Cue trumpets and angels…and after fielding the survey late last year its finally done. You can read my study on the phenomenon of smart products. Rather than sweat out the 700 words on all things smart products I am going to give you my 5 reasons why I think the report really, really matters (I’ve done this so many times for my colleagues around Cognizant, it’s now second nature). So here goes….
Making products smart delivers game-changing innovation, enriched customer experiences and new, across-the board levels of efficiency—and that’s not me: this is the voice of product design, innovation and R&D executives—check it out here www.smartproducteconomy.com. This IS digital disruption writ large. From R&D and manufacturing, through distribution and after-sales support, product data is dramatically changing how products are built, sold and cared for. Don’t believe me? Read the study because the survey reveals that:
- Smart products offer unprecedented customer insight. And I mean unprecedented. The information that surrounds almost every physical thing reveals how a customer uses, or wishes to use, a product. Companies are using that data and applying analytics to identify the meaningful connections and correlations among the different conditions involved in a product’s manufacture, sale and customer experience.
- Product data radically changes how products are built and sold. Product data increasingly underpins finer-grain product personalization and richer customer experiences. Smart products reveal insights for remaking how products are built, priced and sold — directly and through channel partners. We predict an “arms race” as various players compete to win control of the customer.
- Watch out as seismic shifts in revenue impact profitability. The very newness of the smart product opportunity is throwing traditional business models into a state of flux. New subscription based services are feeding perceived uncertainties surrounding revenue and margins, and are setting off waves of analysis-paralysis. A new alchemy is at work as decision-makers believe smart products are important yet are unsure how to unlock value from them.
- Mastery with product data and “sharing” predicate success. Successful smart product strategies require healthy doses of embedded intelligence to capture and share data across a product’s ecosystem, as well as an engrained ability to read customer sentiment and foretell overall market direction. The stakes are very high — a failure to devise a strategy could undermine market relevance over the medium to long term.
- The start of a new smart product economy has begun. We predict the rise of an interconnected smart product economy over the next 3 to 7 years. It’s already emerging, as our research shows. Smart products are enabling tightly interwoven ecosystems and commercial consortia for capturing new opportunities and extending advantage—check out your Connected Car, your Connected Home and who knows, your Connected Life as examples. Companies are already sharing product data and co-investing in smart product development to establish a beachhead and catalyse a business model/ecosystem makeover…forgive the consulting speak but I think it’s so important
Enjoy it and thank you to all those at Cognizant that have helped me bring this study over the line. More to come...