The advent of digital ecosystems (smart cities, smart transportation networks, smart homes and factories) will shift us from a product centered economy to one where services and outcomes are front and center. Interesting discussion of how this is impacting cultural norms…and the Millennials taking us from a “buy big things” to a “lease them” consumer shift along with the sharing economy trend. Innovative companies are now realizing that every industry will be impacted by digital and if they are smart, they will embrace ways of reengineering their business models, products and services to putting desired consumer outcomes at the center of their strategizing (before their competitors do).
Great examples of how a knee replacement supplier has started to add value to physician’s (customer) experience by providing them better data re patient response to surgery via sensors on the knee replacement device and associated positive health outcomes. Enhanced diagnostic tools to make their diagnoses better, more efficient. Better imaging tools. Better surgical tools. And rehab recommendations. All enhanced via digital innovation across the customer and patient journey.
Our vibrant discussion asked great questions:
– But hasn’t marketing always put the customer first? What’s different now?
– How do you get something this revolutionary started in a bigger, less nimble operating company? How do you get it to take hold internally across the organization?
– What about profitability? What if investment in innovation (moving toward services) means you are less profitable (versus under the product-centric business model)?
– To think this way requires a leap not an incremental creep forward.
– The shift to digital ecosystems will have spillover impacts and we will have to answer some of these unanticipated new challenges (to privacy, security, incremental public-good costs etc.)
– Jobs (see event guest Kevin McGourty’s The Jobs To Be Done article) will need to be redefined around customer outcomes vs. functional drivers … and changing their orientation will offer up new sub-product opportunities as companies find they can create value for their customers in new ways.
As always, slides and video link for this MENG event will be made available to all event participants via email and posted on the national MENG site (Members: please login to Mengonline.com).
WOW. Can’t wait for our follow-up discussion with Mike online on February 12th!