As business models continue to shift from the traditional “make, sell, ship” mindset to ones that focus on delivering customer outcomes, the industrial equipment industry is finding it more difficult to grow profitably. In response, equipment manufacturers are beginning to employ the use of smart, connected products to collect data from equipment installed at a customer site to gain insight into unique customer needs. In this short paper, “The Impact of Smart, Connected Products on Business Models,” I discuss how these new technologies are turning traditional business models upside down, while also sharing the benefits and some cautions surrounding smart, connected products.
Companies like Uber and Lyft® have no interest in selling cars. Their whole objective is to meet your outcome, which is to get you from Point A to Point B. Meanwhile, automakers are trying to figure out how to sell more cars in the age of IoT and Big Data. Each time someone downloads a ride share app, it’s hurting car sales.
More Resources About the Internet of Things, Big Data, and Smart, Connected Products
The age of IoT is having a dramatic impact on industrial equipment manufacturers, healthcare, and any company that has hardware installed on a customer site. In addition to this paper, here are some additional free TSIA resources on this topic that you can use to aid in your own company’s transition to these new business models.
- [Infographic] How the Internet of Things is Impacting Hardware Manufacturers
- [Blog] How to Achieve Business Model Innovation with IoT
- [Blog] How to Monetize Services with IoT
- [Blog] 7 Must-See Resources About Healthcare Technology
- [White Paper] The Executive’s Guide to Digital Transformation and Monetizing IoT
- [Ebook] Why Services is the Big IoT Opportunity for Hardware Manufacturers
Using data-based facts, TSIA helps hundreds of hardware, software, and cloud companies understand all aspects of the impacts of changing business models and make informed decisions during their own transformation. Reach out to us today to learn how you can participate in our community of hundreds of leading global IT, industrial, and medical device companies who are currently benefitting from our expertise and accelerating their paths to success.
About the Author
Vele Galovski is vice president of research, Field Services, for TSIA. Using his nearly 30 years of industry experience, he has consistently helped companies both large and small drive double-digit top-line growth with a proven retain, gain, and grow strategy. Vele has also written a book, The Perpetual Innovation Machine, which describes a holistic approach to management based on ambitious goal setting, data driven analysis, skillful prioritization, inspiring leadership, and the lost art of employee engagement. He may be contacted at firstname.lastname@example.org