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Smart and Connected Devices

This document discusses how smart, connected products are transforming competition through the third wave of IT-driven change. Smart connected products contain sensors and connectivity that allow for data exchange and analysis, unlocking new value. This enables functions like monitoring, control, optimization, and autonomy. It is reshaping industry structure with new units focused on data management, ongoing product development, and customer success. Companies must determine how to develop and leverage smart product capabilities and data to gain competitive advantages and protect their market position. Strategic questions include how to develop and monetize functionality, data, and potentially new business models.

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Zenish Khumujam
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59 views10 pages

Smart and Connected Devices

This document discusses how smart, connected products are transforming competition through the third wave of IT-driven change. Smart connected products contain sensors and connectivity that allow for data exchange and analysis, unlocking new value. This enables functions like monitoring, control, optimization, and autonomy. It is reshaping industry structure with new units focused on data management, ongoing product development, and customer success. Companies must determine how to develop and leverage smart product capabilities and data to gain competitive advantages and protect their market position. Strategic questions include how to develop and monetize functionality, data, and potentially new business models.

Uploaded by

Zenish Khumujam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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How Smart, Connected Products Are

Transforming Competition
Group 1
Akkudalai Priyanka PGP11140​
Jenish Singh PGP11027​
Radhika Aggarwal PGP11238​
Shivanand Shah PGP10171​
Shilpi Anand PGP11055​
Shruti Mishra PGP11257​
Shwet Oberoi PGP11188​
● The rise of internet was responsible for the
introduction of second wave of IT transformation
The third wave of IT ● This enabled coordination and integration across
driven competition ●
individual activities
It allowed firms,to closely integrate globally
distributed supply chains.
● In the third wave, IT is becoming an integral part
of product itself
● Embedded sensors, processors, software, and
connectivity in products (in effect, computers are
being put inside products), coupled with a
product cloud in which product data is stored
and analyzed
● Massive amounts of new product usage data
enable many of those improvements
● The third wave of IT-driven transformation thus
has the potential to be the biggest yet, triggering
even more innovation, productivity gains, and
economic growth than the previous two 2
What are smart connected products?

● Smart connected products are physical products that contain smart


components (i.e. sensors) and connectivity components (i.e. antennae).
They allow data to be exchanged and analyzed, which unlocks new value
for manufacturers and end users
● They require a whole new supporting technology infrastructure
● Products can learn, adapt to the environment and to user preferences,
service themselves,and operate on their own

3
What can Smart, Connected products can do?

● Monitoring
○ Comprehensive monitoring of products through sensors and external data sources
○ Use data as a product to alert users and others
○ Track products operating characteristics and history
○ Revelation of monetary compliance issues
○ Core element of value creation in cases such as medical devices
○ Spanning of multiple products across distances
● Control
○ Products can be controlled through remote commands or algorithms build into the
software or reside in the product cloud
○ Allows customization of product’s performance
○ Control and personalize user’s interactions with the product
CONT...
4
What can Smart, Connected products can do?
● Optimization
○ The products can apply algorithms and analytics to in-use and historical data to improve
output, utilization, and efficiency
○ Enables firms to optimize service by performing preventative maintenance
○ Reduces product’s downtime and the need to dispatch repair personnel
○ Advance information on the issues related to the product
● Autonomy
○ Combination of monitoring, control, and optimization allows to achieve a previously
unattainable level of autonomy
○ Autonomous product operation is at the simplest level
○ More sophisticated products are able to learn about their environment, self-diagnose their own
service needs, and adapt to users’ preference
○ Reduces the need for operators, improve safety, and facilitate operations in remote areas
○ Can coordinate with other products and systems 5
Reshaping Industry Structure

● A new functional unit focused on Data management starting to appear


● Units focused on ongoing product development and customer success are also beginning
to be recognized
● Unified Data organization for handling enterprise wide data aggregation and analytics
● Dev-ops mixed teams from R&D, IT, Manufacturing and services for product updates,
postsale services and enhancements
● Customer success management which takes charge of the ongoing customer relationship
and ensures that customers gain maximum value from the product
● Unified data was a separate department while dev-ops while CSM works taking people from
marketing ,sales and service & Support

6
How to protect competitive edge in a changing
industry?
Competitive advantage Operational Efficiency as a hygiene factor- adopting
best practices, updated tech & equipment, new-age
approaches for business processes, etc.

Smart products are driving changes in ● Design- standardisation for inter-connectivity,


industries with systems of systems expertise in systems engineering & agile
software development
● Leads to increased barriers to
● After Sales- predictive maintenance, service
entry and drives consolidation in
productivity, product design insights
the industry ● Marketing- better customer insights and
● Single-product companies will changed relationships, hyper-personalisation
find it hard to compete with multi for different segments
product companies ● Human Resources- need to recruit new skill
● “Productless” strategies by new sets like products cloud, big data analytics,
entrants may pose threats etc.
● Security- Data security of utmost priority,
requires authentication, secure storage, etc.
7
Which set of smart, connected product capabilities
Implications for strategy ●
and features should 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 closed
system?
● Should the company develop the full set of smart,
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 of its offering?
● How does the company manage ownership and
access rights to its product data?
● Should the company fully or partially
disintermediate distribution channels or service
networks?

8
Should the company change its business
Implications for strategy ●
model?
● Should the company enter new businesses by
monetizing its product data through selling it to
outside parties?
● Should the company expand its scope?

9
Thank You!

10

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