Venkat Venkataraman offer a first-of-a-kind playbook that will help companies combine what they do best—create physical products—with what digitals do best—use algorithms and artificial intelligence to parse ginormous, interconnected datasets—to make strategic connections that would otherwise be impossible. The laws of competitive advantage are changing, rewarding those who have the most robust real-time insights rather than the most valuable assets. To compete in the new digital age, companies need to use real-time data to turbocharge their products, strategies, and customer relationships. Or else they'll fall on the wrong side of the next great digital divide. Fusion Strategy is the way forward.

Genres: Artificial Intelligence, Business, Nonfiction, Economics

224 pages, Hardcover

Published March 12, 2024

About the author

Vijay Govinadrajan is the Earl C. Daum 1924 Professor of International Business at the Tuck School at Dartmouth's Center for Global Leadership.

Reviews

[Frank Calberg · Rating 4 out of 5]

Takeaways from reading the book:

Contributions by users:
Page 13: People, who are driving Tesla cars, are training the neural network all the time.

Algorithms and personal recommendations:
- Page 21: Of the more than 10,000 products that Amazons sells every minute, half of the sales are based on personalized recommendations. When you visit the site, algorithms narrow down the more than 350 million products to predict what you may want at that precise moment.
- Page 33: Business algorithms help develop 4 kinds of analyses and link them together. 1. Descriptive analysis: What happened? 2. Diagnostic analysis: Why did it happen? 3. Predictive analysis: What could happen? 4. Prescriptive analytics: What should happen?

Other research from the book:
- Page 15: Nvidia's platform allows automakers to evaluate how autonomous vehicles perform on the road by creating simulations of highways or urban streets to test the vehicle's perception systems, decision-making capabilities, and control logic.
- Page 16: Every industrial product will become digital.
- Page 17: Strategy has long been firm centric. Fusion strategies are network-centric. Fusion strategy balances owning assets with the use of digital ecosystems that cut across industry boundaries. Data is continually flowing across different machines.

To be updated.

[Hanna Hagström · Rating 3 out of 5]

Ihan hyvä kirja. Tiivistelmä datan liiketoimintahyödyistä erityisesti ”asset heveillä” toimialoilla, eli ei-diginatiivien firmoille suunnattu kirja. Kaikki kulmat pöllytetään: Digital twin, dataketjut, lukuisat koneoppimisratkaisut, tuotannon data-hyödyntäminen, kustomointi, asiakaskeskeisyys jne. Ainut missä oikeastaa ontuu, on höveli jalkautus: aloita pienellä, aloita asiakkailla, jotka innostuu. Toinen haaste on systeemien lähestymistapa: kirjassa suositellaan, että muutos pitää saada aikaiseksi systeemitasolla, ei esim tuotetasolla. Kyllä, juuri näin, mutta kun miettii tämän päivän liiketoimintamalleja, riippuvuuksia ja tuotantoa, niin puhutaan aika hillittömästä investoinnista. Silti, kyllähän tämän kaltainen muutos tulee, saa nähdä mitkä on ne aihealueet, mitkä oikeasti skaalaavat.

[Long · Rating 4 out of 5]

A forward-thinking book. That said, I would be interested if more traditional, resource-intensive industries are discussed. The car industry, unfortunately, has been computerized and digitized for a long time and no longer makes a good example.

[Abhishek Shukla · Rating 5 out of 5]

Excellent in-depth explanation of the concept - Fusion Strategy. Gathering data insight from the Machine is just the beginning, building an eco system and use it to effectively marry digital assets with the heavy machinery is still some evolving and a lot to be done in this space.

[Debbie · Rating 3 out of 5]

Interesting focus on AI and leveraging into your business. Contained some interesting perspectives. Thank you to #netgalley and the publisher for an advance copy

[Simon Janssen · Rating 5 out of 5]

an absolute must-read for anyone interested in the cutting-edge intersection of AI, datagraphs, and industrial innovation. This book stands out in a sea of AI literature by not just highlighting the benefits of Gen AI but by providing a concrete game plan tailored for heavy industries, where there is immense potential for transformation and efficiency gains.

As someone deeply interested in digital transformation, I found the insights in this book to be incredibly unique and actionable. The use of real-time data, digital twins, and advanced analytics to drive innovation and operational excellence is brilliantly articulated. Venkat's detailed case studies on companies like Rolls-Royce and Tesla showcase practical applications of these concepts, making the theoretical tangible.

The book doesn't just skim the surface but dives deep into the essential aspects of leveraging ecosystems, designing fusion products from the ground up, and the critical steps for successful implementation. The emphasis on a holistic approach to data—from collection to actionable insights—resonates with my own experiences and aspirations in the field.

Reading this book while enjoying my vacation in sunny Spain added a delightful dimension to my downtime. It was not just informative but also inspiring, offering a clear vision of how industries can evolve and thrive in the digital age.

Venkat Venkatraman and Vijay Govindarajan has crafted a masterful guide that is not only relevant to heavy industries but also offers lessons applicable across various sectors, including healthcare and finance. If you're looking for a book that combines deep insight with practical guidance, Fusion Strategy is the one to read.

Highly recommended for its originality, depth, and practical value.

[Rachel Sickler · Rating 1 out of 5]

Not for the technical crowd. This is written for out of touch executives, not people doing implementation. This was too surface level to even give to a somewhat tech savvy executive to get them on the same page. Seems like a lot of filler stuff and repeated information. Maybe they have a page quota to meet…

[Sunil Choudhary · Rating 1 out of 5]

Nothing new. Waste of resources.
Reads like a mgmt text book from pre Covid days
One word - "Avoid. "

[Chris Astall · Rating 2 out of 5]

The first chapter is good and provides good for thought. The test rambles on covering only two real company examples:Tesla and Deere.

[Jaume Sués Caula · Rating 3 out of 5]

Generalist reading for those business executives of the automotive and industrial sectors willing to get a first view on how the new tech will influence their business model.