What are Smart Products?
The first age of Smart Connected Products, which included software-defined functions and basic wireless connectivity, like activity trackers or first smart meters, have already been launched many years ago. Smart Products’ benefits offer nowadays more than enhanced functionality, as they provide the option to connect with closely observed customers and turn these customer insights in new business models.
As the first integrations of hardware and software were sometimes successful many such projects failed. Those responsible for Smart Product projects worldwide are dealing now with similar problems, but at a larger scale as more disciplines like cyber security and service design need to be considered as well.
And why do they matter?
When taking a closer look at the impact that Smart Products have on business, we first see the benefits in operational efficiency. However, the impact of Smart Products reaches beyond improved operational efficiency and can help companies in redefining its strategic positioning in the market by leveraging cross- and up-sell potentials, moving to new business models like subscriptions and pay-per-use.
Thanks to these advantages, Smart Products are becoming the new normal in many areas, including connected cars, connected assets, healthcare, insurance and an increasing number of digital consumer gadgets.
- Human Centred Design
- Business Model Design