HOW SMART CONNECTED PRODUCTS ARE TRANSFORMING COMPANIES (Transforming the…
HOW SMART CONNECTED PRODUCTS ARE TRANSFORMING COMPANIES
The New Product Capabilities
Physical components (such as mechani- cal and electrical parts)
Smart components (sensors, microprocessors, data storage, controls, software, an embedded operating system, and a digital user inter- face)
Connectivity components (ports, antennae, protocols, and networks that enable communication between the product and the product cloud, which runs on remote servers and contains the product’s external operating system).
The new capabilities of smart, connected products alter every activity in this value chain. At the core of what is reshaping the value chain is data
THE NEW DATA RESOURCE.
Transforming the Value Chain
New user interfaces and augmented reality.
Ongoing quality management
Support for new business models.
Reconfigured assembly processes
Continuous product operations
involve the movement of production inputs and outputs and the delivery of products.
MARKETING AND SALES.
New ways to segment and customize
New customer relationships.
New business models.
A focus on systems, not discrete products.
New compensation models
COLLABORATION BETWEEN IT AND R&D.
A UNIFIED DATA ORGANIZATION.
CUSTOMER SUCCESS MANAGEMENT
SHARED RESPONSIBILITY FOR SECURITY
Making the Transition
CENTER OF EXCELLENCE.
CROSS-BUSINESS-UNIT STEERING COMMITTEE
The Broader Implications
STAND-ALONE BUSINESS UNIT.