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‘ smart ’ device that commands a premium because of the value the embedded software provides .
Another executive once told me that their ‘ land and expand ’ market strategy was to sell a low-end device that more easily allows market penetration , and then increase the revenue from that device over time by selling advanced features and capacity that can be deployed simply by issuing an electronic license key that enables those functions .
A similar strategy is also used routers or security appliances are replaced by pure software deployed as ‘ virtual machines ’ that run on commercial blade servers .
Understanding digital waste Companies that are built to deploy physical goods have more trouble trying to effectively monetise their software or digital goods that one might think . Part of that is due to how they approach managing the ongoing software lifecycle .
‘ Eliminating digital waste can drive up revenue and increase overall product margins ’
by companies that sell using a bid process to academic and government institutions . Once they win the highly competitive and costly bid , they can more easily expand capabilities without going through the bid process again . They are able to sell more capabilities and capacity through software enablement expansion ( again using electronic license keys ) that only they can provide .
Again , going back to the networking and telecommunications markets , entire hardware offerings such as
When a company manufactures physical goods , it ’ s easy to identify defective material that becomes waste and a drag on the bottom line . On the manufacturing floor , you will find containers with defective components , sub-assemblies and final assemblies . Some can be repaired , while other waste may need to be discarded . Material that is defective in the field may be returned via a return material authorisation ( RMA ) process . In these cases , the waste is characterised , a cost is assigned , root causes for
22 February 2016