Three global trends are disrupting traditional business models and transforming products and services (see Figure X4-1).
Figure X4-1. Global Business Trends Influencing the Management of Products
- Customer centricity. Customer centricity inverts the traditional model of organizations developing products and pushing them out to customers. Today, organizations are changing to better understand, serve, and maintain customer loyalty (see Figure X4-2). Today’s technology can capture a range of customer data and requirements that organizations analyze and use for potential product enhancements, cross-selling opportunities, new product ideas, etc.
Figure X4-2. The Changing Relationship Between an Organization and Its Customers
- Software-enhanced value. Software and the capabilities it can provide have become key differentiators in a range of products and services today. Thirty years ago, software ran predominantly on dedicated computers. Ten years ago, software was embedded in control systems for vehicles and homes as a result of enhanced wireless and satellite communication systems. Now, even the most mundane appliances run software that adds new capabilities and captures usage data.Most organizations conduct at least some portion of their transactional business electronically through websites and applications. Due to the ongoing need to upgrade and maintain these systems, these services are only truly finished with development when the product or service is retired.
- Ongoing provision and payment. Changes to established economic models are transforming many organizations. Single-transaction services are being replaced with continuous provision and payment. Examples include:
Publishing. Self-publishing, direct distribution, and electronic books that allow ongoing refinement and development after publication.Finance. The shift away from local branches and toward microlending with funding in smaller batches is based on evaluation of value delivered.Start-ups. With the increase in the gig economy and custom markets, there are more start-ups and small businesses today than ever. Work is more distributed, fragmented, and fluid than with traditional models.Media. A move away from buying DVDs and CDs from centralized outlets; instead, a rise in subscription services with ongoing funding and delivery of benefits.
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