Product is Dead. Long Live the Connected Product
In the recent years we have seen words like disruption and digital transformation entering the royal courts of consumer brands, followed recently by customer experience. But still for many product is king. The business and operating models are built around that mind-set, and are often not supporting the customer centricity, we do not dare to miss out on, but often struggle with handling.
While disruption, digital transformation and customer experience are shaking things up, product can very well stay with royalty — it will just have to change. So what will be different in 2017 and going forward?
The Internet of Things (IoT) and Platform Thinking.
While IoT and platform thinking are not new, I believe 2017 will be a break-through year. The terms have been part of the technology sector for quite some while, but in the coming years both IoT and platform thinking will enter more traditional industries.
IoT changes the product. Key is customer involvement and network effects. The customer becomes the co-creator and part of a community, platform and eco-system. Gone is the product supremacy, now it only plays a part in an overall customer experience, leveraging the intelligence of other connected products, platforms and people. Think of Google Maps and its integration with public transportation, user traffic reporting, Uber, restaurants, etc.
For a customer experience beyond the product itself, the experience has to be human, relevant, fast and personalized. That is exactly what IoT and platform thinking allows.
Fuelled by data analytics companies can identify what is relevant to their customers, personalize the products based on customer behaviour and real-time needs, and allowing users to fully customize their experiences. Over-the-air updates of products enable fast and on-demand access to features and services.
Companies will have to move from standalone product thinking, to connected product thinking. A company cannot stay in vacuum, but opens up through API’s, partnerships and collaborations. The brand becomes a platform and part of a greater eco-system of experiences, collaborating around a shared purpose. That is the real customer experience.
The platform is the new business model, driving unseen growth opportunities in a rapid expanding digital economy. Companies will have to learn the new rules of strategy for a connected product and platform world. The writing is on the wall.
