PEOPLE & SKILLS
HERE ’ S A BIG wake-up call for you : competing on price is no longer viable . ( Globalisation commoditisation , shrinking product margins and diminishing returns from a product-centric approach took care of that argument ). As we enter the era of the Internet of Things , a new and alternative services sector is evolving , called servitisation – also known as outcome-based services .
It ’ s based on the premise that by integrating services with products , you can create bundles that are of greater value than products alone . As manufacturers move from being purely product providers to becoming service providers as well , it adds value to their products and generates additional revenue . In other words , servicebased outcomes take you out of competing on price alone .
From a consumer perspective , the arrival of IoT means life gets easier and more convenient . From a manufacturing perspective , life will never be the same again . It ’ s disrupting business as usual for product manufacturers globally .
HP is a good example . When my HP printer at home is running low on ink , the printer itself communicates with HP and automatically sends me more cartridges , delivered to my home so I have ink before I need it . In return , I pay a small monthly subscription , ink automatically
20 January 2016