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Until recently most incumbent industrial companies didn't use highly advanced software in their products. But now the sector's leaders have begun applying generative AI and machine learning to all kinds of data-including text, 3D images, video, and sound-to create complex, innovative designs and solve customer problems with unprecedented speed. Success involves much more than installing computers in products, however. It requires fusion strategies, which join what manufacturers do best-creating physical products-with what digital firms do best: mining giant data sets for critical insights. There are four kinds of fusion strategies: Fusion products, like smart glass, are designed from scratch to collect and leverage information on product use in real time. Fusion services, like Rolls-Royce's service for increasing the fuel efficiency of aircraft, deliver immediate customized recommendations from AI. Fusion systems, like Honeywell's for building management, integrate machines from multiple suppliers in ways that enhance them all. And fusion solutions, such as Deere's for increasing yields for farmers, combine products, services, and systems with partner companies' innovations in ways that greatly improve customers' performance.