How smart connected products are transforming competition Flashcards
1
Q
What are three core elements in smart, connected products?
A
- Physical component
- Smart component
- Connectivity component
2
Q
What are four product functions of connected products?
A
- Monitoring
- Control
- Optimization
- Autonomy
3
Q
What is the impact of connected products on porter’s five forces?
A
Bargaining power of buyers: Reduced
Bargaining power of supplier: Reduced for traditional suppliers, increased for modern
Rivalry among competitors: Increased, as products become part of broader product systems
Threat of new entrants: Reduced through network effects, but increased through lower cost of developing tech
Threat of substitutes: Increased
4
Q
What are three effects of connected products on industries?
A
- Rising barriers to entry suggest industry may be subject to consolidation
- Consolidation is amplified in industries whose boundaries are expanding
- New entrants are likely to emerge
5
Q
What are five important practices surrounding connected products?
A
- Design
- After-sale services
- Marketing
- Human resources
- Security
6
Q
What are the ten strategic choices companies face in a connected world?
A
- Which set of connected product capabilities and features would the company pursue?
- How much functionality should be embedded in the product and how much in the cloud?
- Should the company pursue an open or close system?
- Should the company develop the full set of connected product capabilities and infrastructure internally or outsource to vendors and partners?
- What data must the company capture, secure and analyze to maximize the value it is offering?
- How does the company manage ownership and access rights to its products?
- Should the company full or partially disinter mediate distribution channels or service networks?
- Should the company change its business model?
- Should the company enter new business by monetizing its product data through selling to outside parties?
- Should the company expand its scope?
