IT & Marketing

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IT driven competition

First wave 1960-1970Automation individual activities, computer aided design,manufacturing resource planning

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Second wave 1980-1990The rise of internet, coordination and integration acrossIndividual activies

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Third wave Smart, connected products

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Smart, connected products

• Physical components

• Smart componentssensors, microprocessors, data storage, control, software

• Connectivity components• One-to-one

• One-to-many

• Many-to-many

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The New Technology Stack

• Identity and security

• Product cloud

• Connectivity

• Product

• External information sources

• Integration

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Smart, connected products capability

• Monitoring

• Control

• Optimization

• Autonomy

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Reshaping Industry Structure

• Bargaining power of buyers

• Rivalry among competitors

• Threat of new entrants

• Threat of substitutes

• Bargaining power of suppliers

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Redefining Industry Boundaries

1. Product systems

2. Systems of systems

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Competitive Advantage

From operational effectiveness to new set of best practices

• Design

• After-sale service

• Marketing

• Human resources

• Security

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Implications for Strategy

• Which set of smart, connected product capabilities and features should the company pursue?

• How much functionality should be embedded in the product and how much in the cloud?

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Implications for Strategy

• Should the company pursue an open or closed system?

• Should the company develop the full set of smart, connected product capabilities and infrastructure internally or outsource to vendors and partners?

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Implications for Strategy

• What data must the company capture, secure, and analyze to maximize the value of its offering?

• How does the company manage ownership and access rights to its product data?

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Implications for Strategy

• Should the company fully or partially disintermediate distribution channels or service networks?

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THANK YOU